USD 6.03 Billion
Green Data Center Market Size, Share, Growth Analysis, By Component (Solutions, Services), By Data Center Size (Small and Medium-sized data centers, Large data centers), By Vertical (IT and Telecom, Media and Entertainment), By Region-Industry Forecast 2024-2031.
Report ID:
SQMIG45B2138 |
Region:
Global |
Published Date: September, 2024
Pages:
197
|Tables:
0
|Figures:
0
Green Data Center Market Insights
Global Green Data Center Market size was valued at USD 70.82 Billion in 2022 and is poised to grow from USD 84.21 Billion in 2023 to USD 336.37 Billion by 2031, at a CAGR of 18.9% during the forecast period (2024-2031).
Green data center is a facility used for data storage and data processing with modern technologies excluding methods and techniques which are no longer optimal in terms of energy consumption. As the requirements for additional storage capacities are growing, operators have reported the increase in the installation of power and cooling systems. Sustainable or green data centers offer an environmentally sensitive solution for future data requirements. The green data centers describe a feasible and sustainable model for data center management with less power consumption and operating costs. The growing use of machine learning (ML), artificial intelligence (AI), big data, and Internet of Things (IoT) in the world’s data centers is likely to enhance the power consumption rate, thus, fueling the Market.
Additionally, emerging trends in green data center industry include an increase in demand in high end cloud applications across enterprises, green data center complexities because of scalability and a boost in investment in green data center technologies. At the same time, the shift toward multi-cloud solutions and the transition of networks to the 5G standard provide considerable opportunities for the green data center market.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Telecom and IT
Fastest Growth
Media and Entertainment
Growth Rate
11.2% CAGR
Global Green Data Center Market ($ Bn)
Country Share for North America Region (%)
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Green Data Center Market Segmental Analysis
The Global Green Data Center Market is segmented by components, data center size, verticals, and Region. By component, the market is segmented into solutions, services, design & consulting, installation & deployment, maintenance & support. The solution is further bifurcated into cooling, power, information technology. The cooling segment is segmented into air cooling & liquid cooling. Based on data center size, the market is segmented into small & medium-sized data centers, and large data centers. Based verticals, the market is segmented into BFSI, it & telecom, media & entertainment, healthcare, government & defense, retail, manufacturing, and others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Analysis by Component
During the forecast period, the services segment is expected to exhibit a healthy growth at a CAGR due to the rising demand for services like installation, deployment, consultation, and support and maintenance services across different industries. Increased consciousness about the environmental impact, the need to upgrade the company’s image, concerns of costs, and continuous development of technology have shifted attention to green data center services. As such, more organizations look for specific consultancy assistance in this area as they perceive gaps in internal capabilities.
On the other hand, the solutions segment has captured the highest revenue share in this portfolio. Green solutions for data centers include cooling systems, monitoring/management systems, power systems, and network systems. This segment is anticipated to foster market development due to the increased need for sophisticated cooling systems. These are processes that are implemented using energy-efficient technologies hence increasing the long-term efficiency of its operations. For this reason, the management and other organizational leaders are beginning to see the savings achievable on aspects of maintenance and electricity bills.
Analysis by Vertical
The largest demand for green data center services comes from the telecom and IT sectors as these industries handle vast amounts of information. These industries require energy-efficient procedures, use of renewable energy and optimum resource utilization to run the extensive network and digital services; therefore, they can be considered as a dominating segment in the evolution of green data center. Also, telecom and IT industries are showing their interest in adopting the green data center solutions. For instance, there are approximately 10,978 data center locations worldwide as of December 2023, which has more number of IT and telecom data centers. These sectors are rapidly shifting towards the eco-friendly or green data centers and drive the growth of the market.
On the other hand, the media and entertainment industry is emerging as the fastest-growing segment in this market. Due to current advancements in the production of high-quality images, videos, and audios, the handling of large volumes of data has become difficult. This industry require power for computing, storage, and the other services. For Instance, the growth of OTT platforms such as Netflix and Amazon Prime video are experiencing huge number of customers that implies more energy efficient data centers with optimal performance are needed to provide a good experience for the end consumer. Technological advances in green data solutions helps media companies to encompass solutions that provide access to content repositories around the globe anytime anywhere through desktops, tablets and laptops while being most energy efficient and high performing.
Global Green Data Market By Component ($ Bn)
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Green Data Center Market Regional Insights
In 2023, North America held the largest market share in the global green data center market and is expected to grow during the forecast period. The dominance of this region is attributed due to the presence of large number of data centers in United States which is approximately 5,381 as of 2024. The growing number of data center in United States creates potential market opportunity for green data center market. The increasing usage of mobile broadband, the development of big data analytics, and cloud computing services are the motives for the modernization of data center infrastructures. Major key players including Dell, HPE and IBM have started providing green data center solutions, reflecting the dominance of this region.
On the other hand, the Asia-Pacific region is emerging as the fastest growing region and it is projected to grow at a CAGR of approximately 19% in the coming years. This growth is driven by the high usage of power and the rising awareness on energy efficiency and conservation in order to reduce energy costs. Many of the countries in the region are increasingly adopting measures that regulate energy consumption and emissions imperative for the green data centers as firms seek to adhere to such regulations and avoid penalties. The use of energy efficiency solutions reflects the region’s focus on sustainable development and compliance with standards.
Global Green Data Market By Region
- Largest
- Fastest
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Green Data Center Market Dynamics
Drivers
Growing Demand for Energy Efficiency and Sustainability
- Our analysis reveals that factors such as increasing awareness related to energy demand and supply and hence the increased demand for energy efficient green data centers are the major factors for the growth of the Green Data Centre market. In recent years, as the role of data centers has enhanced, worries related to its carbon footprint and energy consumption have also emerged. This shift towards green data centers is due to the demand in renewable energy use, better cooling techniques, along with artificial intelligence integrating an improved power management system. Many large corporations such as IBM and Dell are following this trend of incorporating ESG and striving for lower PUE figures.
Rapid Growth in Cloud Computing and Edge Computing
- The growth of cloud and edge computing services are accelerating the green data center market. The world’s data consumption is increasing and these historical large-scale data centers are unable to address this need, propelling companies to implement modern efficient, and elastic green technologies. The global adoption of decentralized, real-time edge computing, where workloads are shifted from central data centers to the endpoints, is also accelerating the use of smaller distributed data centers. These centers specialize in the renewables and low-energy cooling systems, and are therefore green data centers are imperative for future cloud and edge requirements.
Restraints
High Initial Capital Investment
- The high initial capital investment is a significant factor limiting the growth of the global green data center market. Green facilities involve costly solutions like energy hardware, sophisticated cooling, and renewable power systems. The cost of upgrading older facilities for installation of renewable systems and procuring such technologies also raises costs higher than expected, posing challenges for small firms, especially those from emergent markets, to venture into the energy markets. Concern with regards to the ROI and long-term energy saving potential is another factor that hinders people from using renewable energy leading to slow market development despite the numerous benefits to the environment and consumer pocket.
Technological Limitations and Complexity
- Technological constraints and its associated level of challenges therefore hue the global green data center market. High-level solutions such as liquid cooling and AI energy management can be challenging to implement because they require particular engineering knowledge most specialists do not possess. The incorporation of wind and solar energy is also problematic due to the unreliability of electricity in certain parts of the world. This results to operational interferences, which are usually accompanied by the use of back up generators. Adapting current data centers to incorporate green technologies is challenging, which limits the possibilities of expansion and slows down the market expansion.
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Green Data Center Market Competitive Landscape
The structure of the global green data center market is highly competitive, and it is dominated by a number of key players who offer a range of products and compete on several fronts such as on the fronts of product differentiation, technological differentiation, differentiation in prices, and market coverage. It is triggered by continuous technological advancements towards achieving efficiency, utilizing renewable power, and employing sophisticated techniques in cooling. Companies like DELL, HPE, and IBM form strategic partnerships, collaborations, and carry out mergers and acquisitions to enrich their market standing and to provide better green data center solutions. However, investment has been made in technology infrastructure, as well as on compliance with sustainable solutions across all platforms.
Top Player’s Company Profiles
- Dell Technologies (USA)
- HPE (USA)
- Eaton (Ireland)
- Schneider Electric (France)
- Vertiv (USA)
- Green Revolution Cooling (USA)
- Midas Green Technologies (USA)
- Delta Electronics (Taiwan)
- Rittal (Germany)
- Cisco (USA)
- Nortek Air Solutions (USA)
- Airedale (UK)
- Lenovo (China)
- Fujitsu (Japan)
- Cyber Power (Taiwan)
- Supermicro (USA)
- Inspur (China)
- IBM (USA)
- Alibaba Cloud (China)
- Digital Realty (USA)
- Equinix (USA)
- Huawei (China)
Recent Developments
- In June 2024, Actis, a global investor in sustainable infrastructure, rolled out Epoch Digital, an integrated data center solution provider in Asia. The plan contains a portfolio in the process of construction with about 200MW of IT power in three significant projects and a strong scheme for further growth. Existing and emerging green data centers should keep the bar raised by maintaining a PUE below the current industry standard, something that Actis aspires to achieve.
- In May 2024, NEC introduced its newest environmentally friendly data centers in Kanagawa and Kobe, Japan. These green data centers are in a synergy with NEC’s pursuit of building a sustainable society, as they exhibit the company’s passion towards environment and innovation.
- In December of 2023, two companies named Liberation Technology Services (LTS) and E-New Data Corp. decided to enter a partnership that will disrupt the data center market. Together, they will construct a novel green data center in 2024 that will utilize significantly less power and water than legacy data centers. This partnership represents a clear advancement in the sustainable data center space.
Green Data Center Key Market Trends
- Integration of Renewable Energy Sources: Our analysis indicates, the growing integration of renewable energy sources in green data centers as a significant trend. Data centers are increasingly adopting solar, wind, and other renewable energy sources to reduce their reliance on traditional power grids and lower their carbon footprints. This trend is fueled by stringent regulatory pressures and corporate sustainability goals. Companies are investing in on-site renewable energy installations and power purchase agreements (PPAs) to ensure a steady supply of green energy. The adoption of renewable energy is becoming a key component of green data center strategies, aligning with broader sustainability objectives.
- Integration of Advanced Cooling Technologies: Advanced cooling technologies are increasingly prominent in the global green data center market. Traditional air conditioning is becoming less efficient as data centers expand, prompting the adoption of liquid cooling, immersion cooling, and free cooling systems. These innovations improve energy efficiency by directly targeting heat sources and reducing overall consumption. Liquid cooling systems are effective in high-density environments, while immersion cooling and free cooling leverage external conditions to minimize mechanical cooling. This trend addresses growing heat loads and enhances sustainability in data centers.
Green Data Center Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust secondary desk research.
According to our analysis, major factors includes growth of cloud and edge computing, and advancement in cooling technology and power systems significantly propel the market. It is thereby clear that the market is competitive with industry giants such as IBM, DELL, and HPE being the pioneers and market leaders in driving innovation and sustainability. North America is the most significant due to good infrastructure and investment on smart grids, while Asia-Pacific region has the highest growth due to existing regulations on energy efficiency among others. The sector is expanding its scope, particularly in the segment of integrating renewable energy sources and using resources that can be obtained cheaper and with much less harm to the environment.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 70.82 Billion |
| Market size value in 2031 | USD 336.37 Billion |
| Growth Rate | 18.9% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Green Data Center Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Green Data Center Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Green Data Center Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Green Data Center Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Green Data Center Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Green Data Center Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Green Data Center Market Report Snapshots
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