Datacentre boom will push demand for energy-efficient UPSs in Europe

datacentre hardware

Datacentre boom will push demand for energy-efficient UPSs in Europe

Archana Venkatraman

Datacentre facilities will fuel growth in the European uninterruptible power supply (UPS) market, according to analysis from Frost & Sullivan.

The European UPS market is mature, earning $1.98bn in 2012, but escalating demand for reliable power across all user segments, including datacentres, will push it to reach $2.3bn by 2015.

"Demand for continuous power availability has become the most important driver for the European UPS market," said Frost & Sullivan’s energy and power supplies industry analyst Gautham Gnanajothi. 

"For certain users, such as datacentres and banks, power availability is crucial – even a minute of downtime leads to huge monetary losses. This is pushing the demand for smart, reliable and highly energy-efficient UPS systems," he said.

The boom in datacentres across Europe, particularly Western Europe, will have a positive impact on the uptake of UPS systems, according to the analyst firm.

Datacentres currently contribute about 40% of all UPS sales in Europe, with this expected to increase

Gautham Gnanajothi, Frost & Sullivan

"Datacentres currently contribute about 40% of all UPS sales in Europe, with this expected to increase over the years," said Gnanajothi. "Innovative, energy-efficient UPS systems will make strong gains in this segment."

UPS held the largest datacentre cooling market share in 2011, worth more than $8bn globally, according to a study from IMS Research.

The big three UPS suppliers – Schneider Electric, Emerson and Eaton – together held 47% of the total datacentre energy market in 2011.

Enterprise customers keen on reducing their capital expenditure tend to opt for cheaper datacentre cooling products, according to Gnanajothi. "But this trend is changing as users realise that comparatively higher-priced, energy-efficient UPS systems enable considerable savings in terms of total cost of ownership," he added.

This trend is forcing cooling equipment makers to change their products to help IT executives operate high-density computing environments more efficiently.

Another challenge is that customers, in most cases, are unable to accurately estimate their power needs.

While awareness levels are gradually increasing, manufacturers need to be more proactive in educating clients about their power needs. For this, a more consultative approach is needed wherein manufacturers or distributors work closely with customers to determine their power requirements. This will improve a datacentre’s energy efficiency and help customers save money on cooling costs.

In addition to datacentres, other vertical application segments such as healthcare, commercial, industrial and public/infrastructure also support the growth in the UPS market.

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