On-Site Photovoltaic Solar Power for Data Centers Market Size & Share, by Semi-conducting Material (Monocrystalline silicon, Polycrystalline silicon, Thick-film Silicon, Amorphous silicon); Application (On-grid, Off-grid); Technology (Photovoltaic Solar Linear Fresnel Reflector, ISCC, Photovoltaic Solar Parabolic Dish, Photovoltaic Solar Towers, Photovoltaic Solar Parabolic Trough) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5583
  • Published Date: Jan 29, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

On-Site Photovoltaic Solar Power for Data Centers Market size is anticipated to reach USD 59 Billion by the end of 2036, growing at a CAGR of 7% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of on-site photovoltaic solar power for data centres was over USD 25 Billion. Due to their high electricity consumption, data centers need both a backup power supply and a constant power source to guarantee that data is continuously being collected. Globally, the data center power consumption was projected to be between 240 and 340 TWh1, or roughly 1.3% of the world's total final electricity demand, in 2022.  A normal data center uses several tens of megawatts to several kilowatts of electricity. The data center's high running expenses are a result of its heavy reliance on the power supply. However, the rapid advancements in energy efficiency have served to restrain the rise in energy consumption from data centres and data transmission networks, which together consume 1% to 1.5% of the world's electricity.

Governments and commercial companies are also creating new technology, such as polymer solar cells. For instance, in November 2023, Danish printed electronics equipment firm InfinityPV offered a novel imaging technology for contactless fault detection in roll-to-roll printed thin film solar cell manufacturing lines. Manufacturers of perovskite, organic, kesterite, copper indium gallium diselenide (CIGS), and amorphous silicon PV foils can utilize the so-called ultrafast laser beam-induced current mapping technology, which can be retrofitted into already-existing roll-to-roll lines. Compared to the current silicon solar cell technology, these are anticipated to be 1000 times thinner, more flexible, lighter, and less expensive.


On-site Photovoltaic Solar Power for Data Centers Market
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On-Site Photovoltaic Solar Power for Data Centers Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~ 7%

Base Year Market Size (2023)

 ~ USD 25 Billion

Forecast Year Market Size (2036)

 ~ USD 59 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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On-Site Photovoltaic Solar Power for Data Centers Market: Growth Drivers and Challenges

Market-Growth-Drivers

Growth Drivers

  • Growing Sustainable Practices Globally - The use of independent and renewable energy sources for data centers, as opposed to relying on the national power grid powered by fossil fuels, which releases harmful carbon particles into the environment during generation, is one of the primary factors contributing to the growth of this on-site photovoltaic solar power for data centers market. With fossil fuels like coal, oil, and gas making up more than 75% of greenhouse gas emissions worldwide and almost 90% of carbon dioxide emissions overall, fossil fuels are by far the biggest cause of climate change. Greenhouse gas emissions cover the Earth, trapping heat from the sun. A decrease in the cost of installing solar power is anticipated to propel the market during the forecast period.
  • The Surge in Technological Advancements - It is anticipated that these technical developments will stimulate the market and provide room for future market expansion. For example, Amazon installed renewable power sources in each of its four data centers worldwide. Data centers located in Australia, Sweden, Spain, and Virginia are among them. It is projected that these data centers produce 840 gigawatts of power per hour. The effectiveness of this integration will be further enhanced by advancements in smart grid technologies and AI-driven energy management. AI data centers can have reliable electricity due to smart grids' ability to distribute solar energy optimally.
  • Growing Fuel Costs Worldwide - Often referred to as solar PV, on-site photovoltaic solar power has grown from a market for small-scale applications to a major source of electricity. With rising fuel prices, reliance on imported fossil fuels from unethical regions, and unchecked pollution levels, on-site photovoltaic solar power for data centers is emerging as a viable substitute for renewable energy sources. As per a report, the normal all-formal retail gasoline prices in the United States in October 2022 were significantly less than those in Hong Kong or the Central African Republic, which at the end of October 2022 reported the highest gasoline prices globally, at USD 3.82 per gallon.

Challenges

  • Limited Space in the Data Centers for Solar Panels - It is anticipated that throughout the projected period, the on-site photovoltaic solar power for data centers market growth will be hampered by small data centers' inability to install solar panels due to a lack of space. Several governments are launching programs to raise the proportion of renewable energy in the overall amount of electricity produced, despite higher carbon emissions.
  • High Costs Associated with the Installation of Solar Power Systems may Hinder Market Growth
  • Dependency on Weather Conditions May Hinder the Growth of the Market


On-Site Photovoltaic Solar Power for Data Centers Segmentation

Semi-conducting Material (Monocrystalline silicon, Polycrystalline silicon, Thick-film Silicon, Amorphous silicon)

Monocrystalline segment for the on-site photovoltaic solar power for data centers market is anticipated to hold a share of 43% by the end of 2036. Because monocrystalline silicon panels have a higher efficiency, they can produce more energy with the same quantity of solar radiation. This is particularly helpful in spaces that are constrained, like data centers. Data centres can optimize their power output and maximize solar radiation by utilizing monocrystalline silicon panels. Furthermore, monocrystalline silicon panels support the goal of sustainability, which data centers are embracing at an increasing rate. They provide energy that is clean and renewable, which lowers carbon emissions and helps run data centers in a more sustainable and environmentally friendly manner. Over the past few years, there has been a notable increase in energy consumption in this area, with growth averaging between 20-40% each year due to the rapid growth in workloads handled by major data centres. Monocrystalline solar cells have seen significant technological breakthroughs as a result of ongoing research & development, including enhanced production procedures and higher cell efficiency. These advancements support the market's upward trajectory by improving the overall performance and attractiveness of solar panels that use these cells.

Application (On-grid, Off-grid)

Off-grid segment in on-site photovoltaic solar power for data centers market is growing with a share of 54% during the projected period. Off-grid photovoltaic solar power solutions allow data centres to maintain operations even in the event of grid faults or power outages. In the long run, off-grid options can also help data centres save money on electricity. By producing their solar energy on-site, they can lessen their reliance on pricey grid electricity and possibly cut their overall energy costs. Data centres may occasionally be situated in isolated locations where it is impractical or expensive to connect to the main power grid. For these data centres, there is a workable alternative to extensive grid infrastructure: off-grid photovoltaic solar electricity. In light of these factors, the market will witness significant growth in the off-grid segment in the coming years.

Our in-depth analysis of the global on-site photovoltaic solar power for data centers market includes the following segments:

     Semi-conducting Material

  • Monocrystalline silicon
  • Polycrystalline silicon
  • Thick-film Silicon
  • Amorphous silicon

     Application

  • On-grid
  • Off-grid

     Technology

  • Photovoltaic Solar Linear Fresnel Reflector
  • Integrated Solar Combined Cycle power plant (ISCC)
  • Photovoltaic Solar Parabolic Dish
  • Photovoltaic Solar Towers
  • Photovoltaic Solar Parabolic Trough

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On-Site Photovoltaic Solar Power for Data Centers Industry - Regional Synopsis

North American Forecast Market

North American on-site photovoltaic solar power market is expected to hold a share of 37% during the forecast period. One of the main reasons for the growth in the market for on-site photovoltaic solar power for data centers is the approaching termination of the solar ITC (Investment Tax Credit) by the US government for business installation. Also, solar power can help data centers reduce their energy costs significantly. By generating their own electricity on-site, data centers can decrease their reliance on traditional grid power, which can be expensive. Furthermore, data centers are increasingly prioritizing sustainability and reducing their carbon footprint. By adopting on-site photovoltaic solar power, data centers can demonstrate their commitment to environmental responsibility.

European Market Statistics

European on-site photovoltaic solar power for data centers market is expected to hold a share of 27% by the end of 2036. The need for on-site photovoltaic solar electricity for data centers in Europe is mostly driven by government initiatives from Benelux, Germany, France, and Spain. To tackle climate change, numerous European nations have set high goals for renewable energy. To help achieve these objectives, on-site photovoltaic solar electricity has become more popular in data centres. Moreover, environmental responsibility and sustainability are highly valued throughout Europe. Furthermore, all renewable energy, including solar electricity, powers the Green Mountain Data Centre in Norway. Additionally, governments across Europe offer a range of incentives and support for solar power and other renewable energy initiatives. For example, data centers that generate their solar power might benefit financially and obtain tax incentives in the Netherlands. This incentivizes data centers to purchase on-site solar power systems.

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On-site Photovoltaic Solar Power for Data Centers Market Size
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Companies Dominating the On-Site Photovoltaic Solar Power for Data Centers Landscape

top-features-companies
    • Equinix, Inc.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Canadian Solar Inc.
    • Orange
    • Salim Group
    • DCI Indonesia.
    • Tokyo Electric Power Company Holdings

In-the-news

In The News

  • Orange has two data center locations in Poland where solar panels are deployed. The company launched photovoltaic installations at the Data Processing Centre in Łódź with a capacity of 370 kW. This will cover approximately two percent of the facility's annual energy demand.
  • At the H2 Data Centre Campus in Karawang, DCI Indonesia and Salim Group have opened H2-02, their second data center. H2–02 is now Indonesia's first solar-powered data center thanks to DCI's integration of solar power infrastructure. It encompasses a 30-hectare portion of the H2 campus and has a maximum of 30 MW of solar-generated electricity capacity. With the capacity to grow to 600 MW, the H2 campus is situated on 86 hectares.

Author Credits:  Payel Roy, Dhruv Bhatia


  • Report ID: 5583
  • Published Date: Jan 29, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Growing sustainable practices globally, rising technological advancements, and increasing fuel costs worldwide are the major factors driving the growth of the on-site photovoltaic solar power for data centers market.

The market size of on-site photovoltaic solar power for data centers is anticipated to attain a CAGR of 7% over the forecast period, i.e., 2024-2036.

The major players in the market are Equinix, Inc., Canadian Solar Inc., Orange, Salim Group, DCI Indonesia., Tokyo Electric Power Company Holdings, NTT Anode Energy Corporation, Panasonic Holdings Corporation, Internet Initiative Co. Ltd, Japan Renewable Energy Co. Ltd. and others.

The off-grid segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the North America region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
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