22, August 2023
According to the United States International Trade Commission, the global count of physical data centers reached approximately 8,000 by 2021. This growth aligns with the continuous technological strides and expansion of services within data centers. The surge in IT investments reflects the drive to streamline operations and bolster data storage capabilities. Concurrently, the escalating demand for electricity, coupled with strategically supportive policies aimed at fortifying existing grid infrastructures, has contributed to the sustained expansion of the data center distribution transformer market.
Based on the global scenario, the market for data center distribution transformer was valued at $6766.22 million in 2022 and is expected to reach $10797.49 million by 2030, progressing at a CAGR of 6.16% during the forecast period 2023-2030.
Using single-phase distribution transformers for data centers is a strategic move that meets the evolving needs of modern data centers. These transformers are central to data center power distribution because they efficiently convert and distribute electrical power.
Manufacturers specializing in single-phase transformers have responded to the needs of the data center by developing innovative solutions. Companies such as Schneider Electric SE, Eaton Corporation Plc, Hitachi ABB Power Grids, and Siemens AG are known for their expertise in manufacturing high-quality single-phase transformers for data centers. By integrating these transformers, data centers can optimize their power systems, improve energy efficiency, and ensure a reliable power supply for critical IT equipment.
With rising energy demands and swift tech progress, ultra-large-capacity three-phase transformers are now pivotal, reshaping power distribution. Established leaders such as Siemens AG, ABB Ltd, etc., recognized the need for high-voltage, high-power transformers to expand power transmission grids. Data center distribution transformer manufacturers have made significant strides in innovating materials, design, and digital control systems to meet demand. ABB has implemented advanced cooling techniques using innovative materials such as liquid silicone rubber (LSR) insulation. These advances have improved transformers’ efficiency, reliability, and performance in modern power systems.
As Triton’s analysis indicates, the data center distribution transformer market by three-phase is expected to advance at the fastest CAGR of 6.22% over the projected years 2023-2030.
One of the key trends revolutionizing data center power distribution is the integration of renewable energy sources. Solar, wind, and hydropower offer important solutions to environmental problems associated with fossil fuels.
Data centers consume a lot of energy and contribute significantly to global electricity consumption. Recent statistics underscore the rapid adoption of renewable energy in data centers. According to a report from the Solar Energy Industries Association (SEIA), the installation of solar panels on data center rooftops has increased by 10% in the past year alone. Tech giants like Google and Microsoft have committed to powering their data centers with 100% renewable energy, highlighting the sector’s push toward sustainability.
Integrating renewable energy sources has profound implications for various aspects of data center design and requires reevaluating transformer phase configurations. Because renewable energy sources bring irregular power generation, transformer phase configurations must be carefully considered. This is critical for a seamless and reliable power supply that harmonizes with the variable output of renewable energy sources.
Companies that power their data centers with renewable energy have been able to reduce their operating costs by about 40%, according to a report by Forbes. This burgeoning trend is not just changing business management but also shaping the landscape of renewable energy Power Purchase Agreements (PPA), in which the data center sector is actively involved. Notable examples include Amazon and Microsoft, which signed renewable power contracts in 2021 PPA.
The rise of renewable energy is reshaping the distribution transformer market dynamics in the North American region. The regional market claims a dominant share of over 40% due to increased reliance on renewables in power generation. Demand for energy-efficient infrastructure drives the North America data center distribution transformer market and is projected to evolve with a CAGR of 35.25% in the studied years.
In the ever-evolving data center landscape, the expansion of distribution transformers stands out prominently. The rapid global spread of data centers, surging power requisites, and calculated incorporation of renewable energy have collectively revolutionized the global data center distribution transformer market. Single-phase transformers optimize rural distribution efficiency, while their three-phase counterparts spearhead cutting-edge power infrastructure, shaping an efficient and sustainable energy paradigm for the future.
The segments reviewed in the market include by Phase type (single-phase and three-phase), insulation (oil immersed and dry type), voltage range (below 650 kVA, 650-1250 kVA, 1250-2500 kVA, and above 2500 kVA), and distribution channel (OEMs, market distributors, online retailers, and electrical contractor).
Q2): What geographies are studied in the data center distribution transformer market?Latin America, Europe, North America, Asia-Pacific, Middle East & Africa.
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