AGP China Technology Report - Electrical (Power) Chain

Table of Contents

Page     Section
03          Technology Overview  
07          Historical Development Timeline  
10          Product Differentiation            
15          China Technology Ecosystem        
19          Sino-Foreign Collaboration        
22          Common Applications In China        
27          Government Policy Support        
30          Impact On Market Incumbents        
33          Final Conclusion                
34          Appendices      

1.1 Global Snapshot

Definition and Importance

The Electrical (Power) Chain in data centers encompasses all components involved in the generation, conversion, distribution, and management of electrical power. This includes Uninterruptible Power Supplies (UPS), Power Distribution Units (PDUs), transformers, generators, and backup energy storage systems. A robust and efficient power chain is critical for ensuring continuous operation, optimizing energy consumption, and maintaining the reliability of data center services.

Key Technologies

• Uninterruptible Power Supplies (UPS): Modern UPS systems have evolved to incorporate advanced battery technologies such as lithium-ion and nickel-zinc, offering higher energy densities, longer lifespans, and reduced maintenance compared to traditional lead-acid batteries.
• Power Distribution Units (PDUs): The advent of intelligent PDUs enables real-time monitoring and management of power usage, voltage, and current. These devices facilitate remote control, allowing operators to optimize power distribution and prevent overloads, thereby enhancing operational efficiency.
• Advanced Energy Storage Solutions: Beyond traditional battery backups, data centers are exploring flow batteries and supercapacitors. Flow batteries offer scalable energy storage with quick recharge cycles, ideal for managing energy loads during peak periods.
• Direct Current (DC) Power Distribution: Transitioning to DC power distribution reduces the number of conversion steps and associated power losses, improving overall energy efficiency. This approach simplifies the integration of renewable energy sources and aligns with the native DC operation of most IT equipment.

Global Market Trends

• Energy Efficiency Initiatives: Data centers are increasingly adopting renewable energy sources such as solar, wind, and hydropower to reduce operational costs and environmental impact. The deployment of energy-efficient hardware, including advanced cooling systems and processors, further contributes to sustainability goals.
• On-Site Power Generation: To address power availability challenges, some data centers are implementing on-site power generation through behind-the-meter configurations. This strategy involves directly drawing power from on-site generation facilities, enhancing energy independence and reducing reliance on the utility grid.
• Integration with Smart Grids: Data centers are becoming integral components of smart grid ecosystems, participating in demand response programs that adjust power usage in real-time to grid demands. This collaboration enhances grid stability and offers financial incentives for data center operators.

1.2 China Snapshot

Market Position and Capabilities

China's data center industry has experienced rapid growth, driven by digitalization, internet penetration, and e- commerce expansion. This surge has led to increased demand for storage facilities and, consequently, higher power consumption. The adoption of intelligent PDUs and efficient power management systems is becoming prevalent to optimize energy usage and comply with government measures aimed at reducing electricity consumption.

Leading Firms and Deployments

• Eaton: In May 2023, Eaton launched the G3 Universal Input Rack PDU with dynamic C39 outlets, capable of accommodating different plug configurations and input voltage requirements, addressing diverse data center rack power needs.
• Legrand: Also in May 2023, Legrand introduced the next generation of intelligent rack PDUs, PRO4X and Raritan PX4, revolutionizing capacity planning, environmental monitoring, and uptime initiatives.

National Policies and Industrial Targets

The Chinese government has implemented policies to enhance energy efficiency and reduce carbon emissions in data centers. These measures encourage the adoption of advanced power management technologies and the integration of renewable energy sources, aligning with national goals for sustainable development.

Cost-Performance Edge and Application Scaling

China's data center operators are leveraging cost-effective solutions and scalable technologies to meet the growing demand for data services. The emphasis on intelligent power distribution and energy-efficient hardware positions the industry to achieve significant operational efficiencies and environmental benefits.

Role in Advancing "New Productive Forces"

The modernization of China's data centers contributes to the development of "new productive forces" by enhancing digital infrastructure, supporting industrial upgrading, and facilitating the transition to a knowledge- based economy.

Link to Demographic Shifts and National Goals

The expansion of data centers aligns with China's demographic shifts and national objectives, such as smart city initiatives, elder-care services, and logistics automation. Efficient power management within data centers supports these goals by ensuring reliable and sustainable digital services.

Policy Relevance and Tech-Industry Integration

The integration of advanced power chain technologies in China's data centers reflects the synergy between policy directives and technological innovation, fostering a resilient and sustainable digital economy.

1.3 Strategic Significance and Use Cases

Integrated Market Analysis

The global data center power market is projected to experience significant growth, driven by the increasing demand for digital services and the adoption of energy-efficient technologies. China's market is expected to follow this trend, with substantial investments in power infrastructure to support expanding data center operations.

Growth Scenarios

• High Growth: Rapid adoption of renewable energy sources, advanced power management systems, and supportive regulatory frameworks.
• Medium Growth: Gradual implementation of energy-efficient technologies and moderate policy support.
• Low Growth: Slow technological adoption and limited regulatory incentives.

Five-Year CAGR Estimates

Various industry reports project a compound annual growth rate (CAGR) ranging from 6% to 10% over the next five years, depending on factors such as technological advancements, policy support, and market demand.

Market Breakdown

• Application Domain: Enterprise data centers, colocation facilities, cloud service providers
• Customer Segment: Large enterprises, small and medium-sized businesses, government agencies. • Geography: North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa.

Use Cases

• Energy Efficiency Optimization: Implementing intelligent PDUs and advanced UPS systems to monitor and manage power consumption, reducing operational costs and environmental impact.
• Renewable Energy Integration: Utilizing on-site solar and wind power generation to decrease reliance on traditional power grids and enhance sustainability.
• Resilience Enhancement: Deploying advanced energy storage solutions and DC power distribution systems to improve reliability and reduce downtime.
• Smart Grid Participation: Engaging in demand response programs to adjust power usage in real-time, contributing to grid stability and receiving financial incentives.

In conclusion, the evolution of Electrical (Power) Chain technology is pivotal for the data center industry's growth and sustainability. By adopting advanced power management systems, integrating renewable energy sources, and participating in smart grid initiatives, data centers can achieve enhanced efficiency, reliability, and environmental responsibility.