Green Data Center Market Size & Share | Industry Revenue 2032
Green Data Center Market Size & Share, Industry Forecast - 2032

Green Data Center Market Share, Size, Trends, Industry Analysis Report, By Component (Solution, and Services); By Size of Enterprise; By End-Use Industry; By Region; Segment Forecast, 2024- 2032

  • Published Date:Jan-2024
  • Pages: 118
  • Format: PDF
  • Report ID: PM3874
  • Base Year: 2023
  • Historical Data: 2019-2022

Report Outlook

The global green data center market size and share was valued at USD 58.77 billion in 2023 and is expected to grow at a CAGR of 19.40% during the forecast period.

A green data center, also known as an environmentally friendly data center or eco-friendly data center, is a facility designed to optimize energy efficiency and minimize environmental impact. These centers are constructed and operated with a focus on sustainability and reducing the carbon footprint associated with data processing and storage.

A green data center is a warehouse for the management, storage, and dissemination of data in which automatic, electrical, lighting, and computer systems are developed to maximize energy efficiency and minimize environmental effects. The structure and operation of a green data center have innovative strategies and technologies.

Building a green data center has become a need as these installations' prominence extends beyond the technical. While data centers achieve their status as a fundamental structure for global development, creating a sustainable data center is still crucial. Also, data centers offer an especially intriguing area for attaining sustainability because of their high energy requirements for operation and the necessity to create cooling technology to ensure equipment safety, expanding the green data center market demand.

Green Data Center Market Size

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In an era dominated by digital transformation, data centers have become the heartbeats of modern economies, driving innovation, commerce, and communication. However, their insatiable appetite for energy has raised environmental concerns. Enter the era of green data centers, a revolutionary approach to computing that balances technological progress with ecological sustainability.

Moreover, governments worldwide are implementing strict environmental regulations and offering incentives for businesses to adopt sustainable practices. Compliance with these regulations not only fosters environmental stewardship but can also lead to tax benefits and other financial advantages.

  • For instance, In November of 2022, Volkswagen AG set an ambitious target to achieve net carbon neutrality in its data center operations by 2027. In pursuit of this objective, the company has bolstered its computing capabilities through a strategic collaboration with Green Mountain, a Norwegian provider of CO-neutral data center services.

However, the upfront cost of constructing a green data center can be substantial. Investments in energy-efficient technologies, renewable energy infrastructure, and eco-friendly building materials may present a financial hurdle for some organizations. Hence, initial capital investment is the factor that hampers the market growth. Also, in regions where renewable energy resources are scarce or underdeveloped, sourcing a consistent and reliable supply of clean power can be a significant challenge. This limitation may deter the establishment of green data centers in certain areas.

Product innovations, technological advancements, and the introduction of regulatory policies have been detailed in the report to enable businesses to make more informed decisions. Furthermore, the impact of the COVID-19 pandemic on the green data center market demand has been examined in the study. The report is a must-read for anyone looking to develop effective strategies and stay ahead of the curve. 

Green Data Center Market Size

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Further, the reduced environmental impact creates an opportunity for the growth of the green data center market. Green data centers contribute to the reduction of greenhouse gas emissions and other environmental pollutants associated with data center operations.

Growth Drivers

Energy efficiency and cost savings is projected to spur product demand.

Green data centers prioritize energy efficiency through advanced technologies like virtualization, intelligent cooling systems, and power management tools. By curbing energy consumption, these centers significantly reduce operational costs, making them financially attractive for businesses.

Also, harnessing the power of nature, green data centers are increasingly powered by renewable energy sources. Solar panels, wind turbines, and hydroelectric plants are harnessed to supply clean and sustainable power, reducing reliance on fossil fuels and mitigating carbon emissions.

Furthermore, innovations in hardware and software, such as more efficient processors, advanced cooling systems, and intelligent workload management, have contributed to the feasibility and affordability of green data centers. Hence contributing to the market growth.

Report Segmentation

The market is primarily segmented based on components, size of enterprises, end-use industry, and region.

By Component

By Size of Enterprises

By End-Use Industry

By Region

  • Solution
  • Services                                                       
  • Large Enterprises
  • Small & Medium Enterprises
  • BFSI
  • Healthcare
  • Government
  • IT & Telecom
  • Retail
  • Manufacturing
  • Others
  • North America (U.S., Canada)
  • Europe (France, Germany, UK, Italy, Netherlands, Spain, Russia)
  • Asia Pacific (Japan, China, India, Malaysia, Indonesia, South Korea)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)

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By Component Analysis

Services segment is expected to witness the highest growth during the forecast period

The services segment is projected to grow at a CAGR during the projected period. This surge is primarily attributed to the escalating demand for services encompassing installation, deployment, consultation, and support and maintenance across various industries. The global surge in awareness regarding environmental sustainability, brand image, cost efficiency, and technological progress has underscored the essentiality of green data center services. Consequently, organizations are increasingly seeking out specialized consulting services to navigate the complexities inherent in this domain, highlighting a growing need for internal expertise.

However, the solution segment generated the highest revenue share. Within green data center solutions, offerings encompass cooling systems, monitoring and management systems, power systems, and network systems, among others. The escalating need for advanced cooling systems is projected to drive demand in this segment, consequently contributing to overall market expansion. These solutions are engineered with energy-efficient technology, resulting in long-term reductions in operational costs. As a result, numerous companies are recognizing the potential for significant savings in both maintenance and electricity expenditures.

By Size of Enterprise Analysis

Large enterprise segment accounted for the largest market share in 2022

The large enterprise segment accounted for the largest market share in 2022 and is likely to retain its market position throughout the forecast period. Large corporations envision corporate social responsibility (CSR) as a crucial strategy to align their practices with ethical and moral standards. Embracing green data center technology exemplifies a commitment to reducing environmental impact and is in harmony with the principles of ethical corporate behavior. Operating green data centers enhances a company's reputation as an environmentally conscious and forward-thinking entity. This positive reputation can attract clients, partners, and investors who prioritize conducting business with environmentally responsible organizations.

By End-Use Industry Analysis

BFSI segment held the largest market revenue share in 2022

The BFSI segment held the largest market share in revenue share in 2022. This substantial market share can be attributed to the increasing embrace of green data centers within this sector, driven by specific regulatory demands, industry trends, and a concerted effort to bolster operational efficiency while upholding environmental sustainability. Risk management holds paramount importance in the BFSI sector. Green data centers play a pivotal role in mitigating risks associated with energy supply disruptions, security breaches, and compliance infractions, thanks to their energy-efficient and robust technology.

However, the swift expansion of digital services, coupled with escalating energy costs and heightened environmental awareness, is propelling the demand for green data centers within the IT and telecom industries. Recognizing the imperative to curtail their carbon footprint due to mounting environmental concerns, firms in these sectors are increasingly turning towards sustainable data solutions. As cloud computing gains greater prominence, there is a concurrent surge in the need for data centers. Green data centers play a pivotal role in providing the energy-efficient infrastructure required to support cloud services, effectively contributing to both sustainability goals and the reduction of carbon emissions.

Regional Insights

North America region dominated the global market in 2022

The North America region dominated the global market with the largest market share in 2022 and is expected to maintain its dominance over the anticipated period. The growth of the segment market can be largely propelled by the substantial number of services and software providers advancing the market's growth. Within North America, the U.S. is anticipated to lead, closely followed by Canada. This is primarily due to substantial investments made by colocation providers and hyper-scale data center operators.

Moreover, the surge in mobile broadband, the advent of 5G technology, the proliferation of big data analytics, and the widespread adoption of cloud computing collectively fuel the need for updated data center infrastructures in this region. Network providers are diligently pushing for the swift deployment of 5G to foster innovation. Green data center providers are emphasizing their role in curbing corporate carbon footprints by minimizing energy consumption and enhancing operational efficiency.

The Asia-Pacific region is expected to be the fastest-growing region with a healthy CAGR during the projected period, owing to a surge in electricity. There is a growing focus on optimizing energy utilization and adopting eco-friendly practices to manage energy costs. Numerous countries in the Asia-Pacific region are enacting stricter regulations concerning energy consumption and emissions. Green data centers serve as a valuable resource for businesses, enabling them to comply with these regulations and steer clear of potential penalties.

Key Market Players & Competitive Insights

The green data center market is fragmented and is anticipated to witness competition due to several players' presence. Major service providers in the market are constantly upgrading their technologies to stay ahead of the competition and to ensure efficiency, integrity, and safety. These players focus on partnership, product upgrades, and collaboration to gain a competitive edge over their peers and capture a significant market share.

Some of the major players operating in the global market include:

  • ABB Ltd.
  • Asetek, Inc.
  • Delta Electronics, Inc. 
  • Digital Realty Trust
  • Cisco Systems, Inc.
  • Dell Technologies, Inc.
  • Equinix, Inc.
  • Fujitsu Ltd.
  • General Electric
  • Hewlett Packard Enterprise Company
  • Huawei Technologies Co., Ltd.
  • Hitachi, Ltd.
  • International Business Machines Corporation
  • Schneider Electric
  • Siemens AG

Recent Developments

  • In September 2023, Huawei Technologies (Malaysia), GreenBay CES Sdn Bhd, Centre for Technology Excellence Sarawak, entered into a collaboration with Solarvest Borneo Sdn Bhd. The objective of this collaboration is to create a hyperscale green data center testbed and implement a training program in Sarawak.

Green Data Center Market Report Scope

Report Attributes

Details

Market size value in 2024

USD 58.77 billion

Revenue Forecast in 2032

USD 289.20 billion

CAGR

19.40% from 2024 – 2032

Base year

2023

Historical data

2019 – 2022

Forecast period

2024 – 2032

Quantitative units

Revenue in USD billion and CAGR from 2024 to 2032

Segments Covered

By Component, By Size of Enterprise, By End-Use Industry, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America; Middle East & Africa

Customization

Report customization as per your requirements with respect to countries, region and segmentation.

Explore the 2024 market share, size, and revenue growth rate statistics in the field of green data center market, meticulously compiled by Polaris Market Research Industry Reports. This comprehensive analysis encompasses a market forecast outlook extending to 2029, along with an insightful historical overview. Experience the depth of this industry analysis by obtaining a complimentary PDF download of the sample report.

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