The hydrotreated vegetable oil (HVO) for data center backup market was estimated to be worth USD 33.15 billion in 2024 and is anticipated to expand at a compound annual growth rate (CAGR) of 14.6% over the course of the forecast period. Waste vegetable and animal fats are hydrotreated to create HVO, a renewable diesel that may be used as a drop-in substitute for traditional fossil fuel diesel.

The market is expanding rapidly because to the growing need for lower-carbon alternatives to conventional fossil fuels and the growing demand for sustainable power solutions. Compass Datacenters, Vantage Data Centers, and ST Telemedia are among the many data center operators implementing HVO. Even though they use the most energy, data centers are dedicated to reaching net-zero carbon emissions.

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Growth Drivers

The market is expanding rapidly due to mounting pressure on data centers to improve sustainability and lower their carbon footprint. In many nations and areas, the practice of using renewable energy to power data centers is becoming more popular. One to three percent of global energy consumption is attributed to data centers, making them one of the biggest power users. Companies that operate data centers, including Microsoft, Google, Amazon Web Services, and Meta (Facebook), have made a commitment to reaching net-zero carbon emissions.

Big data centers are being built all over the world in response to the demand for cloud computing. The market is expanding due to rising need for massive amounts of power. The fact that these generators don't need an existing power source to operate is a major element propelling the industry. Furthermore, because of shifting consumer demands, large manufacturers are creating generators with specialized capacities. These systems have the ability to scale up or down in response to the power demands of the data centers.

Segmentation

HVO for Data Center Backup Market by Product Type

·         Diesel

·         Gas

·         Others

HVO for Data Center Backup Market by Capacity

·         < 1 MW

·         1 MW-2MW

·         >2MW

HVO for Data Center Backup Market by Tier Standards

·         Tier I & II

·         Tier III

·         Tier IV

By Region

·         Asia-Pacific

·         North America

·         Latin America

·         Middle East and Africa

·         Europe

Key Players

·         Caterpillar

·         Atlas Copco

·         Cummins, Inc.

·         Eurodiesel Services

·         Generac Power Systems, Inc.

·         HIMOINSA

·         KOHLER

·         MITSUBISHI MOTORS CORPORATION

·         Piller (Langley Holdings plc)

·         Rolls Royce plc.

·         Other Players

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