Cloud Storage Market for Energy and Power Industry Size, Share, Opportunities, And Trends By Solution (Primary Storage, Backup Storage), By Deployment Model (Public Cloud, Private Cloud, Hybrid Cloud), By Services (Integration, Consulting, Others), By Enterprise Size (Large, SMB (Small and Medium-sized business)), And By Geography - Forecasts From 2023 To 2028

Description

Cloud Storage Market for the Energy and Power Industry Size:

Cloud Storage Market for the Energy and Power Industry is projected to grow considerably during the forecast period (2025-2030).

To learn more about this report, request a free sample copy

The Energy and Power Industry is undergoing a fundamental digital transformation, pivoting from centralized, analog infrastructure to a decentralized, data-intensive system known as the 'Energy Cloud.' This shift is the core growth driver for cloud storage services. Energy companies, encompassing utilities, Independent Power Producers (IPPs), and grid operators, must manage massive volumes of data generated by Supervisory Control and Data Acquisition (SCADA) systems, smart meters, geological surveys, and complex climate modeling. The sector's inherent need for 24/7 reliability, coupled with rigorous regulatory oversight concerning data security, elevates cloud storage from a simple IT commodity to a mission-critical operational component. Consequently, the market is characterized by a strong preference for robust, secure, and geographically compliant storage architectures, primarily delivered via hybrid models that blend the agility of public cloud hyperscalers with the control of dedicated private environments.

Cloud Storage Market for Energy and Power Industry Analysis

• Growth Drivers

The escalating deployment of smart grid and IoT devices across transmission and distribution networks generates a torrent of data that overwhelms legacy on-premises storage, thus creating an immediate and mandatory demand for hyperscale, elastic cloud storage. The worldwide regulatory and corporate imperative to transition to renewable energy sources, such as offshore wind and utility-scale solar, necessitates cloud-based data lakes to store and run analytics on highly variable generation and weather data for accurate forecasting and grid integration. This shift pushes enterprise IT modernization mandates, compelling a move away from capital-intensive, siloed storage towards flexible, OpEx-based cloud models.

• Challenges and Opportunities

A significant challenge is the sector's regulatory complexity, where requirements like NERC CIP dictate data location, access protocols, and encryption standards for certain operational technology (OT) data, restricting unrestricted adoption of the Public Cloud model and increasing costs. The primary opportunity resides in the massive data volume generated by emerging areas like seismic data processing for exploration and production (E&P) and predictive maintenance for generation assets. Leveraging cloud storage in conjunction with integrated Machine Learning (ML) services offers energy companies the ability to monetize this data through operational efficiencies, directly driving demand for high-performance, analytics-optimized cloud storage tiers.

• Supply Chain Analysis

The supply chain for cloud storage services, being a software and service-based offering, is intrinsically tied to the global data center and network infrastructure. It is dominated by the strategic positioning of hyperscale cloud providers (HCPs) like Amazon Web Services (AWS) and Microsoft, who operate proprietary, globally distributed data center networks. Key dependencies include the reliable supply of hardware components (servers, network gear, specialized storage silicon) from manufacturers, and stable, high-capacity, low-latency fiber optic networks for connectivity. Logistical complexities primarily involve capacity planning and timely build-out of new global regions and availability zones to meet local compliance and low-latency demand from energy companies in new territories.

Cloud Storage Market for the Energy and Power Industry Government Regulations:

Cloud Storage Market for the Energy and Power Industry Segment Analysis

• By Solution: Primary Storage

The need for Primary Storage is intrinsically linked to the operational necessity of the energy grid, which requires the continuous, low-latency ingestion and accessibility of real-time data for critical decision-making. The core driver is the real-time data tsunami from grid modernization initiatives, particularly the deployment of Phasor Measurement Units (PMUs) and smart meters, which generate high-volume, time-series data streams. This data, used for real-time load balancing, frequency control, and rapid outage detection, mandates a low-latency, high-performance storage layer. Energy companies require Primary Storage solutions, typically Object Storage with very low latency tiers, that can seamlessly integrate with analytics and Machine Learning platforms to prevent grid instability, translating directly to an increased consumption of I/O-intensive cloud storage services.

• By Enterprise Size: Large

Large enterprises, including national utility companies and multinational oil and gas firms, are the dominant consumers in this market, driven by their sheer scale of operations and the capital intensity of their physical assets. Their demand for cloud storage is catalyzed by two primary factors: the necessity for massive-scale data lakes to unify decades of historical operational and seismic data, and the legal requirement for long-term regulatory archiving of compliance records. These enterprises require petabytes of storage for projects like full-field seismic data processing, which necessitates burst computational capacity and high-throughput data access, a capability only hyperscale cloud providers can reliably offer. Furthermore, their global footprint compels a demand for multi-region cloud services to support global disaster recovery plans and regional data sovereignty requirements.

Cloud Storage Market for the Energy and Power Industry Geographical Analysis

• US Market Analysis

The US market is the largest consumer of cloud storage services in the energy sector, primarily driven by the mandatory compliance requirements of the NERC CIP standards for Bulk Electric System (BES) assets. This regulatory framework creates a distinct demand for highly secure, dedicated cloud offerings like AWS GovCloud and Azure Government, which provide a physically and logically isolated environment to store Critical Cyber Assets information. Furthermore, the aggressive decentralization of the US grid, supported by Federal Energy Regulatory Commission (FERC) orders, accelerates the integration of DERs, demanding scalable cloud platforms to manage millions of new, intermittent data points for reliable grid operation.

• Brazil Market Analysis

The Brazilian market's requirement is propelled by the rapid expansion of renewable energy generation, particularly hydropower and wind energy, which are crucial for the national grid's capacity. Energy companies in Brazil require robust cloud storage to manage the geological, meteorological, and environmental data associated with new construction projects and the operational variability of large-scale renewable assets. Additionally, the need to comply with local data protection laws, such as the Lei Geral de Proteção de Dados (LGPD), drives demand for in-country cloud regions and local data sovereignty assurances from global providers.

• Germany Market Analysis

The German market is acutely focused on supporting the Energiewende (energy transition), which mandates a shift toward decentralized, smart-managed power systems. Utilities require cloud storage for managing the data from a high concentration of decentralized renewable sources and optimizing virtual power plant operations. Regulatory pressure for emissions reporting and transparent grid operation further necessitates cloud-based data platforms for storing auditable, long-term operational records, creating strong demand for integrated consulting services to ensure compliance.

• Saudi Arabia Market Analysis

The Saudi Arabian market experiences growth tied to massive capital projects, such as NEOM, and the national Vision 2030 strategy to diversify the energy mix away from fossil fuels. This transition mandates cloud-based storage for hyperscale data generated by new smart city infrastructure and large-scale solar projects. Due to strict data sovereignty mandates, demand is heavily skewed toward Private Cloud deployments and local-region Public Cloud services, which ensures critical energy data remains within the Kingdom's geographical boundaries.

• India Market Analysis

The Indian market is driven by the national push for Smart Grid implementation under various government schemes and the massive expansion of solar and wind generation to meet escalating energy needs. Indian utilities require scalable cloud storage to manage Advanced Metering Infrastructure (AMI) data for billing and demand-side management, and to process geological surveys for new exploration activities. The primary catalyst is the need for cost-effective, easily scalable solutions to modernize infrastructure across geographically disparate operational areas.

Cloud Storage Market for the Energy and Power Industry Competitive Environment and Analysis

The Cloud Storage Market for the Energy and Power Industry is an oligopoly dominated by a few global hyperscale providers, who leverage their massive capital expenditure and technological lead to offer unparalleled scale, reliability, and integrated service ecosystems. Competition centers not merely on storage cost, but on specialized compliance certifications, the depth of industry-specific Artificial Intelligence (AI) and Machine Learning (ML) tool integration, and the geographical reach of dedicated cloud regions. Niche players often succeed by providing highly specialized services, such as data migration or compliance consulting, to facilitate the transition to the major cloud platforms.

• Amazon Web Services, Inc.

Amazon Web Services (AWS) maintains a leading position by offering a comprehensive, highly resilient portfolio of storage services (e.g., S3, Glacier) paired with specialized industry solutions. Its strategic positioning focuses on high-performance compute and analytics for the E&P sector, exemplified by secure object storage for seismic data, and on supporting the transition to renewables through its Clean Energy Accelerator program. AWS’s compliance with isolation requirements, such as its AWS GovCloud regions for US-regulated data, directly targets the critical infrastructure protection needs of large energy utilities.

• Microsoft

Microsoft positions its Azure platform as the preferred choice for digital transformation, leveraging its existing deep relationships within the enterprise IT sector through its Azure cloud and enterprise software ecosystem. Microsoft Azure's strategy emphasizes its commitment to Hybrid Cloud solutions, offering tools like Azure Arc that allow utilities to manage storage and services seamlessly across on-premises, private, and public cloud environments. Its Azure Government environment specifically targets NERC CIP compliance needs, making it a critical player for regulated North American energy entities seeking a controlled, secure data environment.

• IBM

IBM's strategy in this market centers on its Hybrid Cloud, AI, and security capabilities, particularly through its IBM Cloud Object Storage and specialized solutions. Its competitive differentiation stems from offering highly secure, private cloud-like environments and its deep expertise in integrating legacy mainframe and operational technology (OT) systems with modern cloud architectures. IBM’s 2024 acquisition of Prescinto, an AI-driven Asset Performance Management (APM) software provider for renewables, clearly positions the company to drive demand for its object storage services integrated with AI-enabled renewable energy asset data analysis.

Cloud Storage Market for the Energy and Power Industry Developments

• November 2025: IBM announced the launch of the IBM Storage Scale System 6000, a new capacity addition aimed at eliminating data silos and delivering breakthrough performance. This targets the need for high-speed, unified data access across edge, core, and cloud environments, critical for AI workloads in energy.
• October 2024: IBM announced the acquisition of Prescinto, a provider of AI-driven Asset Performance Management (APM) software-as-a-service for renewables. This merger adds capacity for cloud-based monitoring and analytics solutions, directly driving demand for IBM Cloud storage for clean energy asset data.
• October 2024: Amazon announced the signing of four new nuclear energy projects in the US to help power its data centers. This capacity addition addresses the key industry concern of sustainable cloud infrastructure and energy consumption, supporting AWS’s sustainability value proposition to power and utility clients.

Cloud Storage Market for the Energy and Power Industry Segmentation

By Solution

• Primary Storage
• Backup Storage

By Deployment Model

• Public Cloud
• Private Cloud
• Hybrid Cloud

By Services

• Integration
• Consulting
• Others

By Enterprise Size

• Large
• SMB (Small and Medium-sized business)

By Geography

• North America
  • United States
  • Canada
  • Mexico
  • Others
• South America
  • Brazil
  • Argentina
  • Others
• Europe
  • Germany
  • France
  • Italy
  • United Kingdom
  • Others
• Middle East and Africa
  • Israel
  • Saudi Arabia
  • UAE
  • Others
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • Others

Table Of Contents

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Currency

1.5. Assumptions

1.6. Base and Forecast Years Timeline

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Secondary Sources

3. EXECUTIVE SUMMARY

4. MARKET DYNAMICS

4.1. Market Segmentation

4.2. Market Drivers

4.3. Market Restraints

4.4. Market Opportunities

4.5. Porter’s Five Force Analysis

4.5.1. Bargaining Power of Suppliers

4.5.2. Bargaining Power of Buyers

4.5.3. Threat of New Entrants

4.5.4. Threat of Substitutes

4.5.5. Competitive Rivalry in the Industry

4.6. Life Cycle Analysis - Regional Snapshot

4.7. Market Attractiveness

5.  CLOUD STORAGE MARKET FOR ENERGY AND POWER INDUSTRY FORECAST BY SOLUTION

5.1. Primary Storage

5.2. Backup Storage

6. CLOUD STORAGE MARKET FOR ENERGY AND POWER INDUSTRY FORECAST BY DEPLOYMENT MODEL

6.1. Public Cloud

6.2. Private Cloud

6.3. Hybrid Cloud

7. CLOUD STORAGE MARKET FOR ENERGY AND POWER INDUSTRY FORECAST BY SERVICES

7.1. Integration

7.2. Consulting

7.3. Others

8. CLOUD STORAGE MARKET FOR ENERGY AND POWER INDUSTRY FORECAST BY ENTERPRISE SIZE

8.1. Large

8.2. SMB (Small and Medium-sized business)

9. CLOUD STORAGE MARKET FOR ENERGY AND POWER INDUSTRY FORECAST BY GEOGRAPHY

9.1. North America

9.1.1. United States

9.1.2. Canada

9.1.3. Mexico

9.1.4. Others

9.2. South America

9.2.1. Brazil

9.2.2. Argentina

9.2.3. Others

9.3. Europe

9.3.1. Germany

9.3.2. France

9.3.3. Italy

9.3.4. United Kingdom

9.3.5. Others

9.4. Middle East and Africa

9.4.1. Israel

9.4.2. Saudi Arabia

9.4.3. UAE

9.4.4. Others

9.5. Asia Pacific

9.5.1. Japan

9.5.2. China

9.5.3. India

9.5.4. Australia

9.5.5. Malaysia

9.5.6. Others

10. COMPETITIVE INTELLIGENCE

10.1. Recent Deals and Investment

10.2. Strategies of Key Players

10.3. Investment Analysis

11. COMPANY PROFILES

11.1. Amazon Web Services, Inc.

11.1.1. Company Overview

11.1.2. Financials

11.1.3. Products and Services

11.1.4. Recent Developments

11.2.  Microsoft

11.2.1. Company Overview

11.2.2. Financials

11.2.3. Products and Services

11.2.4. Recent Developments

11.3. Google 

11.3.1. Company Overview

11.3.2. Financials

11.3.3. Products and Services

11.3.4. Recent Developments

11.4. Unicorn Systems a.s.

11.4.1. Company Overview

11.4.2. Financials

11.4.3. Products and Services

11.4.4. Recent Developments

11.5. OpenText Corp.

11.5.1. Company Overview

11.5.2. Financials

11.5.3. Products and Services

11.5.4. Recent Developments

11.6. IBM

11.6.1. Company Overview

11.6.2. Financials

11.6.3. Products and Services

11.6.4. Recent Developments

LIST OF FIGURES 

LIST OF TABLES

Companies Profiled

Amazon Web Services, Inc.

Microsoft

Google

Unicorn Systems a.s.

OpenText Corp.

IBM

Related Reports