US Data Center Power Generators Market Research Report: Forecast (2026-2032)

US Data Center Power Generators Market Report Key Takeaways:

• The US Data Center Power Generators Market size was valued at around USD 1.6 billion in 2025 and is projected to reach USD 2.97 billion by 2032. The estimated CAGR from 2026 to 2032 is around 9.2%, indicating strong growth.
• By generator type, the standby generators seized around 64% share of the US Data Center Power Generators Market in 2025.
• By capacity, the 350 KW to 800 KW represented 37% of the US Data Center Power Generators Market size in 2025.
• By region, the North East Region leads the US Data Center Power Generators Market with a dominant 32% share in 2025.
• The leading data center power generator companies are Caterpillar Inc., Cummins Inc., Generac Power Systems, Inc., MTU Onsite, HIMOINSA (HIPOWER Systems), HITEC Power Protection, Briggs & Stratton, Kohler, Mitsubishi Heavy Industries, Ltd., Wärtsilä Corporation, and others.

Market Insights & Analysis: US Data Center Power Generators Market (2026-2032):

The US Data Center Power Generators Market size was valued at around USD 1.6 billion in 2025 and is projected to reach USD 2.97 billion by 2032. Along with this, the market is estimated to grow at a CAGR of around 9.2% during the forecast period, i.e., 2026-32. The US Data Center Power Generators Market is poised for strong growth as cloud computing, artificial intelligence, and hyperscale infrastructure expansion significantly increase electricity demand. U.S. data center power consumption is projected to rise 22% in 2025, with total grid demand nearly tripling to about 134.4 GW by 2030, intensifying reliance on reliable onsite power systems to mitigate grid constraints and outage risks .

Large-scale investment programs further amplify this demand. In 2025, OpenAI, Oracle, and partners announced the USD 500 billion “Stargate” AI data center initiative, planning five U.S. sites with nearly 7 GW of capacity, underscoring the need for high-capacity standby and prime power generators .

Generator manufacturers are responding with advanced solutions tailored to data center requirements. Rolls-Royce introduced its mtu 20V4000 gas generator, delivering 2.8 MW output with a fast start time of around 45 seconds, suitable for both backup and continuous power applications .

At the same time, operators are shifting toward hybrid and smart power architectures. The U.S. Department of Energy notes that data centers could account for up to 9% of total U.S. electricity generation by 2030, encouraging flexible onsite generation and energy storage integration.

Industry collaborations such as ABB’s partnership with VoltaGrid highlight this transition, combining natural gas microgrids, synchronous condensers, and intelligent power controls to enhance resilience for AI-driven facilities . Together, these developments position power generators as a critical enabler of U.S. data center expansion.

US Data Center Power Generators Market Recent Developments:

• December 2025: Generac rolled out a new line of standby generators (diesel and natural gas) designed for hyperscale, colocation, enterprise, and edge data centers, expanding its product portfolio to meet increasing power demand.
• November 2025: Wärtsilä agreed to deliver 27 natural gas‑powered generators (507 MW) to a major U.S. data center developer, strengthening its presence in the data center power segment. Deliveries begin in 2027, helping offset long grid connection delays and ensure reliable onsite power.

US Data Center Power Generators Market Scope:

US Data Center Power Generators Market Drivers:

Expanding Cloud & Hyperscale Data Centers

A major driver of the US Data Center Power Generators Market is the rapid expansion of cloud computing and hyperscale data centers, which places unprecedented demand on power infrastructure and backup generation capacity. According to the U.S. Department of Energy (DOE), data center energy load growth has tripled over the past decade and is expected to double or triple again by 2028 as workloads from cloud, artificial intelligence (AI), and high‑performance computing increase. Data centers consumed about 4.4% of total U.S. electricity in 2023, with projections suggesting they could account for 6.7–12% of national electricity use by 2028.

In practical terms, the U.S. Energy Information Administration (EIA) forecasts that overall U.S. power demand will reach record highs in 2025 and 2026, with data center load cited as a significant contributing factor to electricity growth.

Hyperscale facilities built by major cloud providers and AI service companies require vast and redundant power supply systems, often including onsite backup generators sized for megawatt‑scale loads to meet reliability standards. The scale of these facilities is only set to grow: multi‑billion‑dollar investment plans through 2030 and beyond indicate continued build‑outs of hyperscale campuses, each driving sustained demand for high‑capacity power generation solutions.

Overall, as cloud and hyperscale data center capacity continues to expand through the late 2020s and 2030s, the need for reliable onsite power, especially standby and prime generators, will significantly boost the US Data Center Power Generators Market.

US Data Center Power Generators Market Trends:

Integration of Smart & Hybrid Power Solutions in Data Centers

A major trend in the US Data Center Power Generators Market is the adoption of smart and hybrid power infrastructures that combine traditional generators with energy storage, renewables, and intelligent power controls. As data center electricity demand surges due to AI, cloud computing, and digital workloads, operators are increasingly deploying advanced hybrid power systems to improve reliability, reduce emissions, and manage peak loads efficiently. These solutions can integrate diesel or gas generator sets with battery energy storage and real‑time energy management systems, enabling seamless power delivery during grid stress or outages. Federal and state support for grid‑interactive microgrids, which combine onsite generation, storage, and sophisticated controls, is accelerating this shift; U.S. microgrid capacity is projected to reach 10 GW by the end of 2025 as utilities and Big Tech seek resilient, sustainable power systems.

For instance, Delta Electronics’ AI Data Center Microgrid Solution was launched in 2025. It integrates renewables, generator sets, hydrogen fuel cells, and battery storage with advanced controllers to maintain power quality under dynamic AI workloads .

This trend reflects a broader industry movement toward energy resilience and decarbonization, where hybrid systems reduce dependence on the traditional grid and improve uptime, driving demand for sophisticated power solutions in next‑generation data centers.

US Data Center Power Generators Market Challenges:

Stringent Emission Regulations & Environmental Compliance Pressure

A significant challenge for the US Data Center Power Generators Market is meeting increasingly strict emission regulations and environmental compliance requirements that govern on-site power systems, such as diesel and gas generators. The U.S. Environmental Protection Agency (EPA) enforces stringent air quality and emissions standards including New Source Performance Standards (NSPS) and National Emission Standards for Hazardous Air Pollutants (NESHAP), that limit emissions of nitrogen oxides (NOx), sulfur dioxide (SO₂), particulate matter, and hazardous air pollutants from stationary combustion turbines and engines often used in generator sets. These regulations require costly control technologies like selective catalytic reduction systems and continuous monitoring to achieve compliance, increasing both capital and operational expenses for data center operators and equipment suppliers.

In addition, state and local permitting processes impose rigorous air quality permits before construction can begin, which can delay project timelines and add administrative costs. For example, attempts by major tech companies to bypass state review for large backup generator installations have been rejected by regulatory commissions, illustrating the burden of environmental scrutiny.

Meeting these requirements also means data center operators must adopt cleaner fuels, add advanced emission control equipment, or invest in alternative power solutions, raising overall lifecycle costs. As the EPA continues to refine its emissions frameworks to protect public health and air quality, compliance pressure will remain a major hurdle for power generator deployment in the U.S. data center market.

US Data Center Power Generators Market (2026-32) Segmentation Analysis:

The US Data Center Power Generators Market Report and Forecast 2026-2032 offers a detailed analysis of the market based on the following segments:

Based on Generator Type:

• Standby
• Prime Power
• Peak Shaving

Standby generators dominate the U.S. Data Center Market, holding 64% market share. These units are primarily installed to provide emergency backup power during grid outages, ensuring uninterrupted operations for hyperscale, colocation, and enterprise data centers. The growing reliance on digital infrastructure, cloud computing, and mission-critical IT systems has increased the need for reliable backup solutions. Unlike prime or peak shaving generators, standby units are designed for instant activation during unexpected power failures, which is essential for maintaining uptime and avoiding costly service disruptions. The predictability of demand for emergency power and relatively lower operational complexity compared to continuous-use generators make standby units the preferred choice among data center operators.

Based on Capacity:

• Upto 20 KW
• 21 KW to 100 KW
• 101 KW to 350 KW
• 350 KW to 800 KW
• 801 KW to 2,000 KW
• Above 2,000 KW

The 350–800 KW capacity segment holds around 37% market share, emerging as the most sought-after range. This size balances power output and cost-efficiency, making it ideal for mid-sized enterprises and colocation data centers. It sufficiently supports multiple racks and IT loads while remaining manageable in terms of installation, maintenance, and fuel consumption. Operators prefer this range because it can reliably serve both backup and limited continuous power needs without overinvestment. The versatility of these generators, coupled with high efficiency and compatibility with modular deployment, drives their dominance in the U.S. Market.

US Data Center Power Generators Market (2026-32): Regional Projection

The market for data center power generators in the United States is dominated by the Northeast region, holding around 32% market share. This dominance is driven by the high concentration of hyperscale, colocation, and enterprise data centers in states like New York, New Jersey, Massachusetts, and Pennsylvania. These areas host major cloud service providers, financial institutions, and IT infrastructure companies that demand an uninterrupted power supply. The dense urbanization, critical financial hubs, and strict regulatory requirements make reliable backup and standby power solutions essential. Companies such as Generac, Cummins, and Caterpillar actively supply high-capacity diesel and gas generators to meet this demand.

Additionally, frequent extreme weather events and aging electrical grids in the region have increased the need for resilient onsite power systems. As a result, the North East region continues to lead the U.S. market in both generator installations and market revenue.

Gain a Competitive Edge with Our US Data Center Power Generators Market Report:

• The US Data Center Power Generators Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• The US Data Center Power Generators Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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