Green Data Center Global Market Report 2024

A green data center is a facility designed with mechanical, lighting, electrical, and computer systems specifically crafted to enhance energy efficiency and minimize environmental impact. Organizations utilize data centers to manage, store, and distribute vast amounts of information. The design and operation of green data centers incorporate advanced technologies and methods to achieve sustainability objectives.

The main components of green data centers encompass solutions and services. Solutions in this context refer to various green data center solutions, including advanced technologies, management assessment, green procurement practices, recycling initiatives, and more. The size of data centers can range from small and medium-sized to large facilities, catering to various industries such as BFSI (Banking, Financial Services, and Insurance), IT and telecom, media and entertainment, healthcare, government and defense, manufacturing, and other verticals.

The green data center market research report is one of a series of new reports that provides green data center market statistics, including green data center industry global market size, regional shares, competitors with a green data center market share, detailed green data center market segments, market trends and opportunities, and any further data you may need to thrive in the green data center industry. This green data center market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The green data center market size has grown rapidly in recent years. It will grow from $66.68 billion in 2023 to $78.76 billion in 2024 at a compound annual growth rate (CAGR) of 18.1%. The growth observed in the historic period for green data centers can be attributed to several key factors. These include the impact of environmental regulations, a rise in energy costs prompting organizations to seek energy-efficient solutions, increased demand for efficient data storage and management solutions, and various regulations and government initiatives aimed at promoting environmentally sustainable practices. These factors collectively contributed to the adoption of green data center practices during the historic period, reflecting a broader trend towards environmentally conscious and energy-efficient operations in the IT industry.

The green data center market size is expected to see rapid growth in the next few years. It will grow to $163.2 billion in 2028 at a compound annual growth rate (CAGR) of 20.0%. The anticipated growth in the forecast period for green data centers can be attributed to several factors. These include the expansion of edge computing, the continued growth of cloud computing services, a growing emphasis on reducing carbon footprints in data operations, and the development of emerging markets. Major trends expected in the forecast period include innovations in liquid cooling technologies, the adoption of sustainable materials and design principles, the implementation of water-efficient cooling technologies, and an increased focus on integrating renewable energy sources into data center operations.

The escalating energy consumption by data centers is anticipated to drive the growth of the green data center market. The proliferation of data centers worldwide, fueled by increasing digitalization and regulatory requirements, is resulting in heightened electricity demand. The rising number of data centers leads to a surge in energy consumption, raising operational costs and causing environmental impact. This has spurred significant demand for green data centers, characterized by environmentally friendly practices and reduced operational costs through the utilization of renewable energy sources. Notably, a July 2023 report from the International Energy Agency reveals that the combined electricity consumption by major players like Amazon, Microsoft, Google, and Meta more than doubled in 2021, reaching approximately 72 terawatt-hours (TWh) and is projected to rise in the coming years. The increasing energy consumption by data centers is a driving force for the growth of the green data center market.

The growing demand for cloud computing is poised to propel the green data center market forward. Cloud computing, encompassing the delivery of various computing services over the internet, is utilized in green data centers to enhance environmental sustainability, resource optimization, scalability, virtualization, efficient cooling, and energy efficiency. As per a September 2022 report from AAG IT Support Service, a US-based digital transformation service provider, a global study of 753 technical and business professionals indicated that 63% reported heavy usage of cloud services in 2022, marking an increase from 59% in 2021 and 53% in 2020. The surge in cloud computing demand is expected to contribute significantly to the growth of the green data center market.

Cloud services emerge as a key trend gaining traction in the green data center market. These services, delivered on-demand to businesses through servers over the internet, eliminate the need for internal infrastructure while supporting existing infrastructure such as a cloud center or facility. Cloud services in green data centers offer advantages like reducing complexity, maintaining data ownership, and managing workloads efficiently. Major market players are strategically focusing on providing or implementing cloud services to bolster their market positions. A notable example is Hewlett Packard Enterprise (HPE), a US-based multinational information technology company, introducing new HPE GreenLake cloud services in June 2021. These services support critical applications in various industries, including 5G, financial services, electronic medical records, analytics, artificial intelligence (AI), and high-performance computing (HPC). HPE's cloud services transformation and modernize workloads, showcasing its commitment to delivering cloud services anywhere, be it in a customer's data center, colocation facility, or at the edge. This strategic move reinforces HPE's leadership in the green data center market.

Major players in the green data center market are actively developing sustainable and efficient data center solutions to meet the demands of their customers. A notable example is the collaboration between Dell Technologies and Nippon Telegraph and Telephone Corporation (NTT), who joined forces to construct a green data center for PhonePe in India. Completed in October 2022, this data center is not only powered by renewable energy but also incorporates various energy-efficient technologies, including liquid immersion cooling. The facility prioritizes data security, power efficiency, streamlined operations, and cloud solutions, offering businesses a sustainable and efficient infrastructure for seamless nationwide scalability. Importantly, the green data center is expected to contribute to a significant reduction of up to 50% in PhonePe's carbon footprint while meeting the increasing demand for its services in India.

In a strategic move in September 2021, Digital 9 Infrastructure, a US-based investment company, acquired Verne Global Ltd. for $320 million. This acquisition aligns with Digital 9 Infrastructure's objectives of expanding its data center portfolio, minimizing environmental impact, and supporting its growth strategy. Verne Global Ltd., based in the UK, is recognized as a provider of sustainable green data center solutions. The acquisition is a testament to the growing importance of environmentally conscious practices in the data center industry, reinforcing Digital 9 Infrastructure's commitment to providing sustainable solutions in the green data center market.

Major companies operating in the green data center market include Schneider Electric SE, Vertiv Holdings Co., Hewlett Packard Enterprise, Green Revolution Cooling, Midas Green Tech LLC, International Business Machines Corporation, Cisco Systems Inc., Dell Inc., Fujitsu Ltd., Hitachi Ltd., Delta Electronics Inc., Rittal GmbH & Co. KG, Eaton Corporation PLC, Nortek Air Solutions LLC, Airedale International Air Conditioning Ltd., Asetek A/S, Bloom Energy Corporation, Carbon Relay Inc., Chatsworth Products Inc., Cologix Inc., CyrusOne Inc., Digital Realty Trust Inc., Equinix Inc., Green House Data Inc., Iron Mountain Inc., Johnson Controls International PLC, Legrand SA, Panduit Corporation, Raritan Inc., Server Technology Inc.

North America was the largest region in the green data center market in 2023 and is expected to be the fastest-growing region in the forecast period. The regions covered in the green data center market share report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the green data center market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.

The green data center market includes revenues earned by entities by providing various solutions and services to the data centers to cater to enterprises' data storage and processing needs in data centers such as assessment data center framework, DC optimization, recycling, financial and resource planning, data center consolidation virtualization, power and cooling management, and IT infrastructure management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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