Strategic Intelligence: Cloud Computing in Power

Strategic Intelligence: Cloud Computing in Power

Summary

The cloud in energy market will be worth $54.6 billion by 2028

Cloud computing refers to computing delivered as an online service. It encompasses the provision of IT infrastructure, operating systems, middleware, and applications hosted within a data center and accessed by the end-user via the internet. The cloud is the dominant model for delivering and maintaining enterprise IT resources. GlobalData forecasts the cloud computing market in the energy sector will grow at a compound annual growth rate (CAGR) of 22% between 2024 and 2028, from $25.0 billion to $54.6 billion.

Cloud computing will help tackle key power industry challenges

Cloud computing adoption is already widespread in the power industry for applications like centralized asset management and predictive maintenance. However, its importance will only increase as it is crucial to tackling four critical industry challenges: accelerating the energy transition, modernizing aging grids, improving productivity and efficiency, and strengthening energy security.

Cloud computing also serves as a vital prerequisite for other technologies that will define smart grids, like artificial intelligence (AI) and the Internet of Things (IoT), which permit effective data collection and analysis.

Cloud computing is vital for renewable energy management

Cloud computing can facilitate the centralized management of renewable assets, which is typically difficult and resource-intensive due to factors like their sprawling geographical reach and large structural components. Cloud-based asset management platforms can aggregate real-time operational data from IoT devices embedded in renewable infrastructure, providing operators with continuous visibility into asset health and performance. Cloud-based machine learning algorithms support key applications like predictive maintenance, reducing unplanned downtime and extending asset lifespans. Critically, cloud-based platforms can scale on demand, accommodating data from new sites without major upfront IT investments and helping to manage expanding renewable project portfolios.

Cloud computing strengthens energy security

Cloud computing significantly improves the power industry’s ability to detect, respond to, and mitigate cyber threats in real-time. Utilities can deploy cloud-based security information and event management (SIEM) systems to help detect and address potential security threats.

Cloud computing also provides the scalability and flexibility required to maintain operational resilience under stress. In the event of a physical incident or cyberattack, cloud resources can be quickly scaled up or reallocated to deploy additional monitoring capabilities, run forensic investigations, and support backup control operations.

Key Highlights

• Cloud computing is key to facilitating the centralized management of renewable assets, which is typically difficult and resource-intensive due to their sprawling geographical reach, large structural components ( in the case of wind turbines), and exposure to harsh operating environments (especially for offshore wind farms). Cloud-based asset management platforms can aggregate real-time operational data from IoT devices embedded in renewable infrastructure, providing operators with continuous visibility into asset health and performance. Cloud-based advanced analytics and machine learning algorithms enable key applications like predictive maintenance, reducing unplanned downtime and extending asset lifespans. Critically, cloud-based platforms can scale on demand, accommodating data from new sites without major upfront IT investments and helping to manage expanding renewable project portfolios.
• Cloud-based data analytics platforms can help identify and eliminate operational inefficiencies. Machine learning algorithms can analyze vast datasets aggregated by these platforms to pinpoint performance bottlenecks and optimize resource allocations, allowing utilities to make more informed decisions that enhance efficiency and reduce costs.
• Cloud computing significantly improves the power industry’s ability to detect, respond to, and mitigate cyber threats in real-time. Utilities can deploy sophisticated cloud-based security information and event management (SIEM) systems that ingest vast telemetry from IT and OT networks, combined with real-time analytics, to help organizations recognize and address potential security threats. For example, SIEM systems like Microsoft’s Sentinel enable centralized security monitoring and automated anomaly detection across enterprise and industrial control systems.

Scope

This report offers a comprehensive analysis of cloud computing in the power industry including -

• How cloud computing will help tackle four key power industry challenges
• Which cloud computing areas companies across the power industry value chain should invest in, explore, and ignore
• Leading adopters and specialist vendors of cloud computing in the power industry
• Case studies
• Industry analysis
• A thematic scorecard ranking major power companies in the cloud computing theme

Reasons to Buy

• GlobalData’s strategic intelligence ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors.
• This report is essential reading for senior executives to understand how cloud computing will help tackle key power industry challenges, ensuring your company does not get left behind.