Green Data Center Market Size, Share, Opportunities, And Trends By Products (Hardware (Cooling Solutions, Power Solutions, Networking Solutions, Others), Software, Services (Consulting Services, Design And System Integration, Monitoring Services)), By End Users (Colocation Service Providers, Enterprises, Cloud Service Providers), By Enterprise Size (Small Enterprises, Medium Enterprises, Large Enterprises), By Industry Verticals (Banking And Financial Services, Communication And Technology, Media And Entertainment, Manufacturing, Healthcare, Energy, Education, Government, Others), And By Geography - Forecasts From 2024 To 2029

The green data center market is evaluated at US$59.942 billion for the year 2022 growing at a CAGR of 16.94% reaching the market size of US$179.28 billion by the year 2029.

Green Data Centers are computer facilities, where data is stored, managed, and operated. They are designed to maximize energy efficiency and minimize environmental impact. Green Data Center reduces operational costs and carbon footprint by using energy-efficient power supply systems, servers, LEDs, etc. Data has become a meaningful resource for any organization to serve its customers. Data Mining techniques have brought synergies in handling the data of customers and then analyzing it to get a sense of the customer’s purchasing patterns. These developments are being deployed excessively by companies such as Amazon, Flipkart, and Myntra, among others.

Moreover, with the developing trend of digitalization of processes across developing countries, the amount of data to be maintained is colossal. For that matter, the number of data storage facilities is rising, and the energy consumed in such processes is straining the environment by exploiting non-renewable energy resources. This leads to the demand for Green Data Centers which stores the data much more economically and efficiently. Governmental regulations, focusing on more renewable means of energy utilization are augmenting the growth of this market.

The growing volumes of data of customers at the global level are elevating the market growth in the forecast period.

Developing companies are adding more customers to the digital economy, owing to improvements in infrastructure facilities and an increment in disposable incomes, and hence, customers are spending more time and money on digital services such as making payments or storing files. Hence, increasing the storage capacity of data centres is becoming a prime focus of companies with a rising number of Internet users. Companies with a far sight are investing in Green Data Centers despite high initial investments to reduce operational costs.  Additionally, cloud storage facilities, used to store data on server computers without taking up physical space, are also enhancing the proliferation of green data storage centres.

Rising environmental sustainability initiatives

Global green data center solutions are increasingly being driven by environmental sustainability measures. Corporate entities are increasingly motivated to assist in the struggle to keep the environment clean. Several companies have set ambitious goals of reducing greenhouse gas emissions and having less impact on the environment. Businesses need to use green data centres which are constructed with the utmost energy efficiency and environmental responsibility in order to accomplish these objectives. By streamlining resource management cooling systems and power usage these data centres significantly reduce energy consumption and as a result, carbon emissions are one of the most important driving forces for the expansion of the green data center market is conformity with environmental legislation. Worldwide authorities have seen a need to come up with more stringent environmental legislation and policies. Businesses are continuously facing high pressure when it comes to adopting sustainable practices such as setting up environmentally-friendly data centers so as not to incur charges or fines. Therefore, this regulatory requirement is making the market bigger by encouraging more sales of energy-efficient and environmentally sound data center technologies

Escalating demand for cost savings

Green data centers are gaining in popularity due to their cost-saving nature. In fact, the designs of these modern high-tech data centers prioritize energy efficiency leading to significant reduction in both operating costs and energy consumed. Moreover, as long as electricity prices are skyrocketing across the world, every organization understands the necessity of keeping its budget up and running reliably in order not to compromise anything related to data centers. Green data centers use various methods that enable them to save costs. To decrease the power consumption used for controlling temperatures, they use modern cooling systems, like free cooling or hot/cold aisle containment, which require less amount of power. This also contributes to the decrease of power bills through the use of clean sources like solar or wind power.

Increasing data demands

The use of green data centers is being accelerated in large part by growing data demands. Cloud services IoT devices and businesses are producing an unprecedented amount of data in today's interconnected world. Higher capacity and operational efficiency are required from data centers to support this exponential growth. Since green data centres are specifically made to meet these increasing data demands while also minimizing energy consumption and environmental impact they seem to be the perfect answer to this urgent problem. This equilibrium is attained by green data centres using a number of crucial techniques. Through server virtualization, they use cutting-edge technologies that minimize the need for additional hardware and enable optimal resource allocation.

Furthermore to ensure that power is used responsibly these data centres frequently employ energy-efficient lighting and cooling systems. Their ability to manage data growth while preserving sustainability is further supported by the incorporation of renewable energy sources. In summary, green data centres are essential to modern infrastructure in the digital age because of their capacity to effectively handle growing data volumes. By meeting the technical needs of data-intensive operations and adhering to the principle of sustainable and ethical resource usage they support the growing demand for green data centers.

North America is witnessing exponential growth during the forecast period

The presence of numerous service and software providers propelling the market forward has allowed the North American region to hold the largest share in the green data center market. It is anticipated that the United States and Canada will lead the North American market in terms of high investments made by hyper-scale data center operators and colocation providers. There is a growing need in North America for economical and effective power solutions as more buildings are being developed as green data centers. Data centers use around 2% of the nation's electricity according to the Department of Energy.

This region's demand for new data centre infrastructures is mostly being driven by the development of big data analytics cloud computing mobile broadband and 5G. Network providers are putting in effort to guarantee that 5G is implemented quickly in order to foster greater innovation. Green data center providers have emphasized how businesses can lessen their carbon footprint by using less energy and operating more efficiently.

Market key launches

• In December 2023, to improve its secure networking abilities across public clouds, Cisco Technology Inc. announced its intention to acquire Isovalent, a pioneer in open-source cloud-native networking and security. With this calculated action, Cisco hopes to strengthen its already impressive secure networking capabilities, especially when it comes to public clouds.
• In November 2023, Dell EMC Inc. unveiled a range of new services aimed at boosting efficiency and productivity within the Microsoft 365 network. Together, these services are known as "Microsoft 365 Copilot," and they represent Dell EMC's dedication to helping businesses maximize their Microsoft 365 deployments. These products, which emphasize productivity and operational efficiency, are well-positioned to assist companies in accomplishing their objectives in the Microsoft 365 setting.

Segmentation:

• By Product
  • Hardware
    • Cooling Solutions
    • Power Solutions
    • Networking Solutions
    • Others
  • Software
  • Services
    • Consulting Services
    • Design and System Integration
    • Monitoring Services
• By End-User
  • Colocation Service Providers
  • Enterprises
  • Cloud Service Providers
• By Enterprise Size
  • Small Enterprises
  • Medium Enterprises
  • Large Enterprises
• By Industry Vertical
  • Banking and Financial Services
  • Communication and Technology
  • Media and Entertainment
  • Manufacturing
  • Healthcare
  • Energy
  • Education
  • Government
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Others