Global On-Site Photovoltaic Solar Power For Data Centers Market Insights Forecasts to 2033

• The Global On-Site Photovoltaic Solar Power For Data Centers Market Size was Valued at USD 21.38 Billion in 2023
• The Market Size is Growing at a CAGR of 11.76% from 2023 to 2033
• The Worldwide On-Site Photovoltaic Solar Power For Data Centers Market Size is Expected to Reach USD 65 Billion by 2033
• Europe is Expected to Grow the fastest during the forecast period

The Global On-Site Photovoltaic Solar Power For Data Centers Market Size is Anticipated to Exceed USD 65 Billion by 2033, Growing at a CAGR of 11.76% from 2023 to 2033.

Market Overview

On-site solar photovoltaics for data centers are solar power systems set up at data centers to supply clean, renewable energy. It helps to meet the energy demands of the data centers, lowers their environmental impact, and decreases their reliance on grid electricity.

On-site solar photovoltaics for data centers offer several advantages, including reduced energy costs, enhanced sustainability, and increased energy independence. By producing power on-site, data centers can reduce their reliance on grid electricity, leading to lower operational expenses and a smaller carbon footprint. This alignment with sustainability goals boosts a company's corporate social responsibility (CSR) profile. Moreover, on-site solar installations can improve energy security by reducing the risk of grid instability or outages. With the increasing efficiency and decreasing cost of solar technology, the return on investment for solar infrastructure has become highly favorable. Additionally, data centers can harness renewable energy credits (RECs) and other financial incentives that further enhance the economic viability of solar power solutions.

Tech companies around the world are adopting solar energy for their data centers. For instance, in July 2024, orange deployed solar panels on data center in Warsaw, Poland. They signed a deal with GreenYellow.

Report Coverage

This research report categorizes the market for the global on-site photovoltaic solar power for data centers market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the global on-site photovoltaic solar power for data centers market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the global on-site photovoltaic solar power for data centers market.

Driving Factors

The global on-site photovoltaic solar power market for data centers is driven by the escalating demand for energy-efficient and sustainable solutions in data centers. Companies are increasingly prioritizing the reduction of their carbon footprints as part of corporate social responsibility initiatives, and on-site solar power helps meet these sustainability goals. Secondly, advancements in PV technology have significantly lowered the costs and improved the efficiency of solar panels, making them a more viable option for large-scale installations. Additionally, favorable government policies and incentives for renewable energy adoption encourage more data centers to invest in solar power.

Restraining Factors

Despite the benefits, the on-site photovoltaic solar power for data centers market faces several restraining factors. High initial investment and installation costs could be a barrier for many organizations. Additionally, integrating solar power systems into existing infrastructure is complex, technically challenging, and requires skilled labor and careful planning. Variability in solar energy generation due to weather conditions and geographic location also poses a reliability issue.

Market Segmentation

The global on-site photovoltaic solar power for data centers market share is classified into silicon photovoltaic panel type, application, and technology.

• The monocrystalline segment is expected to hold the largest share of the global on-site photovoltaic solar power for data centers market during the forecast period.

Based on the silicon photovoltaic panel type, the global on-site photovoltaic solar power for data centers market is divided into monocrystalline, polycrystalline, thick-film, and amorphous. Among these, the monocrystalline segment is expected to hold the largest share of the global on-site photovoltaic solar power for data centers market during the forecast period. These panels are favoured due to their superior efficiency, high power output per square meter, and maximizing energy production within limited spaces. The durability and long lifespan of monocrystalline panels provide a reliable energy solution. Advancements in manufacturing processes have led to cost reduction, boosting their market penetration. The high efficiency, reliability, and declining costs make monocrystalline panels the preferred choice for data centers investing in on-site solar power systems.

• The on-grid connected segment is expected to hold the largest share of the global on-site photovoltaic solar power for data centers market during the forecast period.

Based on application, the global on-site photovoltaic solar power for data centers market is divided into on-grid connected and off-grid connected. Among these, the on-grid connected segment is expected to hold the largest share of the global on-site photovoltaic solar power for data centers market during the forecast period. These systems are integrated with the main power grid, allowing data centers to utilize solar energy and access grid power as a backup. This dual access ensures a stable and reliable power supply, which is critical for the continuous operations of data centers. On-grid systems also enable the excess solar power generated to be fed back into the grid, often providing financial incentives or credits.

• The photovoltaic solar towers segment is expected to grow at the fastest CAGR in the global on-site photovoltaic solar power for data centers market during the forecast period.   

Based on technology, the global on-site photovoltaic solar power for data centers market is divided into photovoltaic solar linear fresnel reflectors, integrated solar combined cycle power plants (ISCC), photovoltaic solar parabolic dish, and photovoltaic solar towers. Among these, the photovoltaic solar towers segment is expected to grow at the fastest CAGR in the global on-site photovoltaic solar power for data centers market during the forecast period. These systems, which use numerous mirrors to concentrate solar energy onto a central tower, can achieve extremely high-efficiency rates and generate large amounts of electricity. This makes them particularly attractive for large-scale data centers with high energy demands. The technology of solar towers allows scalability and efficiency improvements, catering to the expanding needs of modern data centers.

Regional Segment Analysis of the Global On-Site Photovoltaic Solar Power For Data Centers Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America is anticipated to hold the largest share of the global on-site photovoltaic solar power for data centers market over the predicted timeframe.

North America is anticipated to hold the largest share of the global on-site photovoltaic solar power for data centers market over the predicted timeframe. The region has a highly developed technological infrastructure and a strong focus on renewable energy adoption, supported by favorable government policies and financial incentives. The United States, in particular, has several large-scale data centers, investing in sustainable energy solutions to meet corporate sustainability goals and reduce operational costs. Additionally, the presence of leading technology firms and cloud service providers like Alphabet, Microsoft, and Amazon drives the demand for energy solutions like on-site photovoltaic solar power. The commitment to reducing carbon emissions and adopting green technologies supports the leading position.

Europe is expected to grow at the fastest pace in the global on-site photovoltaic solar power for data centers market during the predicted timeframe. The regional market growth can be attributed to stringent environmental regulations and ambitious targets for renewable energy adoption set by the European Union. Europe has a commitment to sustainability and reducing carbon emissions, which drives the demand for renewable energy solutions. Countries like Germany, France, and the Netherlands are leading the charge in deploying advanced solar technologies. Moreover, investments in renewable energy infrastructure from conglomerates make it easier for data centers to adopt on-site photovoltaic solar power.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global on-site photovoltaic solar power for data centers market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Trina Solar
• JA Solar Co. Ltd.
• SunPower Corporation
• SCHOTT North America, Inc.
• Alibaba Group Holding Ltd
• Microsoft Corporation
• Evergreen
• Canadian Solar
• Hanwha Q CELLS
• Vikram Solar Pvt. Ltd.
• Facebook Inc.
• Amazon.com Inc
• FIRST SOLAR
• Alphabet Inc.
• Yingli Solar
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In April 2024, Apple data centers consumed some 2.344 billion kWh of electricity in 2023 to power its data centers and colocation facilities around the world, up from 2.14 billion kWh the year before.

• In March 2024, Regional Edge data center firm nLighten deployed solar panels on the roof of its Milton Keynes data center in the UK. The company deployed around 1,000 panels on the 4,500-square-meter (48,440 sq ft) rooftop.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the global on-site photovoltaic solar power for data centers market based on the below-mentioned segments: 

Global On-site Photovoltaic Solar Power for Data Centers Market, By Silicon Photovoltaic Panel Type

• Monocrystalline
• Polycrystalline
• Thick-film
• Amorphous

Global On-site Photovoltaic Solar Power for Data Centers Market, By Application

• On-grid connected
• Off-grid connected

Global On-site Photovoltaic Solar Power for Data Centers Market, By Technology

• Photovoltaic Solar Linear Fresnel Reflector
• Integrated Solar Combined Cycle Power Plant (ISCC)
• Photovoltaic Solar Parabolic Dish
• Photovoltaic Solar Towers

Global On-Site Photovoltaic Solar Power for Data Centers Market, Regional

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa