Market Trends of On-Site Photovoltaic Solar Power for Data Centers Industry
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.
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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
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