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The green data center market size is estimated to grow by USD 146.95 billion at a Compound annual growth rate (CAGR) of 24.63% between 2022 and 2027. Data center companies have witnessed significant innovations in infrastructure efficiency over the past decade. While servers previously consumed 50-80W, the average now stands at 350W, driven by the adoption of density-optimized server and storage infrastructure. The growing preference for SSD over HDD arrays reduces power consumption, heat generation, and cooling requirements. Techniques like free cooling and liquid immersion further enhance energy efficiency, while companies offer integrated monitoring solutions for real-time insights, driving growth in the global market.
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This market report extensively covers market segmentation by Component (IT infrastructure, power solutions, general construction, cooling solutions, and monitoring and management ), End-user (BFSI, energy, IT and telecom, and healthcare and others), and Geography (Europe, North America, APAC, South America, and Middle East and Africa).
The market share growth by the IT infrastructure will be significant during the forecast period. In terms of IT infrastructure, virtualization has been a key enabler for the increasing use of IT infrastructure in the data center in recent times. Companies in the IT infrastructure domain, namely Dell, HPE, Cisco, Huawei, Lenovo, and IBM, are involved in offering energy-efficient infrastructures that are termed density-optimized infrastructures in the market. During the forecast period, Companies will continue to innovate in offering infrastructure of higher capacity with reduced power consumption aiding the operation of environments.
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The IT infrastructure showed a gradual increase in the market share of USD 21.62 billion in 2017 and continue to grow by 2021. With increasing focus of operators to adopt IT infrastructures that can perform complex computing tasks at a lower price and reduce the OPEX of the data center, the IT infrastructure segment and market will witness growth during the forecast period.
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Europe is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
In Europe, the leading markets are the UK, Germany, the Netherlands, and Paris. In the past two years, the number of construction in the Netherlands has grown at a significant pace. This is mainly due to the lower electricity price and the availability of renewable sources. Almost all the projects that are being constructed in the Nordic countries, namely Sweden, Finland, Denmark, Norway, and Iceland, are being powered by 100% renewable energy because of the higher renewable productions. These countries also offer very low electricity pricing compared with other countries and use the free-cooling technique throughout the year. The awareness toward reducing electricity pricing is growing in countries, namely the UK and Germany.
Colocation providers, such as Equinix, Interxion, and Switch (SUPERNAP), are involved in the construction of Tier 3 and Tier 4 facilities in this region. Enterprises in Europe are also partnering with public cloud solution providers to develop cloud solutions. In 2021, OVHcloud, a leader in cloud computing in Europe, announced that it had entered into a strategic partnership with Bechtle. This long-term collaboration between OVHcloud and Bechtle has extended access to the latest cloud solutions with full data sovereignty. Hence, the abovementioned factors are expected to drive the growth of the regional market during the forecast period.
The market is witnessing dynamic shifts driven by rising concerns over energy consumption and carbon emissions. Governments and regulatory bodies are increasingly advocating for environmental sustainability and urging the adoption of energy-efficient technologies and renewable energy sources in data centers. With the proliferation of cloud computing and escalating data storage needs across various industry verticals like manufacturing and transportation, the demand for energy efficiency and reduced operating costs is on the rise. Market competitiveness is intensifying, driving mergers and acquisitions and fostering innovation in cooling systems and energy-efficient technologies to address climate change awareness and optimize resource usage.
The increasing electricity consumption and cost are notably driving market growth, although higher OPEX involved in renovating existing data centers may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The surge in electricity consumption and associated costs is a significant driver of market growth. Data centers, essential for various operations, demand substantial electricity, a need exacerbated by the increasing usage of power-intensive applications like autonomous vehicles and streaming services. Despite advancements in technology enhancing energy efficiency, data center operators face challenges in maximizing energy efficiency and sustainability. Consequently, governments have responded by increasing electricity prices in some areas, prompting heightened awareness and initiatives for a greener environment. This trend is expected to fuel market growth, shaping trends in the market growth and trends during the forecast period.
The growing adoption of efficient infrastructure is the primary trend driving the market growth. Data center Companies have experienced several innovations over the past decade regarding the adoption of efficient infrastructure. In terms of IT infrastructure, the adoption of density-optimized server and storage infrastructure is gaining increased traction.
In addition, to reduce the consumption of energy, techniques such as free cooling and liquid immersion cooling are being implemented by operators to reduce the power consumption of the facility. Moreover, Companies operating in the market are also improving the energy efficiency of UPS systems. Modular UPS systems that are currently available in the market offer around 95% efficiency. Thus, the need for energy-efficient infrastructure is expected to drive the growth of the market during the forecast period.
Higher OPEX involved in renovating existing data centers is the major challenge impeding the market growth. Most of the infrastructure installation in the data center is related to one another. In addition, if the data center is not located in a region where renewable energy sources are limited, it is impossible to convert the facility to green.
The green data center includes the use of an energy-efficient server, storage, networking, power, and cooling equipment. The use of free cooling involves changes to the entire HVAC of the facility which makes to difficult to renovate an existing facility. Thus, the higher OPEX involved in renovating existing data centers is hindering the growth of the market during the forecast period.
The market growth analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth and forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Cisco Systems Inc - The company offers several energy-efficient data center solutions that include server service density, storage virtualization, and power management.
The market trends and analysis report also includes detailed analyses of the competitive landscape of the market and information about 15 market Companies, including:
Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.
The Green Data Center Market is experiencing significant growth driven by various factors such as increasing data storage needs across industry verticals like transportation and buildings. With the proliferation of artificial intelligence, machine learning, big data, and the Internet of Things, the demand for energy-efficient data centers is on the rise. The International Energy Agency (IEA) encourages the development of renewable energy data centers to mitigate carbon emissions and promote environmental sustainability.
Key players are investing in green data center initiatives, utilizing renewable energy sources such as solar, wind, and hydroelectricity. This transition towards sustainability aligns with climate change awareness and regulatory bodies' mandates, emphasizing corporate social responsibility. Energy-efficient technologies, cooling systems, and monitoring solutions play a crucial role in reducing resource usage and operating costs, driving market competitiveness. The global green data center market is projected to witness substantial growth with a focus on energy efficiency, resource optimization, and environmental stewardship.
The green data center market is rapidly expanding, driven by a global push towards sustainability and corporate social responsibility (CSR). Key players like Google, SB Energy Global, and Green Mountain are investing in solar projects, wind energy, and hydroelectric electricity to reduce greenhouse gases (GHG) emissions. This aligns with the Paris Agreement goals. Server utilization optimization, along with advanced monitoring and management systems, ensures efficient power and network systems. Installation & deployment services, consulting, and support & maintenance services cater to large enterprises and small and medium enterprises (SMEs) in the IT & telecom segment. As digital services grow, the focus on data privacy and security risks intensifies, prompting the integration of robust security measures into green data centers.
The market forecasting report covers market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Green Data Center Market Scope |
|
Market Report Coverage |
Details |
Page number |
196 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 24.63% |
Market growth 2023-2027 |
USD 146.95 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
18.85 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 42% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Carrier Global Corp., Cisco Systems Inc., CommScope Holding Co. Inc., Dell Technologies Inc., Delta Electronics Inc., Eaton Corp. Plc, Fujitsu Ltd., Green Revolution Cooling Inc., Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., International Business Machines Corp., Modine Manufacturing Co., Panduit Corp., Rittal GmbH and Co. KG, Schneider Electric SE, Siemens AG, Sunbird Inc., Vertiv Holdings Co., and STULZ GmbH |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market research and growth report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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