Green Data Center Market

Green Data Center Market Outlook (2024 to 2034)

The global green data center market is projected to increase at a CAGR of 15.5% and thereby increase from a size of US$ 66.52 billion in 2024 to US$ 281.04 billion by the end of 2034, according to a newly published research analysis by Fact.MR.

Increasing awareness about climate change along with growing concerns about the environmental impact of conventional data centers are set to drive up demand for sustainable solutions. Green data centers with a concentration on renewable energy sources and energy efficiency are estimated to address these issues. Further, the adoption of energy efficiency practices helps minimize carbon footprints and provide cost savings for businesses. Green data centers generally employ technologies, for instance, energy-efficient hardware, advanced cooling systems, and virtualization to minimize operational expenditure.

Several governments around the world are implementing stringent regulations for carbon emissions and energy consumption. Companies need to comply with these regulations, which generally encourage the adoption of various environment-friendly practices, such as those in green data centers.

• Around 38.4% of the global green data center market share is forecasted to be held by East Asia by the end of 2034.

• Demand for green data centers in Canada is projected to rise at a CAGR of 15.9% from 2024 to 2034.

• Large-size enterprises are projected to account for 71.4% share of global market revenue by the end of 2034.

More organizations are prioritizing CSR initiatives, demonstrating their commitment to sustainability. Adoption of green data center practices can help align with these set objectives and further enhance the company's reputation among stakeholders, investors, and customers. Dependency on fossil fuels for energy is projected to pose risks to energy security owing to geopolitical factors and price volatility.

With increasing awareness about environmental issues, the majority of companies in the data center industry are facing pressure to differentiate themselves by providing more sustainable solutions. Thus, this competitive landscape is estimated to encourage investment and innovation in green technologies.

Report Attributes	Details
Green Data Center Market Size (2024E)	US$ 66.52 Billion
Forecasted Market Value (2034F)	US$ 281.04 Billion
Global Market Growth Rate (2024 to 2034)	15.5% CAGR
North America Market Share (2034F)	29.1%
Japan Market Growth Rate (2024 to 2034)	16.4% CAGR
Solutions Segment Market Share (2034F)	79.3%
Key Companies Profiled	Dell Technologies Vertiv HPE Schneider Electric Eaton Hewlett Packard Enterprise Green Revolution Cooling Midas Green Technologies Rittal Cisco Lenovo Cyber Power Systems Fujitsu Bxterra Power Technology

Which Key Dynamics are Responsible for Green Data Center Market Growth?

“Low Environment Impact and Energy Efficiency of Green Data Centers”

The increasing demand for green data centers is attributed to their low environmental impact and energy efficiency. Their capability to minimize power consumption with the use of novel technologies is projected to contribute to the expansion of the green data center market size.

The simplicity of portability and the implementation of green data centers is one of the key aspects driving their demand. ECO is the most energy-efficient mode of UPS functioning, which is also known as ‘Economy’ and ‘Active Standby’. This mode is gaining popularity as it offers clean energy to the infrastructure of data centers. Green data centers are utilized in various industries owing to noteworthy improvements in UPS from prominent vendors.

What are the Main Challenges Faced by Companies in This Market?

“High Cost Associated with Development of Green Data Center”

There is a high cost associated with the construction of energy-efficient green data centers. It is somewhere similar to that of constructing conventional server farms. This monetary aspect is projected to lead to hesitation among some organizations to invest in green data centers when they already possess a standard server farm already.

“Reluctant Behavior of Some Businesses in Adopting Green Data Centers”

Numerous businesses have data center and some of them are not willing to replace them completely with the new green data centers. They are hesitant to spend a noteworthy amount of money on rebuilding new data centers. In addition, the complexity associated with the integration of green solutions with the current centers is projected to increase concerns among businesses about compatibility, which is further adversely impacting green data center market trends.

Which Key Strategy is Being Adopted by Startups to Increase Their Market Share?

“Using New Technologies to Minimize Incidence of Power Outrages”

AI (artificial intelligence) and similar new technologies, including deep learning, machine learning, etc., have enormous opportunities in green data centers. These technologies are estimated to help new entrants secure a noteworthy position in the market for green data centers by making some proactive efforts. These technologies can minimize the incidence of power outages and strengthen security standards.

With the use of these deep learning algorithms, artificial intelligence can extract a noteworthy share of verifiable data from multiple server farms while using foresight for the assessment of influencing factors on energy use. This factor is anticipated to open up lucrative opportunities for new entrants.

Country-wise Insights

By the end of 2034, 38.4% share of the global market share is projected to be held by East Asia, as per the analysis published by Fact.MR, a market research and competitive intelligence provider. The dominance of the region is attributed to ever-increasing adoption of smartphones and Internet penetration, which is leading to growing energy consumption, subsequently, a growing increase in the demand for green data centers is experienced.

Why is Demand for Green Data Centers High in the United States?

“Growing Inclination to Software-based Services”

Attribute	United States
Market Value (2024E)	US$ 13.05 Billion
Growth Rate (2024 to 2034)	15.8% CAGR
Projected Value (2034F)	US$ 56.35 Billion

The United States is set to account for 68.9% share of the North American market by the end of 2034. In recent years, there has been a noticeable increase in the number of data centers in the country. In addition, numerous businesses in the United States are migrating their services from hardware to software, which is projected to positively impact demand for green data centers. Facebook, Amazon, and Microsoft are some of the prominent companies in the country, that are actively planning to make a move to green data centers.

What Opportunities Are Available for Companies in China?

“Supportive Government Policies Promoting Green Initiatives”

Attribute	China
Market Value (2024E)	US$ 13.95 Billion
Growth Rate (2024–2034)	16.1% CAGR
Projected Value (2034F)	US$ 62.17 Billion

Approximately 57.6% share of the East Asian market is projected to be held by China by the end of 2034. The increasing use of digital technologies along with the burgeoning IT sector in the country is leading to the introduction of incentives and regulations promoting green initiatives and minimizing carbon emissions. In addition, there are a few data center companies that have set sustainability goals and offer services accordingly, subsequently contributing to market expansion.

Category-wise Insights

As per the Fact.MR report, demand for green data centers in large-size enterprises is attributed to their ability to offer smoother operation flow and better installation of services. In addition, the rising consumption of power in these enterprises is projected to generate demand for green data centers for energy efficiency.

Why is There Higher Inclination to Solution-based Green Data Centers?

“Increasing Use of Green Data Center Solutions for Effective Cooling and Power Systems”

Attribute	Solutions
Segment Value (2024E)	US$ 52.62 Billion
Growth Rate (2024 to 2034)	15.5% CAGR
Projected Value (2034F)	US$ 222.87 Billion

Solutions provided by green data centers are projected to hold 79.3% share of the global market by the end of 2034. More effective cooling and power systems are pivotal for the efficient operation of sustainable data centers. These solutions help in maintaining and running technologies for respective IT equipment. Solutions provided through green data centers include uninterruptible power supplies and high-efficiency PDUs (power distribution units) to reduce overall electricity consumption.

Why are Green Data Centers More Popular in Large Enterprises?

“Energy Efficiency Requirements Generating Demand for Green Data Centers”

Attribute	Large Size
Segment Value (2024E)	US$ 47.69 Billion
Growth Rate (2024 to 2034)	15.5% CAGR
Projected Value (2034F)	US$ 200.66 Billion

By 2034-end, 71.4% share of the global market is forecasted to be accounted for by large-sized enterprises. The growing use of green data centers in these enterprises is attributed to their ability to offer liquid cooling to optimize energy efficiency and reduce power losses. Power requirements in these enterprises are comparatively higher owing to greater infrastructure, which generates demand for green data centers for energy efficiency.

Competitive Landscape

The research report offers a comprehensive analysis of some prominent companies operating in the global market, such as new developments, key market strategies, etc. It presents detailed information about the initiatives taken by market companies, for the management of supply chain systems, quality control, and similar other fields.

For instance:

• Eaton and Amdocs, in September 2019, entered into a partnership to build a more efficient data center. Eaton and Carter established a collaboration to create a purpose-built and contemporary infrastructure for Amdocs satellite offices and data centers in London. This initiative is estimated to lead to cost savings and greater efficiencies.

• GRC established a partnership with TDCS (Total Data Center Solutions) in October 2020. The latter is one of the prominent suppliers of innovative foundations and mission-critical solutions for data centers. Concentration on energy productivity and carbon reduction are some of the key initiatives of this partnership.

Key players in the green data center industry include Dell Technologies, Vertiv, HPE, Schneider Electric, and Eaton.

Segmentation of Green Data Center Market Research

• By Component :

  • Solutions
  • Services

• By Size :

  • Small & Medium Size
  • Large Size

• By Vertical :

  • BFSI
  • IT & Telecom
  • Media & Entertainment
  • Healthcare
  • Government & Defense
  • Retail
  • Manufacturing
  • Others

• By Region :

  • North America
  • Europe
  • East Asia
  • Latin America
  • Middle East & Africa
  • South Asia & Oceania