# Data Center Onsite Power Generation Market > Data Center Onsite Power Generation Market: USD 18.67 billion in 2026, USD 41.83 billion by 2035, 13.35% CAGR from 2025 as AI campuses build own power. Publisher: DC Market Insights Author: Amit Jain, DC Market Insights Published: 2026-10-19 Last updated: 2026-10-19 Next review: Apr 2027 Page: https://www.dcmarketinsights.com/report/data-center-onsite-power-generation-market ## Key takeaways - Air Permits Cap Running Hours for Diesel Fleets **Frequently Asked Questions** **What is the size of the Data Center Onsite Power Generation Market in 2026?** USD 18.67 billion in 2026, up 56.2% from USD 11.95 billion in 2025, according to DC Market Insights estimates. The market is projected to reach USD 41.83 billion by 2035, a CAGR of 13.35% from 2025. **How fast is the Data Center Onsite Power Generation Market growing?** 13.35% a year from 2025 to 2035, after 25.26% a year from 2020 to 2025, because AI campuses add gas turbines and fuel cells for daily prime power on top of standby generator sets. **Why do data centers generate their own power onsite?** USD 4.08 billion of 2025 spending went to prime, co-located and bridge power, because grid connections for loads above 100 MW take years. Onsite plants let a campus run before the utility line arrives. **Which technology leads data center onsite power generation?** 69.6% of 2025 value, or USD 8.31 billion, goes to reciprocating engine generator sets, mostly diesel standby. Fuel cells grow fastest at 26.08% a year, to USD 8.88 billion in 2035. **How much does onsite power generation cost per kW for a data center?** From about USD 550 per kW of IT load for diesel standby sets to USD 1,900 per kW for a gas turbine plant and USD 3,600 per kW for fuel cells in 2025 (DC Market Insights unit values). **How much onsite gas power will data centers use by 2030?** 15 to 27 GW of onsite natural gas may power data centres by 2030, mostly in the United States, according to the IEA. Natural gas rises to 58.8% of onsite generation spending by 2035 in the DC Market Insights model. **Which region leads the Data Center Onsite Power Generation Market?** 55.9% of 2025 value, or USD 6.68 billion, is spent in North America. Middle East and Africa grows fastest at 22.01% a year, and Saudi Arabia is the fastest-growing large country at 23.99%. **Who are the leading data center onsite power generation companies?** About 19% of 2025 value is held by Caterpillar across generator sets and Solar Turbines (DC Market Insights assessment). Cummins, Rolls-Royce Power Systems, GE Vernova and Bloom Energy follow; the top five hold about 55%. **Will standby diesel generators disappear from data centers?** No: emergency standby still grows to USD 16.76 billion by 2035, 8.35% a year, because every hall needs backup. Its share falls from 62.9% to 40.1% as prime power grows faster. **Why do Data Center Onsite Power Generation Market estimates differ?** USD 18.67 billion in 2026 is the DC Market Insights figure for generating equipment only. Estimates that add batteries, UPS, microgrid controls, utility plants or fuel and electricity sales are larger. ## Dataset | Series | Value | Unit | | --- | --- | --- | | Market size 2025 | 11,950 | USD million | | Revenue CAGR | 13.35 | % | | Market size 2035 | 41,830 | USD million | ## Frequently asked questions ### What is the size of the Data Center Onsite Power Generation Market in 2026? USD 18.67 billion in 2026, up 56.2% from USD 11.95 billion in 2025, according to DC Market Insights estimates. The market is projected to reach USD 41.83 billion by 2035, a CAGR of 13.35% from 2025. ### How fast is the Data Center Onsite Power Generation Market growing? 13.35% a year from 2025 to 2035, after 25.26% a year from 2020 to 2025, because AI campuses add gas turbines and fuel cells for daily prime power on top of standby generator sets. ### Why do data centers generate their own power onsite? USD 4.08 billion of 2025 spending went to prime, co-located and bridge power, because grid connections for loads above 100 MW take years. Onsite plants let a campus run before the utility line arrives. ### Which technology leads data center onsite power generation? 69.6% of 2025 value, or USD 8.31 billion, goes to reciprocating engine generator sets, mostly diesel standby. Fuel cells grow fastest at 26.08% a year, to USD 8.88 billion in 2035. ### How much does onsite power generation cost per kW for a data center? From about USD 550 per kW of IT load for diesel standby sets to USD 1,900 per kW for a gas turbine plant and USD 3,600 per kW for fuel cells in 2025 (DC Market Insights unit values). ### How much onsite gas power will data centers use by 2030? 15 to 27 GW of onsite natural gas may power data centres by 2030, mostly in the United States, according to the IEA. Natural gas rises to 58.8% of onsite generation spending by 2035 in the DC Market Insights model. ### Which region leads the Data Center Onsite Power Generation Market? 55.9% of 2025 value, or USD 6.68 billion, is spent in North America. Middle East and Africa grows fastest at 22.01% a year, and Saudi Arabia is the fastest-growing large country at 23.99%. ### Who are the leading data center onsite power generation companies? About 19% of 2025 value is held by Caterpillar across generator sets and Solar Turbines (DC Market Insights assessment). Cummins, Rolls-Royce Power Systems, GE Vernova and Bloom Energy follow; the top five hold about 55%. ### Will standby diesel generators disappear from data centers? No: emergency standby still grows to USD 16.76 billion by 2035, 8.35% a year, because every hall needs backup. Its share falls from 62.9% to 40.1% as prime power grows faster. ### Why do Data Center Onsite Power Generation Market estimates differ? USD 18.67 billion in 2026 is the DC Market Insights figure for generating equipment only. Estimates that add batteries, UPS, microgrid controls, utility plants or fuel and electricity sales are larger. ## How to cite Data Center Market Research & Consulting | DC Market Insights, "Data Center Onsite Power Generation Market", updated 2026-10-19, https://www.dcmarketinsights.com/report/data-center-onsite-power-generation-market