PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1884042
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1884042
The global data center generators market is expanding steadily, driven by surging data consumption, the rapid development of hyperscale facilities, and the critical need for uninterrupted power supply in digital infrastructures. According to the latest industry figures, the market was valued at USD 416.19 million in 2024, is projected to increase to USD 433.04 million in 2025, and is anticipated to reach USD 591.72 million by 2032. This growth reflects the rising dependence on data centers across cloud computing, AI, digital services, and mission-critical enterprise operations.
In 2024, Asia Pacific dominated the global market with a 35.07% share, driven by large-scale investments in digital infrastructure, hyperscale expansions, and significant cloud adoption. India, China, and Indonesia continue to expand their data center footprints, with major developments such as Adani Group's USD 10 million investment in 2025 and ByteDance's USD 614 million AI data center project in China supporting regional growth.
Market Dynamics
Market Drivers
A major factor propelling the market is the escalating demand for reliable backup power solutions to support large-scale data center operations. Cloud computing growth, hyperscale infrastructure, and the rise of modular and edge data centers significantly boost generator adoption. Enhancements in generator technology-such as bi-fuel, inverter-based, and hybrid generators-are also improving efficiency and reducing emissions.
In April 2025, L&T Cloudfiniti announced plans to expand data center capacity to 90 MW by 2026, driven by AI-related computing requirements, which directly increases demand for high-power generator sets. Hyperscale facilities, which require uninterrupted and large power capacities, continue to be the primary adopters of above-750 kVA generator units.
Market Restraints
High operational costs associated with diesel generators-along with stringent environmental regulations-pose notable challenges. Diesel generator sets require frequent maintenance, are affected by fluctuating fuel prices, and face tighter emissions regulations. Global data center operators are actively exploring low-carbon alternatives such as natural gas generators, hydrogen fuel cells, and hybrid systems to comply with sustainability commitments.
Market Opportunities
The continuing global expansion of data centers presents lucrative opportunities. In 2025, Neysa Networks and NTT Data partnered with the Telangana government to build a 400 MW AI data center cluster in Hyderabad, creating demand for scalable and efficient power backup systems. Manufacturers are increasingly developing customizable generator sets to meet the diverse operational needs of hyperscale, colocation, and edge computing facilities.
Market Trends
A strong trend shaping the market is the shift toward natural gas generators and hydrogen fuel cell technologies, reducing dependence on traditional diesel fuel. Intelligent monitoring systems, cybersecurity-enhanced modules, and renewable-energy integration are increasingly becoming part of generator designs. In July 2024, Vertiv introduced the Trinergy UPS, engineered to stabilize fluctuating loads from AI and high-performance compute environments, further complementing generator efficiency.
By Fuel Type
Diesel generators led the market in 2024 due to their quick start-up time and high reliability in critical applications. Gas generators are gaining traction as cleaner alternatives, while renewable-backed generators remain in the early adoption stage.
By Power Rating
Generators above 750 kVA dominated the market as hyperscale and large data centers require robust power supply capacities. Lower power-rated generators are prevalent in smaller facilities but represent a smaller share of overall consumption.
By Application
The continuous load segment held the largest share due to growing requirements for 24/7 operational reliability. Peak load and standby generators continue to remain essential for handling surges and utility outages.
Regional Overview
Asia Pacific
The leading region in 2024, driven by rapid digitalization, large-scale data creation, and grid instability in emerging economies. Major government-backed projects and rising investments from global cloud providers fuel growth.
North America
A mature and fast-growing market supported by hyperscale expansions, cloud adoption, and AI-driven infrastructure development. In April 2025, the U.S. Department of Energy announced new AI-based data center development plans across 16 sites, creating major growth prospects.
Europe
The region is expanding due to rising electricity costs, strict environmental standards, and a growing data center ecosystem. Collaboration between Data4 and Westinghouse in 2025 to explore small modular reactor technologies reflects increasing innovation in power generation for data centers.
Latin America & Middle East & Africa
Both regions are witnessing strong growth driven by digital transformation, increased cloud adoption, and government-backed data center investments.
Conclusion
With market size increasing from USD 416.19 million in 2024 to USD 433.04 million in 2025, and projected to reach USD 591.72 million by 2032, the global data center generators market is positioned for sustained expansion. Rising data center capacity, demand for uninterrupted power, and advancements in clean-energy generator technologies will continue shaping the industry's trajectory.
Segmentation By Fuel Type
By Power Rating
By Application
By Region