Market Trends of United States Data Center Power Industry
Switched PDU is Anticipated to be Fastest-growing Segment
- A switched PDU is a type of smart rack PDU that can turn on or off single outlets or groups of outlets on the PDU. Switched PDUs allow users to remotely control devices and provide power in a specific order. It also allows the user to delay the power-on sequence, which eliminates power sags and extends device life.
- Switched PDUs are important in remote deployments because they allow users to restart servers and restore service without having to physically visit the data center site. It also helps users save energy and reduce costs by enabling them to turn off devices that are not in use. In the event of a utility power failure, non-essential loads can be shut down to maximize UPS uptime.
- The United States is expected to be the fastest-growing hyperscale data center market in Northern Virginia over the coming years. The significant drivers of data center construction in the country have been recent economic incentives and tax benefits. Approximately 27 states leverage these factors to attract data center projects. In addition, the heavy tax breaks being implemented in the United States indicate a government-front aim to construct new mega data centers or renovate existing ones. Northern Virginia holds over 1 GW of data center capacity, exempts data center facilities from state sales, and uses taxes through 2035.
- With maximum growth in mega data centers in the country, the need for PDUs has also increased. Faster internet and the subsequent penetration of devices capable of accessing it play a crucial role in determining and estimating data consumption in a region. Data suggests that the number of 5G mobile connections in the United States will increase from 15% in 2021 to about 68% by 2025, signifying high 5G mobile penetration in the country. The rising data traffic would further create a demand for DC facilities with smart PDU systems.
- Switched PDUs with outlet metering help users monitor power consumption and available capacity. Easily understand actual power consumption at the device level, allowing users to compare efficiencies, improve capacity planning, increase utilization of existing resources, and allocate costs to specific customers or business units. The above-mentioned instances and benefits of switched PDU would accelerate the growth of the segment during the forecast period.
Understand The Key Trends Shaping This Market
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IT and Telecommunication is Anticipated to be Largest Segment
- The United States is the world's largest technology market. Information and communication technology (ICT) is ubiquitous and plays a critical role in the economic development of the United States. The US ICT market was estimated to account for about 35% of the world's in 2023. Since the Industrial Revolution after World War II, innovation has been a defining characteristic of competitiveness in the United States and has fueled global dominance.
- The number of cloud vendors and hyperscalers has increased significantly over the past decade, making them top energy consumers. The energy consumption of global data centers is equivalent to 20% of the total commercial electricity consumption (987 TWh) in the United States. While energy consumption through traditional data centers has been declining for three years, hyperscale energy consumption has surged in recent years due to the rapid expansion of these data centers and their enormous sizes.
- The US computer, information technology, and communications industry have a reputation for developing reliable, efficient products and bringing them to market quickly. The US market has attracted the attention of many international companies due to its strict enforcement of intellectual property regulations. The software and technology services sector accounts for more than half of spending in the country's technology market. With stable market shares abroad, US companies dominate the global market for packaged and individual software and are competitive in all other market segments.
- In terms of R&D, in 2022, the Federal Communications Commission (FCC) awarded the first Spectrum Horizons License, a 10-year special category of authorization for experimenting with frequencies between 95 GHz and 3 THz. It has also established an expert group to advise the board on how to conduct spectrum works in 6G. The Biden administration has signed MOUs with countries like Japan, and it is planning to invest USD 4.5 billion in 6G development. Such initiatives are expected to showcase major data traffic in the coming years, leading to colocation demand.
