The data center generator market is experiencing significant growth, with projections indicating a rise from USD 8.43 billion in 2024 to USD 19.66 billion by 2030, at a CAGR of 15.16%. Key players like Caterpillar, Cummins, and Rolls-Royce are leading this expansion, with a focus on sustainable and efficient technologies. In 2024, AVK, in collaboration with Rolls-Royce, sold over 500 MTU generators powered by Hydrotreated Vegetable Oil (HVO), marking a shift towards low-carbon alternatives for backup power. The U.S. dominates the market in the Americas, while Germany leads in Europe. The APAC region is rapidly expanding, with China, Australia, and India among the top markets. The Middle East and Africa are also seeing increased demand, led by the UAE and Saudi Arabia.
HVO is gaining traction as data centers strive to reduce their carbon footprint. This renewable diesel, derived from waste oils and fats, is being adopted by operators like Compass Datacenters and AWS. In 2024, ST Telemedia Global Data Centres in Singapore became the first in the country to deploy HVO, reflecting a global trend. Additionally, the integration of AI and machine learning is enhancing power management in data centers, with Brazil being a leader in Latin America.
Efforts towards sustainability are evident as data centers partner with renewable energy providers. Equinix, for instance, signed a PPA to use solar power for its facilities in Italy. The market also sees a shift towards high-capacity generators, driven by the growth of hyperscale data centers. Diesel generators remain prevalent in regions with less stringent emission regulations, but companies like Khazna Data Centers in the Middle East are transitioning to HVO to cut emissions.
