Green Data Center Market Size By Component (Solution [Cooling, Networking, Power, Management Software], Service [Installation & Integration, Consulting, Managed]), By Application (Colocation, BFSI, Energy, Government, Healthcare, Manufacturing, IT & Telecom), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 – 2030

Market Trends

Green Data Center Market size surpassed USD 45 billion in 2021 and is expected to exhibit a CAGR of more than 15% from 2022 to 2030. The increasing data migration to the cloud is anticipated to augment the industry growth.
 

With the rising cloud migration, data centers are playing a crucial role in ensuring the availability of data and applications. The growing reliance on renewable power sources to curb carbon footprint will provide lucrative opportunities for the industry, especially in Europe and North America.  In addition to the rising demand for renewable energy, colder climates, which facilitate easier cooling of the data centers, are also key factors encouraging major enterprises to set up their facilities in these regions. The usage of the internet and data storage services for streaming and e-commerce activities has also surged.
 

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Despite the positive business environment, the high cost associated with the development of green infrastructure will assert a negative influence on the business statistics. The operation of clean energy sources such as solar and wind is considered economical. However, bulk costs may arise from the deployment of these technologies to make them adaptable. It could create potential roadblocks to market development through 2030.
 

Rising concerns about heat generation

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In 2021, the green data center market revenue from solutions segment valued for USD 35 billion. Increasing requirement for the enhancement of data center efficiency will fuel the segment demand. Concerns on the rise in heat generation from data centers is compelling enterprises to deploy eco-friendly and advanced cooling tech. This has promoted the adoption of green data center solutions. The increasing applications of data centers across BFSI and healthcare sectors will bolster the implementation of these solutions.
 

Rising popularity of data center colocation among SMEs

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The colocation application is slated to depict about 20% growth through 2030. This is due to the rising budget constraints associated with the establishment and management of data centers, and the shift towards colocation services. Data center colocation has also become a popular choice for SMEs because of limited storage requirements. Moreover, colocation vendors are emphasizing the adoption of energy-efficient cooling tech to boost productivity, fueling the industry expansion.
 

Integration of AI and IoT in APAC

The Asia Pacific green data center market size is poised to witness around 20% gains between 2022 and 2030. The region has observed thriving manufacturing and industrial sectors, and the growth of data center infrastructure, especially in China, India, and Japan. The burgeoning usage of IoT, AI, cloud, and other technologies will also boost data generation, adding to the growing pressure on IT infrastructure construction.
 

Partnerships to remain a major growth strategy for industry players

Eaton Corporation, General Electric, HCL Technologies Limited, Huawei Technologies Co. Ltd., Lenovo, IBM Corporation, Microsoft Corporation, Siemens AG, and Schneider Electric SE are some of the key market participants. These firms are focusing on collaboration strategies to expand their business footprint in the green data center market landscape.
 

For instance, in June 2022, Eaton Corporation partnered with Microsoft to include data center backup power systems as part of its grid and support the integration of clean energy sources. This initiative, alongside Microsoft’s announcement regarding the deployment of intelligent UPS systems and grid stabilization, was intended to help the company become more inclined toward green data centers and consequently strengthen its position.
 

Impact of COVID-19 on the industry dynamics

In wake of the COVID-19 pandemic, Internet traffic registered a significant upsurge worldwide, as several organizations encouraged their employees to shift to remote work, in order to curb viral transmission. As a result, millions of people at home became increasingly involved in browsing social media and reliant on online video conferencing services for their remote work needs. This, in turn, has placed more importance on the role of data centers. The rapid digitalization, in addition to the growing focus on sustainability during the pandemic, is therefore expected to add impetus to green data center market expansion by end of 2030.
 

This market research report on green data center includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2030 for the following segments:

Market, By Component

• Solutions
  • Cooling
  • Networking
  • Power
  • Management software
• Services
  • Installation & integration
  • Consulting
  • Managed

Market, By Application

• Colocation
• BFSI
• Energy
• Government
• Healthcare
• Manufacturing
• IT & telecom
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Benelux
• Asia Pacific
  • China
  • India
  • Japan
  • Singapore
  • Australia
  • Indonesia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • GCC
  • South Africa