Green Data Center Market Size & Share, by Component (Solutions, Services); Industry Vertical (BFSI, Power, IT & Telecom, Media and Entertainment, Healthcare, Government and Defense, Retail, Manufacturing); Enterprise Size (Large Enterprise, Small and Medium Size Enterprise) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5648
  • Published Date: May 07, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Green Data Center Market size is predicted to reach USD 805 billion by the end of 2036, growing at a CAGR of 20% 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 slated period, the demand for data centers will rise three to ten times globally.

Due to new construction brought about by regulations and the predicted 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 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.


GREEN DATA CENTER MARKET
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Green Data Center Sector: Growth Drivers and Challenges

Growth Drivers

  • High demand for renewable energy - Companies are prioritizing sustainability and corporate social responsibility (CSR) in their business strategies, resulting in increased demand for renewable energy. Businesses can maintain compliance with these sustainability criteria by implementing green data centers, which will help their entire reputation.

    Additionally, to reduce their reliance on non-renewable fossil fuels, green data centers frequently use renewable energy sources like solar, wind, and hydroelectric electricity. Data center operators profit greatly from energy-efficient technology, and businesses can save total operational costs by reducing energy consumption.
  • Rise in advanced technologies - Advances in artificial intelligence (AI), machine learning (ML), big data, and the Internet of Things (IoT) have increased global data center power demand. The International Energy Agency (IEA) estimates that data centers utilize 460 TWh in 2022, which is expected to rise to more than 1,000 TWh by 2026 in the worst-case scenario.

    As a result, the industry could be influenced by a high emphasis on energy efficiency, consequently boosting the growth of green data center market.

Challenges

  • High upfront costs - Green data centers demand a considerable initial investment because they often use more expensive technologies and materials than standard data centers. This can be a hindrance to certain businesses, particularly those with minimal resources.

    It is assessed that the high initial costs associated with developing and building green data centers will stymie the sector growth. Such energy-efficient data center development necessitates the use of cutting-edge technologies and environmentally friendly construction techniques. Furthermore, the process of converting an existing conventional data center to a green one is costly and complex.
  • Lack of awareness is anticipated to hinder market growth in the coming years.
  • Lack of standardization is estimated to impede landscape growth over the forecast period.

Green Data Center Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

20%

Base Year Market Size (2023)

USD 70 billion

Forecast Year Market Size (2036)

USD 805 billion

Regional Synopsis

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Green Data Center Segmentation

Component (Solutions, Services)

In green data center market, solution segment is likely to hold more than 60% share by 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 & Entertainment, Healthcare, Government & Defense, Retail, Manufacturing)

In terms of industry vertical, the BFSI segment is assessed to hold a significant green data center market share between 2024-2036. This can be attributed to the increasing adoption of green data centers in this sector as a result of special regulatory pressures, industry dynamics, and increased emphasis on ensuring efficient operation with environmental sustainability.

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 market includes the following segments:

 

     Component

  • Solutions
  • Services

 

 

 

     Industry Vertical

  • BFSI
  • Power
  • IT & Telecom
  • Media & Entertainment
  • Healthcare
  • Government & Defense
  • Retail
  • Manufacturing

 

     Enterprise Size

  • Large Enterprise
  • Small & Medium Size Enterprise

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Green Data Center Industry - Regional Synopsis

North American Market Forecast

Green data center market in the North America region is set to hold the largest revenue share of 37% during the period between 2024-2036. This growth in the region can be impelled by the presence of numerous services and software providers.

The US, followed by Canada, is estimated to dominate the North American landscape, 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.

APAC Market Statistics

The green data center market in the Asia Pacific region is poised to hold a substantial share by the end of the forecast period. Increasing electricity demand is slated to drive growth in the Asia Pacific region, as to manage energy costs, a growing emphasis is placed on optimizing energy use and adopting environmentally friendly practices.

In addition, more stringent rules on energy consumption and emissions are being implemented by several countries in the Asia Pacific region.

Research Nester
GREEN DATA CENTER MARKET  size
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Companies Dominating the Green Data Center Landscape

top-features-companies
    • ABB Ltd.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Asetek, Inc.
    • Delta Electronics, Inc. 
    • Digital Realty Trust
    • Cisco Systems, Inc.
    • Dell Technologies, Inc.
    • Equinix, Inc.
    • Norwegian Firm Earth Wind and Power
    • Phonepe
    • Hewlett Packard Enterprise Company
    • Huawei GreenBay

In the News

  • Phonepe propelled its beginning with Green Data Center in India in Navi Mumbai utilizing the advances and arrangements from Dell Advances and NTT. The information center is built and outlined with progressed elective cooling advances like coordinate contact fluid cooling (DCLC) and fluid submersion cooling (LIC) and encompasses a 4.8 MW office built in 13740 sqft.
  • Huawei Advances, GreenBay CES Sdn Bhd, Middle for Innovation Fabulousness Sarawak, entered into a collaboration with Solarvest Borneo Sdn Bhd. The objective of this collaboration is to make a hyperscale green information center testbed and actualize a preparation program in Sarawak.

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 5648
  • Published Date: May 07, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The growing demand for renewable energy and increasing demand for energy efficiency solutions are some of the major factors anticipated to drive the growth of the green data center market.

The market is anticipated to attain a CAGR of 20% over the forecast period, i.e., 2024-2036.

The major players in the market are Cisco Systems, Inc., Dell Technologies, Inc., Equinix, Inc., Norwegian Firm Earth Wind and Power, General Electric, Hewlett Packard Enterprise Company, and others.

The solution segment is anticipated to garner the largest market size of 60% by the end of 2036 and display significant growth opportunities.

The market in North America is poised to hold the largest market share of 35% by the end of 2036 and provide more business opportunities in the future.
Green Data Center Market Report Scope
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