Green Data Center Market Size

Green Data Center Market Analysis

The Green Data Center Market size is estimated at USD 73.87 billion in 2024, and is expected to reach USD 155.09 billion by 2029, growing at a CAGR of 15.99% during the forecast period (2024-2029).

• The global green data center market is expected from USD 57.63 billion in the current year and is projected to reach USD 120 billion over the next five years. Over the years, the concern regarding the growing percentage of energy consumption by data centers has alerted governments globally to regulate energy consumption, which is the primary factor for driving the green data center market. Also, the growth of data centers and colocation services are other factors driving green data centers.
• As cloud computing becomes more energy-efficient and increasingly relies on renewable sources, other industry verticals such as manufacturing, transportation, and buildings are expected to turn to green data centers to reduce emissions. For instance, a car manufacturer can outsource all of its in-house computing to zero-emission data centers.
• The rise in demand for data storage and storage space is a key factor driving the need for green data centers. According to Huawei, the global estimate of data center demand is expected to increase by 3 to 10 times over the forecast period. Green data center, which provides practical and eco-friendly solutions in terms of data storage and reduction in energy consumption, is expected to witness great demand, owing to the positive outlook of the data center storage needs and new constructions, which have been brought about due to the regulations and the anticipated rise in need to reduce the operational expenditure.
• Moreover, due to the rise of artificial intelligence (AI), machine learning (ML), big data, and the Internet of Things (IoT), the data centers' global electricity consumption will continue to increase, which is another driving factor for green data centers. According to International Energy Agency (IEA), data centers account for 1 to 1.5 percent of global electricity consumption. Hence, a strong focus on energy efficiency could drive the market.
• Despite the long-term savings and ROI, renewable energy data centers have a high initial investment cost. The initial investment in building an energy-efficient green data center is higher than the traditional one. To modify the existing infrastructure, companies need higher investments which is a restrain. However, companies are willing to invest in green data centers even though the cost of ownership is better and savings in the long term will pay back initial investments.
• COVID-19 is expected to drive the demand for green data centers owing to factors such as acceleration of cloud data center services, growing reliance on data center automation, driving up of hardware reuse as a primary challenge, greater remarketing of data center hardware. An increase in environmental awareness due to COVID-19 and this trend continues to grow post-pandemic considering the increase in organizations data traffic and big data analytics.