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), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2019 – 2026

Published Date: Nov 2019  |  Report ID: GMI2420  |  Authors: Ankita Bhutani, Saloni Gankar

Report Format: PDF   |   Pages: 250   |   Base Year: 2018




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Green Data Center Market size estimated at over USD 6.5 billion in 2018 and is poised to grow at 23.5% CAGR from 2019 to 2026.

Green Data Center Market

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Green data center is designed to provide maximum energy efficiency and minimize environmental impact. Green data center has the same features and characteristics as a typical data center, however, consume less energy and space. The reduction in power usage and energy consumption for complex operations in green alternatives provides economic and environmental benefits to the organizations. Green data centers help in ensuring reduced costs and lower the organizational carbon footprint owing to the execution of energy-star rated power supply systems, centralized humidification systems, high-efficiency HVAC, servers, routers, and LED lighting.
 

The rapid shift toward renewable energy sources is accelerating the green data center market growth. Construction and modernization of data center facilities are driving the market owing to rise in the data being generated, placing a high demand on energy sources to power data centers and cool them. This demand is expected to grow with the expansion of global enterprises, such as Facebook and Amazon, in several regions. These enterprises are generating massive data each day to analyze prospective customers and gather data, which is used to study the purchase/usage patterns of customers regarding a product or service. Processing the data saves an organization’s costs that the organization will have incurred using other methods to analyze customers’ buying trends. However, these data processing needs will require a massive energy requirement. As the global server power demand has crossed 30 gigawatts, it is anticipated to make data operations difficult to operate in an economically feasible way for long durations owing to which the market size is witnessing a rise in the usage of non-renewable sources of energy.
 

Moreover, increasing electricity costs across the world are providing ample opportunities for the market. Data centers require non-renewable energy sources to be converted in the form of electrical energy for their operations. These non-renewable sources include the usage of coal, fossil fuels, and others to power electricity generators. The depletion of non-renewable energy sources resulted in a constant rise in the price of these resources, contributing to the rise in electricity costs. Furthermore, with the expanding data, data processing needs are projected to rise significantly, requiring higher electricity requirements for data centers. These factors are prompting companies to implement green data centers, with companies utilizing green energy sources despite high initial costs associated with them. The high cost is offset in the long-term usage with renewable energy sources owing to low maintenance costs associated with them.
 

Green data centers require a range of services for data processing operations. These include cloud services, cable services, internet services, host services for servers, and security services for data protection. Most green data centers are equipped with their own cloud services and rely on other corporations for internet and related services. Host services are procured from secure host networks, having reputed certifications for proper data transmission. Sustainable facilities require strict security protection in the physical form as well as protection for software. Physical security involves the installation of varied security devices procured from varying security organizations while professional anti-hacking services are required to protect the data from hackers. This has led to high demand for green solutions and is positively impacting the market statistics.
 

Green Data Center Market Report Coverage
Report Coverage Details
Base Year: 2018 Market Size in 2018: 6.5 Billion (USD)
Historical Data for: 2014 to 2018 Forecast Period: 2019 to 2026
Forecast Period 2019 to 2026 CAGR: 23.5% 2026 Value Projection: 35 Billion (USD)
Pages: 250 Tables, Charts & Figures: 254
Geographies covered (18): U.S., Canada, UK, Germany, France, Spain, Benelux, China, India, Japan, Singapore, Australia, Indonesia, Brazil, Mexico, Argentina, GCC, South Africa
Segments covered: Component, End-Use
Companies covered (20): Airedale Air Conditioning, Dell Inc., Eaton Corporation, EcoDataCenter, Fujitsu Ltd., General Electric, HCL Technologies Limited, Hitachi, Ltd., Huawei Technologies Co. Ltd., IBM Corporation, Microsoft Corporation, PCCW Solutions Limited, Schneider Electric SE, Siemens AG, Tech Mahindra Limited, Telefonaktiebolaget LM Ericsson, The 3M Company, The Hewlett-Packard Company, Verne Global, Vertiv Co.
Growth Drivers:
  • Rapid shift towards renewable power sources in the U.S. and Europe
  • Transition to cloud-based solutions in the U.S.
  • Increase in organizational data traffic and big data analytics in the UK and Germany
  • Government initiatives to lower PUE in the UK and Singapore
  • Growth of mega data centers and trend of collocation in China, India, and Mexico
  • Increase in construction of data centers and rise in SME demand in South-East Asian countries
  • Decline in costs of semiconductor components in Asia Pacific
  • Rising electricity prices across Europe
  • Growing focus of players to establish data centers in South America due to abundant resources and high cost benefits
  • Rising urbanization in the MEA
Pitfalls & Challenges:
  • High cost of equipment over traditional technologies
  • Security issues in green storage technologies
  • Incompatibility of green solutions with existing data centers

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Growing demand for renewable energy sources for data storage and to reduce carbon footprint is a major factor driving the market growth

Global green data center market size, by solution, 2018

Global green data center market size, by solution, 2018

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By solutions, the market is segmented into cooling, networking, power and management software. Networking applications accounted over 35% of the green data center industry in 2018. The expanding data center network has prompted the need for better connectivity options, requiring a higher amount of energy. Non-renewable sources of energy cannot satisfy these demands owing to the high amount of carbon footprint and adverse environmental impacts of these energy sources. Furthermore, connectivity is extremely important in data centers owing to a high number of systems operating simultaneously and being interconnected with each other. A lapse in data center connectivity can result in the disruption of data center performance. This has led to high demand for networking applications in green data center and will provide several market opportunities.
 

Growing digitization trend in the government sector has propelled the Asia Pacific market demand

Based on application, the green data center market has been segmented into IT & telecom, colocation, energy, BFSI, healthcare, government, and manufacturing. In the government sector, the implementation of green data centers has helped increase operational efficiency, reduced costs, and delivered enhanced services. The trend of digitalization has led to a rise in the amount of data generated in China, India and Japan. Government organizations in these markets are transforming traditional paper documents into digital data. They are constantly facing pressure for enhanced services and to meet the increasing demands of citizens. A reliable data center infrastructure is crucial as government organizations go digital. For instance, in September 2016, Government of India announced to digitize academic records as part of its Digital India Initiative. Such initiatives are driving the market revenue. Moreover, the increasing demand from citizens for improved transparency and accountability will fuel the market demand for green infrastructure from the government sector. The rise in population and urbanization in several economies in Asia Pacific has led to mounting pressure of managing the data generated.
 

Growing focus of players to establish green data centers in Latin American market due to abundant resources and high cost benefits

Latin America green data center market size, by region, 2026 (USD Million)

Latin America green data center market size, by region, 2026 (USD Million)

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The Latin America market value will witness growth of around 22% CAGR over the forecast timespan. The region spanning the Selvas rainforest is being explored for the establishment of green data centers owing to abundant resources available in the region. Additionally, average temperatures in the region are relatively lower than in urban regions, prompting lower costs to cool data centers. The growing usage of internet and social media across the Latin American market is resulting in steep data generation. Several companies are planning to build and invest in infrastructure facilities in the region. Social media giants, such as Facebook and WhatsApp, are setting up green data center in the region for simpler and faster data processing. Additionally, green data center establishment costs in the region are lower than developed markets including the U.S. and the UK.
 

Product launches and partnerships are the key market trends

Key market leaders are Vertiv Co., Verne Global, The 3M Company, Telefonaktiebolaget LM Ericsson, Siemens AG, Schneider Electric SE, PCCW Solutions Limited, Modius Inc., Microsoft Corporation, IBM Corporation, Huawei Technologies Co. Ltd., Hitachi, Ltd., Hewlett-Packard Enterprise, HCL Technologies Limited, Google Inc., General Electric, Fujitsu Ltd., EcoDataCenter, Eaton Corporation, Dell Inc., and Airedale Air Conditioning. The green data center industry analysis portray that the market leaders are implementing innovative technologies are expanding into untapped regions. Players are focusing on collaborations and partnerships to strengthen market shares, making it harder for new entrants to gain a strong foothold. For instance, in August 2015, Eaton launched high-performance UPS for large data centers. The device called Power Xpert 9395 boasts of the extra power of 275 kW modules at a power rating of 675-1100 kW, for unexpected workload increments.
 

The green data center market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2015 to 2026 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 is provided on a regional and country basis for the following:

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

 

Frequently Asked Questions (FAQ) :

Green data center has the same features and characteristics as a typical data center, however, consume less energy and space. The reduction in power usage and energy consumption for complex operations in green alternatives provides economic and environmental benefits to the organizations. Green data centers help in ensuring reduced costs and lower the organizational carbon footprint owing to execution of energy-star rated power supply systems, centralized humidification systems, high-efficiency HVAC, servers, routers, and LED lighting.
The rapid shift toward renewable energy sources is accelerating the industry growth. Construction and modernization of data center facilities are driving the market owing to rise in the data being generated, placing a high demand on energy sources to power data centers and cool them.
Networking solutions accounted for over 35% revenue share in 2018. The expanding data center network has prompted the need for better connectivity options, requiring a higher amount of energy.
The Latin America green data center market size will witness growth of around 22% CAGR from 2019 to 2026. The region spanning the Selvas rainforest is being explored for the establishment of green data centers owing to abundant resources available in the region.

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