Europe Green Data Center Market Size

Europe Green Data Center Market Analysis

The Europe Green Data Center Market size is estimated at USD 8.89 billion in 2024, and is expected to reach USD 12.76 billion by 2029, growing at a CAGR of 7.5% during the forecast period (2024-2029).

• The technological innovations in data center technology, coupled with new developments in design, are enabling data centers to cut emissions and decrease power consumption by almost 80%. These are significant figures convincing European firms to invest in relatively expensive, greener technologies and infrastructure to reap considerably higher rewards in the future.
• The European green transition is largely made possible by data centers. In terms of progress toward decarbonizing its operations and making bold commitments to becoming climate-neutral, the data center sector is already among the most developed end-use sectors. At the same time, digital services are enabling businesses in all economic sectors to innovate, increase efficiency, create sustainable products and services, and achieve their ambitious climate targets in line with the objectives of the European Green Deal. The European Commission has created guidelines to assist data centers in becoming more energy-efficient, recovering waste energy, such as heat, and using more renewable energy sources, with the goal of becoming carbon-neutral by 2030.
• Western and Northern European countries are ahead of the rest of Europe regarding sustainability and sustainable energy management, particularly Russia and Eastern Europe, which have traditionally been slow adopters of sustainability and efficiency practices. Iceland is becoming a hot hub for data centers due to the 15-year visibility into energy pricing provided by the National Power Company. A geologically and physically secure location with natural outside cooling is one of the key factors in its effective energy management.
• The Product Environmental Footprint (PEF) pilot, led by the European Commission, is set to provide many tangible benefits of the Environmental Product Footprint for the data center industry today. Still, the majority of the potential will be realized in later years. This is set to drive companies to incorporate processes and procedures that minimize their environmental footprint while not compromising the importance of bringing products to the market that meet evolving technology trends.
• A number of projects got delayed as a result of the supply chain being hampered by the COVID-19 pandemic. Due to supply chain issues involving hardware components from significant IT manufacturers, the market expanded gradually during the pandemic. Additionally, statistics from the International Energy Agency (IEA) show that during the pandemic, the world's energy demand decreased by about 6% in 2020. As a result, along with the effects of policies aimed at achieving climate carbon-neutral goals, the significant decline in GDP and energy consumption contributed to the EU's achievement of its renewable energy target and its goal to increase energy efficiency by 2030.