PUBLISHER: Grand View Research | PRODUCT CODE: 1609997
PUBLISHER: Grand View Research | PRODUCT CODE: 1609997
The global data center substation market size is anticipated to reach USD 14.80 billion by 2030, according to a new report by Grand View Research, Inc. The market is projected to grow at a CAGR of 7.7% from 2025 to 2030. Data centers are a vital part of the IT infrastructure of the digitized society. New data-intensive technologies and high-speed wireless networks have led to an increased demand for data centers among businesses of all sizes, right from major electricity-intensive industries to limited enterprise computing centers.
Amidst the COVID-19 pandemic, the exponential rise in data generated and consumed by various individuals and organizations has led to the surge in demand for data storage, resulting in the rising number of reliable and efficient data centers. Globally, data centers are evolving as computational hubs for several enterprises and end users with the increasing number of work-from-home jobs. As a result, the unprecedented rise in data generation and the need to improve the performance of data centers have boosted the demand for constructing new data centers and restoring the existing ones. Thus, an increase in the number of data center restoration and construction projects is likely to provide growth avenues for the market in near future.
The rising demand for electrical power systems that are smart, automated, and can help reduce the carbon footprint serves as a catalyst for advancements in the market. Substations with Gas Insulated Switchgear (GIS) are unrivaled in terms of reliability, compactness, efficiency, safety, and providing maximum power availability. Their low maintenance and robust design help minimize the substation footprint. Though GIS substations have a high initial cost, they have a longer lifecycle and require minimum maintenance, serving to reduce lifecycle operating expenses while maximizing the availability of power from the substation. Recent developments in key substation components, such as power transformers, gas-insulated switchgear, fiber-optic current sensors, and high-voltage circuit breakers, have enabled their digitization and moved into the digital age.
For instance, in March 2020, ABB introduced a purpose-built substation to offer tailored solutions to the rapidly growing data center industry. The substation is designed to be safe and highly reliable while enabling efficient operation and maintenance during the entire lifecycle. The new substation is around 30% smaller in size and utilizes 50% lesser copper on control cables. The substation replaces copper cables with fiber optics and reduces the physical connections through digitization. The rising focus on the replacement of old electrical substation infrastructure with upgraded, high-quality, modular, digital, and gas-insulated systems is also expected to augment the market growth.