Global Carbon Neutral Data Center Market to Reach $16.53 Billion by 2027
DUBLIN, Aug. 31, 2022 /PRNewswire/ -- The "Carbon Neutral Data Center Market - A Global and Regional Analysis: Focus on Product, Application and Country Analysis - Analysis and Forecast, 2022-2027" report has been added to ResearchAndMarkets.com's offering.
The global carbon neutral data center market was valued at $5.02 billion in 2021 and is projected to reach $16.53 billion in 2027, growing at a CAGR of 22.19% during the forecast period 2022-2027. The growth in the global carbon neutral data center market is expected to be driven by increasing government regulations on carbon emissions, emphasis on renewable energy, energy-efficient alternatives for data center cooling, electricity tariffs globally, efforts in sustainable developments, and CSR activities.
Market Lifecycle Stage
The carbon neutral data center market is still in a growing phase. The growth is attributed to the various environmental-friendly policies and government regulations. Increased research and development activities are underway to develop carbon neutral data center technologies and products, which are expected to increase due to the increased demand for data storage and digital transformation.
Impact
- With an increased worldwide focus on achieving climate-neutral goals and managing the demand for data storage, the shift from non-renewable energy sources to renewable energy sources in the data center industry brings significant opportunities.
- The shift is more prominent in regions such as Europe and North America. This is because countries in these regions which have natural colder climates almost throughout the year have the highest potential in the market.
Market Segmentation
by Industry
- IT and Telecom
- Banking, Financial Services, and Insurance (BFSI)
- Government or Public Sector
- Healthcare
- Manufacturing
- Retail
- Others
The global carbon neutral data center market in the application segment is expected to be dominated by the IT and telecom industry. This is because the telecom industry is the largest consumer of data centers. Data centers are a crucial part of the ICT industry, as data transmission and data delivery operations require better connectivity.
by Data Center Type
- Hyperscale Data Centers
- Enterprise Data Centers
- Colocation Data Centers
- Others
The global carbon neutral data center market (by product, by data center type) is expected to be dominated by hyperscale data centers. This is because most of the leading hyperscale and cloud service providers have committed to going carbon neutral. These companies include Google LLC, Facebook, Microsoft, and Amazon AWS.
by Carbon Neutral Solutions
- Hardware
- Software and Platforms
- Support Services
The hardware segment dominates the global carbon neutral data center market based on solutions. This is because the data centers require specialized hardware that includes servers, racks, cooling systems, and others, and these devices are crucial for data center deployment and thus have the highest capital expenditure in a data center infrastructure.
by Region
- North America - U.S., Canada, and Mexico
- Europe - Germany, France, Netherlands, Sweden, Norway, Denmark, Finland, Iceland, Switzerland, and Rest-of-Europe
- U.K.
- China
- Asia-Pacific- Japan, Singapore, South Korea, and Rest-of-Asia-Pacific
- Rest-of-the-World - Middle East and Africa, and South America
Europe generated the highest revenue of $3.09 billion in 2021, which is attributed to the R&D advancements and supporting government regulations in the region. Europe is an attractive region for the carbon neutral data center market because of the availability of a favorable climate for the use of renewable sources of energy.
Market Dynamics
Business Drivers
- Government Regulations on Carbon Emissions and Rising Emphasis on Renewable energy
- Growing Energy-Efficient Alternatives for Data Center Cooling
- Sustainable Development Efforts and CSR Activities
- Rising Electricity Tariffs Globally
Business Challenges
- High Dependence on Non-Renewable Energy for Running Data Center Operations
- Higher Costs of Implementation and Compatibility Issues
Business Opportunities
- Increasing Research and Development in Energy Storage Technologies
- Increased Demand for Data Centers and Mega Data Centers
- Transition from Onsite Storage Facility to Cloud Connectivity
Key Market Players and Competition Synopsis
The companies that are profiled have been selected based on inputs gathered from primary experts and analyzing company coverage, product portfolio, and market penetration.
Some of the prominent names established in this market are:
- 3M
- ABB Group
- Alibaba Group
- Alphabet Inc.
- Amazon.com, Inc.
- Cisco Systems, Inc.
- Dell Inc.
- Digital Realty Trust
- Eaton Corporation plc
- Equinix, Inc.
- FUJITSU
- Hewlett Packard Enterprise Development LP
- IBM Corporation
- Intel Corporation
- Microsoft
- ANS Group Limited
- NEXTDC LTD.
- CYRUSONE
- DEAC
Key Topics Covered:
1 Markets
2 Application
3 Products
4 Region
5 Markets - Competitive Benchmarking & Company Profiles
6 Research Methodology
For more information about this report visit https://www.researchandmarkets.com/r/ghpbsl
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