Green Data Center Market Size, Share And Forecast To 2032

(MENAFN- Straits Research) A green data center, also known as a sustainable data center, utilizes energy-efficient technologies. They lack obsolete technologies (such as inactive or underutilized servers) and employ newer, more efficient ones. It is primarily powered by solar, wind, or hydropower, and its components are designed to optimize energy efficiency and reduce carbon footprint. Data centers demand significantly more energy due to the Internet's exponential expansion and usage. Companies are under greater pressure to adopt a green policy due to the resulting environmental impact, heightened public awareness, rising energy costs, and legislative action.
Market Dynamics
Renewable Energy Initiatives by Hyperscale & Cloud Operators Market Drives the Global Market
Some of the largest hyperscale operators deploying data centers worldwide have set sustainability goals, which are anticipated to stimulate market expansion. For instance, in May 2021, Google signed a contract with AES to acquire 500 MW of renewable energy to decarbonize its operations. AES's renewable energy initiative in its Northern Virginia data centers will incorporate wind, solar, hydro, and battery storage sources.
Similarly, Amazon Web Services and TotalEnergies signed a power purchase agreement in July 2021, whereby TotalEnergies will supply 474 MW of renewable energy to AWS. In addition, Microsoft struck a power purchase agreement with NTR in December 2021. The energy company will provide 86 MW of wind energy from the Norra Vedbo wind project, which is anticipated to be operational by the fourth quarter of 2022.
Government Push for Green Data Center Development Creates Tremendous Opportunities
Governments worldwide have undertaken multiple initiatives to minimize data centers' emissions and energy consumption. For instance, in June 2021, the Canadian government launched an investment plan worth $960 million. The government will invest in grid modernization and smart renewable energy initiatives to reduce carbon emissions.
Similarly, the State Ministry for Chemical and Fertilizers, New Renewable Energy, estimates India will produce 450 MW of renewable energy by 2030. In Karnataka, four solar power facilities will be constructed with a combined capacity of approximately 1,200 MW. The government and operators' increased interest in reducing energy consumption and carbon emissions will spur the adoption of renewable energy sources to power new data center sites. This trend is expected to create opportunities for market expansion.
Regional
Analysis
North America is the most significant
global green data center market
shareholder and is estimated to exhibit a CAGR of 4.58% during the forecast period. In 2021, the North American market saw the development and expansion of approximately 124 data center facilities, of which over 113 are in the United States and the rest are in Canada. This comprises facilities that became operational in 2021 and those anticipated to become operational by June 2022. Nonetheless, the demand for cost-effective and efficient power solutions has increased, and more green data centers are being constructed. Several innovations on the market aspire to increase the facility's operational efficiency, minimize energy consumption, and reduce carbon emissions.
Additionally, several hyperscale facilities are powered by renewable energy sources to combat power consumption and greenhouse gas emissions. The increased procurement of AI-based infrastructure solutions increases the rack power density in many data centers to more than 20 kW, increasing the demand for advanced cooling techniques such as liquid immersion and direct-to-chip cooling. Hyperscale facilities in this region will continue incorporating custom-designed solutions, such as infrastructure based on OCP. These variables contribute to market expansion.
Western Europe is estimated to exhibit a CAGR of 7.83% over the forecast period. Western Europe is regarded as an established data center market. The Global Data Protection Regulation (GDPR), which went into effect in 2018, affected the data center market in Western Europe by causing customers to migrate their data to cloud services for data localization, increasing the number of data center initiatives. Western Europe is also a leader in deploying eco-friendly data centers, particularly in Germany, the Netherlands, France, Ireland, and Switzerland. Most nations have free cooling options, increased investment in e-waste management, and widespread adoption of advanced power and cooling technologies, such as liquid cooling, fuel cells, and lithium-ion batteries. There is a significant drive from various governments to develop green data centers.
Key Highlights

The global green data center market was valued at USD
51.23
billion in 2023. It is estimated to reach USD 238.53
billion by 2032, growing at a CAGR of
7.38% during the forecast period (2024–2032).
Based on infrastructure, the global green data center market is bifurcated into electrical infrastructure, mechanical infrastructure, and general construction.
The general construction segment dominates the global market and is projected to exhibit a CAGR of 7.35% over the forecast period.
Based on cooling techniques, the global green data center market is segmented by air-based cooling techniques and liquid-based cooling techniques.
The air-based cooling technique segment owns the highest market share and is estimated to exhibit a CAGR of 7.82% during the forecast period.
North America is the most significant global green data center market shareholder and is estimated to exhibit a CAGR of 4.58% during the forecast period.

Competitive Players
The key global green data center market players are atNorth, Amazon Web Services, Aligned, Alibaba Cloud, Apple, AirTrunk Operating, Airtel (Nxtra Data), Cologix, Chayora, Canberra Data Centers, AQ Compute, Africa Data Centres, Big Data Exchange (BDx), and others.
Market News

In October 2022,
PhonePe, an indigenous fintech platform, introduced its first green data center in India, utilizing technologies and solutions by Dell Technologies and NTT. The facility offers PhonePe new data management opportunities, including efficient data security, power efficiency, operational simplicity, and cloud solutions.
In July 2023,
Sparkle, the infrastructure division of Telecom Italia, inaugurated the Panama Digital Gateway, a 3.5MW facility that is the country's first "green data center."

Global Green Data Center Market: Segmentation
By Infrastructure

Electrical Infrastructure
Mechanical Infrastructure
General Construction

By Cooling Technique

Air-based Cooling Technique
Liquid-Based Cooling Technique

By Regions

North America
Central and Eastern Europe
Nordics
Western Europe
Asia-Pacific
Latin America
The Middle East and Africa

MENAFN06092024004597010339ID1108643504