From a global perspective, the U.K. data center market for example is anticipated to be one of the world’s largest 25% growth in data center investments to $3 billion during 2011 and’12. These investments would be made in new construction and facility expansion projects according to a recent report from Datacenter Dynamics research. This trend aligns well with what we are seeing and reflected in the 47% increase in sales we achieved in 2011.

Datacenter growth isn’t limited to the U.K. In China, for example, the government plans to invest more than $300 billion in IT and associated infrastructure over the next five years. In fact, the [country’s] cloud computing market is anticipated to grow 30% in 2012 according to IDC.

In Europe, research firm BroadGroup suggested in a recent report that [key seven] markets in Central and Eastern Europe are now perceived as growth areas for datacenters. With the dedicated sales resources in this region, we anticipate increased sales activity and order generation for Active Power.

And in the U.S., we continue to see an increase in demand for both our UPS and continuous power solutions, as reflected in several large orders deriving from co-location customers, one of our key market segments. In fact, the market for co-location datacenters is anticipated to increase nearly 70% between now and 2015 according to a recent report from the [Maritz Research].

And containerized datacenter market is also anticipated to grow according to IDC. The research firm estimates a 50% increase in number of modular units deployed from 2011 to 2012. This is consistent with that we are seeing from HP, a strong increase in containerized datacenter product sales, which in turn drives sales of our continuous power and infrastructure solutions.

In summary, we believe Active Power is well positioned in the market. We will continue to take market share with our consultative approach and a set of products and solutions directly addressing the business and IT challenges that mission critical operators face on a daily basis.

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