On-site Photovoltaic Solar Power for Data Centers Market Size
| Study Period | 2019-2027 |
| Base Year For Estimation | 2021 |
| CAGR | > 17.00 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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On-site Photovoltaic Solar Power for Data Centers Market Analysis
The on-site photovoltaic solar power for data centers market is expected to grow at a CAGR of more than 17% during the forecast period.
The market was negatively impacted by COVID-19 in 2020. Presently the market has now reached pre-pandemic levels.
- Over the medium term, the decreasing solar power installation costs and growing focus on implementing sustainable business practices, such as having an independent and renewable power source for data centers, are expected to drive the market.
- On the other hand, the lack of space for small data centers to install solar panels is expected to hinder market growth during the forecast period.
- Nevertheless, the large-scale commercialization of building-integrated photovoltaic technology into small data centers is expected to be a significant opportunity for the sector beyond the forecast period.
- North America dominates the market and will likely witness the highest CAGR during the forecast period. This growth is attributed to the increasing investments, coupled with supportive government policies for installing solar PV systems to power data centers in this region, including the United States of America (USA) and Canada.
On-site Photovoltaic Solar Power for Data Centers Market Trends
This section covers the major market trends shaping the On-site Photovoltaic Solar Power for Data Centers Market according to our research experts:
Decrease in Solar Power Installation Cost is Likely to Drive the Market
- Data centers are defined as a part of a building, a building itself, or a cluster of buildings dedicated to housing computer systems, storage systems, telecommunication systems, and all other associated components. An uninterrupted power supply with backup power is the utmost importance in data centers for data capturing.
- A typical data center consumes power between a few kilowatts to several tens of megawatts. High dependency on the power supply is one of the high operating costs of the data center.
- Several data centers are opting for onsite renewable power sources like solar photovoltaic to reduce operating costs and have a less environmental impact. With a decrease in solar power installation cost from USD 4808/kW in 2010 to nearly USD 857/kW in 2021 and global weighted average solar PV cost from USD 0.417/kWh in 2010 to almost USD 0.048/kWh in 2021, several entities have started adopting it.
- Moreover, Microsoft is planning to run 100% of its data center by renewable energy by the end of 2025. Thus, with a decrease in installation cost, onsite solar photovoltaic facilities are expected to grow over the years.
- Hence, deceresing solar power installation costs are expected to aid the growth of the on-site photovoltaic solar power for data centers market during the forecast period.
North America to Dominate the Market
- North America is one of the largest software and information technology markets globally, and according to Cloudscene, as of January 2022, the United States was the largest data centre market in the world, housing nearly 2701 data centres, accounting for 42.6% of the total number of datacentres operating globally. Additionally, Canada (328) and Mexico (153) also held signficant shares in the global datacentre markets, with these 3 countries cumulatively accounting for more than 50% of the total number of data centres globally.
- Emerson data center in Missouri is one of the key data centers in the United States that is using solar photovoltaic technology on its campus to power its data center. The center has a 100-kilowatt solar panel facility, that was installed at the cost of around USD 50 million. Aiso.net in California, i/o Data Centers in Arizona are few other data centers that are facilitated with onsite photovoltaic solar power facilities.
- In October 2022, Invinity Energy Systems sold a 1.3 MWh system to Kinetic Solution for a microgrid project serving a data centre in Arizona. The company bagged the order for six of its VS3 batteries which will be installed alongside a 400kWp solar PV array at the data centre in the state bordering California and Mexico.
- Similarly in February 2022, Energy Field Security (EFS) has announced a plan to construct an Edge Micro Data Center on a 7-acre site located in Delta, Colorado, and th facility will be powered by a microgrid with on-site solar panels, battery storage, auxiliary power and small vertical wind turbines.
- Hence, due to rising focus on increasing project and business sustainability by using renewable energy to power the energy needs of datacentres, the market is expected to
On-site Photovoltaic Solar Power for Data Centers Industry Overview
The on-site photovoltaic solar power for data centers market is consolidated. The key players in the market, in no particular order, include Amazon.com Inc, Alphabet Inc, Microsoft Corporation, Alibaba Group Holding Ltd, Facebook Inc, Dell Technologies Inc, and Affordable Internet Services Online Inc among others.
On-site Photovoltaic Solar Power for Data Centers Market Leaders
Amazon.com Inc
Alphabet Inc.
Microsoft Corporation
Alibaba Group Holding Ltd
Facebook Inc.
*Disclaimer: Major Players sorted in no particular order
On-site Photovoltaic Solar Power for Data Centers Market News
- In October 2022, Orange installed solar panels at two of its data center sites in Poland, one of them at the Data Processing Center in Łódź with a capacity of 370 kWp, which will cover approximately 2% of the annual energy demand of the entire facility. The company acquired the solar panels via a lease model, signing a 20-year deal with Green Mobile Polska. Similarly, the company had also signed a contract in August 2022 for the installation of solar panels on the roof of the Warsaw Data Hub in Łazy with a capacity of 331 kWp, acquired on a 20-year lease, though from Columbus Energy SA.
- In August 2022, African telco Paratus launched a new data center called Armada outside Namibia’s capital city, Windhoek. The facility is the company’s first facility in the country and the largest in the country. The campus is built to Tier III standards, backed up by generators to deliver up to 2MVA, and has on-site solar panels.
On-site Photovoltaic Solar Power for Data Centers Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in MW, till 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitute Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Geography
5.1.1 North America
5.1.2 Europe
5.1.3 Asia-Pacific
5.1.4 South America
5.1.5 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Amazon.com, Inc.
6.3.2 Alphabet Inc
6.3.3 Microsoft Corporation
6.3.4 Alibaba Group Holding Ltd
6.3.5 Facebook Inc
6.3.6 Dell Technologies Inc
6.3.7 Affordable Internet Services Online Inc
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
On-site Photovoltaic Solar Power for Data Centers Industry Segmentation
On-site solar photovoltaics for datacentres are photovoltaic systems installed in data centers to provide clean, renewable energy to power a data center's extensive energy requirements, thereby reducing the environmental footprint of the data center while reducing its dependence on electricity supplied from the gird. The on-site photovoltaic solar power for data centers market is segmented by geography. The report also covers the market size and forecasts for the on-site photovoltaic solar power for data centers market across major regions. For each segment, the installed capacity and forecasts have been done based on megawatts (MW).
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| South America | |
| Middle-East and Africa |
On-site Photovoltaic Solar Power for Data Centers Market Research FAQs
What is the current On-Site Photovoltaic Solar Power for Data Centers Market size?
The On-Site Photovoltaic Solar Power for Data Centers Market is projected to register a CAGR of greater than 17% during the forecast period (2023-2027).
Who are the key players in On-Site Photovoltaic Solar Power for Data Centers Market?
Amazon.com Inc, Alphabet Inc., Microsoft Corporation, Alibaba Group Holding Ltd and Facebook Inc. are the major companies operating in the On-Site Photovoltaic Solar Power for Data Centers Market.
Which is the fastest growing region in On-Site Photovoltaic Solar Power for Data Centers Market?
North America is estimated to grow at the highest CAGR over the forecast period (2023-2027).
Which region has the biggest share in On-Site Photovoltaic Solar Power for Data Centers Market?
In 2023, the North America accounts for the largest market share in the On-Site Photovoltaic Solar Power for Data Centers Market.
On-Site Photovoltaic Solar Power for Data Centers Industry Report
Statistics for the 2023 On-Site Photovoltaic Solar Power for Data Centers market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. On-Site Photovoltaic Solar Power for Data Centers analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
