The U.S. Combined Heat & Power Systems for Data Centers Market to Witness a Moderate Growth in the Near Future

Data centers are struggling to expand the grid connection size to their building, which will boost their business growth. Granting data centers with increased capacity could be extremely expensive. Energy efficiency can be utilized as a medium of creating gap under maximum building capacity for adding more infrastructure. Installation of a combined heat & power (CHP) generator has resulted in 2X amount of on-site capacity, meaning that a data center can expand its business by staying at its current site. Investing in such a system is beneficial for a data center as it incurs lower energy bills and boosts the capacity of providing service to clients.

Increasing Adoption of Colocation Facilities to Boost the Market Growth

A study by Persistence Market Research (PMR) states that the U.S combined heat & power system for data centers market is projected to register 3.4% CAGR through 2024. Although, the market in the United States witnesses a moderate growth, it will remain the most lucrative region for market growth. The U.S market for CHP system for data centers is expected to surpass US$ 277 Mn by 2024. Soaring demand for green data centers and increasing adoption of colocation facilities is estimated to create opportunities for the market in the near future. The indispensable consumer inclination from conventional power generation systems towards CHP systems is expected to be a prominent factor driving the growth of the U.S. market for CHP systems for data centers. The market growth is expected to be fuelled further by favorable government initiatives. In addition, curtailed natural gas costs and recovering economy are expected to fuel the demand for combined heat & power systems for data centers in the United States. The provision of high tax incentives on CHP systems by the government is further expected to drive the market growth.

Construction of data centers, powered through their own CHP plants is planned by an Irish development consortium. Here the process includes collection of waste heat and selling it to other businesses, along with the provision of carbon capture. For reducing the expense on electricity by €25 Mn per year, and reducing emissions of carbon dioxide, Ecologic Datacenters plan to adopt patented technology. Ecologic Datacenters’ managing director, Brian McDonagh, is also proposing the utilization of ‘desuperheater’ to capture heat emanated by data center’s servers and use it for warming the refrigerant gas, in order to supply more heat to neighboring facilities such as an indoor ski slope or a greenhouse, as a part of the deal with municipality.

Aligned Data Centers to Utilize Waste Heat to convert it into Green Energy

Aligned Data Centers, in partnership with a Swedish energy company Climeon, aims to utilize low-grade waste heat for its conversion into green energy, with the help of combined heat & power systems. This approach is expected to create steady source for clean energy, with a key challenge related to renewable energy sources such as wind and solar, both intermittent. Aligned Data Centers focuses on bringing cloud-style pricing & hyperscale-level efficiency into multi-tenant data center. The company’s approach is focus on resolving challenge related to data center capacity management, by eliminating inefficiency and waste in data center design & operations, especially in cooling.

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