Green Data Center Market Synopsis

Green Data Center Market Size Was Valued at USD 131.4 Billion in 2023 and is Projected to Reach USD 645.65 Billion by 2032, Growing at a CAGR of 19.35 % From 2024-2032.

A Green Data Center is a repository for data management, storage, and distribution where the computer, lighting, mechanical, and electrical systems are built to minimize environmental impact and maximize energy efficiency. Modern techniques and technologies are used in the design and management of a green data center.

• The Internet's exponential growth and usage have led to a significant increase in data center power consumption. As a result of the ensuing effects on the environment, rising public awareness, rising energy costs, and legislative action, businesses are implementing green policies. These factors make the development of sustainable data centers important from both an environmental and a commercial standpoint.
• Green data centres are built with energy efficiency in mind, featuring advanced cooling systems, high-efficiency power distribution units, and optimised server layouts to reduce energy consumption. Many green data centres use renewable energy sources such as solar, wind, and hydroelectric power to reduce their reliance on fossil fuels and carbon emissions.
• Technology advancements, such as improved cooling systems, energy-efficient hardware, and virtualization techniques, are allowing data centres to operate more efficiently and sustainably. These innovations encourage the use of green data centre solutions. Many businesses are embracing corporate social responsibility and integrating sustainability into their operations.

Green Data Center Market Trend Analysis

Growth of Cloud Computing and Big Data

• Cloud computing has reshaped how businesses operate, transforming IT from a traditional cost center to a strategic growth driver. Data is the new fuel of the modern world, and to maintain and process the data, we need data centers that are more dependable and efficient.  By using advanced technologies and procedures to minimize energy use and lower carbon emissions, green data centers provide sustainable solutions to meet these demands. ​
• Additionally, data centers need to consume more energy to meet their needs for server maintenance, which increases power consumption. To power their data centers, businesses are investing more and more in environmentally friendly technologies like wind turbines, solar panels, and sophisticated cooling systems. The market for green data centers is expanding as a result of the use of energy management software and intelligent monitoring tools, which further improve sustainability and efficiency.
• The market is anticipated to grow as a result of government programs supporting green technologies and energy-saving rules. The market is expected to keep growing in the upcoming years due to rising awareness of environmental issues and the advantages of green data center solutions.

Expanding Colocation and Hyperscale Data Centers

• Colocation data centers offer a different value proposition—the freedom to rent space, utilities, and other necessary resources, allowing for cost-effective expansion and management—while hyperscale data centers satisfy enterprise data needs by providing scalability and high-speed processing for large volumes of data. The scalability and flexibility offered by colocation and hyperscale data centers make them appealing options for organizations seeking to expand their IT.
• Increasing awareness of environmental sustainability, which has led to significant investments in green data center infrastructure by hyperscale businesses like Google and Amazon as well as colocation providers. Organizations are also being pushed to adopt eco-friendly data center solutions by government rules and policies that aim to reduce carbon emissions.
• These renewable energy sources are being used more often by colocation providers and hyperscale businesses to power their data centers, which helps them cut down on their dependency on fossil fuels and their carbon footprint. Technological developments like energy-efficient cooling systems and hardware are making the shift to greener data center infrastructure possible.

Green Data Center Market Segment Analysis:

Green Data Center Market Segmented on the basis of type, application, and end-users.

By Size, Large Data Centre segment is expected to dominate the market during the forecast period

• Large data centers are made up of high-density server racks and have an area of more than 25,000 square feet. They provide better installation of ceiling services and a smoother production floor workflow. High-energy-efficient Precision Air Handling Unit (PAHU) and Computer Room Air Handler (CRAH) equipment are used in large data centers. Improved liquid cooling is another feature that maximizes effectiveness and reduces losses.
• Large data centers can drastically reduce their power consumption and carbon emissions by putting energy-efficient technologies like server virtualization and sophisticated cooling systems into place. This is due to more sophisticated networking, servers, storage, and other equipment present in data centers, necessitating the use of effective green data center services and solutions.
• These establishments can cut operating expenses related to cooling and energy use by implementing sustainable practices. Tax breaks and incentives for using renewable energy and lowering greenhouse gas emissions are frequently available to green data centers. For large data center operators, switching to green data centers is a strategic choice considering the twofold benefit of cost savings and environmental responsibility.

By Application, IT and Telecom segment is expected to dominate the market during the forecast period

• The demand for sustainable infrastructure to support the operations of digital services and telecommunications networks is increasing due to their exponential growth. Businesses are making investments in innovative cooling systems, streamlined server designs, and sustainable energy sources to reduce their environmental footprint and increase efficiency and dependability.
• IT and telecom companies are working with colocation providers and hyperscale companies to create environmentally friendly data centers that run on renewable energy. In addition to meeting the increasing need for cloud services, this collaboration will help achieve environmental objectives by lowering energy and carbon emissions from data management.
• According to the graph, the IT and telecommunications sector held the largest share of any industry sector in 2022, accounting for 15.25 billion US dollars of the global green data center market.  The largest market revenue is being generated by the IT and telecommunications category due to its widespread use and dependability on data centers for system integration, networking, and management.

Green Data Center Market Regional Insights:

North America is Expected to Dominate the Market Over the Forecast Period

• The growth of the cloud computing, big data analytics, and mobile broadband markets is anticipated to coincide with the expansion of the green data center market in North America. Data center sustainability is a goal shared by colocation firms like Equinix, Digital Realty, Compass Datacenters, and DataBank, as well as hyperscale firms like Facebook (Meta), Google, AWS, and Microsoft.
• Major tech hubs such as California and Texas are leading the way in adopting green data center practices, owing to state-level regulations and incentives aimed at encouraging renewable energy and sustainability. Similarly, Canada has emerged as a key player in the green data center market, with provinces such as Quebec leveraging abundant hydroelectric power to attract data centre investments that prioritize sustainability.
• Tech Industry giants such as, such as Google, Amazon, and Microsoft, are leading the development of green data centers in North America. These companies are heavily investing in energy-efficient technologies and renewable energy projects to power their data centers, establishing industry standards for sustainability. Partnerships among data center providers, utilities, and governments are facilitating the expansion of green data center initiatives.

Green Data Center Market Top Key Players:

• IBM Corporation (US)
• Cisco Technology Inc. (US)
• Equinix (US)
• Vertiv (US)
• HP Inc. (US)
• Dell EMC Inc. (US)
• Digital Realty (US)
• CyrusOne (US)
• Iron Mountain (US)
• QTS Data Center (US)
• Rittal (Germany)
• Hetzner (Germany)
• Global Data Centers (UK)
• Schneider Electric (France)
• OVHcloud (France)
• Eaton Corporation (Ireland)
• Green Mountain Data Centers (Norway)
• Fujitsu Ltd (Japan)
• Hitachi Ltd (Japan)
• NTT Communications (Japan)
• GDS Holdings (China)
• China Telecom (China)
• ST Telemedia (Singapore)
• Delta Electronics (Taiwan), and other major players.

Key Industry Developments in the Green Data Center Market:

• In July 2023, IBM has partnered with Borealis Data Centre. In collaboration with IBM Denmark, Borealis Data Centre will provide companies with sustainable cloud services. Danish businesses can now select a sustainable cloud data center solution for storing and processing data in Iceland.
• In March 2023, Hewlett Packard Enterprise (NYSE: HPE) has acquired OpsRamp, extending its hybrid cloud leadership and expanding HPE GreenLake into IT Operations Management.an IT operations management (ITOM) firm that monitors, observes, automates, and manages IT infrastructure, cloud resources, workloads, and applications in hybrid and multi-cloud environments, including the top hyperscalers.

1. INTRODUCTION
   1. RESEARCH OBJECTIVES
   2. RESEARCH METHODOLOGY
   3. RESEARCH PROCESS
   4. SCOPE AND COVERAGE
      1. Market Definition
      2. Key Questions Answered
   5. MARKET SEGMENTATION
2. EXECUTIVE SUMMARY
3. MARKET OVERVIEW
4. GROWTH OPPORTUNITIES BY SEGMENT
5. MARKET LANDSCAPE
   1. PORTER’S FIVE FORCES ANALYSIS
      1. Bargaining Power Of Supplier
      2. Threat Of New Entrants
      3. Threat Of Substitutes
      4. Competitive Rivalry
      5. Bargaining Power Among Buyers
   2. INDUSTRY VALUE CHAIN ANALYSIS
   3. MARKET DYNAMICS
      1. Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   4. MARKET TREND ANALYSIS
   5. REGULATORY LANDSCAPE
   6. PESTLE ANALYSIS
   7. PRICE TREND ANALYSIS
   8. PATENT ANALYSIS
   9. TECHNOLOGY EVALUATION
   10. MARKET IMPACT OF THE RUSSIA-UKRAINE WAR
       1. Geopolitical Market Disruptions
       2. Supply Chain Disruptions
       3. Instability in Emerging Markets
   11. ECOSYSTEM
6. GREEN DATA CENTER MARKET BY COMPONENT (2017-2032)
   1. GREEN DATA CENTER MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. SOLUTIONS
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017 – 2032F)
      3. Historic And Forecasted Market Size in Volume (2017 – 2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. SERVICES
7. GREEN DATA CENTER MARKET BY DATA CENTER SIZE (2017-2032)
   1. GREEN DATA CENTER MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. SMALL & MID-SIZE
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017 – 2032F)
      3. Historic And Forecasted Market Size in Volume (2017 – 2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. LARGE
8. GREEN DATA CENTER MARKET BY USER (2017-2032)
   1. GREEN DATA CENTER MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. COLOCATION PROVIDERS
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017 – 2032F)
      3. Historic And Forecasted Market Size in Volume (2017 – 2032F)
      4. Key Market Trends, Growth Factors and Opportunities
      5. Geographic Segmentation Analysis
   4. CLOUD SERVICE PROVIDERS
   5. ENTERPRISES
9. GREEN DATA CENTER MARKET BY INDUSTRY VERTICAL (2017-2032)
   1. GREEN DATA CENTER MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. IT AND TELECOM
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017 – 2032F)
      3. Historic And Forecasted Market Size in Volume (2017 – 2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. BFSI
   5. RETAIL
   6. MEDIA AND ENTERTAINMENT
   7. GOVERNMENT AND DEFENSE
   8. OTHERS
10. COMPANY PROFILES AND COMPETITIVE ANALYSIS
    1. COMPETITIVE LANDSCAPE
       1. Competitive Positioning
       2. Green Data Center Market Share By Manufacturer (2023)
       3. Industry BCG Matrix
       4. Heat Map Analysis
       5. Mergers & Acquisitions
    2. IBM CORPORATION (US)
       1. Company Overview
       2. Key Executives
       3. Company Snapshot
       4. Role of the Company in the Market
       5. Sustainability and Social Responsibility
       6. Operating Business Segments
       7. Product Portfolio
       8. Business Performance (Production Volume, Sales Volume, Sales Margin, Production Capacity, Capacity Utilization Rate)
       9. Key Strategic Moves And Recent Developments
       10. SWOT Analysis
    3. CISCO TECHNOLOGY INC. (US)
    4. EQUINIX (US)
    5. VERTIV (US)
    6. HP INC. (US)
    7. DELL EMC INC. (US)
    8. DIGITAL REALTY (US)
    9. CYRUSONE (US)
    10. IRON MOUNTAIN (US)
    11. QTS DATA CENTER (US)
    12. RITTAL (GERMANY)
    13. HETZNER (GERMANY)
    14. GLOBAL DATA CENTERS (UK)
    15. SCHNEIDER ELECTRIC (FRANCE)
    16. OVHCLOUD (FRANCE)
    17. EATON CORPORATION (IRELAND)
    18. GREEN MOUNTAIN DATA CENTERS (NORWAY)
    19. FUJITSU LTD (JAPAN)
    20. HITACHI LTD (JAPAN)
    21. NTT COMMUNICATIONS (JAPAN)
    22. GDS HOLDINGS (CHINA)
    23. CHINA TELECOM (CHINA)
    24. ST TELEMEDIA (SINGAPORE)
    25. DELTA ELECTRONICS (TAIWAN)
11. GLOBAL GREEN DATA CENTER MARKET BY REGION
    1. OVERVIEW
    2. NORTH AMERICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Component
       4. Historic And Forecasted Market Size By Data Center Size
       5. Historic And Forecasted Market Size By User
       6. Historic And Forecasted Market Size By Industry Vertical
       7. Historic And Forecasted Market Size By Country
          1. USA
          2. Canada
          3. Mexico
    3. EASTERN EUROPE
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Russia
          2. Bulgaria
          3. The Czech Republic
          4. Hungary
          5. Poland
          6. Romania
          7. Rest Of Eastern Europe
    4. WESTERN EUROPE
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Germany
          2. United Kingdom
          3. France
          4. The Netherlands
          5. Italy
          6. Spain
          7. Rest Of Western Europe
    5. ASIA PACIFIC
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. China
          2. India
          3. Japan
          4. South Korea
          5. Malaysia
          6. Thailand
          7. Vietnam
          8. The Philippines
          9. Australia
          10. New-Zealand
          11. Rest Of APAC
    6. MIDDLE EAST & AFRICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Turkey
          2. Bahrain
          3. Kuwait
          4. Saudi Arabia
          5. Qatar
          6. UAE
          7. Israel
          8. South Africa
    7. SOUTH AMERICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Brazil
          2. Argentina
          3. Rest of South America
12. INVESTMENT ANALYSIS
13. ANALYST VIEWPOINT AND CONCLUSION
    1. Recommendations and Concluding Analysis
    2. Potential Market Strategies