Europe Data Center Generator Market Outlook (2021–2028)

The data center generator market in Europe is projected to grow from US$ 1,214.01 million in 2021 to US$ 1,881.48 million by 2028, registering a CAGR of 6.5% during the forecast period.

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In modern data centers, the primary power supply is typically sourced from the main electrical grid via a local utility provider. To ensure operational continuity during grid outages, data centers are equipped with one or more backup generators—usually powered by diesel or gas. These generators work in tandem with medium-voltage electricity from the grid, which is then converted to low voltage via transformers for internal use.

Main Distribution Boards (MDBs) play a critical role by distributing low-voltage power to various endpoints, such as Uninterruptible Power Supply (UPS) systems and load banks. In the event of a power failure, MDBs automatically manage the transition and activate the backup generators. Most data centers maintain a fuel reserve sufficient to operate generators for 24 to 48 hours, ensuring uninterrupted service and safeguarding critical operations.

Power outages in data centers can lead to serious consequences, including revenue loss, service disruption, and damage to sensitive equipment. To mitigate these risks, facilities increasingly rely on advanced backup solutions—such as UPS systems, power switching controls, and generator synchronization technologies.

Modern modular and containerized backup systems—featuring gas turbines, power modules, and hybrid solutions combining gas, renewables, and energy storage—are gaining traction due to their scalability, efficiency, and reliability. These systems provide flexible and dependable backup power, ensuring seamless data center operations during outages.

The growing demand for data center capacity, coupled with the availability of advanced generator systems, is fueling market growth across Europe. Furthermore, the introduction of new features and technologies by vendors is helping attract new customers and expand into emerging markets—further accelerating the growth of the data center generator market in the region.

Europe Data Center Generator Market Segmentation and Strategic Insights

Market Segmentation

The Europe data center generator market is segmented by product type, capacity, tier, and country:

• By Product Type: The market includes diesel, natural gas, and bi-fuel generators. In 2020, diesel generators dominated the market, accounting for the largest share due to their high reliability and widespread availability.
• By Capacity: Segments include generators below 1 MW, 1–2 MW, and above 2 MW. The below 1 MW category held the largest market share in 2020 and is expected to register the highest CAGR during the forecast period, driven by the rising demand for modular and edge data centers.
• By Tier: The market is categorized into Tier 1 & Tier 2, Tier 3, and Tier 4 data centers. The Tier 3 segment accounted for the largest share in 2020, supported by a balance of performance and cost-efficiency for medium- to large-scale data centers.
• By Country: Key markets include France, Germany, Italy, the UK, Russia, and the Rest of Europe. Among these, Germany led the market in 2020, driven by strong data center infrastructure and industrial growth.

Key Market Players

Leading companies in the Europe data center generator market include:

• ABB Ltd.
• Atlas Copco AB
• Caterpillar Inc.
• Cummins Inc.
• DEUTZ AG
• Generac Power Systems Inc.
• HITEC Power Protection
• Kohler Co.
• Mitsubishi Heavy Industries, Ltd.

These companies play a pivotal role in shaping market dynamics through innovation, partnerships, and expansions.

Strategic Insights

Strategic insights into the Europe data center generator market provide a data-driven overview of market dynamics, including emerging trends, regional opportunities, and competitive strategies. These insights are vital for stakeholders—ranging from investors and manufacturers to policy makers—seeking to make informed, future-ready decisions.

Key highlights include:

• Trend Identification: Tracking the shift toward lower-emission and energy-efficient generator technologies, especially natural gas and hybrid solutions.
• Opportunity Mapping: Identifying growth areas such as edge data centers and hyperscale facilities in underserved or emerging regions.
• Competitive Differentiation: Recommending the development of tailored value propositions and service models that address regional infrastructure and regulatory requirements.
• Data-Driven Forecasting: Utilizing analytics to anticipate market shifts, assess risk, and align strategic planning with evolving customer demands and technology landscapes.

By integrating strategic foresight with actionable intelligence, stakeholders can enhance market positioning, optimize investments, and unlock long-term profitability in this evolving sector.

Market leaders and key company profiles

  ABB Ltd

  Atlas Copco AB

  Caterpillar Inc.

  Cummins Inc.

  DEUTZ AG

  GENERAC POWER SYSTEMS INC.

  HITEC POWER PROTECTION

  Kohler Co.

  Mitsubishi Heavy Industries, Ltd.

Regional Insights – Europe Data Center Generator Market

The geographic scope of the Europe data center generator market highlights the specific regions where businesses operate and compete. To succeed in this market, companies must understand regional variations—such as preferences for certain plug types, battery backup durations, economic conditions, and regulatory frameworks. Tailoring products and strategies to these local distinctions is essential for meeting customer needs effectively. By identifying underserved regions and customizing offerings accordingly, businesses can expand their market presence. A focused regional approach also enables better resource allocation, more precise marketing efforts, and stronger competitive positioning, ultimately driving growth in key European markets.

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Author's Bio
Akshay
Senior Market Research Expert at Business Market Insights