Data centre’s fuel cell market to be US$573 million by 2032
The fuel cell market for data centres is estimated to occupy a significant CAGR of 15.5% during the forecast period. The market estimated the valuation at US$135.67 million in 2022 and is likely to be valued at US$573.20 million by 2032. This is according to a new report, Fuel Cell For Data Center Market, published by Future Market Insights (FMI).
“The rising demand for fuel cell for data centre due to increasing power consumption, renewable energy and rising efficiency are growing the market size. The fuel cell for data centre market is set to grow at a high pace by securing a healthy CAGR during the forecast period,” says FMI.
“Several companies are adopting advanced technology to reduce carbon footprint and increase power constantly in the fuel cell for data centre. The demand for fuel cell for data centre is rising to generate electricity by adopting electrochemical reactions, which are anticipated to increase the fuel cell for data centre market share.”
“The adoption of fuel cell for data centre is rising as it allows for a generation of power on-site by reducing grid systems. In addition, the fuel cell rise in the use of electricity grids in the case of absence of fuel is accelerating the market growth.”
The fuel cell for the data centre is an alternative solution for grid-power electricity, solar and wind energy to reduce energy costs, increasing the market share. The adoption of fuel cell technology in corporate sectors due to lack of electricity has been growing in the market in recent years.
Growing advanced technologies and new product launches by prominent vendors are increasing positive market trends. For instance, Microsoft launched its mini fuel cell to the IT server racks, consumption of high energy and reducing power electronics.
In Jan 2022, Equinix Company announced its first opening of a Co-Innovation Facility in Washington DC. The company innovates hydrogen-enable fuel cells that are capable of long battery solutions.
In Dec 2021, Enquinix Company announced an investment of EUR 2.5 million for a project to provide power to data centres by improving low-carbon fuel cells.
In the data centre type, telecommunication contributes the highest share in the market during the forecast period. This is because telecommunication relies on the fuel cell for the data centre as a secondary power source in case electricity is off.
By regions, North America will dominate the global market by witnessing the highest share during the forecast period. Furthermore, due to the rising focus on renewable energy, ICT and the presence of prominent players will boost the market growth during the forecast period.
Some prominent vendors will play an essential role in the global market by registering a significant share during the forecast period.
As more companies look for reliable, resilient technologies to provide constant power and reduce their carbon footprint, distributed generation (DG) and renewable energy are gaining the focus of the corporate culture. A fuel cell is one such prime technology as a renewable energy source.
A fuel cell generates electricity using an electrochemical reaction, not combustion, and depending on the fuel source, produces near to zero polluting emissions. In addition, using fuel cells allows on-site power generation, reducing reliance on traditional grid systems and using grid electricity in the absence of fuel.
“Fuel cells have emerged as the most viable alternative to solar, wind or grid-powered electricity due to low cost financing, government subsidies, and the companies desire to reduce their carbon footprint and energy costs,” adds FMI.
“Reduction in fuel and energy cost coupled with low carbon emissions and increased energy efficiency and reliability are primarily gaining customer attraction. Significant tax reduction on fuel cell adoption for corporate data centres, thus luring the corporate culture to switch to fuel cell technology for powering data centres is primarily expected to increase the demand for fuel cell in near future.”
Technological advancements in fuel cell usage, specifically for data centres, are expected the drive the market during the forecast period. For instance, Microsoft Corporation is developing mini fuel cells for IT server racks, thereby reducing the need for power electronics from central systems, which results in high energy consumption.
However, low-capital organisations are reluctant to employ fuel cells primarily due to increasing reliance on fuel as a power source.
Most companies operating huge data centres sign long-term lease contracts or purchase agreements instead of owning them, as fuel cells have a long-term payback period for their capital investments.
The global fuel cell market for data centres is expected to grow significantly during the forecast period. North America dominates the fuel cell market for data centres, followed by North America; Europe is the next primary market for the fuel cell market for data centres.
Asia Pacific is an emerging market for the Fuel cell system and is anticipated to represent substantial growth during the forecast period, particularly in regions such as China and India. Japan is another significant region and is expected to contribute a major share of the global fuel cell market for the data centre.
Some of the major players identified by FMI in the report include FuelCell Energy, Doosan Fuel Cell America, Bloom Energy, Logan Energy, AFC Energy, Ballard, Toshiba Fuel Cell Power Systems Corporation, Plug Power, Panasonic and Hydrogenics.