Data Center Generators Market
Data Center Generators Market by Type (Diesel Generator, Natural Gas Generator, Bi-fuel Generator, Others), Power Rating (Up to 1 MW, 1 MW to 3 MW, above 3 MW), End User, and Region – Global Forecast to 2031
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
The data center generators market is growing strongly and is expected to grow from USD 8.57 billion in 2026 to USD 9.79 billion by 2031, at a CAGR of 2.7%. The market is experiencing significant growth primarily due to the rapid development of hyperscale data centers, the exponential increase of AI workloads, and escalating demand for a continuous power supply for the entire digital infrastructure. As the size and capacity of data centers operated by enterprises, cloud service providers, and colocation service providers expand, demand for efficient prime and backup power solutions is escalating rapidly. The necessity of reliable diesel and gas generators in maintaining business continuity during grid failures and voltage instability in the form of mission-critical facilities remains strong, increasing sales. Increasing investment in AI-based data centers, edge data centers, and high-density server-based computing, coupled with the urgent demand for more energy-efficient and scalable generators and low-emission generators, are likelt to boost growth further. Stricter uptime standards and power usage levels, coupled with increasing construction of mega data centers across North America, the Asia Pacific, and Europe, are accelerating sales. New innovations with advanced generator technology, which include remote monitoring capabilities, preventive maintenance features, and the incorporation of hybrid energy sources and the increased usage of low-carbon fuels like HVO, will push sales up as producers focus on high efficiency and low emission generation, and also from increased use of modular data centers and disaster recovery sites. As organizations realize the importance of business continuity and energy security, data center generators are crucial to their entire digital ecosystem.
KEY TAKEAWAYS
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BY REGIONNorth America is projected to hold the largest market share during the forecast period.
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BY TYPEDiesel generators are estimated to hold a market value of USD 5,789.6 million in 2026.
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BY POWER RATINGThe above 3 MW generators are projected to grow at the highest CAGR of 5.4% during the forecast period.
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BY END USERThe colocation data centers segment is projected to be the second fastest-growing end user during the forecast period.
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COMPETITIVE LANDSCAPE: KEY PLAYERSThe data center generators market is highly competitive, with leading players such as Caterpillar, Cummins, Rolls-Royce, Mitsubishi Heavy Industries, and Rehlko offering advanced diesel and gas generator solutions for hyperscale, enterprise, telecom, and colocation data centers. These companies leverage strong global presence, large service networks, and continuous investments in fuel-efficient and low-emission technologies to strengthen their market position and support reliable backup power infrastructure.
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COMPETITIVE LANDSCAPE: STARTUPS/SMESEmerging players such as Baudouin, Generac, and Himoinsa are gaining traction through modular generator solutions, intelligent power management technologies, and flexible backup power systems. Their focus on scalability, sustainability, and cost-efficient power infrastructure is supporting adoption across modern hyperscale, edge, and colocation data center environments.
The data center generators market is growing steadily as organizations focus on reliable backup power to support the expansion of cloud, AI, and hyperscale data center infrastructure. Adoption is increasing due to the rising demand for uninterrupted operations, high-capacity power systems, and energy-efficient backup solutions. Advancements in diesel, gas, and hybrid generator technologies, along with intelligent monitoring and remote management capabilities, are supporting efficient and resilient power infrastructure across hyperscale, colocation, and enterprise data centers.
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
The data center generators market is evolving at a rapid pace, driven by expanding AI workloads, increasing deployment of hyperscale data centers, and high-density computing infrastructures, necessitating highly scalable and resilient backup power systems. Greater emphasis on sustainability is accelerating the uptake of low-emission generators, HVO-ready gensets, and hybrid power architectures incorporating battery energy storage systems (BESS). To maximize efficiency and minimize power outages, data center operators are investing in smart monitoring systems, predictive maintenance, and remote diagnostics capabilities. Moreover, modular and containerized generator solutions are gaining traction in the market for rapid deployment and flexible scaling of infrastructure. Rising investments in edge and colocation data centers, coupled with stricter emissions standards and fuel efficiency regulations, are spurring manufacturers to build highly advanced and energy-efficient gensets, thereby revolutionizing the product development and long-term service strategies in the global data center generator industry.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
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Expansion of AI and Hyperscale Data Centers Accelerating Demand for High-Capacity Backup Generators
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Rising Grid Constraints and AI-Driven Power Demand Accelerating Generator Adoption
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Supply Chain Bottlenecks and Extended Equipment Lead Times
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Stringent Emission Regulations Limiting Deployment of Conventional Diesel Generators
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Transition Toward Low-Emission and Alternative Fuel Systems
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Prefabricated Modular Generator Systems
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Fuel Supply Security and Storage Management Creating Operational Challenges for Data Centers
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Shortage of Skilled Electrical and Maintenance Professionals Slowing Infrastructure Deployment
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: Expansion of AI and Hyperscale Data Centers Accelerating Demand for High-Capacity Backup Generators
Rapid expansion in the development of hyperscale, cloud, and AI-powered data centers has been driving the growth of generator systems globally. Various players, including Amazon, Google, Microsoft, and Meta, have been making extensive investments in the construction of large-scale digital infrastructures needed for cloud computing, generative AI, and other applications. As per the insights provided by JLL in its report, "2026 Global Data Center Market Outlook," the data center industry is projected to grow at a CAGR of 14% from 2023 to 2030. With the addition of nearly 100 GW of capacity by that period, there will be a substantial increase in the demand for generator infrastructure.
Restraint: Supply Chain Bottlenecks and Extended Equipment Lead Times
The supply chain disruption pertaining to engines, alternators, switchgear, and other electrical elements is acting as a major restraint for the development of the data center generators market. The growing demand for multi-megawatt generators required for the operation of hyperscale, AI, and colocation data centers is leading to an increasing backlog in their production and deliveries. These have resulted in delays in the development of data centers, adding to the expense for both owners and developers of these facilities.
Opportunity: Transition Toward Low-Emission and Alternative Fuel Systems
The ongoing drive toward sustainability and low-carbon-emitting infrastructure is creating significant opportunities for the data center generators market. Hyperscale and colocation facility operators are increasingly adopting natural gas-based generators, as well as dual-fuel, HVO-compatible, and hybrid generator technologies. This shift supports their environmental, social, and governance (ESG) goals, as well as their net-zero carbon agenda. For example, the introduction of HVO-powered generators in the sector, through providers such as AVK and Rolls-Royce, indicates that the trend toward cleaner power generation with low carbon output during emergencies is gaining momentum. Additionally, increasing investments in hydrogen-ready and fuel-flexible generation are expected to accelerate demand and lead to long-term growth for data center generators.
Challenge: Fuel Supply Security and Storage Management Creating Operational Challenges for Data Centers
Ensuring a continued fuel supply during prolonged power outages and disasters has long been a challenge for diesel-based data center generators. Natural disasters, extreme weather, and physical disasters disrupt the transport and supply networks, making refueling at remote locations very difficult in case of an emergency. Moreover, storing diesel for a longer term can degrade the quality, lead to contaminants, and growth of bacteria, which could negatively impact the reliability of the generator in a disaster scenario. Operators need to invest in fuel management and logistics, emergency planning, and storage solutions to ensure continued operation at their hyperscale, colocation, and enterprise facilities.
DATA CENTER GENERATORS MARKET: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
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C7 Data Centers deployed a 13 MW Modular Power System (MPS) from Generac to support its multi-tier colocation facility in Bluffdale, Utah. The project utilized multiple Gemini diesel generators to provide scalable, redundant, and reliable backup power infrastructure capable of supporting continuous data center operations and future expansion requirements. | The deployment enabled C7 Data Centers to achieve high reliability, rapid scalability, and improved operational flexibility without disrupting existing backup power infrastructure. The modular generator configuration also enhanced redundancy, supported continuous uptime requirements, and allowed efficient capacity expansion as customer demand and data center workloads increased. |
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Cummins supplied backup power systems for the LG CNS Busan Global Data Center, the largest data center in South Korea. Cummins deployed 12 units of C2250D6A diesel generator sets, delivering 27 MW of standby power to support continuous operations for a facility capable of running 72,000 servers simultaneously. | The deployment provided highly reliable standby power with rapid startup capability within 10 seconds during utility failures, ensuring minimal downtime and uninterrupted service continuity. The solution also improved operational reliability through N+1 redundancy, integrated monitoring, and long-term maintenance support, helping LG CNS maintain high uptime standards for mission-critical cloud and colocation operations. |
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Farnam, a major interconnection and colocation data center in Omaha, deployed three Cat 3512C diesel generator sets to provide 4.5 MW of backup power capacity. The generators were installed on a rooftop parking structure to address space constraints while ensuring uninterrupted operations for mission-critical data infrastructure. | The deployment enabled the facility to achieve reliable standby power with rapid 10-second startup capability, ensuring continuous uptime during grid outages. The rooftop modular design optimized limited urban space, reduced operational risk, and supported high reliability while meeting strict noise and maintenance requirements for a dense city environment. |
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ABB partnered with Lefdal Mine Datacenter in Norway to provide critical power infrastructure, including a medium-voltage backbone and decentralized UPS systems, for one of Europe’s largest green data centers. Powered entirely by hydropower and wind energy, the facility was designed to scale from 10 MW to 200 MW while maintaining high energy efficiency and operational reliability. | The deployment enabled highly reliable and energy-efficient operations with UPS systems, ensuring an uninterrupted power supply within milliseconds during grid disturbances. The project also achieved significant sustainability benefits through renewable energy integration and advanced cooling systems, delivering a low PUE of 1.08–1.15 and reducing energy consumption by 30–40% compared with conventional data centers. |
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MARKET ECOSYSTEM
The ecosystem of the data center generators market involves various stakeholders responsible for the production, deployment, and utilization of backup power supply systems. Component suppliers and raw material providers contribute necessary components like engines, semiconductors, batteries, steel, and electrical assemblies to manufacture the generators. Data center generator OEMs and power solution providers produce high-power capacity, modular, and power-efficient generators used for hyperscale, colocation, enterprise, and telecom data centers. System Integrators and EPC contractors are responsible for the installation, commission, synchronization, and integration with wider data center power systems. The system includes various distributors, rental providers, and aftermarket services that ensure equipment availability, maintenance, fuel provision, remote operation, and operational life span across the worldwide data center infrastructure.
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Data Center Generators Market, By Power Rating
The global data center generators market is expected to be dominated by diesel generators owing to their high reliability, ability to start quickly, and deliver continuous backup power during the event of a grid failure. These are preferred in most hyperscale, colocation, enterprise, and telecom data centers owing to the robust load handling capability and stable operation in mission-critical applications. It is also easier to deploy and maintain these generators worldwide with the existing diesel fuel infrastructure. Also, advancements in fuel efficiency and emission-reducing technologies, including compatibility with HVO fuel, are helping diesel generators remain competitive with gas and hybrid generators.
Data Center Generators Market, By Power Rating
The above 3 MW generators segment is projected to grow at the fastest rate over the forecast period due to the increasing adoption of hyperscale and AI data centers that require higher backup power. Large enterprises with multi-MW power generation needs are required to meet higher computing loads within GPU clusters and high-density data centers, where scalability and operational efficiency are important. The demand for mega data center campuses is growing significantly across North America, Europe, the Asia Pacific, and the Middle East. The high importance of seamless availability and reliability of the grid is also increasing the need for high-power generators and their installation using parallel power arrangements for resilience.
Data Center Generators Market, By End User
Hyperscale data centers are expected to account for the largest share of the data center generators market due to the increasing global deployment of cloud and AI data centers. Cloud service providers are making heavy investments in large, multi-megawatt campuses with high uptime for their backup power systems. Such a large data center requires high-power diesel/gas/hybrid generators to meet its power demands, and hyperscale data center operators are also focusing on high uptime and operational resilience across their installations in North America, Europe, and the Asia Pacific.
REGION
The Asia Pacific is expected to grow at the fastest rate in the data center generators market during the forecast period.
The Asia Pacific is projected to grow at the fastest pace in the data center generators market, owing to the rapid deployment of hyperscale, cloud, and AI-enabled data center infrastructure across China, India, Japan, Singapore, and Australia. The increasing pace of digital transformation, rising internet penetration, and increasing adoption of cloud services have driven up the need for uninterrupted backup power systems. Extensive investments by governments and private players for the construction of new data centers to drive AI, 5G, edge computing, and digital economy initiatives across the region are projected to accelerate market growth. Frequent grid instability and escalating power consumption in a number of developing economies are also fueling the need for higher-capacity generator systems to enable seamless operations. The increasing need for colocation and the growth of global tech companies across the region also boost market growth.
DATA CENTER GENERATORS MARKET: COMPANY EVALUATION MATRIX
Caterpillar is categorized as a Star player due to its robust high-capacity diesel and gas generator product portfolio with widespread application at hyperscale, colocation, enterprise, and telecom data centers. The leadership in dependable back-up power solutions and an expansive global support network, advanced power management capabilities, ongoing investments in fuel efficiency, low emissions, and continued enhancements contribute to a formidable market leadership position for Caterpillar. Further, Generac is recognized as an Emerging leader due to its increasing range of backup power solutions, generator units, and intelligent energy management technologies. The increasing emphasis by Generac on sustainable power infrastructure and growth in the commercial and industrial data center markets is contributing to its growth as a key player in the global data center generators market.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
- Cummins (US)
- Caterpillar (US)
- Rolls-Royce (UK)
- Rehlko (US)
- Mitsubishi (Japan)
- GE Vernova (US)
- ABB (Switzerland)
- Vertiv (US)
- Eaton (Ireland)
- Siemens Energy (Germany)
- Atlas Copco (Sweden)
- Himoinsa (Spain)
- Generac (US)
- Yanmar (Japan)
- Schneider Electric (France)
- Fuji Electric (Japan)
- Baudouin (France)
- Pramac (Italy)
- FG Wilson (UK)
- Genesal Energy (Spain)
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size in 2026 (Value) | USD 8.57 Billion |
| Market Forecast in 2031 (Value) | USD 9.79 Billion |
| Growth Rate | CAGR of 2.7% from 2026 to 2031 |
| Years Considered | 2020–2031 |
| Base Year | 2025 |
| Forecast Period | 2026–2031 |
| Units Considered | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
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| Regions Covered | North America, Asia Pacific, Europe, the Middle East & Africa, and Latin America |
WHAT IS IN IT FOR YOU: DATA CENTER GENERATORS MARKET REPORT CONTENT GUIDE
DELIVERED CUSTOMIZATIONS
We have successfully delivered the following deep-dive customizations:
| CLIENT REQUEST | CUSTOMIZATION DELIVERED | VALUE ADDS |
|---|---|---|
| Leading Solution Provider (US) | Detailed segmentation of the data center generators market by offering, power capacity, end user, and region, with analysis across North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America | Identifies growth opportunities linked to AI, hyperscale expansion, and rising backup power demand; supports strategic planning for scalable and reliable power infrastructure |
| Leading Solution Provider (EU) | Profiling of additional generator vendors, including product portfolio, partnerships, service capabilities, and regional presence across hyperscale and enterprise data centers | Supports competitive benchmarking and highlights trends such as HVO-compatible generators, hybrid systems, and intelligent power management technologies |
RECENT DEVELOPMENTS
- January 2026 : Caterpillar, American Intelligence & Power Corporation, and Boyd CAT formed a strategic alliance to support the Monarch Compute Campus, an AI-focused hyperscale data center project in West Virginia. Under the alliance, AIP Corp ordered 2 GW of Caterpillar G3516 fast-response natural gas generator sets, with deliveries scheduled from September 2026 through August 2027 and power delivery targeted in 2027. The project combined onsite natural gas generation, battery energy storage systems, and microgrid infrastructure to support high-density AI workloads and long-term expansion plans of up to 8 GW capacity.
- December 2025 : Rehlko launched its new KD Series 60–600 kW generators, expanding its backup power portfolio for mission-critical applications, including data centers. The company stated that the new range is designed to support rising demand for energy resilience driven by grid instability, extreme weather events, and growing digital infrastructure requirements. Rehlko also highlighted that the KD Series portfolio now extends from 60 kW to over 4 MW, strengthening its position in the global backup power market. The company confirmed that distribution of the new generator range was supposed to begin in Q1 2026, with global availability expanding throughout the year.
- October 2025 : Rolls-Royce Holdings introduced fast-start MTU Series 4000 natural gas generator sets designed for AI-driven data centers and grid stabilization applications. Beginning in 2026, the new 20v4000 gas genset for the North American market will deliver 2.8 MW output within 45 seconds, improving power output by 10% while reducing installation footprint. Rolls-Royce stated that the systems support emergency, continuous, and hybrid power applications while offering compatibility with biogas, biomethane, and future hydrogen fuel blends. The launch aligns with rising global data center power demand, expected to double by 2030.
- October 2025 : Mitsubishi Heavy Industries Engine System Asia launched the MGS2500R Containerized Solution at Data Centre World Asia 2025 in Singapore to support reliable backup power demand across the Asia Pacific. The solution includes a 2,500 kVA standby generator housed in a 40-foot container designed for data center and critical power applications, compliant with Tier III and Tier IV requirements. The modular design enables faster deployment, easier transportation, and flexible installation for data centers and industrial facilities. Through this launch, the company strengthened its focus on scalable, high-performance, and resilient backup power infrastructure for growing digital and AI-driven environments.
Table of Contents
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Methodology
This research study on the data center generators market involved extensive secondary sources, directories, IEEE Communication-Efficient: Algorithms and Systems, International Journal of Innovation and Technology Management, and paid databases. Primary sources included industry experts from core and related industries, third-party service providers, consulting service providers, end users, and other commercial enterprises. In-depth interviews with primary respondents, including key industry participants and subject matter experts, were conducted to obtain and verify critical qualitative and quantitative information and assess the market’s prospects.
Secondary Research
In the secondary research process, various sources were referred to identify and collect information for this study. Secondary sources included annual reports, press releases, and investor presentations of companies; white papers, journals, and certified publications; and articles from recognized authors, directories, and databases. The data was also collected from other secondary sources, such as journals, government websites, blogs, and vendors’ websites.
Primary Research
During the primary research process, interviews were conducted with various sources from both the supply and demand sides to gather qualitative and quantitative information on the market. The primary sources on the supply side included generator manufacturers, engine suppliers, power solution providers, component manufacturers, and industry experts such as chief executive officers (CXOs), vice presidents (VPs), business development managers, and directors involved in power systems, energy infrastructure, and data center operations. It also included key executives from the data center industry, professional service providers, industry associations, and other key opinion leaders.
Notes: Tier 1 companies’ revenues are more than USD 1 billion; Tier 2 companies’ revenues range between USD 500 million and USD 1 billion; and Tier 3 companies’ revenues range between USD 50 million and USD 500 million.
Other designations include sales managers, marketing managers, data center procurement managers, and product managers.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Multiple approaches were adopted to estimate and forecast the data center generators market. The first approach involved estimating the market size based on companies’ revenue from data center generator sales.
Market Size Estimation Methodology: Top-down Approach
The top-down approach estimates the overall data center generators market size by starting with a macro-level view, such as total IT spending or digital transformation expenditures. High-level industry or market values are divided and allocated into segments based on identified proportions by offering, workload type, data center size & capacity, end user, and region using researched splits. This approach uses broad market trends, industry reports, and expert insights to proportionately allocate the total value across sub-markets, regions, and countries. It ensures that the overall estimation remains aligned with recognized industry benchmarks, enabling accurate segmentation and a holistic market perspective.
Market Size Estimation Methodology: Bottom-up Approach
The bottom-up approach for estimating the data center generators market size involves aggregating data at the most granular level, such as company revenues, to build up to the global figure. This process begins by collecting company-level revenue data for data center generators and services. By analyzing the market share and revenue of key players and integrating percentage splits across segments, such as service line or industry, the total market size is calculated. Additional segmentation is performed by region or vertical, ensuring comprehensive coverage. The method then validates market estimates by comparing and consolidating segment results, providing a robust, detailed market-size assessment derived from concrete, ground-level business activity.
Data Center Generators Market : Top-Down and Bottom-Up Approach
Data Triangulation
After determining the overall market size using the market estimation processes described above, the market was segmented and sub-segmented. Data triangulation and market segmentation procedures were employed, where applicable, to complete the overall market engineering process and determine the exact statistics for each market segment and subsegment. The overall market size was then used in the top-down approach to estimate the size of other individual markets by applying percentage splits to the market segmentation.
Market Definition
After determining the overall market size using the market estimation processes described above, the market was segmented and sub-segmented. Data triangulation and market segmentation procedures were employed, where applicable, to complete the overall market engineering process and determine the exact statistics for each market segment and subsegment. The overall market size was then used in the top-down approach to estimate the size of other individual markets by applying percentage splits to the market segmentation.
Key Stakeholders
- Generator manufacturers
- Engine and alternator suppliers
- Hyperscale cloud providers
- Colocation data center operators
- Enterprise data center owners
- Power infrastructure and EPC contractors
- UPS and electrical equipment providers
- Utility and energy providers
- Facility management and maintenance service providers
- Government and regulatory authorities
Report Objectives
- To define, describe, and forecast the data center generators market based on type, power rating, end user, and region
- To forecast the market size of five major regional segments: North America, Europe, the Asia Pacific, the Middle East & Africa, and Latin America
- To strategically analyze the market subsegments with respect to individual growth trends, demand drivers, and their contributions to the overall market
- To provide detailed information regarding the major factors influencing market growth (drivers, restraints, opportunities, and challenges)
- To analyze macro and micro market dynamics, including hyperscale data center expansion, AI and high-performance computing (HPC) adoption, increasing power density, and growing demand for reliable backup power infrastructure
- To analyze technology trends, innovation developments, and operational advancements related to diesel, gas, bi-fuel, and hydrogen-ready generator systems, along with digital monitoring and power management solutions
- To analyze opportunities for stakeholders and provide a detailed competitive landscape of the data center generators market based on product portfolios, strategic developments, regional presence, and service capabilities
- To assess the impact of AI, generative AI, and accelerator-driven workloads on data center generator demand
- To profile key players in the market and comprehensively analyze their market share, product portfolios, and core competencies
- To track and analyze competitive developments such as mergers & acquisitions, product launches, partnerships, collaborations, and capacity expansions in the market
Available customizations:
Based on the given market data, MarketsandMarkets offers customizations tailored to the company’s specific needs. The following customization options are available for the report:
Product Analysis
- The product matrix provides a detailed comparison of the product portfolio of each company.
Geographic Analysis Based on Feasibility
- Further breakup of the North American data center generators market
- Further breakup of the European data center generators market
- Further breakup of the Asia Pacific data center generators market
- Further breakup of the Middle East & African data center generators market
- Further breakup of the Latin American data center generators market
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
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