Green Data Center (GDC) Market to grow by USD 202.4 Billion from 2024-2028, driven by rising electricity costs and AI redefining the market landscape - Technavio

NEW YORK, Dec. 5, 2024 /PRNewswire/ -- Report with market evolution powered by AI - The global green data center (GDC) market size is estimated to grow by USD 202.4 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 27.17% during the forecast period. Increase in electricity consumption and cost is driving market growth, with a trend towards increased use of dcim and automation. However, cost of building green data center poses a challenge. Key market players include ABB Ltd., Carrier Global Corp., Cisco Systems Inc., CommScope Holding Co. Inc., Dell Technologies Inc., Delta Electronics Inc., Eaton Corp. Plc, Fujitsu Ltd., Green Revolution Cooling Inc., Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., International Business Machines Corp., Modine Manufacturing Co., Panduit Corp., Rittal GmbH and Co. KG, Schneider Electric SE, Siemens AG, STULZ GmbH, Sunbird Inc., and Vertiv Holdings Co..

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Key Market Trends Fueling Growth

The Green Data Center (GDC) market is thriving as businesses prioritize energy efficiency and environmental stewardship. GDCs use energy-efficient components like Uninterruptible Power Supply (UPS) and cooling systems in ECO mode or Active Standby. AI and ML enable predictive modeling and thermal optimization, while Eco-friendly solutions include renewable energy integration and hardware innovations. Media and entertainment, OTT platforms, and large data centers drive CapEx in GDCs. Cloud computing's green initiatives offer energy-efficient data processing and storage. Digital transformation, environmental regulations, and tax benefits push corporations towards net carbon neutrality. Renewable energy sources like solar panels, wind turbines, and hydroelectric plants power GDCs. Virtualization, intelligent cooling systems, and power management reduce carbon footprint. Consultation services and monitoring systems help businesses navigate this transition. Large enterprises embrace CSR, risk management, and 5G technology. Big data analytics, IoT, healthcare, e-commerce, and colocation providers join the movement towards energy-efficient solutions. Greenhouse gas emissions are minimized through resource management and power systems. Networking systems and colocation data centers adopt renewable energy integration and modular infrastructure. Environmental laws mandate carbon emissions reduction, driving the demand for green data center solutions.

Data Center Infrastructure Management (DCIM) software is a crucial tool for managing modern data center facilities. This software enables remote monitoring of various aspects of the data center, including temperature, humidity, and power consumption. Vendors in the Green Data Center (GDC) market offer advanced DCIM systems, which come with higher Capital Expenditure (CAPEX) compared to traditional systems. The importance of energy efficiency and reducing carbon emissions has made DCIM a necessary investment for data center operators. Colocation data center providers are particularly focusing on integrating advanced DCIM systems to effectively manage their facilities and ensure optimal energy usage.

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Market Challenges

• Green Data Centers (GDCs) are essential for businesses seeking energy-efficient and eco-friendly solutions for their data processing and storage needs. GDCs use energy-efficient components like Uninterruptible Power Supplies (UPS) and cooling systems in ECO mode or Active Standby to minimize energy consumption. AI and ML enable predictive modeling and thermal optimization for power efficiency. Media and entertainment, OTT platforms, and large data centers require significant capital expenditure, making GDCs a priority for businesses. Green initiatives, such as renewable energy integration and carbon footprint reduction, are crucial for Corporate Social Responsibility and risk management. Cloud computing, digital transformation, and IoT also benefit from GDCs' energy efficiency. Consultation services and monitoring systems help businesses navigate environmental regulations and tax benefits. Hardware and software innovations, like server virtualization, intelligent cooling systems, and power management, reduce carbon emissions and improve resource management. Renewable energy sources like solar panels, wind turbines, and hydroelectric plants power GDCs, contributing to net carbon neutrality. Colocation providers offer modular infrastructure and cooling technologies to accommodate various industries, including healthcare, e-commerce, and 5G technology. GDCs are essential for businesses aiming to reduce their carbon footprint, comply with environmental laws, and adopt sustainable practices. By integrating renewable energy and optimizing power systems and networking, businesses can save costs and enhance their environmental stewardship.
• Leading organizations in the Americas, including Facebook, Microsoft, Google, Intel, and Apple, have established data centers that utilize renewable energy sources. Current data centers in the US consume vast amounts of electricity, emitting millions of tons of carbon annually. Building a data center facility can cost up to 25% of an organization's IT budget, including IT equipment. The business requirement for data usage is growing yearly, leading to an 8%-10% increase in servers installed. Renewable energy adoption in data centers is crucial to reduce environmental impact and manage escalating costs.

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Segment Overview

This green data center (gdc) market report extensively covers market segmentation by

1. Component
• 1.1 IT infrastructure
• 1.2 Power solutions
• 1.3 General construction
• 1.4 Cooling solutions
• 1.5 Monitoring and management
2. End-user
• 2.1 BFSI
• 2.2 Energy
• 2.3 IT and telecom
• 2.4 Others
3. Geography
• 3.1 Europe
• 3.2 North America
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 IT infrastructure- The digital transformation of businesses is driving the adoption of cloud services among small and medium enterprises (SMEs), with 90% expected to operate through cloud storage by 2025. Cloud computing requires substantial computational power but offers flexible, scalable, and efficient business operations. This has led to an increase in data center construction worldwide. Virtualization, a key enabler, has increased IT infrastructure usage in data centers while reducing energy consumption. For instance, Supermicro's MicroBlade systems helped Fortune 100 companies achieve energy efficiency of around 90%. Data center consolidation projects have also reduced server usage, while Open Compute Projects optimize infrastructure for workload and energy consumption. Techniques like direct-to-chip cooling and liquid-immersion cooling have significantly reduced cooling needs. In storage, replacing HDDs with SSDs and virtual networking applications have lowered power consumption. Vendors like Dell, HPE, Cisco, Huawei, Lenovo, and IBM offer energy-efficient, density-optimized infrastructures. Innovations in energy-efficient IT infrastructure will continue to fuel the growth of the global green data center market during the forecast period.

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Research Analysis

Green Data Centers (GDCs) are advanced computing facilities designed to minimize energy consumption and reduce carbon footprint. They utilize energy-efficient components such as Uninterruptible Power Supplies (UPS) and cooling systems in ECO mode or Active Standby, which save energy by optimizing power usage. Machine Learning and Artificial Intelligence are integrated for cooling power management, enhancing energy efficiency. GDCs comply with Environmental Regulations and offer tax benefits for net carbon neutrality. Renewable Energy integration is a key feature, making GDCs eco-friendly and reducing carbon emissions. Digital Services, IoT, Healthcare, E-commerce, and various industries benefit from GDCs' energy-efficient solutions. Cooling Technologies and Renewable Energy are integral to GDC infrastructure, with modular designs allowing for scalability and flexibility. The integration of digital transformation and carbon footprint reduction is essential for businesses aiming for a sustainable future.

Market Research Overview

The Green Data Center (GDC) market is witnessing significant growth due to the increasing demand for energy-efficient components in data centers. GDCs utilize Uninterruptible Power Supply (UPS) systems, cooling systems with ECO mode, Active Standby, and Economy mode for power efficiency. Artificial Intelligence (AI) and Machine Learning (ML) are used for predictive modeling and thermal optimization. Energy efficiency is a top priority with the integration of renewable energy sources like Solar Panels, Wind Turbines, and Hydroelectric Plants. Large data centers in media and entertainment, OTT platforms, and content delivery require green initiatives for Capital Expenditure reduction and Net Carbon Neutrality. Greenhouse Gas Emissions are minimized through hardware and software innovations, virtualization, and intelligent cooling systems. Consultation services, monitoring systems, and colocation providers offer eco-friendly solutions for large enterprises focusing on Corporate Social Responsibility, Risk Management, and Digital Transformation. Environmental Regulations and tax benefits drive the adoption of GDCs in various industries, including 5G Technology, Big Data Analytics, Healthcare, E-commerce, and IoT. Renewable Energy Integration, Modular Infrastructure, and Power Management are essential components of GDCs, reducing Carbon Emissions and adhering to Environmental Laws.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Component
• IT Infrastructure
• Power Solutions
• General Construction
• Cooling Solutions
• Monitoring And Management
• End-user
• BFSI
• Energy
• IT And Telecom
• Others
• Geography
• Europe
• North America
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio