Green Data Center Market size is expected to cross USD 975 Billion by the end of 2036, expanding around 20% CAGR during the forecast period i.e., 2024-2036. In the year 2023, the industry size of the green data center was over USD 70 billion. The requirement for green data centers is primarily being driven by the increase in demand for storage space and data storage. Huawei predicts that during the projected period, the demand for data centers will rise three to ten times globally. Due to new construction brought about by regulations and the anticipated rise in the need to reduce operational expenditure, along with the positive outlook for data center storage needs and the need to reduce energy consumption, green data centers-which offer practical and environmentally friendly options in terms of data storage and decrease in energy consumption-should see high demand.
Green data centers use cutting-edge technologies including power management tools, sophisticated cooling systems, and virtualization to prioritize energy economy. These centers lower operating expenses considerably by reducing energy use, which attracts enterprises financially. Green data centers are also using more and more renewable energy sources to harness the power of nature. By utilizing renewable energy sources like solar, wind, and hydroelectric power plants, we can lessen our need for fossil fuels and reduce our carbon footprint.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024 – 2036 |
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CAGR |
~20% |
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Base Year Market Size (2023) |
~ USD 70 billion |
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Forecast Year Market Size (2036) |
~ USD 975 billion |
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Regional Synopsis |
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Component (Solutions, Services)
Based on components, the solution segment in the green data center market is anticipated to hold a share of 60% by the end of 2036. Cooling systems, electrical systems, network systems, management and monitoring systems, and other systems are included in the green data center solutions. It is anticipated that the segment's demand will be fuelled by the rising need for cooling systems, which will accelerate market expansion. More energy-efficient technology is used in the construction and design of these solutions, which eventually lowers operating expenses. Numerous businesses are examining the possibility of significant cost reductions in terms of upkeep and electricity bills.
Industry Vertical (BFSI, Power, IT & Telecom, Media and Entertainment, Healthcare, Government and Defense, Retail, Manufacturing)
In terms of industry vertical, the BFSI segment in the green data center market is set to hold a significant share of the revenue share between 2024-2036. The high market share can be attributed to the increasing adoption of Green Data Centres in this sector as a result of special regulatory pressures, industry dynamics, and increased emphasis on ensuring efficient operation with environmental sustainability. In the BFSI sector, risk management is considered to be of great importance. Due to the energy-efficient, resilient technology, green data centers help reduce risks associated with interruptions of power supply, security breaches, and compliance infringements. It's good to see that, in 2022, 41% of respondents in the banking sector expect to increase investments in risk management technologies by up to 10%.
Our in-depth analysis of the global green data center market includes the following segments:
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Component |
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Industry Vertical |
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Enterprise Size |
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North American Market Forecast
Green data center market size is expected to hold the largest revenue share of 35% during the forecast period. The market in the region is anticipated to grow on account of the presence of numerous services and software providers. The US, followed by Canada, is expected to dominate the North American market, with high investments by colocation providers and hyperscale data center operators. The request for cost-effective and effective control arrangements has expanded, with more offices being created as green information centers in North America. Data centers account for around 2% of all electricity use in the United States, as claimed by the Department of Energy. The main factors driving demand for new data center infrastructure in this region are the expansion of broadband access, 5G deployment, and a shift towards Big Data Analytics and cloud computing services. To improve innovation, network providers are working to ensure that 5G is deployed as quickly as possible. By reducing energy consumption and increasing efficiency, green data center providers have highlighted the reduction of corporate carbon footprints.
APAC Market Statistics
The green data center market in the Asia Pacific region is expected to hold a substantial revenue share by the end of the forecast period. Increasing electricity demand is expected to drive growth in the Asia Pacific region. To manage energy costs, a growing emphasis is placed on optimizing energy use and adopting environmentally friendly practices. More stringent rules on energy consumption and emissions are being implemented by several countries in the Asia Pacific region. As a valuable resource, green data centers can facilitate compliance with these rules and help businesses avoid possible sanctions.
Author Credits: Abhishek Verma, Hetal Singh
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