What Fueled The Previous Growth In The Green Data Center Market?
The green data center market has seen considerable growth due to a variety of factors.
• The market size for green data centers has experienced speedy expansion in the past few years. Its value is projected to climb from $77.12 billion in 2024 to $90.2 billion in 2025, reflecting a compound annual growth rate (CAGR) of 17.0%.
Factors that have influenced its growth in the historic period include environmental regulations, increasing energy costs, the need for efficient data storage and management, as well as regulations and government initiatives.
What Is The Expected Growth In The Green Data Center Market Size?
The green data center market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of green data centers is projected to witness a massive surge in the upcoming years, reaching a size of $202.29 billion in 2029, with a compound annual growth rate (CAGR) of 22.4%.
Several factors contributing to this projected growth during the forecast period include the rise of edge computing, cloud computing expansion, the necessity for carbon footprint reduction, and the growth of emerging markets. Key trends predicted to dominate the forecast period encompass innovations in liquid cooling, adoption of sustainable materials and designs, advancements in water-efficient cooling technologies, and the integration of renewable energy.
What Are The Leading Drivers Of Growth In The Green Data Center Market?
The escalating energy demand from data centers is anticipated to boost the green data center market's expansion. With digitalization and regulations on the rise, data centers are sprouting worldwide requiring heightened electricity use. As more data centers appear, the power required for their operations also increases, subsequently escalating energy consumption. This surge in energy use will inflate operational costs and lead to environmental damage. Therefore, the demand for green data centers, which are eco-friendly and operate at lower costs due to their use of renewable energy, is likely to increase substantially. For example, as per the US Energy Information Administration, a United States government entity, in May 2022, the United Kingdom had generated 934,000 barrels per day (b/d) in total liquid fuels and 1.1 trillion cubic feet (Tcf) of natural gas in 2021. Thus, the escalating energy demand from data centers will stimulate the green data center market's growth.
How Are The Segments Defined Within The Global Green Data Center Market?
The green data center market covered in this report is segmented –
1) By Components: Solutions, Services
2) By Data Center Size: Small and Medium-Sized Data Centers, Large Data Centers
3) By Verticals: BFSI, IT and Telecom, Media and Entertainment, Healthcare, Government and Defense, Manufacturing, Other Verticals
Subsegments:
1) By Solutions: Energy Management Solutions, Cooling Solutions, Virtualization Solutions, Renewable Energy Solutions
2) By Services: Consulting Services, Managed Services, Maintenance and Support Services, Training and Education Services
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How Are New Trends Expected To Influence The Growth Of The Green Data Center Market?
The increasing popularity of cloud services is a crucial trend in the green data center market. These services, which are provided on-demand via the internet server, eliminate the need for internal infrastructure or hardware. Supporting existing infrastructures like a cloud center or facility, cloud services in green data centers simplify complexities and manage workload functionality whilst retaining ownership of the data. Major market players are focusing on offering cloud services to bolster their positions. For example, in May 2024, US-based green data center developer Soluna Cloud launched an AI cloud service known as Helix data center. This service is anticipated to fuel customer growth and meet the rising demand for sustainable data centers powered by renewable energy. [i]
Who Are the Key Players 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.
What Is The Most Dominant Region In The Green Data Center Market?
North America was the largest region in the green data center market in 2024 and is expected to be the fastest-growing region in the forecast period. The regions covered in the green data center market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
