Green Data Centers Market

Green Data Centers Market Outlook (2023 to 2033)

According to FMI, the green data centers market is expected to grow at a CAGR of 20% during the forecast period. The market is projected to generate a value of US$ 67.85 billion as of 2023 and is projected to reach US$ 420 billion by 2033. A growing need for green data centers has been increasing over the past few years, as data proliferation is on the rise and remote working has become an increasingly popular way of coping with the COVID-19 pandemic. Data centers are designed, built, and operated with sustainability in mind, and this commitment applies throughout the data center's lifecycle. Green data centers are increasingly appearing in enterprise construction concepts as the need for data storage grows and awareness of environmental protection continues to rise.

An April study by technology trade publication InformationWeek found that 60% of IT decision-makers were concerned about power, cooling, or space in their data centers. As a result, some claimed that they reached their capacity limit by the end of 2014. According to the survey, 22 percent of executives routinely tracked their data center's energy consumption. Despite this, only 15% of data center managers monitored the key performance metrics on a daily or hourly basis, as found in The State of Data Center Evolution. Nearly 42 percent of respondents said that they never or rarely track the energy efficiency of their buildings.

In the coming years, the demand for green data centers is expected to increase in the market due to advances in technologies related to data storage, management, and operations. According to a report in The New York Times published in September last year, the world's data centers consume more than 30 billion watts of electric power, equivalent to the energy needs of 30 nuclear power plants. According to the New York Times, the United States consumes roughly one-third of those goods. During the development of enterprise data centers, it has become apparent that green data centers are a rapidly growing industry. Businesses are becoming more and more interested in alternative energy solutions for their data centers, and these solutions are very beneficial to the market.

A group of companies including eBay, Adobe, Facebook, Salesforce.com, Hewlett-Packard, and Symantec has teamed up to showcase low-carbon power best practices as part of the Future of Internet Power initiative. The European Commission honored 27 IBM green data center designs in January 2012. As a leader in the field of designing green data centers, IBM plays a vital role in promoting them.

In another instance, Green Grid announced in June 2013 that they were starting a program to better manage e-waste generated by data centers. As one of the largest data centers in the fleet, Google Hamina uses seawater cooling to keep computer systems cool. The site was built on the site of a former paper factory that had been abandoned for many years. Through the latest technologies, green data centers conserve power and reduce business costs. During the process of upgrading or managing servers, it may also be beneficial to shut down the servers temporarily to reduce the cost of energy and lower carbon footprint. Data centers that use green computing hardware reduce their environmental impact, resulting in a sustainable data center. Data centers require the use of ever-increasing equipment and technologies in light of the ever-increasing technological development. With the introduction of virtualization technology and new servers, less power is consumed, reducing global warming and increasing profitability for data center operators.

New technologies are also helping to improve energy efficiency and power consumption in data centers. For example, GaN-based components allow the system to operate at a higher switching frequency, which improves system architecture, increases power supply efficiency, and reduces cooling requirements. Moreover, digital control systems are capable of monitoring the health of a system continuously and taking preventive action before failure occurs, thereby reducing server downtime.

Data Points	Key Statistics
Estimated Base Year Value (2022)	US$ 59 billion
Expected Market Value (2023)	US$ 67.85 billion

A green data center is one of the server facility which can be utilized for energy-efficient technologies. Stringent regulations passed by governments across the globe against the over-consumption of power has led to increasing awareness about the sustainability of energy.

As modular data centers promote the optimum consumption of power & energy and support the green revolution, a high preference for the adoption of green data centers over conventional data centers that consume high power is witnessed in the market. Green data center is used to reduce power costs, improve cooling capacity, and enhance system reliability. The Green Data Centers are also used to improve energy efficiency and save the cost of energy consumption.

Increasing Adoption of Green Data Centers amid the COVID-19 Pandemic outbreak

The COVID-19 pandemic outbreak has disrupted many industries, including the green data centers market. The spread of COVID-19 has affected major data center operations in Europe, Asia, and North America partially in the Middle East, Africa, and Latin America. Several facilities are affected due to the stoppage of construction and supply chain related challenges.

New learning among companies concerning work-from-home (WFH) and data accessibility during the lockdown period has resulted in increasing demand for space and services at data centers. AWS and Google opened the most new data centers in the last 12 months, accounting for over half of the total, followed by Microsoft and Oracle. However, due to coronavirus outbreak, there is an increase in adoption of Green Data Centers, which is estimated to grow by 2X by Q4, 2020, and would follow the trend in 2021.

Green Data Centers Market: Drivers and Challenges

Drivers

The demand for green data centers is increasing for energy efficiency and minimum impact on the environment, and also reducing power consumption with innovative technologies, and such factors is driving the growth of the green data centers market during the forecast period. One of the key features of green data centers is the ease of deployment and portability offered by it.

These green data centers offer different benefits such as next-gen storage experience, reduced impact on the environment, consumed less energy, turning off unused servers, and decreased capital expenditure. The reliability of such benefits drives the growth of the green data centers market. The deployment of advanced telecom and data services, such as 5G, LTE advanced, etc., has also boosted the adoption of green data centers.

Challenges

One of the major factors hampering the growth of green data centers is the high cost associated with them. Furthermore, lack of awareness, poor infrastructure network, and security and optimization challenges of green data centers are hindering the market growth.

Green Data Centers Market: Competition Landscape

Some of the prominent players providing green data centers are -

• Cisco Systems, Inc.
• Oracle Corporation
• Hewlett Packard Enterprise
• Dell
• IBM Corporation
• Huawei Technologies
• Eaton, among others.

Green Data Centers Market: Regional overview

Based on the region, the growth trends of the green data centers market varies across various geographical regions. Based on geography, North America & Europe are expected to capture the most significant green data centers market share, owing to the paradigm shift from non-renewable to renewable energy sources in the USA and Europe.

East Asia & South Asia & Pacific are expected to witness double-digit growth, in terms of revenue, in the global green data centers market, due to growth in data and increased awareness about the environment safety in the regions. The green data centers market report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, and inputs from industry experts and industry participants across the value chain.

The report provides in-depth analysis of parent market trends, macro-economic indicators, and governing factors, along with market attractiveness as per segment. The green data centers market report also maps the qualitative impact of various market factors on market segments and geographies.

The report covers exhaustive analysis on

• Green Data Centers Market Segments
• Green Data Centers Market Dynamics
• Green Data Centers Market Size
• Supply & Demand
• Current Trends/Issues/Challenges
• Competition & Companies Involved in the Green Data Centers Market
• Technology Landscape
• Value Chain of the Green Data Centers Market
• Green Data Centers Market Drivers and Restraints

Regional analysis includes

• North America (USA, Canada)
• Latin America (Mexico, Brazil, & Rest of Latin America)
• Europe (Germany, Italy, United Kingdom, Spain, France, BENELUX, & Russia)
• East Asia (China, South Korea, and Japan)
• South Asia & Pacific (India, ASEAN, and Australia & New Zealand)
• Middle East and Africa (GCC Countries, Turkey & South Africa)

Green Data Centers Market: Segmentation

The green data centers market has been segmented on the basis of component, industry, and region.

On the basis of component:

• Solution
• Server
• Networking
• Management software
• Other green solutions
• Services
• System integration
• Monitoring services
• Other support services

On the basis of industry:

• IT & Telecommunication
• Government
• Retail
• Healthcare
• Education
• Financial Services
• Others