On Site Photovoltaic Solar Power For Data Centers Market
On-Site Photovoltaic Solar Power for Data Centers Market Forecasts to 2030 - Global Analysis by Component (Solar Panels, Inverters, Mounting Systems and Monitoring and Control Systems), Data Center Type, Deployment Mode, Technology, Application and By Geography
|
Years Covered |
2022-2030 |
|
Estimated Year Value (2024) |
US $24.2 BN |
|
Projected Year Value (2030) |
US $52.3 BN |
|
CAGR (2024 - 2030) |
13.7% |
|
Regions Covered |
North America, Europe, Asia Pacific, South America, and Middle East & Africa |
|
Countries Covered |
US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa |
|
Largest Market |
North America |
|
Highest Growing Market |
Asia Pacific |
According to Stratistics MRC, the Global On-Site Photovoltaic Solar Power for Data Centers Market is accounted for $24.2 billion in 2024 and is expected to reach $52.3 billion by 2030 growing at a CAGR of 13.7% during the forecast period. On-site photovoltaic (PV) solar power for data centers refers to the use of solar energy systems installed directly at data center facilities to generate electricity. These systems consist of solar panels, inverters, and battery storage solutions that convert sunlight into usable power, reducing reliance on grid electricity and fossil fuels. On-site solar helps data centers achieve energy efficiency, lower operational costs, and meet sustainability goals by cutting carbon emissions.
According to Cloudscene, as of 2022, the United States was the largest data centre market in the world, housing nearly 5375 data centres.
Market Dynamics:
Driver:
Rising Energy Demand from Data Centers
The rising energy demand from data centers is driving the on-site photovoltaic (PV) solar power industry by raising the demand for cost-effective and sustainable energy solutions. Data centers must deal with rising electricity demand as cloud computing, artificial intelligence, and digital services grow. On-site solar energy provides a dependable, renewable substitute that lowers operating expenses and grid reliance. Data centers are also compelled to use solar energy due to environmental pledges and carbon reduction goals, which accelerates the market's expansion and uptake globally.
Restraint:
High Initial Investment
The expensive initial investment in on-site photovoltaic solar electricity for data centers is a key impediment to market expansion. Adoption is hampered by the high cost of installing solar panels, energy storage devices, and grid integration, particularly for smaller data centers. Alternative energy sources become more alluring as a result of this financial burden delaying return on investment. Furthermore, extended payback periods and financial limitations prevent widespread adoption, which slows market growth.
Opportunity:
Technological Advancements
Technological advancements drive the on-site photovoltaic (PV) solar power market for data centers by improving energy efficiency, reliability, and scalability. Innovations in high-efficiency solar panels, bifacial modules, and advanced inverters enhance power generation. Breakthroughs in battery storage, such as lithium-ion and solid-state batteries, ensure 24/7 energy availability despite solar intermittency. Smart grid integration and AI-driven energy management optimize consumption, reducing operational costs. These advancements are accelerating adoption among data centers aiming for sustainability and energy independence.
Threat:
Intermittency & Energy Storage Challenges
Intermittency and energy storage challenges hinder the adoption of on-site photovoltaic solar power for data centers. Solar energy generation fluctuates due to weather conditions, leading to inconsistent power supply. Limited and costly energy storage solutions, such as batteries, make it difficult to ensure uninterrupted operations. These challenges increase reliance on backup power sources, reducing cost savings and sustainability benefits, thus slowing market growth and adoption.
Covid-19 Impact
The COVID-19 pandemic disrupted the on-site photovoltaic solar power market for data centers by delaying project installations due to supply chain disruptions, labor shortages, and lockdowns. However, the crisis accelerated digital transformation, increasing data center energy demands. Governments prioritized renewable energy in recovery plans, driving long-term solar adoption. Post-pandemic, rising sustainability commitments and energy security concerns further boosted investments in on-site solar power for data centers.
The cooling systems segment is expected to be the largest during the forecast period
The cooling systems segment is expected to account for the largest market share during the forecast period, as data centers require efficient cooling to prevent overheating, integrating solar power helps offset electricity consumption and reduce operational costs. Advanced cooling technologies, such as liquid cooling and AI-driven optimization, enhance energy efficiency, making solar adoption more viable. Additionally, the synergy between sustainable cooling and on-site PV systems supports carbon reduction goals, increasing market growth and investment in renewable-powered data centers.
The monocrystalline segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the monocrystalline segment is predicted to witness the highest growth rate, because Monocrystalline panels maximize space utilization, making them ideal for data centers with limited rooftop or land availability. Their longer lifespan and better performance in low-light conditions enhance reliability, ensuring continuous power supply. Additionally, as data centers prioritize sustainability and cost savings, the declining cost of monocrystalline technology accelerates adoption, further boosting the market's growth and energy resilience.
Region with largest share:
During the forecast period, the North America region is expected to hold the largest market share due to rising energy demands, sustainability initiatives, and government incentives. Tech giants and cloud service providers prioritize solar energy to reduce carbon footprints and operational costs. Federal and state policies, including tax credits and renewable energy mandates, further accelerate adoption. Additionally, advancements in solar technology and energy storage improve reliability, making on-site PV a viable solution for ensuring energy independence and grid stability in data center operations.
Region with highest CAGR:
Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR, because of rapid digitalization, rising energy demands, and strong support for renewable energy. Countries like China, India, and Japan are promoting solar adoption through incentives and sustainability mandates. The region’s abundant solar resources, declining panel costs, and advancements in energy storage enhance feasibility. Additionally, hyperscale data centers and cloud providers are investing in on-site solar to reduce carbon footprints, ensuring long-term cost savings and energy security.
Key players in the market
Some of the key players profiled in the On-Site Photovoltaic Solar Power for Data Centers Market include AirTrunk, Amazon, Apple Inc, CentralAxis, Cloverleaf Infrastructure, CtrlS Datacenters, CyrusOne Inc, Fujitsu Limited, Google, IBM Corporation, Intersect Power, Microsoft, NextDC Limited, NGP Energy Capital, Oracle, Sandbrook Capital, SunSource Energy, Tencent Holdings Ltd., TPG Rise Climate and WAAREE Energies.
Key Developments:
In February 2025, IBM and Lenovo announced a planned expansion of their strategic technology partnership designed to help scale the impact of generative AI for clients in the Kingdom of Saudi Arabia.
In January 2025, Telefonica Tech and IBM announced a collaboration agreement to develop and deliver security solutions that address security challenges posed by future cryptographically relevant quantum computers.
In January 2025, e& has collaborated with IBM to deploy a pioneering, end-to-end, multi-model Artificial Intelligence (AI) and Generative AI governance solution.
Components Covered:
• Solar Panels
• Inverters
• Mounting Systems
• Monitoring and Control Systems
Data Center Types Covered:
• Hyperscale
• Colocation
• Enterprise
• Edge
Deployment Modes Covered:
• On-Site
• Off-Site
Technologies Covered:
• Monocrystalline
• Polycrystalline
• Thin-Film
Applications Covered:
• Power Supply
• Cooling Systems
• Lighting
• Energy Storage
• Backup Power
• Peak Load Management
• Carbon Footprint Reduction
• Other Applications
Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Technology Analysis
3.7 Application Analysis
3.8 Emerging Markets
3.9 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global On-Site Photovoltaic Solar Power for Data Centers Market, By Component
5.1 Introduction
5.2 Solar Panels
5.3 Inverters
5.4 Mounting Systems
5.5 Monitoring and Control Systems
6 Global On-Site Photovoltaic Solar Power for Data Centers Market, By Data Center Type
6.1 Introduction
6.2 Hyperscale
6.3 Colocation
6.4 Enterprise
6.5 Edge
7 Global On-Site Photovoltaic Solar Power for Data Centers Market, By Deployment Mode
7.1 Introduction
7.2 On-Site
7.3 Off-Site
8 Global On-Site Photovoltaic Solar Power for Data Centers Market, By Technology
8.1 Introduction
8.2 Monocrystalline
8.3 Polycrystalline
8.4 Thin-Film
9 Global On-Site Photovoltaic Solar Power for Data Centers Market, By Application
9.1 Introduction
9.2 Power Supply
9.3 Cooling Systems
9.4 Lighting
9.5 Energy Storage
9.6 Backup Power
9.7 Peak Load Management
9.8 Carbon Footprint Reduction
9.9 Other Applications
10 Global On-Site Photovoltaic Solar Power for Data Centers Market, By Geography
10.1 Introduction
10.2 North America
10.2.1 US
10.2.2 Canada
10.2.3 Mexico
10.3 Europe
10.3.1 Germany
10.3.2 UK
10.3.3 Italy
10.3.4 France
10.3.5 Spain
10.3.6 Rest of Europe
10.4 Asia Pacific
10.4.1 Japan
10.4.2 China
10.4.3 India
10.4.4 Australia
10.4.5 New Zealand
10.4.6 South Korea
10.4.7 Rest of Asia Pacific
10.5 South America
10.5.1 Argentina
10.5.2 Brazil
10.5.3 Chile
10.5.4 Rest of South America
10.6 Middle East & Africa
10.6.1 Saudi Arabia
10.6.2 UAE
10.6.3 Qatar
10.6.4 South Africa
10.6.5 Rest of Middle East & Africa
11 Key Developments
11.1 Agreements, Partnerships, Collaborations and Joint Ventures
11.2 Acquisitions & Mergers
11.3 New Product Launch
11.4 Expansions
11.5 Other Key Strategies
12 Company Profiling
12.1 AirTrunk
12.2 Amazon
12.3 Apple Inc
12.4 CentralAxis
12.5 Cloverleaf Infrastructure
12.6 CtrlS Datacenters
12.7 CyrusOne Inc
12.8 Fujitsu Limited
12.9 Google
12.10 IBM Corporation
12.11 Intersect Power
12.12 Microsoft
12.13 NextDC Limited
12.14 NGP Energy Capital
12.15 Oracle
12.16 Sandbrook Capital
12.17 SunSource Energy
12.18 Tencent Holdings Ltd.
12.19 TPG Rise Climate
12.20 WAAREE Energies
List of Tables
1 Global On-Site Photovoltaic Solar Power for Data Centers Market Outlook, By Region (2022-2030) ($MN)
2 Global On-Site Photovoltaic Solar Power for Data Centers Market Outlook, By Component (2022-2030) ($MN)
3 Global On-Site Photovoltaic Solar Power for Data Centers Market Outlook, By Solar Panels (2022-2030) ($MN)
4 Global On-Site Photovoltaic Solar Power for Data Centers Market Outlook, By Inverters (2022-2030) ($MN)
5 Global On-Site Photovoltaic Solar Power for Data Centers Market Outlook, By Mounting Systems (2022-2030) ($MN)
6 Global On-Site Photovoltaic Solar Power for Data Centers Market Outlook, By Monitoring and Control Systems (2022-2030) ($MN)
7 Global On-Site Photovoltaic Solar Power for Data Centers Market Outlook, By Data Center Type (2022-2030) ($MN)
8 Global On-Site Photovoltaic Solar Power for Data Centers Market Outlook, By Hyperscale (2022-2030) ($MN)
9 Global On-Site Photovoltaic Solar Power for Data Centers Market Outlook, By Colocation (2022-2030) ($MN)
10 Global On-Site Photovoltaic Solar Power for Data Centers Market Outlook, By Enterprise (2022-2030) ($MN)
11 Global On-Site Photovoltaic Solar Power for Data Centers Market Outlook, By Edge (2022-2030) ($MN)
12 Global On-Site Photovoltaic Solar Power for Data Centers Market Outlook, By Deployment Mode (2022-2030) ($MN)
13 Global On-Site Photovoltaic Solar Power for Data Centers Market Outlook, By On-Site (2022-2030) ($MN)
14 Global On-Site Photovoltaic Solar Power for Data Centers Market Outlook, By Off-Site (2022-2030) ($MN)
15 Global On-Site Photovoltaic Solar Power for Data Centers Market Outlook, By Technology (2022-2030) ($MN)
16 Global On-Site Photovoltaic Solar Power for Data Centers Market Outlook, By Monocrystalline (2022-2030) ($MN)
17 Global On-Site Photovoltaic Solar Power for Data Centers Market Outlook, By Polycrystalline (2022-2030) ($MN)
18 Global On-Site Photovoltaic Solar Power for Data Centers Market Outlook, By Thin-Film (2022-2030) ($MN)
19 Global On-Site Photovoltaic Solar Power for Data Centers Market Outlook, By Application (2022-2030) ($MN)
20 Global On-Site Photovoltaic Solar Power for Data Centers Market Outlook, By Power Supply (2022-2030) ($MN)
21 Global On-Site Photovoltaic Solar Power for Data Centers Market Outlook, By Cooling Systems (2022-2030) ($MN)
22 Global On-Site Photovoltaic Solar Power for Data Centers Market Outlook, By Lighting (2022-2030) ($MN)
23 Global On-Site Photovoltaic Solar Power for Data Centers Market Outlook, By Energy Storage (2022-2030) ($MN)
24 Global On-Site Photovoltaic Solar Power for Data Centers Market Outlook, By Backup Power (2022-2030) ($MN)
25 Global On-Site Photovoltaic Solar Power for Data Centers Market Outlook, By Peak Load Management (2022-2030) ($MN)
26 Global On-Site Photovoltaic Solar Power for Data Centers Market Outlook, By Carbon Footprint Reduction (2022-2030) ($MN)
27 Global On-Site Photovoltaic Solar Power for Data Centers Market Outlook, By Other Applications (2022-2030) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
List of Figures
RESEARCH METHODOLOGY
We at ‘Stratistics’ opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.
Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.
Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.
Data Mining
The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.
Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.
Data Analysis
From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:
- Product Lifecycle Analysis
- Competitor analysis
- Risk analysis
- Porters Analysis
- PESTEL Analysis
- SWOT Analysis
The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.
Data Validation
The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.
We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.
The data validation involves the primary research from the industry experts belonging to:
- Leading Companies
- Suppliers & Distributors
- Manufacturers
- Consumers
- Industry/Strategic Consultants
Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.
For more details about research methodology, kindly write to us at info@strategymrc.com
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