The worldwide green data center market is expected to be US$ 76.60 by the end of 2025. The demand for green data centers is valued at over $45 billion in 2021-2022 and from 2022 to 2030. It is anticipated to grow at a CAGR of more than 16%. It is projected that the growing data transfer to the cloud will accelerate industrial growth.
Data centers are becoming increasingly crucial in assuring data availability and applications as cloud migration increases. The industry will benefit financially from the increased reliance on renewable energy sources to reduce carbon footprint in parts of Europe and North America.
Climate Effects On Data Centers
Colder climates, which make it simpler to cool data centers, are another essential factor driving major corporations to locate their facilities in these areas. There’s a significant increase in the use of the web and data storage services for streaming and online shopping, despite the favorable business climate.
The considerable expense involved in creating green infrastructure will negatively impact company statistics. Operating clean energy technologies like wind and solar power is cost-effective. However, using these technologies to make them adaptive may result in additional expenditures. Through 2030, it might put up potential barriers to business expansion.
The green data center market’s size revenue is estimated to be USD 35 billion. Demand for the segment will be fueled by a growing need for improving data center efficiency. Businesses are forced to use modern cooling technologies that are environmentally benign due to worries about the surge in heat production from data centers. This condition has encouraged the use of green data center technologies. The deployments of these solutions will be aided by the growing use of data centers in the BFSI and healthcare industries.
Green Data Center Market size worth $ 145 Billion, Globally by 2028 at 16.6% CAGR. Source.
The increasing necessity for cloud services and introduction of innovative systems to reduce energy consumption have driven this growth. And the rising preference for proper and traditional data storage. Various companies are predicted to propel market growth.
Key Drivers, Trends, and Challenges
Our analysis indicates that the growing demand during and after the COVID-19 timeframe has been positively impacted. The market for green data centers is expanding primarily due to rising electricity costs and usage. At the same time, several factors could restrain this expansion.
Our research experts have analyzed historical data to determine the COVID-19 pandemic’s effect on the green data center market size and the major market drivers. To achieve a competitive edge, end goals can be determined. And marketing strategies are improving with the aid of a comprehensive analysis of the drivers.
Green Data Center Market Driver
The rise in electricity costs and usage is one of the major drivers fueling growth in the market for green data centers. Numerous equipment, including servers, storage devices, and power cooling systems, require a lot of energy in data centers.
As a result, data centers use a lot of energy. The need for heavy applications like driverless vehicles, broadcasting, and 5g network use cases is expected to rise significantly despite technology’s energy efficiency improvements. Individual data center operators must devise plans to maximize energy efficiency and increase sustainability.
The local and national governments have increased commercial and commercial electricity costs in a few places. As a result of data centers’ cumulative power use. The construction of data centers in towns. Access to renewable resources has expanded due to the higher power prices in the world’s leading cities’ housing data centers.
Power usage is increasing, and as a result, there is a greater understanding of how to reduce it and maintain a greener environment.
Key Green Data Center Market Trend
Another factor contributing to expanding the green data center market size and share is the rising use of DCIM and automation. Through remote software, DCIM makes it possible to control the complete data center facilities. Most of the modern infrastructure made available by market vendors supports remote monitoring functions. However, compared to conventional systems, these cutting-edge technologies have greater CAPEX.
The adoption of DCIM software is becoming a prerequisite for all data center operations. Due to the rising concerns around energy use and carbon emissions by data center facilities. Infrastructure service providers are concentrating on integrating cutting-edge DCIM systems for facilities like colocation data centers to remotely monitor important components of ambient data center parameters, including temperature, humidity, and related power consumption. The predictive analysis provided by DCIM also helps prevent system failure and lower maintenance expenses.
Key Green Data Center Market Challenge
During the projection period, the green data center market will face significant challenges related to increasing the green data center market size.
Leading companies have already developed data centers powered by renewable energy sources in the Americas.
A data center facility can cost up to 25% of the organization’s overall IT budget. Including the cost of the IT hardware deployed at those facilities.
The number of servers in the data center is expanding by 8% to 10% annually, along with the business requirement.
Because it requires more significant CAPEX, such as the location was chosen to develop such facilities, it is practical for some firms to construct a green data center facility. Therefore, enterprises unable to create green data center facilities should focus on consolidating infrastructure and installing more energy-efficient power and cooling systems.
Green Data Center Market Value Chain Analysis
In-depth details on the value chain assessment for the green data center market are provided in our study. Which suppliers may use to their advantage to gain a competitive edge over their rivals over the forecast period. The evaluation of company strategies and the optimization of profit margins depend on a complete grasp of the value chains. During the forecast period, vendors can reduce costs. And improve customer services by using the data from our value chain section.
During the projection period, Europe will account for 39% of market growth. Germany and the United Kingdom are leading European marketplaces for green data centers. The market in this area will grow more quickly than the markets in North America and South America.
Over time, the expansion of the green data center market in Europe has been aided by decreasing electricity costs and the accessibility of renewable energy sources. To help vendors create effective business plans, this market research report includes comprehensive competition information—marketing gaps and geographical prospects available to them.
COVID Impact and Recovery Analysis
The COVID-19 pandemic’s quick spread throughout the area posed a significant threat to the market under consideration in 2021. To stop the disease from spreading. Strict lockdown regulations are implemented throughout the region. This pandemic caused interruptions in many products’ supply chains, including construction materials, electronic parts, and others. In turn, this had a detrimental effect on the market for green data centers in 2021.
However, the region’s supply chain has stabilized due to the increasing vaccination campaigns in the first portion of 2022. Additionally, the demand for green data centers is anticipated to increase. Throughout the forecast period, due to growing environmental concerns in the area regarding energy usage by data centers.
During the anticipated time frame, the IT infrastructure segment’s market share of green data centers will expand significantly. Although cloud computing takes more processing power, it makes company operations flexible, scalable, and effective. This is among the leading causes of the rise in data center facilities being built worldwide.
Green Data Center Market Trends
The market is mainly stimulated by the expanding demand for energy-efficient computer systems, further made possible by the increasing digitization across all industries. In addition, growing environmental awareness and the widespread use of data centers to store and handle the always-rising volumes of data are propelling market expansion. Green data centers are frequently built with wind and solar power on the facility’s terrace and roof.
Additionally, they recycle wastewater for cooling reasons. Other growth-promoting aspects include a variety of product improvements, including using low-emission construction materials, paints, carpeting, waste recycling systems, and sustainable landscaping for the construction of these data centers.
Manufacturers are also utilizing alternative technologies to create energy-efficient systems, including evaporation cooling, heat pumps, solar cells, and catalytic converters. These are additional drivers propelling the industry forward, along with the massive expansion of information technology (IT) infrastructure.
The future market opportunities of the green data center market are high due to the increasing demand for energy-efficient, reliable, and secure data center infrastructure solutions.
Digitalization will play a more critical role in data storage in the coming years. The green data center market is ready to provide the necessary infrastructure to reduce IT and application development costs. This digitalization opens new opportunities for companies to avoid expensive upgrading of their existing IT infrastructure and their costs for maintaining it.
Indonesia is one of the world’s countries with great potential for investment. This country has shown robust infrastructure, telecommunications, and industrial development. Indonesia’s government has also taken initiatives to provide more support for green data center projects.
Indonesia has many natural resources, such as Natural Gas and Geothermal, etc. So, Indonesia is one of the most potential places for investment in a green data center.