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According to a new report issued by Navigant Research, global annual revenue for distributed power generation in data centers is expected to grow from $3.9 billion in 2018 to $6.7 billion in 2027.

Data centers are critical to a functional global digital economy and society. Investment in cloud storage, co-location, and hyperscale data centers has resulted in the construction of a large volume of new data centers globally, thus increasing energy consumption.

Meanwhile, environmental consciousness and edge computing have led to a shift toward more sustainable, off-grid installations closer to the point of use.

“Increasing investments in big data, digital content, and e-commerce will continue to drive explosive growth in power demand for data center markets,” says Pritil Gunjan, senior research analyst with Navigant Research.

“Therefore, it is critical to understand the reliability and sustainability of power supplied to these facilities.”

The perceived benefits of distributed and renewable resources (like wind and solar PV) for both primary and critical power supply are gaining attention among data center operators.

There is a compelling case for data centers to evaluate distributed generation along with demand response (DR) and grid interactivity. This strategy is likely to gain market acceptance in the next 3-5 years and offer rapid ROI across the globe.

The report Sustainable and Renewable Power Generation for Global Data Centres evaluates various reliable power generation models for data centers, with a focus on distributed power generation technologies including distributed energy resources (DER) such as gensets, solar, wind, microturbines, and fuel cells.

An Executive Summary of the report is available here.