The "HVO for Data Center Backup Market - A Global and Regional Analysis: Focus on HVO Manufacturers, Suppliers, Generators Manufacturers, and Data Center Operators - Analysis and Forecast, 2025-2034" report has been added to ResearchAndMarkets.com's offering.
This market is driven by the increasing demand for eco-friendly and reliable energy sources to support the growing global reliance on data centers for cloud computing, storage, and processing. Innovations in HVO technologies, such as improved biofuel production methods and better energy storage solutions, are addressing the need for cleaner and more efficient backup power systems.
The HVO market for data center backup is highly competitive, with leading players like Neste, Rapsol, TotalEnergies, Phillips 66, and ENI S.p.A. making significant strides. The rising focus on sustainability, cost-efficiency, and uninterrupted power for data centers is shaping industry trends, pushing companies to invest in advanced and innovative fuel solutions. This dynamic market continues to evolve, aiming to meet the growing energy demands of data centers while promoting a shift towards greener and more reliable energy sources.
Industrial Impact
The HVO (Hydrotreated Vegetable Oil) for data centers backup market has a notable industrial impact, stimulating economic activity and job creation in the energy and technology sectors. Major players such as Neste, Rapsol, TotalEnergies, Phillips 66, and ENI S.p.A. heavily invest in research, development, and production, supporting a broad network of suppliers, contractors, and service providers. The demand for advanced biofuels and energy solutions drives innovation in energy storage, biofuel production technologies, and power management systems, benefiting industries such as renewable energy, refining, and sustainability technologies.
The HVO for data centers backup market also supports the growth of related sectors, including the IT and cloud services industries, where reliable backup power is crucial for maintaining continuous operations. Innovations in HVO technology contribute to improvements in energy efficiency and carbon reduction, influencing global energy trends and driving the development of cleaner power solutions. The rising focus on sustainability is encouraging investments in renewable fuels and energy-efficient systems, helping reduce the environmental footprint of data centers.
Moreover, the market's emphasis on reliable, eco-friendly backup power solutions fosters collaborations with technology providers, research institutions, and sustainability-driven organizations, further advancing the transition to greener energy sources. Overall, the HVO for data centers backup market plays a vital role in technological innovation, economic growth, and the push for a more sustainable digital infrastructure.
Market Segmentation
Colocation and Retail to Dominate the HVO for Data Center Backup Market (by Application)
The HVO for data center backup market, by application, is predominantly driven by colocation and retail data centers. The colocation and retail segment was valued at $11.51 million in 2024 and is projected to reach $36.35 million by 2034. This segment is experiencing substantial growth due to the increasing need for reliable and sustainable power solutions to ensure uninterrupted operations in data centers.
The rising demand for data storage, cloud computing, and high-performance computing across industries is driving this growth. Moreover, advancements in HVO technologies, energy storage solutions, and power management systems are enhancing the efficiency and sustainability of backup power solutions, making them ideal for colocation and retail data centers. These factors contribute to the segment's significant expansion in the coming years.
Key Market Players and Competition Synopsis
Profiled companies have been selected based on thorough secondary research, which includes analyzing company coverage, product portfolio, market penetration, and insights gathered from primary experts.
The HVO (Hydrotreated Vegetable Oil) for data centers backup market is driven by increasing demand for sustainable power solutions. Key players like Neste, Rapsol, TotalEnergies, Phillips 66, and ENI S.p.A. are leading the charge. Neste is recognized for its commitment to renewable fuel technologies, producing high-quality HVO for various industries, including data centers.
Rapsol and TotalEnergies focus on advancing biofuels, ensuring reliable backup power while meeting sustainability goals. Phillips 66 utilizes its refining expertise to produce premium HVO, providing dependable energy for critical infrastructure. ENI S.p.A., with its focus on biofuel innovation, is helping expand the adoption of HVO in diverse applications.
These companies, through continuous R&D and sustainability efforts, are driving the growth of the HVO market, supporting the shift to cleaner, more reliable energy solutions for data centers. As demand for eco-friendly, dependable backup power grows, the contributions of these market leaders ensure the future of HVO as a key player in the energy transition.
Recent Developments in the HVO for Data Center Backup Market
- On January 9, 2025, Neste announced its partnership with the Italian fuel distributor Firmin to introduce Neste MY Renewable Diesel (HVO100) to the Italian market, aiming to help reduce greenhouse gas emissions in the transport sector. Available from January 2025, this collaboration expands Neste's reach in Europe, offering Italian companies a sustainable alternative to fossil diesel. Neste MY Renewable Diesel, made from 100% renewable materials, can reduce greenhouse gas emissions by up to 90%, without the need for new vehicle fleets or modifications, providing an efficient solution for decarbonizing industries, including those relying on backup power solutions like data centers.
- On February 18, 2025, TotalEnergies announced a partnership with Air Liquide to decarbonize its refineries in Northern Europe by producing green hydrogen. The joint venture will generate 45,000 tons of green hydrogen annually using renewable power, primarily from the OranjeWind offshore wind farm. This initiative, which includes projects in Zeeland and Antwerp, will cut CO2 emissions by up to 450,000 tons per year. The green hydrogen produced will support various industries, including data centers relying on HVO for backup power, contributing to the transition to sustainable energy solutions.
Some prominent names established in this market are:
HVO Manufacturers
- Neste
- Rapsol
- TotalEnergies
- Phillips 66
- ENI S.p.A.
HVO Suppliers
- Crown Oil
- Foster Fuels
- Certas Energy
- LubiQ HVO Fuels
HVO Generator Manufacturers
- Kohler
- Rolls Royce
- CUMMINS
- Catterpillar
- Baudouin
Key Attributes:
Report Attribute | Details |
No. of Pages | 200 |
Forecast Period | 2025 - 2034 |
Estimated Market Value (USD) in 2025 | $15.51 Million |
Forecasted Market Value (USD) by 2034 | $38.16 Million |
Compound Annual Growth Rate | 10.5% |
Regions Covered | Global |
Market Dynamics Overview
Trends: Current and Future Impact Assessment
- Transition to Renewable Fuels
- Increasing Global Demand for Sustainable and Renewable Fuel by Industries
Market Drivers
- Carbon Emission Reduction Goals
- Growth of Global Power Demand by Data Centers
- Market Restraints
- Infrastructure and Compatibility Costs
- Supply Chain Limitations
- Market Opportunities
- Regulatory Support and Incentives
- Partnerships and Collaborations with Biofuel Producers
HVO Supply Chain Overview
- Value Chain Analysis
- Pricing Forecast
- Comparison between Hydrotreated Vegetable Oil and Other Sustainable Fuels
- Future Raw Materials for Hydrotreated Vegetable Oil
- Production Capacity Analysis
- Supply and Demand Analysis for Hydrotreated Vegetable Oil
- Supply Analysis for Vantage Data Centers
- U.S. Locations
Regulatory Landscape and Industry Initiatives
- Regulations and Policies
- Climate Neutral Data Center Pact
- EU Green Deal
- Others
Global Data Center Power Backup Market Overview
- Current Market Size
- Alternatives to Diesel Gensets
Market Adoption Scenario
- Adoption of New Generators
- Conversion of Existing Systems
Data Centers Adopting HVO for Backup
- STT GDC Pte Ltd
- Kao Data
- Digital Realty PAR8 site in Paris
- STACK INFRASTRUCTURE
- Equinix
- Datum
- Delska
- LCL Belgium
- Amazon Web Services, Inc.
- Digital Realty Spain
- Compass Datacenters
- Vantage Data Centers
Companies Featured
- Neste
- Repsol
- TotalEnergies
- Phillips 66 Company
- Eni S.p.A.
- Crown Oil Ltd
- Foster Fuels Inc.
- Certas Energy
- LubiQ HVO Fuels
- Rehlko
- Rolls-Royce plc
- Caterpillar
- Cummins Inc.
- Moteurs Baudouin
For more information about this report visit https://www.researchandmarkets.com/r/e6r8wi
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