The Global Data Center Generator Market is Expected to Reach Revenues of $6.46 Billion by 2028

DUBLIN, Aug. 23, 2023 /PRNewswire/ — The “Data Center Generator Market Size & Share Analysis – Growth Trends & Forecasts (2023 – 2028)” report has been added to’s offering.


The global Data Center Generator Market is on the brink of a substantial growth trajectory, with forecasts projecting a remarkable increase from USD 4.98 billion in 2023 to an estimated USD 6.46 billion by 2028. This surge is attributed to the escalating demand for dependable and uninterrupted power supply within data centers, which play a pivotal role across diverse industries and services.

Key Market Insights

Data centers serve as the backbone of seamless operations for a myriad of businesses and services. Any disruption in power supply could translate into substantial operational losses. A notable shift is being witnessed in the market towards the adoption of natural gas generators, driven by advancements in generator technology. These generators, fueled by natural gas, not only provide a cost-effective solution but also present an environmentally friendly alternative to conventional diesel generators. Moreover, the emergence of renewable natural gas is further propelling the demand for gas generators due to its low-emission attributes.

However, the popularity of diesel generators remains steadfast, particularly as a reliable backup power source for data centers. Diesel generators are prized for their capacity to ensure uninterrupted power supply for an extended duration, a necessity in emergency power supply systems (EPSS). The expansion of data center production by colocation service providers is a driving force behind the heightened demand for backup power solutions, including generators.

Market Trends

A significant trend prevailing in the Data Center Generator Market is the dominance of diesel generators as the preferred backup power option for data centers. Their well-established maintenance track record and robust load acceptance capability make them a top choice. Notably, diesel generators find an optimal fit in Tier 4 data centers, catering to large enterprises with mission-critical servers necessitating continuous operation.

The Asia-Pacific region is emerging as a hotspot for market growth in the Data Center Generator segment. The region is witnessing substantial investments by both global and regional facility operators, in tandem with the increasing adoption of cloud services. Industry giants like AWS, Google, and Microsoft are channeling significant investments into the region, thereby catalyzing the expansion of data center infrastructure.

Challenges and Restraints

While the market outlook remains promising, certain challenges and restraints warrant consideration. The mounting cost of power stands as a potential hurdle. Additionally, the trend of fuel cells gaining traction as power backup solutions could potentially impact the demand for traditional generators due to their lower operational costs. The future prospects of diesel-based backup power sources might encounter constraints owing to usage restrictions, stringent taxation policies, emissions targets, and air quality regulations. These factors could potentially hinder the growth trajectory of the market.

The paradigm shift towards the significance of data centers and cloud computing brought about by the COVID-19 pandemic has intensified the adoption of online services by businesses. This amplified reliance on data centers has underscored the criticality of continuous power supply, thereby fueling the demand for data center generators.

Industry Landscape

The Data Center Generator Market is characterized by a handful of major players, contributing to a consolidated market landscape. Leading companies in this domain include Caterpillar Inc., Cummins Inc., Generac Holdings Inc., and Hitec Power Protection BV. These industry frontrunners are actively focused on driving technological advancements, incorporating features such as intelligent digital controls and fuel-efficient technologies, to augment product offerings and fortify their market share.

Market Dynamics

Market Drivers

  • Increasing Construction of Data Centers by Colocation Service Providers
  • Growing Construction of Hyperscale Data Centers

Market Restraints

  • Growing Carbon Emissions from Data Center

Key Companies

A selection of prominent companies mentioned in this report includes:

  • Caterpillar Inc.
  • Atlas Copco
  • Cummins Inc.
  • Hitec Power Protection
  • Himoinsa SL
  • KOHLER Group
  • Mitsubishi Motor Corporation
  • Generac Power Systems Inc.
  • Rolls Royce Power Systems AG
  • Piller

As the global Data Center Generator Market gears up for remarkable growth, these market dynamics and industry players will play pivotal roles in shaping its trajectory.

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SOURCE Research and Markets

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