Why Should Investors Start Looking for Green Data Centers?

Dec 3, 2022 | Insight

Green data centers are becoming more prevalent in business construction due to the constant expansion of new data storage needs and the steady improvement of green protection of environmental awareness. As a result, businesses are becoming more concerned about the high energy requirements of their data centers, which presents problems in terms of cost and sustainability. The development of green data centers is moving toward using renewable and sustainable energy sources. Which makes it more profitable, and investors should look for green data centers.

Investors Start Looking for Green Data Centers

A facility that houses servers for data storage, management, and distribution is known as a “green data center.” It is made as energy-efficient as possible to reduce its adverse environmental effects. Green data centers contain similar features to conventional data centers. But internal system configurations and technological advancements allow businesses to cut down on energy use and carbon emissions significantly.

Several services, including cloud services, cable TV services, Online services, colocation facilities, and data protection security services, are needed to enable the internal building of a green data center. Many businesses or carriers have added cloud services to their data centers. Certain companies would have to rely on other carriers to provide Internet and related services.

Green data centers are the hottest thing on the market right now. Across the country, people are looking for ways to make their data centers more sustainable. Reducing waste and using renewable energy sources is a major draw for investors.


Market trends predict that the worldwide green data center market will reach $59.32 billion in 2021, increasing at a CAGR of 23.5% through 2026. Additionally, it demonstrates how the expansion of green data centers hastened the switch to renewable energy sources.

Modernizing data centers also puts more strain on electrical and cooling systems because of the rising need for data storage. On the one hand, data centers must produce electricity by converting non-renewable energy, which drives up the price of electricity.

Plenty of potential

The market for green data centers has plenty of potentials. However, some businesses must finish building cooling facilities and cleaning servers with water.

The growth of organizations like Facebook and Amazon, for instance, has boosted the demand for data storage among large international corporations. To study potential clients, those businesses need a lot of data. But processing that data will take a lot of energy. Therefore, green data centers have become essential for companies to address these issues. Doing so can have additional positive effects and will raise a question. Should investors look for a green data center?

Green Data Center Benefits

The idea of a green data center has rapidly expanded as business data centers have been built. Many companies favor alternative energy options for their data centers, which is advantageous for the company. The following are some advantages of green data centers.

Read more: The Benefits of Using a Green Data Center for your Business

Demand for Investment

The demand for infrastructure investment has increased as a result of the pandemic. To completely meet the world’s infrastructure demands by 2040, it has been projected that spending of about US$94 trillion will be necessary. It is becoming increasingly evident that the globe needs long-term fixes for this infrastructure. It will be crucial for productivity, creating jobs, and long-term growth to invest in well-considered infrastructure to promote a quicker, more environmentally friendly recovery from the epidemic.

The amount of data generated and consumed globally is anticipated to double by 2025, potentially resulting in severe capacity shortages (a 40% shortage in subsea cable capacity by 2026). More than $400 billion was invested last year in new digital infrastructure.

Conserve energy

Green data centers are made to use less energy and require less expensive infrastructure to meet cooling and electricity requirements. Sustainable or renewable power is a plentiful and dependable energy source that can significantly improve power consumption efficiency (PUE). Businesses can use power more effectively, thanks to the decrease in PUE. Colocation services can help green data centers utilize fewer servers, use less water, and spend less on corporate cooling systems.

Cost reduction

Utilizing cutting-edge technology, green data centers use renewables to cut down on corporate expenses and power usage. Shutting down servers undergoing maintenance or upgrades can also assist in cutting down on the facility’s energy use and operating expenses.

Environmental protection

Data center sustainability can be achieved by using green data centers to lessen the adverse effects of computing gear on the environment. Modern data centers must use new hardware and software due to the rapid advancement of technology. The power consumption of these dedicated server devices and virtualization technologies is decreasing, which is good for the environment and profitable for data center operators.

Investors Business Enhancement

Users are becoming increasingly motivated to find solutions to environmental issues today. Green data center services support businesses in finding speedy solutions to these problems without sacrificing performance. Many clients already view ethical business practices as a selling point. Companies enhance their perception of their social status by adhering to compliance, regulatory standards, and legislation of the relevant regions through the development of green data centers.

Investors who want to be on the cutting edge of green technology are starting to take notice of data centers. The reason: is there an area where there’s still a lot of room for improvement? Green data centers use innovative, eco-friendly techniques in their daily operations. They reduce energy consumption by using extra-efficient infrastructure and cutting down on excess equipment. They also improve their water usage by designing water-efficient cooling systems that don’t waste water.

Use of resources

Green data centers can help businesses utilize resources like power, physical space, and heat more efficiently while integrating the data center’s internal infrastructure. It encourages the data center’s effective operation while attaining reasonable resource usage.

Green data centers are imperative for success.

Sustainable business practices and environmental responsibility are integral to corporate business strategy, from giant corporations worldwide to the smallest businesses. Sustainability, formerly viewed as a progressive, competitive advantage, has developed into a global economy requirement.

The demand for the data centers powering the digital economy is expanding at the same rate as its fast expansion. Data centers rank among the buildings with the most significant power consumption rates. Finding alternative renewable technologies for their data center infrastructure is more critical than ever for businesses.

Taking a Powerful Leap

So how can your company adopt more environmentally friendly procedures? While there are many ways to cut energy use and carbon footprint. Using renewable energy for your data centers is one of the most effective methods.

Increasing power needs

The generation of more data is made possible by constantly improving technologies. These increases cause a domino effect.

The exponential growth in the amount of data we produce and store each day is causing this spike in data production. By 2025, the amount of data generated globally is expected to reach a staggering 163 zettabytes, the same as 489 million times the number of Netflix episodes.

Benefits of Switching 

While efforts to increase the power efficiency of data centers, such as modernizing cooling systems, enlarging the operating range of data halls, and maximizing airflow by using intelligent sensors and controls, will continue to be a central focus. Businesses also realize significant sustainability benefits by switching to green energy. After all these benefits, investors should look for a green data center.


Companies are seeking solutions to reduce the growing impact on the environment of their data centers as more and more data is collected, analyzed, and stored. Although many are building green-certified data centers, the most significant impact comes from supplying these high-energy consumption facilities with renewable energy. Leading multinational corporations are raising their voices more frequently to demand that the energy used in their data centers comes from renewable sources.

Powering your Business with renewable energy

It may seem unusual to think of data as having a carbon emission because it may appear abstract and formless. However, data has a physical manifestation since it resides in structures like data centers. The highest energy consumers are data centers.

Data centers utilize more than 70 billion kWh of electricity annually in the United States, comparable to 2% of all electricity used in the country.

Investments increasing Business 

Green data center implementation is advantageous for both the environment and your company. In the coming year, 42% of respondents aim to implement renewable energy, according to AFCOM’s 2018 State of the Data Center Market study. And 60% of those polled said they expected to reduce their data center’s total return on investment. Investors should look for green data centers. At the same time, they are pursuing green initiatives thanks to this new renewable energy source. Utilizing fewer non-renewable resources results in lower utility bills overall.

Improve brand image and customer loyalty

Consumer interest and awareness of environmental and social issues are growing. They believe a company’s principles are just as significant as its ethical business practices. According to a National Renewable Energy Laboratory survey, 80% of Americans care about using renewable energy (NREL). Sustainability initiatives are no longer considered nice-to-haves. Instead, it is becoming a crucial organizational pillar for surviving in a cutthroat market and winning over customers’ confidence and loyalty. Energy management has become table stakes for competitiveness.


As the global demand for computing power continues to rise seemingly exponentially, the data center industry has been expanding rapidly to support this demand. However, the general lack of awareness regarding the impact of data centers on the environment and their detrimental effects on our current ecosystem is alarming.

With an increasing number of big-name companies such as Apple, Google, and Amazon starting to focus on building green data centers, we are finally beginning to see a shift toward sustainable infrastructure. However, many investors still need to understand why these companies invest so heavily in green data centers and what that means for the IT industry.

By building a green data center, companies can save money on their electricity bills and use the power of green to market their brand and attract new customers. With so many benefits to be gained from building a green data center, there is no question that investors should take advantage of the opportunity and start looking for green data centers.

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