Last year, tech companies invested more than $500 billion on data centers across the United States, and earlier this month, Moody’s predicted data center investments worldwide would top $3 trillion. The U.S. Department of Energy predicts data centers will consume between 6.7-12% of total energy use in the United States by 2028.
In January’s exclusive tED magazine/Baird research, we asking electrical distributors, “Roughly what percentage of your company’s business comes from the data center market?”
The results show 35% of the respondents do not have any right now, while 43% says the percentage of business is between 1% and 10%. 4% of NAED distributors say 21-30% of their business is in the data center marketing, and 4% say it’s more than 40%.
Respondents provided two comments to the research:
“The major concern is overall market ability to keep Datacenter growth moving forward. No transformers as an example will stop it dead. That includes power supply side from Utilities.”
“Prices on power distribution equipment have stabilized and decreasing in some areas. Lots of new manufacturing coming online to meet data center demands. I wonder if they will overshoot demand and cause prices to fall.”
Tagged with Baird, data, research