Global Data Center Energy Storage Market Forecast 2025-2032

The global data center energy storage market is anticipated to reach $3441.38 million by 2032, growing at a CAGR of 8.27% during the forecast period, 2025-2032. The base year considered for the study is 2024, and the estimated period is between 2025 and 2032.

The data center energy storage market is experiencing substantial growth, driven by the increasing demand for reliable power to support the expanding digital economy. Energy storage solutions are crucial for maintaining continuous operations in data centers, which are the backbone of various sectors, including finance, healthcare, and telecommunications. These systems ensure uptime, prevent data loss, and optimize energy usage, making them indispensable for modern data center infrastructure.

The market includes a variety of technologies, such as lithium-ion batteries, lead-acid batteries, flywheel energy storage, thermal storage, and other battery technologies. Battery Energy Storage Systems (BESS) are emerging as a key focus, offering benefits like improved energy reliability and reduced reliance on fossil fuels. BESS helps data centers to navigate the challenges of growing power demand and sustainability. Energy storage not only supports the broader adoption of renewable energy but also allows large users such as data centers to overcome intermittent generation.

Several initiatives are promoting the adoption of energy storage in data centers, such as integrating Battery Energy Storage Systems (BESS) for sustainable and resilient power. Companies are also focusing on developing scalable automation frameworks personalized to clean tech, supporting the integration of AI-powered asset optimization tools and intelligent building technologies into their infrastructure. Clean technology, including harnessing solar energy and pioneering waste-to-energy systems, is transforming from an optional innovation to an essential movement reshaping industries.

MARKET INSIGHTS

Key enablers of the global data center energy storage market growth:
• Growing demand for uninterrupted power supply (UPS)
The increasing reliance on AI and cloud services drives demand for UPS systems to safeguard data center operations from power outages.
Large data centers, such as those operated by AWS, require advanced UPS solutions to support massive, uninterrupted computing power.
Stringent uptime requirements in industries like IT and telecom push investments in reliable energy storage and UPS technologies.
• Advancements in battery technologies
• Rising investments in hyperscale and colocation data centers

Key growth restraining factors of the global data center energy storage market:
• High initial capital investment
• Technical complexities and integration issues
Integrating energy storage systems into existing data center infrastructures can be technically complex and may require specialized engineering expertise.
Energy storage technology limitations and sustainability targets are driving the changes respondents considered for their energy storage technology.
Ensuring seamless compatibility and optimal performance of energy storage solutions with existing data center equipment poses a significant challenge.

Data Center Energy Storage Industry | Top Trends
• Rising adoption of renewable energy in data centers
• Expansion of edge data centers and 5g networks
• Growing need for energy efficiency and carbon footprint reduction
Data centers are adopting energy storage to harness solar and wind power, reducing reliance on fossil fuels.
Tier IV facilities prioritize energy-efficient storage systems to achieve sustainability goals and LEED certifications.
Companies like Google and Microsoft leverage advanced storage to meet net-zero emission targets by 2030.

SEGMENTATION ANALYSIS

Market Segmentation – Storage Technology, Industry Vertical, Data Center Tier, and Data Center Size –

Market by Storage Technology:
• Lithium-Ion Batteries
Lithium-ion batteries are gaining traction in data centers due to their high energy density, longer lifespan, and decreasing costs.
The adoption of Li-ion UPS systems is anticipated to grow as data centers focus on reducing maintenance costs, enhancing energy efficiency, and saving space.
• Lead-Acid Batteries
• Nickel-Cadmium Batteries
• Sodium-Sulfur (NaS) Batteries
• Flow Batteries
• Supercapacitors
• Flywheel Energy Storage
• Other Storage Technologies

Market by Industry Vertical:
• IT & Telecom
• BFSI (Banking, Financial Services, and Insurance)
• Healthcare
• Government & Defense
• Retail & E-commerce
• Media & Entertainment
• Other Industry Verticals

Market by Data Center Tier:
• Tier I
• Tier II
• Tier III
• Tier IV
Tier 4 data centers offer the highest level of fault tolerance, ensuring systems remain operational despite multiple component failures.
The growing construction of Tier 4 data centers is expected to present a promising opportunity for the data center construction market growth during the forecast period.
Tier 4 data centers command premium pricing due to their advanced infrastructure and stringent operational requirements, attracting significant investment.

Market by Data Center Size:
• Large Data Centers
• Medium Data Centers
• Small Data Centers

REGIONAL ANALYSIS

Geographical Study based on Major Countries:
• United States
The increasing demand for reliable power backup across diverse sectors is driving steady growth in the UPS market throughout the United States.
In 2024, the U.S. secured the top regional revenue share, propelled by the swift rise of data centers fueled by cloud computing, big data analytics, and digital platforms.
The U.S. government’s focus on integrating renewable energy and promoting sustainability is pushing data centers to implement energy storage systems, cutting emissions and boosting efficiency.
• Germany
• United Kingdom
• China
• Canada
• France
• Australia
• The Netherlands
• Japan
• Mexico
• Italy
• Brazil
• India
India’s market is expected to see significant growth during the forecast period, due to the rapid development of its IT infrastructure.
Stricter data localization policies from the Indian government have sparked a boom in data center construction, increasing the need for dependable energy storage solutions.
Growing urbanization and the rise of smart cities in India are heightening the need for data centers capable of managing heavy energy demands, making energy storage systems essential.

Our market research reports offer an in-depth analysis of individual country-level market size and growth statistics. We cover the segmentation analysis, key growth factors, and macro-economic trends within the data center energy storage market, providing detailed insights into –
• United States Data Center Energy Storage Market
• Germany Data Center Energy Storage Market
• Brazil Data Center Energy Storage Market
• India Data Center Energy Storage Market

COMPETITIVE INSIGHTS

The major players in the global data center energy storage market are:
• Abb Ltd.
• Delta Electronics, Inc.
• Eaton Corporation
• Enphase Energy, Inc.
• Huawei Technologies Co., Ltd.
• Legrand SA

Key strategies adopted by some of these companies:
• In November 2024, Eaton announced a new xStorage battery energy storage system that can help expedite decarbonization initiatives and optimize the effectiveness of onsite renewable energy sources.
• In October 2023, ABB partnered with ZincFive and AFC Energy to bring safe and sustainable energy storage to the data center UPS market.

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Frequently Asked Questions (FAQs):
• What is driving the growth of the data center energy storage market?

A: The market is growing due to rising demand for uninterrupted power supply (UPS), increasing data center construction, and a shift toward renewable energy integration.
• Why are lithium-ion batteries popular in data center energy storage?

A: Lithium-ion batteries are favored for their high energy density, fast charging, and scalability, making them ideal for large and Tier IV data centers. Their declining costs and efficiency further boost adoption across the industry.
• How do energy storage systems improve data center efficiency?

A: Energy storage systems enhance efficiency by providing backup power, enabling renewable energy use, and reducing reliance on grid power. This lowers operational costs and supports carbon footprint reduction efforts.

Please Note: Report includes PDF + Excel


1. Research Scope & Methodology
1.1. Study Objectives
1.2. Methodology
1.3. Assumptions & Limitations
2. Executive Summary
2.1. Market Size & Estimates
2.2. Market Overview
2.3. Scope Of Study
2.4. Major Market Findings
2.4.1. Lithium-ion Batteries Are Widely Recognized For Their Efficiency And Scalability
2.4.2. It & Telecom Sector Continues To Drive Innovation In Data Center Energy Storage
2.4.3. Tier Iii Data Centers Are Valued For Their High Reliability And Redundancy
2.4.4. Large Data Centers Play A Pivotal Role In Meeting The Growing Demands Of Digital Transformation
3. Market Dynamics
3.1. Key Drivers
3.1.1. Growing Demand For Uninterrupted Power Supply (Ups)
3.1.2. Advancements In Battery Technologies
3.1.3. Rising Investments In Hyperscale And Colocation Data Centers
3.2. Key Restraints
3.2.1. High Initial Capital Investment
3.2.2. Technical Complexities And Integration Issues
4. Key Analytics
4.1. Key Market Trends
4.1.1. Rising Adoption Of Renewable Energy In Data Centers
4.1.2. Expansion Of Edge Data Centers And 5g Networks
4.1.3. Growing Need For Energy Efficiency And Carbon Footprint Reduction
4.2. Porter’s Five Forces Analysis
4.2.1. Buyers Power
4.2.2. Suppliers Power
4.2.3. Substitution
4.2.4. New Entrants
4.2.5. Industry Rivalry
4.3. Market Maturity Analysis
4.4. Market Concentration Analysis
4.5. Value Chain Analysis
4.5.1. Raw Material Suppliers
4.5.2. Component Manufacturers
4.5.3. Energy Storage Solution Providers
4.5.4. System Integrators And Installers
4.5.5. Service Providers And Maintenance Companies
4.5.6. End-users (Data Centers)
4.6. Key Buying Criteria
4.6.1. Reliability And Performance
4.6.2. Cost Efficiency (Capex & Opex)
4.6.3. Scalability And Flexibility
4.6.4. Safety And Compliance
4.6.5. Energy Density And Space Optimization
4.6.6. Advanced Monitoring And Management Capabilities
5. Market By Storage Technology
5.1. Lithium-ion Batteries
5.1.1. Market Forecast Figure
5.1.2. Segment Analysis
5.2. Lead-acid Batteries
5.2.1. Market Forecast Figure
5.2.2. Segment Analysis
5.3. Nickel-cadmium Batteries
5.3.1. Market Forecast Figure
5.3.2. Segment Analysis
5.4. Sodium-sulfur (Nas) Batteries
5.4.1. Market Forecast Figure
5.4.2. Segment Analysis
5.5. Flow Batteries
5.5.1. Market Forecast Figure
5.5.2. Segment Analysis
5.6. Supercapacitors
5.6.1. Market Forecast Figure
5.6.2. Segment Analysis
5.7. Flywheel Energy Storage
5.7.1. Market Forecast Figure
5.7.2. Segment Analysis
5.8. Other Storage Technologies
5.8.1. Market Forecast Figure
5.8.2. Segment Analysis
6. Market By Industry Vertical
6.1. It & Telecom
6.1.1. Market Forecast Figure
6.1.2. Segment Analysis
6.2. Bfsi (Banking, Financial Services, And Insurance)
6.2.1. Market Forecast Figure
6.2.2. Segment Analysis
6.3. Healthcare
6.3.1. Market Forecast Figure
6.3.2. Segment Analysis
6.4. Government & Defense
6.4.1. Market Forecast Figure
6.4.2. Segment Analysis
6.5. Retail & E-commerce
6.5.1. Market Forecast Figure
6.5.2. Segment Analysis
6.6. Media & Entertainment
6.6.1. Market Forecast Figure
6.6.2. Segment Analysis
6.7. Other Industry Verticals
6.7.1. Market Forecast Figure
6.7.2. Segment Analysis
7. Market By Data Center Tier
7.1. Tier I
7.1.1. Market Forecast Figure
7.1.2. Segment Analysis
7.2. Tier Ii
7.2.1. Market Forecast Figure
7.2.2. Segment Analysis
7.3. Tier Iii
7.3.1. Market Forecast Figure
7.3.2. Segment Analysis
7.4. Tier Iv
7.4.1. Market Forecast Figure
7.4.2. Segment Analysis
8. Market By Data Center Size
8.1. Large Data Centers
8.1.1. Market Forecast Figure
8.1.2. Segment Analysis
8.2. Medium Data Centers
8.2.1. Market Forecast Figure
8.2.2. Segment Analysis
8.3. Small Data Centers
8.3.1. Market Forecast Figure
8.3.2. Segment Analysis
9. Country Analysis
9.1. United States Data Center Energy Storage Market Size & Opportunities
9.2. Germany Data Center Energy Storage Market Size & Opportunities
9.3. United Kingdom Data Center Energy Storage Market Size & Opportunities
9.4. China Data Center Energy Storage Market Size & Opportunities
9.5. Canada Data Center Energy Storage Market Size & Opportunities
9.6. France Data Center Energy Storage Market Size & Opportunities
9.7. Australia Data Center Energy Storage Market Size & Opportunities
9.8. Netherlands Data Center Energy Storage Market Size & Opportunities
9.9. Japan Data Center Energy Storage Market Size & Opportunities
9.10. Mexico Data Center Energy Storage Market Size & Opportunities
9.11. Italy Data Center Energy Storage Market Size & Opportunities
9.12. Brazil Data Center Energy Storage Market Size & Opportunities
9.13. India Data Center Energy Storage Market Size & Opportunities
9.14. Rest Of The Countries Data Center Energy Storage Market Size & Opportunities
10. Competitive Landscape
10.1. Key Strategic Developments
10.1.1. Mergers & Acquisitions
10.1.2. Product Launches & Developments
10.1.3. Partnerships & Agreements
10.1.4. Business Expansions & Divestitures
10.2. Company Profiles
10.2.1. Abb Ltd
10.2.1.1. Company Overview
10.2.1.2. Products
10.2.1.3. Strengths & Challenges
10.2.2. Delta Electronics Inc
10.2.2.1. Company Overview
10.2.2.2. Products
10.2.2.3. Strengths & Challenges
10.2.3. Eaton Corporation
10.2.3.1. Company Overview
10.2.3.2. Products
10.2.3.3. Strengths & Challenges
10.2.4. Enphase Energy Inc
10.2.4.1. Company Overview
10.2.4.2. Products
10.2.4.3. Strengths & Challenges
10.2.5. Huawei Technologies Co Ltd
10.2.5.1. Company Overview
10.2.5.2. Products
10.2.5.3. Strengths & Challenges
10.2.6. Legrand Sa
10.2.6.1. Company Overview
10.2.6.2. Products
10.2.6.3. Strengths & Challenges
10.2.7. Mitsubishi Electric Corporation
10.2.7.1. Company Overview
10.2.7.2. Products
10.2.7.3. Strengths & Challenges
10.2.8. Schneider Electric Se
10.2.8.1. Company Overview
10.2.8.2. Products
10.2.8.3. Strengths & Challenges
10.2.9. Tesla Inc
10.2.9.1. Company Overview
10.2.9.2. Products
10.2.9.3. Strengths & Challenges
10.2.10. Vertiv Holdings Co
10.2.10.1. Company Overview
10.2.10.2. Products
10.2.10.3. Strengths & Challenges
List Of Tables
Table 1: Market Snapshot – Data Center Energy Storage
Table 2: Global Data Center Energy Storage Market, By Storage Technology, Historical Years, 2018-2023 (In $ Million)
Table 3: Global Data Center Energy Storage Market, By Storage Technology, Forecast Years, 2025-2032 (In $ Million)
Table 4: Global Lithium-ion Batteries Market, By Region, Historical Years, 2018-2023 (In $ Million)
Table 5: Global Lithium-ion Batteries Market, By Region, Forecast Years, 2025-2032 (In $ Million)
Table 6: Global Lead-acid Batteries Market, By Region, Historical Years, 2018-2023 (In $ Million)
Table 7: Global Lead-acid Batteries Market, By Region, Forecast Years, 2025-2032 (In $ Million)
Table 8: Global Nickel-cadmium Batteries Market, By Region, Historical Years, 2018-2023 (In $ Million)
Table 9: Global Nickel-cadmium Batteries Market, By Region, Forecast Years, 2025-2032 (In $ Million)
Table 10: Global Sodium-sulfur (Nas) Batteries Market, By Region, Historical Years, 2018-2023 (In $ Million)
Table 11: Global Sodium-sulfur (Nas) Batteries Market, By Region, Forecast Years, 2025-2032 (In $ Million)
Table 12: Global Flow Batteries Market, By Region, Historical Years, 2018-2023 (In $ Million)
Table 13: Global Flow Batteries Market, By Region, Forecast Years, 2025-2032 (In $ Million)
Table 14: Global Supercapacitors Market, By Region, Historical Years, 2018-2023 (In $ Million)
Table 15: Global Supercapacitors Market, By Region, Forecast Years, 2025-2032 (In $ Million)
Table 16: Global Flywheel Energy Storage Market, By Region, Historical Years, 2018-2023 (In $ Million)
Table 17: Global Flywheel Energy Storage Market, By Region, Forecast Years, 2025-2032 (In $ Million)
Table 18: Global Other Storage Technologies Market, By Region, Historical Years, 2018-2023 (In $ Million)
Table 19: Global Other Storage Technologies Market, By Region, Forecast Years, 2025-2032 (In $ Million)
Table 20: Global Data Center Energy Storage Market, By Industry Vertical, Historical Years, 2018-2023 (In $ Million)
Table 21: Global Data Center Energy Storage Market, By Industry Vertical, Forecast Years, 2025-2032 (In $ Million)
Table 22: Global It & Telecom Market, By Region, Historical Years, 2018-2023 (In $ Million)
Table 23: Global It & Telecom Market, By Region, Forecast Years, 2025-2032 (In $ Million)
Table 24: Global Bfsi (Banking, Financial Services, And Insurance) Market, By Region, Historical Years, 2018-2023 (In $ Million)
Table 25: Global Bfsi (Banking, Financial Services, And Insurance) Market, By Region, Forecast Years, 2025-2032 (In $ Million)
Table 26: Global Healthcare Market, By Region, Historical Years, 2018-2023 (In $ Million)
Table 27: Global Healthcare Market, By Region, Forecast Years, 2025-2032 (In $ Million)
Table 28: Global Government & Defense Market, By Region, Historical Years, 2018-2023 (In $ Million)
Table 29: Global Government & Defense Market, By Region, Forecast Years, 2025-2032 (In $ Million)
Table 30: Global Retail & E-commerce Market, By Region, Historical Years, 2018-2023 (In $ Million)
Table 31: Global Retail & E-commerce Market, By Region, Forecast Years, 2025-2032 (In $ Million)
Table 32: Global Media & Entertainment Market, By Region, Historical Years, 2018-2023 (In $ Million)
Table 33: Global Media & Entertainment Market, By Region, Forecast Years, 2025-2032 (In $ Million)
Table 34: Global Other Industry Verticals Market, By Region, Historical Years, 2018-2023 (In $ Million)
Table 35: Global Other Industry Verticals Market, By Region, Forecast Years, 2025-2032 (In $ Million)
Table 36: Global Data Center Energy Storage Market, By Data Center Tier, Historical Years, 2018-2023 (In $ Million)
Table 37: Global Data Center Energy Storage Market, By Data Center Tier, Forecast Years, 2025-2032 (In $ Million)
Table 38: Global Tier I Market, By Region, Historical Years, 2018-2023 (In $ Million)
Table 39: Global Tier I Market, By Region, Forecast Years, 2025-2032 (In $ Million)
Table 40: Global Tier Ii Market, By Region, Historical Years, 2018-2023 (In $ Million)
Table 41: Global Tier Ii Market, By Region, Forecast Years, 2025-2032 (In $ Million)
Table 42: Global Tier Iii Market, By Region, Historical Years, 2018-2023 (In $ Million)
Table 43: Global Tier Iii Market, By Region, Forecast Years, 2025-2032 (In $ Million)
Table 44: Global Tier Iv Market, By Region, Historical Years, 2018-2023 (In $ Million)
Table 45: Global Tier Iv Market, By Region, Forecast Years, 2025-2032 (In $ Million)
Table 46: Global Data Center Energy Storage Market, By Data Center Size, Historical Years, 2018-2023 (In $ Million)
Table 47: Global Data Center Energy Storage Market, By Data Center Size, Forecast Years, 2025-2032 (In $ Million)
Table 48: Global Large Data Centers Market, By Region, Historical Years, 2018-2023 (In $ Million)
Table 49: Global Large Data Centers Market, By Region, Forecast Years, 2025-2032 (In $ Million)
Table 50: Global Medium Data Centers Market, By Region, Historical Years, 2018-2023 (In $ Million)
Table 51: Global Medium Data Centers Market, By Region, Forecast Years, 2025-2032 (In $ Million)
Table 52: Global Small Data Centers Market, By Region, Historical Years, 2018-2023 (In $ Million)
Table 53: Global Small Data Centers Market, By Region, Forecast Years, 2025-2032 (In $ Million)
Table 54: Global Data Center Energy Storage Market, By Country, Historical Years, 2018-2023 (In $ Million)
Table 55: Global Data Center Energy Storage Market, By Country, Forecast Years, 2025-2032 (In $ Million)
Table 56: List Of Mergers & Acquisitions
Table 57: List Of Product Launches & Developments
Table 58: List Of Partnerships & Agreements
Table 59: List Of Business Expansions & Divestitures
List Of Figures
Figure 1: Key Market Trends
Figure 2: Porter’s Five Forces Analysis
Figure 3: Market Maturity Analysis
Figure 4: Market Concentration Analysis
Figure 5: Value Chain Analysis
Figure 6: Key Buying Criteria
Figure 7: Global Data Center Energy Storage Market, Growth Potential, By Storage Technology, In 2024
Figure 8: Global Data Center Energy Storage Market, By Lithium-ion Batteries, 2025-2032 (In $ Million)
Figure 9: Global Data Center Energy Storage Market, By Lead-acid Batteries, 2025-2032 (In $ Million)
Figure 10: Global Data Center Energy Storage Market, By Nickel-cadmium Batteries, 2025-2032 (In $ Million)
Figure 11: Global Data Center Energy Storage Market, By Sodium-sulfur (Nas) Batteries, 2025-2032 (In $ Million)
Figure 12: Global Data Center Energy Storage Market, By Flow Batteries, 2025-2032 (In $ Million)
Figure 13: Global Data Center Energy Storage Market, By Supercapacitors, 2025-2032 (In $ Million)
Figure 14: Global Data Center Energy Storage Market, By Flywheel Energy Storage, 2025-2032 (In $ Million)
Figure 15: Global Data Center Energy Storage Market, By Other Storage Technologies, 2025-2032 (In $ Million)
Figure 16: Global Data Center Energy Storage Market, Growth Potential, By Industry Vertical, In 2024
Figure 17: Global Data Center Energy Storage Market, By It & Telecom, 2025-2032 (In $ Million)
Figure 18: Global Data Center Energy Storage Market, By Bfsi (Banking, Financial Services, And Insurance), 2025-2032 (In $ Million)
Figure 19: Global Data Center Energy Storage Market, By Healthcare, 2025-2032 (In $ Million)
Figure 20: Global Data Center Energy Storage Market, By Government & Defense, 2025-2032 (In $ Million)
Figure 21: Global Data Center Energy Storage Market, By Retail & E-commerce, 2025-2032 (In $ Million)
Figure 22: Global Data Center Energy Storage Market, By Media & Entertainment, 2025-2032 (In $ Million)
Figure 23: Global Data Center Energy Storage Market, By Other Industry Verticals, 2025-2032 (In $ Million)
Figure 24: Global Data Center Energy Storage Market, Growth Potential, By Data Center Tier, In 2024
Figure 25: Global Data Center Energy Storage Market, By Tier I, 2025-2032 (In $ Million)
Figure 26: Global Data Center Energy Storage Market, By Tier Ii, 2025-2032 (In $ Million)
Figure 27: Global Data Center Energy Storage Market, By Tier Iii, 2025-2032 (In $ Million)
Figure 28: Global Data Center Energy Storage Market, By Tier Iv, 2025-2032 (In $ Million)
Figure 29: Global Data Center Energy Storage Market, Growth Potential, By Data Center Size, In 2024
Figure 30: Global Data Center Energy Storage Market, By Large Data Centers, 2025-2032 (In $ Million)
Figure 31: Global Data Center Energy Storage Market, By Medium Data Centers, 2025-2032 (In $ Million)
Figure 32: Global Data Center Energy Storage Market, By Small Data Centers, 2025-2032 (In $ Million)
Figure 33: United States Data Center Energy Storage Market, 2025-2032 (In $ Million)
Figure 34: Germany Data Center Energy Storage Market, 2025-2032 (In $ Million)
Figure 35: United Kingdom Data Center Energy Storage Market, 2025-2032 (In $ Million)
Figure 36: China Data Center Energy Storage Market, 2025-2032 (In $ Million)
Figure 37: Canada Data Center Energy Storage Market, 2025-2032 (In $ Million)
Figure 38: France Data Center Energy Storage Market, 2025-2032 (In $ Million)
Figure 39: Australia Data Center Energy Storage Market, 2025-2032 (In $ Million)
Figure 40: Netherlands Data Center Energy Storage Market, 2025-2032 (In $ Million)
Figure 41: Japan Data Center Energy Storage Market, 2025-2032 (In $ Million)
Figure 42: Mexico Data Center Energy Storage Market, 2025-2032 (In $ Million)
Figure 43: Italy Data Center Energy Storage Market, 2025-2032 (In $ Million)
Figure 44: Brazil Data Center Energy Storage Market, 2025-2032 (In $ Million)
Figure 45: India Data Center Energy Storage Market, 2025-2032 (In $ Million)
Figure 46: Rest Of The Countries Data Center Energy Storage Market, 2025-2032 (In $ Million)

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