United States Green Data Center Market Outlook & Forecast Report 2023-2028: The Paris Agreement, The iMasons Climate Accord (ICA), Re100, and Energy Certifications Positively Impacting the Industry

DUBLIN, April 21, 2023 /PRNewswire/ -- The "U.S. Green Data Center Market - Industry Outlook & Forecast 2023-2028" report has been added to  ResearchAndMarkets.com's offering.

The U.S. green data center market is expected to reach USD 24.20 billion by 2028 from $13.79 billing in 2022, growing at a CAGR of 9.82%

After the U.S. rejoined the Paris Agreement and companies and signed various agreements like the iMasons Climate Accord etc., The government and companies are all proactive in deploying technologies and taking the latest initiative in moving towards sustainability.

Hyperscale operators such as AWS, Facebook (Meta), Microsoft, Apple, and Google are leading in terms of new innovations in sustainability in the data center industry. Most U.S. green data center market players, especially colocation operators like Equinix, Digital Realty, CyrusOne, Aligned, STACK Infrastructure, Iron Mountain, QTS Realty Trust, Vantage Data Centers, Switch, and more, are investing in procuring renewable power and installing energy-efficient equipment.

Increased Focus On Renewable Energy Sources and Efficient Cooling

• Hyperscale players such as Amazon Web Services (AWS), Google, Facebook (Meta), Microsoft, and Apple are procuring renewable energy for their facilities.
• AWS meets 85% of its energy requirements from renewable energy.
• Google, Facebook (Meta), and Apple meet 100% of their energy requirements for data centers from renewable energy.
• Microsoft aims to power all facilities with 100% renewable energy by 2025.
• Colocation operators in the U.S. green data center market, such as Equinix, Digital Realty, CyrusOne, Vantage Data Centers, STACK Infrastructure, Iron Mountain, QTS Realty Trust, Aligned, and others, are proactively signing PPAs and procuring renewable energy to power their facilities to meet their sustainability goals.
• Digital Realty meets 100% of its energy requirements for data centers from renewable energy.
• QTS Realty Trust meets 35% of its energy requirements from renewable energy with a target of 100% renewable energy by 2025.
• The use of free cooling chillers will increase to reduce power consumption and carbon emissions by facilities. Also, the shift will increase towards liquid cooling leading to more sustainable data centers and bringing down PUE to a range of 1.1 to 1.4.
• Air cooling and liquid immersion cooling will also be used in most facilities to reduce their impact on the environment and reduce the PUE of data centers.
• Data center firms have also started investing in renewable energy farms by acquiring or developing their own.
• A few examples of the singing of PPAs or constructing renewable energy farms are -
• Amazon signed a PPA with AES Corp. for 450MW solar power. Amazon will use it for California operations, including its data centers. In addition, Amazon is planning the construction of two solar farms in Louisiana in the U.S.
• Google signed 942 MW PPA on solar power projects under development in Texas.
• Microsoft has signed a 110 MW Power Purchase Agreement with AES to secure renewable energy for its Californian facilities.
• CyrusOne collaborated with Gexa Energy, a NextEra Energy subsidiary, to procure solar (30 MW) and wind (10 MW) energy for its North Texas facilities.
• STACK Infrastructure plans to build a new 216 MW data center campus in Ashburn, Virginia, powered with 100% renewable energy supplied by Dominion Energy

Electrical Infrastructure - Efficient and Sustainable Power Infrastructure Replacing Traditional Power Systems

• The increasing demand for efficiency in facilities has fueled the growth of efficient infrastructure such as lithium-ion UPS systems, fuel cells, HVO, Natural Gas generators, nuclear energy reactors, and more.
• Microsoft partnered with Plug Power to test a new power generation system with 3MW capacity, based on hydrogen as a fuel source.
• Compass Data Centers and Foster Fuels made an agreement together to produce Hydrogenated Vegetable Oil- based biodiesel for Compass Data centers' generators.
• EdgeCore is using Lithium-ion UPS batteries in its Ashburn Data center campus.
• Google has partnered with Fervo Energy to develop a geothermal power project to add clean energy to the Nevada power grid.
• Rolls Royce announced its plan to offer small nuclear reactors for U.S.-based cloud operators such as AWS, Google, and Microsoft.
• Woodstock Power company provides nuclear gas power backup generators to the facilities.
• Companies are using Microgrids and Smart grids to further stabilize power supply to the data center and back to the grid in the hour of need.
• Microsoft has partnered with Eaton, which will outfit all of Microsoft's data centers with grid-interactive UPS.
• Microsoft has partnered with Enchanted Rock for its new Datacenter in San Jose, USA, where it will complete a Microgrid project for the facility.

Mechanical Infrastructure - U.S. To Witness an Increase in Advanced Cooling Technologies

• Increased deployment of artificial intelligence and machine learning workloads will increase liquid immersion and direct-to-chip cooling in the U.S. It will help companies bring down their PUW to 1.4 or below.
• S. food company Cargill announced plant-based immersion cooling for its facilities.
• Facebook (Meta) has planned to shift all its existing facilities to liquid cooling.
• Companies have also adopted free cooling, zero-water cooling, and others to reduce their environmental footprint.
• Cologix replaced condensing units in its New Jersey facility with air-cooling units supplied by Carrier.
• T5 Data Centers deploy air-cooled chillers on all of its facilities.
• QTS Realty Trust uses in-house developed zero-water cooling in all its new facilities.
• Innovative cooling techniques, such as underwater data centers and free chillers-based cooling technologies, bring in more efficiency in data center cooling.

General Construction - Increasing Adoption of Sustainable Material in Construction of Data Centers in the U.S.

• Hyperscale operators like AWS, Microsoft, Apple, and Google are taking the lead in using sustainable materials to construct facilities.
• In their facilities construction, companies introduce technologies like green concrete, modular data centers, and more.
• AWS and American Rock Products collaborate to develop sustainable concrete for a concrete mix for its facility.
• Facebook (Meta) announced that it had developed a sustainable low-carbon concrete with the help of Ozinga, its concrete partner, and the University of Illinois for its DeKalb data center.
• Compass Datacenters is building facilities using concrete manufactured through the process developed by CarbonCure Technologies, which recaptures environmental CO2.
• The use of software and construction of facilities like waste treatment plants is taking center stage in newer data center developments in the U.S.
• CoreSite has installed waste treatment-related new equipment like haulers, compactors, etc., at its various data centers across the U.S.
• Data centers are using green walls to cover their facilities
• T5 Data Center has partnered with nZero for carbon tracking across its facilities

Key Attributes:

Premium Insights

Policy Drivers

• The iMasons Climate Accord ( Ica)
• Re100
• Energy Certifications
• Greenhouse Gas Protocol, Paris Agreement and the Science Based Targets Initiative (Sbti)
• Moving Toward Green Environment and Energy
• Renewable & Green Energy Adoption Among Data Center Operators
• Hyperscale Operators Stacking Up on Renewable Energy Ppas
• Renewable Energy Adoption by Colocation Service Providers

Market Opportunities & Trends

• Adoption of Advanced Ups Batteries
• Lithium-Ion Battery
• Liquid Metal Battery
• Sodium-Ion Batteries
• Nickel Zinc Batteries
• Adoption of Advanced Fuel Sources
• Fuel Cells
• Hydrogen Vegetable Oil
• Natural Gas Generators
• Nuclear Energy Generation
• Adoption of Advanced Cooling Technologies
• Free Cooling
• Liquid Immersion Cooling
• Underwater Data Centers
• Floating Data Centers
• Innovation in Data Center Construction
• Green Concrete
• Modular Data Center
• Innovation in Power Utilities
• Microgrid
• Smart Grid
• Ai, Metaverse, Hpc, & Cloud Computing Increasing Liquid Cooling Requirements

Market Growth Enablers

• Renewable Energy Initiatives by Hyperscale & Cloud Operators
• Renewable Energy Initiatives by Colocation & Enterprise Operators
• Initiatives by Colocation Data Center Operators
• Initiatives by Enterprise Data Center Operators/Customers
• Adoption of Ai and Other Technologies in Data Center Construction
• Government Push for Green Data Center Development
• Federal Government Regulations
• State Government Regulation

Market Restraints

• Rising Carbon Emissions from Data Centers
• Water Consumption by Data Centers
• Disturbing Weather Patterns Across US
• Site Selection and Development Constraints
• Lack of Space
• Power Constraint
• Data Center Activism
• Other Challenges

Key Vendors

• Aligned
• Amazon Web Services (AWS)
• Apple
• Cologix
• Compass Datacenters
• CoreSite (American Tower)
• CyrusOne
• Cyxtera Technologies
• DataBank
• DartPoints
• Digital Realty
• EdgeConneX
• Equinix
• Facebook (Meta)
• Flexential
• Google
• H5 Data Centers
• IBM
• Iron Mountain
• Microsoft
• Nautilus Data Technologies
• Novva Data Centers
• Oracle
• Prime Data Centers
• Sabey Data Centers
• Serverfarm
• STACK Infrastructure
• Stream Data Centers
• Switch
• T5 Data Centers
• TierPoint
• Vantage Data Centers

Power Vendors

• Algonquin Power & Utilities Corp.
• Apex Clean Energy
• Avangrid Renewables
• DE Shaw Renewable Investments
• Dominion Energy
• EDF Renewables
• Enel Group
• Engie
• First Solar
• Leeward Renewable Energy
• Invenergy LLC
• Lightsource bp
• NextEra Energy
• Pattern Energy
• Rocky Mountain Power
• Shell
• Solar Alliance Energy Inc.
• The AES Corporation
• Torch Clean Energy
• TotalEnergies
• Vitol Energy

For more information about this report visit https://www.researchandmarkets.com/r/l43tpk

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