Market Trends of France Data Center Power Industry
IT & Telecommunication Segment Holds the Major Share
- Cloud data centers house IT infrastructure resources for shared use by multiple customers via an internet connection.
- The expansion of IT infrastructure has been receiving major funding from the French government. The popularity of and investments in cloud computing services are rising in France.
- The rising adoption of the cloud across most businesses is being driven by new technologies like artificial intelligence, big data, and blockchain. Scalable and strong cloud networks are being developed with the help of hyperscale data centers, which can enhance customer satisfaction, increase availability, and cut costs.
- Regional cloud infrastructure providers such as Equinix, OVHcloud, and Dassault Systèmes partnered with international hyperscalers such as Amazon Web Services (AWS), Google Cloud Platform (GCP), and Microsoft Azure to bring French cloud infrastructure to improve and enable a resilient future. Europe-based global service providers such as Capgemini, Orange, Atos, and Soplasteria also invest in similar partnerships.
- In the Telecom segment, in terms of 5G network services, France saw the deployments of these networks in 2020 for commercial and industrial services from Nokia, Orange Business Services, Free Mobile, Ericsson, and SNCF. According to French government plans, 5G should be available nationwide by 2030. All four major operators installed 5G in 3,000 locations in 2023, and they plan to increase that number to 8,000 by 2024 and 10,500 by 2025, which will further suggest the exponential generation of raw data in the near future. The above improvements in the market are expected to propel the segment's growth, which creates more demand for DC power infrastructure solutions.
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Monitored PDUs Hold Significant Share in the Market
- Monitored rack PDUs are essential components in data center and server room infrastructure, providing real-time monitoring of power usage, voltage, current, and other electrical parameters. This data helps administrators make informed decisions about power allocation and capacity planning.
- By tracking power usage trends, administrators can plan for future growth and ensure that power capacity is not exceeded, preventing overloads that could lead to equipment failures. Moreover, it helps identify inefficiencies and optimize energy usage. This can lead to cost savings and a reduced environmental footprint by eliminating unnecessary power consumption. It also allows administrators for remote access and control, reducing the need for physical presence and minimizing operational disruptions.
- Increasing focus on digitalization, internet penetration (reached 94% by 2023 from 88% in 2019), and e-commerce sales across the country create more need for storage facilities, resulting in huge demand for data centers and a rise in power consumption. For instance, the majority of French online buyers continue to purchase from their homes or places of business. Sales have increased in France, which is the second-largest e-commerce sector in Europe. The total revenue generated by the e-commerce industry in 2023 was EUR 146.9 billion (USD 157.89 billion), a rise of 13.8% from the previous year. Growing demand for data storage has led to the deployment of intelligent power distribution units (PDUs) against simple multi-socket rack installations with server and network equipment, which optimize power consumption in data centers.
- In addition, the French government has set a target of reducing the country’s energy consumption by 10% in 2024 from the current levels as an initial step toward achieving carbon neutrality through reduced energy use by 40% by 2050. In the industrial sector, five key points are addressed by France's energy efficiency policy to reduce energy consumption: market instruments, financial incentives, regulatory measures, support for the normalization procedures and qualification, and support for the development of more energy-efficient technologies in particular for the development of future investment systems.
- Because of the above advancements mentioned with monitored PDUs and the necessity to reduce electricity consumption as per government measures in the country, key players are focusing on introducing energy-efficient products into the market. In May 2023, Eaton, which provides power management services, launched G3 Universal Input Rack PDUs with dynamic C39 outlets capable of accommodating different plug configurations and input voltage requirements. To meet the most diverse data center rack power requirements, G3UPDU has added new features.
- In May 2023, Legrand, a significant global provider of electrical and digital building infrastructures, introduced the next generation of intelligent rack PDUs PRO4X and Raritan PX4. These new intelligent rack PDU designs revolutionize capacity planning, environmental monitoring, physical and digital access control, workload optimization, and uptime initiatives. Such developments in the segment are predicted to boost the market’s growth over the forecast period.
