Data Center Distribution Transformer Market: Optimizing Energy-Efficient Data Centers

1
Data Center Distribution Transformer Market
Optimizing Energy-Efficient Data Centers As the
world becomes increasingly digitalized, data
transmission networks, as well as data centers,
are evolving as a critical source of energy
demand. Similarly, smoother power distribution
across data centers via transformers helps
maintain the efficacy and safety of electrical
systems by controlling the voltage at desired
levels. Inkwood Research estimates that the
global data center distribution transformer
market is evaluated to grow with a CAGR of 6.32
during the forecast period of 2023 to 2032,
capturing a revenue share of 11748.13 million by
2032.

• According to the Office of Energy Efficiency
  Renewable Energy, data centers are some of the
  most energy-intensive buildings, absorbing up to
  50 times the energy per floor space of an
  archetypal commercial office structure.
  Furthermore, data transmission networks, as well
  as data centers, are accredited to approximately
  1 of energy-related greenhouse gas (GHG)
  emissions. (Source International Energy Agency).
• Since high energy consumption continues to remain
  a key issue, organizations are increasingly
  moving toward energy-efficient systems in order
  to manage as well as reduce power usage in data
  centers.
• Aligning with this, here are the top 4 ways in
  which data centers can be better optimized,
  especially in terms of maximizing energy
  efficiency.
• Effective Site-Selection When assessing
  potential locations for a new data center, there
  are a number of considerations to prioritize in
  order to maximize energy efficiency. These
  include

2

• Power Costs Reliability Since data centers
  are characterized by significant energy
  requirements and subsequent high-power costs,
  building a data center close to major power
  sources, such as wind farms, hydroelectric dams,
  or power plants, is vital. Moreover, this can
  also help minimize initial construction costs
  while reducing problems associated with energy
  transmission in the future.
• Natural Disaster Risks Natural disasters have
  continued to be one of the greatest potential
  downtime risks faced by data centers 48 of
  outages cost organizations between 100,000 and
  1M. Hence, it is essential that data centers are
  located in areas with minimized susceptibility to
  earthquakes, floods, hurricanes, or other natural
  disasters to curtail costs and increase energy
  efficiency.
• Incorporating Renewable Energy Solar and wind
  energy are among the most widely utilized sources
  of renewable energy by cloud providers. Renewable
  energy sources can either be exclusively owned
  and managed by individual cloud vendors or
  obtained via contracts with renewable energy
  providers.
• For instance, Kao Data (United Kingdom) is
  presently powered by 100 renewable energy across
  holistic data center operations. Moreover, the
  green energy pioneer was the first European data
  center to switch its backup generators to 100
  renewable HVO biofuel.
• Likewise, Digital Realty (United States), in June
  2022, became the first data center operator
  across the globe to reach 1GW of sustainable IT
  capacity. It also achieved 64 renewable energy
  coverage worldwide, indicating a 14 increase in
  one year.
• Improving Transformer Proficiencies In data
  centers, where aging electrical distribution
  components are approaching the end of their
  expected lifespan, installing high-efficiency
  transformers in place of standard-efficiency
  units presents an opportunity for notable energy
  savings. For example
• Hitachi Energy (Switzerland) successfully
  developed and installed a dry-type transformer
  with the potential to endure 100 kV / 550kV Basic
  Impulse Level (BIL). This innovation has paved
  the way for using sustainable and
  environment-friendly transformer technology at
  even sub-transmission levels. Accordingly, the
  dry-type segment, under the insulation category,
  is set to grow with a CAGR of 5.90 between 2023
  to 2032.
• Fluid-immersed distribution transformers by
  Siemens AG (Germany) are designed for superior
  reliability, efficiency, and environmental
  performance. Moreover, a modular architecture
  paired with design options ensures cost- and
  energy-efficiency as well as easy, minimal
  maintenance. Aligning with this, oil-immersed is
  projected to be the fastest-growing insulation,
  capturing a CAGR of 6.43 between 2023 to 2032.
• Energy Usage Monitoring Equipment Installing
  energy monitoring components and systems to
  quantify a data centers energy efficiency is
  crucial for the effective implementation of
  energy conservation measures. For example
• EconiQ Power and Distribution Transformers by
  Hitachi ABB Powergrids offers transparency on
  environmental impact via scientific methodologies
  followed by best-in-class solutions. This helps
  improve sustainability performance contributing

3

• to decarbonization, protecting surrounding
  ecosystems, and facilitating responsible use of
  resources.
• Likewise, in 2021, Hitachi ABB Powergrids
  introduced an upgrade to TXpert Ecosystem, set to
  offer remote monitoring services for transformer
  fleets. The range of options provided in this
  upgrade includes remote monitoring, consulting,
  troubleshooting, and the use of augmented reality
  (AR) to provide guidance.
• With the adoption of cloud computing, several
  companies are inclined toward reducing the size
  of their server rooms and saving energy costs. In
  this regard, MiniCube by Legrand SA (France) is a
  reliable and efficient solution, entailing the
  components required for a full data center
  monitoring, housing, power supply, and cooling,
  within a compact system.
• Eaton (Ireland) developed a smart vacuum fault
  interrupter (VFI) transformer, which utilizes
  microprocessor-based control schemes supporting
  various functions. These
• include fault event recording, data exporting,
  extensive monitoring, and directional protection.
• Investments in Smart Technologies Stepping up
  Smarter Data Center Distribution Transformers
• Smart transformers are equipped with intelligent
  monitoring systems as well as diagnostic
  features, which provide faster response to energy
  fluctuations, while permitting the desired levels
  of power accurately. In the event of a power
  fluctuation, smart transformers can also be
  remotely controlled and monitored in order to
  optimize voltage levels. The advent of smart
  transformers and the benefits associated with
  these transformers have encouraged manufacturers
  to invest aggressively in the development of
  smart solutions.
• Accordingly, in May 2022, Hitachi Energy
  announced plans to invest around 10 million in
  the modernization and expansion of its
  distribution transformer facility in Missouri.
  The investment aims to grant additional capacity
  while improving its manufacturing capabilities.
  Moreover, it also underscores the swift growth in
  demand from utilities, especially with regard to
  novel applications such as solar and wind power
  generation, data centers, and battery energy
  storage. Hence, investments by leading companies
  operating in the global data center distribution
  transformer market are set to enable lucrative
  expansion opportunities during the forecast
  period.
• Frequently Asked Questions (FAQs)
• What contributes to data centers significant
  energy consumption?
• A Data centers are characterized as complex
  environments with the primary purpose of
• story information technology (IT) equipment.
  Within these, the chief driver of significant
  energy consumption is the IT equipment itself.
• What are some challenges faced by the global data
  center distribution transformer market?
• A The high risk of data center security and high
  installation costs are among the key factors
  hindering the growth of the global data center
  distribution transformer market.