MarketsandMarkets forecasts growth in the global data centre generators market, rising from USD $8.57 billion in 2026 to USD $9.79 billion by 2031.
That equates to a compound annual growth rate of 2.7%, as operators invest in backup power systems to reduce outage risk across data centre sites.
Demand is being shaped by reliability concerns and changing computing needs. Businesses and hyperscale operators are adding redundant generator systems to protect facilities from grid failures, extreme weather and fluctuations in power demand.
The spread of edge computing is also increasing demand for generator installations. As operators build distributed networks of smaller sites alongside larger campuses, they need backup power systems that can support operations across multiple locations.
Supply constraints
At the same time, the sector faces supply chain pressure. Delays in the availability of engines, alternators, control systems and other electrical components are affecting project schedules.
Long lead times for high-capacity generators can slow infrastructure roll-outs for hyperscale and colocation operators. Rising raw material prices and shortages of skilled labour for installation and maintenance are also increasing deployment costs.
Bi-fuel generators are expected to record the fastest growth within the market. These systems can run on both diesel and natural gas, making them more attractive to operators seeking to manage fuel costs and reduce emissions while maintaining resilience during extended outages.
MarketsandMarkets linked that trend to investment in hyperscale and artificial intelligence-focused data centres, where operators need backup power systems suited to larger, denser computing loads. Environmental regulation and corporate carbon reduction targets are also prompting some operators to consider alternatives to diesel-only systems.
Bi-fuel units may also benefit in markets where diesel supplies are constrained or fuel prices are volatile. The ability to switch between fuels is becoming an important factor for hyperscale, colocation and enterprise facilities seeking greater flexibility in backup power planning.
Large systems
Generators rated above 3 MW are expected to account for the largest share of market value. The segment is being supported by the rise of hyperscale and AI-driven facilities, which require larger backup power installations.
Growing electricity demand from AI training clusters, cloud services and high-performance computing workloads is pushing operators towards multi-megawatt systems. Colocation providers are also adopting larger units as rack power densities rise and facilities require more substantial standby capacity.
This shift reflects a broader change in the economics of large campuses. High-capacity systems can offer scale advantages for operators managing significant power loads across extensive sites, particularly in regions where new hyperscale developments continue.
Regional split
North America is projected to remain the largest regional market, supported by the concentration of hyperscale cloud providers in the US and Canada, rising investment in AI infrastructure and the continued build-out of large data centre campuses.
The region also has a large number of Tier III and Tier IV facilities, where uninterrupted service is a core requirement and backup power is central to site design. Modernisation of generator systems at existing facilities is expected to support spending alongside new construction.
Asia Pacific, by contrast, is forecast to be the fastest-growing market. Growth is being driven by digital transformation, stronger cloud adoption and rising investment in hyperscale and colocation facilities across China, India, Southeast Asia, Japan and Australia.
Government-backed digital infrastructure programmes, broader internet access and demand for AI-ready sites are adding to deployment activity. The expansion of edge data centres and wider enterprise digitisation are also feeding demand for backup power equipment.
Grid reliability remains another important factor in several Asian markets. As electricity demand rises, operators are placing more emphasis on generator systems that can maintain continuity when utility supply is unstable.
The market outlook points to steady rather than rapid expansion, with growth concentrated in larger systems, bi-fuel technology and regions with heavy data centre investment. North America is expected to hold the largest share, while Asia Pacific posts the fastest growth.