The Green data center market is earning pace in businesses that have expressed interest in inaugurating green data center solutions. In the current environment, operators have begun executing green efforts for their daily IT operations to save money, being one of the most prominent initiatives.
The Green data center market is expected to have a significant CAGR of 14.3% from 2022 to 2032. This market is predicted to grow from US$ 58.6 Bn in 2021 to US$ 266.9 Bn in 2032.
The Green data center market is growing due to long-term savings and Return on Investment (ROI). Rising electricity usage, invoices, and carbon emissions from data centers have increased the demand for green data centers. The common components of Green data center solutions include
- Power from renewable energy sources
- Cooling facilities
- Energy-efficient equipment,
- Management systems.
The construction cost of an energy-efficient Green data center is way more than that of a regular data center. Although green data centers have a low Total Cost of Ownership (TCO) and will conserve money for a longer period, higher capital investment is considered a major restraint in the green data center market.
How did the Covid-19 Pandemic influence the Green Data Center Market?
As the World deals with Covid-19, sizes of all markets are speeding up their progressive adjustments and looking to innovate to help them transition to a new normal, where disruption is possible. In addition, hyper scalers constantly meet the surge in cloud benefits due to the work-from-home economy, pacing the demand for data centers.
United Nations-International Labor Organization (UN-ILO) predicts that 4/5th or 81% of the overall population relies on fractional work environment terminations.
Also, customers who pay for their services are supported by data centers, which are part of an ecosystem. Entertainment, transportation, and hospitality industries have been hurt worse than others, and some data centers will be affected. The Covid-19 norms make physically relocating computers, closing buildings, and inaugurating new data center locations difficult.
Microsoft, Google, Amazon Web Services, and other hyper scalers are uniquely positioned. The expenditure on large corporate cloud servers has been increasing for a long period. However, the growth rate is set to accelerate; whether it’s public, private, or hybrid cloud, tech behemoths dominate the market.
Every Hyperscale server farm is aware of this. As a result, in light of the instant increase in cloud administrations, most hyper scalers rely on energy-efficient server farm arrangements, including force, IT, and cooling.
Covid-19 has spread worldwide, influencing key data center operations in Europe, Asia, North America, and regions of the Middle East, Africa, & Latin America. Also, several facilities have been affected due to the construction halt and supply chain issues.
The increasing adoption rate of hybrid cloud infrastructure among SMEs and large enterprises is expected to be one of the major drivers of the data center market in Indonesia during this post-pandemic.
Green Data Center Market Outlook
This market is primarily operated by the growing requirement for energy-efficient computing systems, further eased by increasing digitization across industries. Moreover, rising environmental consciousness and the global adoption of data centers to store & manage the continuously rising amounts of data are driving the market growth.
Green data centers are usually designed with on-site wind and solar farms that are built on the terrace of the building or facility. They also recycle the wastewater to use it for cooling purposes.
Moreover, several product revolutions act as other growth-inducing factors, including using low-emission building materials, paints, carpets, waste recycling systems, and sustainable landscaping for constructing these data centers.
To produce energy-efficient systems, operators use alternative technologies, including:
- evaporative cooling,
- heat pumps,
- photovoltaic cells,
- and catalytic converters.
It and significant information technology (IT) infrastructure growth represent other insights driving the market further.
Indonesia
Indonesia is one of the developing countries that attract worldwide attention in the IT industry because of its cost-effective building and maintaining high-quality data center environment.
The country’s economy is interesting and there is a lot of potential for the development of IT infrastructure. If managed properly, Indonesia has the potential to attract both foreign and domestic investment, completing this cycle can ensure that the local digital information infrastructure will continue to improve and expand.
Overall, there is a lot of untapped potential for data centers in Indonesia. The country’s location in southeast Asia, along with its excellent and ample power supply, is ideal for the development of data centers.
Planners should act quickly and get involved in this rapidly growing market: Indonesia has the potential to become a popular target location for the construction of data centers in Southeast Asia in the future.
Flourishing Growth of Green Data Center Market
The rise in data traffic, growth of data centers, and adoption of cloud technology are driving the soaring demand for the green data center market.
Especially in Indonesia, where marketplaces and online orders have increased during the pandemic, instead of decreasing, they have become a habit after the pandemic.
The increase in traffic that requires a larger information technology infrastructure affects the increase in the colocation data center market share.
Green data centers have a low environmental impact and can reduce power utilization through novel technologies. That’s why the demand for the Green data center market is likely to increase to cope with data center storage requirements and the growing need to minimize total operational expenditure.
One of the fascinating aspects of the green data center is its simplicity of implementation and ease of use. The most energy-efficient UPS working mode is ECO, also known as ‘Active Standby’ or ‘Economy.’ The advanced ECO mode is recommended, as it quickly provides clean energy to data center infrastructure. Numerous industry verticals are using green data centers due to improvements in UPS from top vendors.
Due to increased internet & smartphone adoption, Asia Pacific is expected to grow fastest. In upcoming years, increased use of large data centers by large organizations is likely to enhance the global Green data center market.
The massive cost of implementation and an absence of understanding of the insights of green data centers would stifle uptake. The US Green data center market is expected to be US$ 94.4 Bn by 2032. The Chinese market is predicted to reach US$ 19.3 Bn by the end of the study period. The media and entertainment verticals are expected to increase fastly during the projected period.
Dominating Regions in the Green Data Center Market
The United States (US) is the leading region in the Green data center market, with an anticipated size of US$ 94.4 Bn by 2032. It is followed by China, which is expected to have a market size of US$ 19.3 Bn by 2032.
With many data centers and businesses migrating from hardware to software-based services, North America is likely to significantly impact the market and be a lucrative market for data center transformation. Microsoft, Amazon, & Facebook have all committed to making their data centers green shortly.
| Countries | CAGR (2022-2032) |
| United States | 14.1% |
| China | 13.8% |
| United Kingdom | 13.3% |
| Japan | 12.8% |
| South Korea | 12% |
The major players in the green data center market
- Microsoft (U.S.),
- Google (U.S.),
- Amazon Web Services (AWS) (U.S.),
- Hewlett Packard Enterprise (HPE) (U.S.),
- IBM Corporation (U.S.),
- Oracle Corporation (U.S.),
- Cisco Systems, Inc.(CSCO) (U.S.),
- Fujitsu Ltd.(FJTSY) (Japan),
- Dell Technologies Inc., EMC Corporation(EMC) (U.S.),
- Hitachi Data Systems(HDS) (Japan).
The global green data center market is segmented by
- Technology. Hybrid and waste heat recovery,
- Deployment. Building integrated, modular, and containerized data center,
- Application. Telecom & Managed IT,
- End-user. Media & entertainment, healthcare, retail,
- Geography. North America, Europe, Asia Pacific.
Schneider Electric currently has a leading position in the market with its innovative offerings such as Modular Data Centers. Schneider partnering with Tesla Motors for charging stations
Indonesia is the world’s fourth-largest country by population and has a rapidly growing economy. The total population in Indonesia is around 260 million people. The internet penetration rate is almost 70% of the total population, with 180 million internet users.
The Indonesian government has made significant efforts to boost the country’s digital economy and increase in demand for cloud services. As part of these efforts, the government has widely adopted cloud computing as a way to improve efficiency and reduce costs.
Technological advancements in cloud computing platforms have led to an increase in the adoption of public cloud service providers such as Microsoft Azure and Amazon Web Services (AWS). These companies provide various infrastructure as a service (IaaS) such as compute power, storage space, and network connectivity on demand at low costs which entices users towards adopting these services instead of setting up their own infrastructure or outsourcing them from other organizations.
Conclusion:
From 2020 onward, the implementation of Green Data Centers is rising. The latest Green data market trends contribute to a profitable business.
Environmental concerns are one of the major drivers of the growth of green data centers as they help reduce CO2 emissions and save energy without any compromise on performance.
Also, government regulations related to CO2 emissions are encouraging organizations to shift toward green initiatives in order to comply with the standards and regulations issued by regulatory bodies such as ISO 50001, LEED (Leadership in Energy and Environmental Design), etc.
Many businesses want to upgrade particular components in their data centers to make them more efficient. These businesses want to discover green solutions that are suitable for their operations so that they may raise profitability and cut costs.
References:
- Green Data Center Market is anticipated to have a significant CAGR of 14.3% during the period of 2022-2032 (prnewswire.com)
- Green Data Center Market Growth, Forecast and Research Report 2032 (persistencemarketresearch.com)