North America | August 16, 2024

Innovative Switchgear Solutions Powering Data Centers and Underground Infrastructure

Will these megatrends create a shortage in Medium Voltage Gas-Insulated Switchgear (GIS) and Solid Insulated Switchgear (SIS)?

 

Image for illustration purposes.

Medium voltage (MV) switchgear is experiencing significant growth in the US market, particularly in data centers and underground power distribution projects. The US MV switchgear market, currently valued at approximately $2 billion, is projected to grow at a compound annual growth rate (CAGR) of 10.5% until 2030.

This growth is driven by several factors, including grid modernisation efforts, clean energy targets set by the Biden-Harris administration, expansion of data centers, offshore wind projects, and increasing electric vehicle charging infrastructure.

Data centers are a major driver of MV switchgear market growth. The MV switchgear market in the data center segment is expected to grow at a CAGR of 16% from 2023 to 2030. Power density per rack in data centers is increasing, potentially reaching 50-75 kW per rack. To ensure reliability, data centers are adopting parallel supply paths, necessitating multiple MV switchgear units.

Underground switchgear is another area of significant growth, with the US MV underground switchgear market expected to grow at a CAGR of 7.2% between 2023 and 2030. This growth is driven by urban expansion, infrastructure development, the need for reliable power distribution in densely populated areas, and grid resilience enhancement, especially in areas prone to natural hazards.

Technological shifts in the industry include a transition from Air-Insulated Switchgear (AIS) to Gas-Insulated Switchgear (GIS) and Solid Insulated Switchgear (SIS). There’s also a move towards SF6-free technology due to environmental concerns.

Supply chain challenges have impacted the industry. Lead times for MV switchgear increased from 12-16 weeks pre-COVID to around 52 weeks during the pandemic. While current lead times have improved, they remain above pre-COVID levels at 26-32 weeks. Manufacturers are expanding production capacity to meet the growing demand.

The MV switchgear market continues to evolve towards more sustainable and advanced solutions, driven by the need for grid resilience, data center expansion, and technological advancements.

Source: T&D World