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.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
7% |
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Base Year Market Size (2023) |
USD 25 Billion |
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Forecast Year Market Size (2036) |
USD 59 Billion |
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Regional Scope |
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Semi-conducting Material (Monocrystalline silicon, Polycrystalline silicon, Thick-film Silicon, Amorphous silicon)
In on-site photovoltaic solar power for data centers market, monocrystalline segment is likely to capture over 43% share by 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 on-site photovoltaic solar power for data centers market's upward trajectory by improving the overall performance and attractiveness of solar panels that use these cells.
Application (On-grid, Off-grid)
In on-site photovoltaic solar power for data centers market, off-grid segment is predicted to dominate around 54% revenue share by the end of 2036. 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 on-site photovoltaic solar power for data centers market will witness significant growth in the off-grid segment in the coming years.
Our in-depth analysis of the global market includes the following segments:
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Semi-conducting Material |
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Application |
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Technology |
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North American Forecast Market
By 2036, North America region is projected to hold more than 37% on-site photovoltaic solar power for data centers market share. The US government's impending expiration of the solar ITC (Investment Tax Credit) for business installation is a major factor driving the expansion of the market for on-site photovoltaic solar power for data centers. Furthermore, data centers that use solar electricity can drastically lower their energy expenses. Data centers can lessen their dependency on the often-expensive traditional grid power by producing their own electricity on site. Additionally, data centers are putting a greater emphasis on sustainability and lowering their carbon footprint. Data centers can show that they are environmentally conscious by implementing on-site photovoltaic solar electricity.
European Market Statistics
By 2036, European region in on-site photovoltaic solar power for data centers market is set to account for around 27% revenue share. In Europe, the governments of Benelux, Germany, France, and Spain are primarily responsible for the demand for on-site photovoltaic solar electricity for data centers. High targets for renewable energy have been established by many European countries in response to climate change. In order to contribute to these goals, data centers are increasingly using on-site photovoltaic solar power.
Furthermore, sustainability and environmental responsibility are widely prized across Europe. Furthermore, the Green Mountain Data Centre in Norway is powered entirely by sustainable energy, including solar electricity. Furthermore, governments in Europe provide support and incentives for solar energy and other renewable energy projects. For instance, data centers in the Netherlands that produce their own solar energy may profit monetarily and be eligible for tax breaks. This encourages data centers to invest in solar power systems on their premises.
Author Credits: Payel Roy, Dhruv Bhatia
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