Carbon Neutral Data Center Global Market Report 2024

The global carbon neutral data center market has grown exponentially in recent years. It will grow from $7.44 billion in 2023 to $9.1 billion in 2024 at a compound annual growth rate (CAGR) of 22.4%. The expansion observed in the historical period can be attributed to several factors, including corporate sustainability initiatives, the adoption of energy-efficient hardware, changes in consumer preferences, and government support and incentives. These elements collectively contributed to the growth observed during that time frame.

The global carbon neutral data center market is expected to see exponential growth in the next few years. It will grow to $21.56 billion in 2028 at a compound annual growth rate (CAGR) of 24.1%. The anticipated growth in the forecast period is driven by various factors, including advancements in energy storage, a rising market demand for carbon-neutral services, the implementation of lifecycle assessments and circular economy practices, increased investment in energy-efficient hardware, and supportive government initiatives and incentives. Key trends expected in the forecast period include the widespread adoption of renewable energy, the development of energy-efficient infrastructure, the implementation of carbon offsetting programs, adherence to green building standards, and the adoption of efficient cooling solutions. These trends collectively contribute to the projected growth in the upcoming period.

The increased focus on renewable energy is a significant driver for the growth of the carbon-neutral data center market. Renewable energy, sourced from natural elements, is gaining popularity due to its capacity to reduce pollutants and greenhouse gas emissions. Carbon-neutral data centers aim to achieve net-zero carbon emissions, necessitating a reliance on renewable energy sources. Notably, a December 2021 report by the International Energy Agency predicts renewables to contribute nearly 95% of the global power capacity increase through 2026, further bolstering the carbon-neutral data center market.

The expansion of the telecom sector is poised to fuel the growth of carbon-neutral data centers. The telecommunications industry, facilitating global communication through various channels like phone, internet, airwaves, or cables, heavily relies on data centers for consistent storage and processing, crucial for delivering quality services. In response to the industry's carbon emission concerns, the telecom sector is investing in carbon-neutral data centers. For example, as of August 2023, Statistics Canada reports a 3.4% increase in total revenues for the Canadian telecommunications sector in 2021 compared to 2020, with a significant boost in mobile revenues. This indicates a positive impact on the carbon-neutral data center market propelled by the growing telecom sector.

In the carbon-neutral data center market, a key trend is the focus on product innovations. Leading companies in this sector are actively introducing novel products designed to mitigate carbon emissions and enhance data center operational efficiency. In March 2022, Amazon Web Services Inc. launched a customer carbon footprint tool, allowing users to calculate the environmental impact of their AWS workloads. This tool provides insights into avoided carbon emissions, historical emission data, and analyses emission patterns, demonstrating a commitment to sustainability through innovative technology.

A notable strategy among major players in the carbon-neutral data center market is the expansion of computing capacities to achieve net carbon-neutrality and gain a competitive advantage. Computing capacity expansion involves increasing resources for computing, such as storage, processing power, and network capabilities. As an illustration, in November 2022, Volkswagen AG expanded its data center operations in Green Mountain, Norway, with the goal of achieving net carbon-neutrality by 2027. This expansion, powered entirely by hydropower with natural cooling, positions Volkswagen to operate 25% of its global data centers carbon-neutrally, resulting in a significant annual reduction of 10,000 tons of CO2 emissions.

In March 2022, Kohlberg Kravis Roberts & Co. (KKR) and Global Infrastructure Partners (GIP) jointly acquired CyrusOne for $15 billion, marking a significant move in the carbon-neutral data center market. The acquisition integrates CyrusOne's data center business into KKR's portfolio of technology and infrastructure companies. CyrusOne, a US-based data center company providing carbon-neutral solutions, becomes a strategic addition to KKR's investment in the evolving landscape of technology and infrastructure.

Major companies operating in the carbon neutral data center market report are 3M Company, ABB Ltd., Alibaba Group Holding Limited, Alphabet Inc., Amazon.com Inc., Cisco Systems Inc., Dell Inc., Digital Realty Trust Inc., Eaton Corporation PLC, Equinix Inc., Fujitsu Ltd., Hewlett Packard Enterprise, The International Business Machines Corporation, Intel Corporation, Microsoft Corporation, Ark Data Centres Limited, Cologix Holdings Inc., CyrusOne Inc., DataBank Holdings Ltd., Digital Fortress Inc., Lunavi Inc., Iron Mountain.Inc., NTT Communications Corporation, QTS Realty Trust, ServerFarm, SingleHopLLC, Sungard Availability Services LP, Switch Inc., Telehouse America Inc., Carbon60 Networks Inc.

Europe was the largest region in the carbon neutral data market in 2023. The regions covered in the carbon neutral data center market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the carbon neutral data center market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Carbon-neutral data centers come in various forms, including hyperscale data centers, enterprise data centers, colocation data centers, and other specialized variants. Hyperscale data centers play a crucial role in meeting the extensive data and cloud computing needs of their users. Characterized by modern infrastructure, these facilities provide the necessary space, electricity, cooling, and network capabilities to efficiently handle large-scale data and cloud computing requirements. The primary categories of solutions offered by carbon-neutral data centers encompass hardware, software and platform, and support services. These solutions find widespread application across diverse industries such as IT and telecom, banking, financial services, and insurance (BFSI), government or public sector, healthcare, manufacturing, retail, and other sectors. Carbon-neutral data centers thus serve as vital components supporting sustainability initiatives across various business domains.

This report provides carbon neutral data center market statistics, including carbon neutral data center industry global market size, regional shares, competitors with a carbon neutral data center market share, detailed carbon neutral data center market segments, market trends and opportunities, and any further data you may need to thrive in the carbon neutral data center industry. This carbon neutral data center market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The carbon-neutral data center market includes revenues earned by entities edge data centers, professional and managed services. 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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