Green Data Center Market size was valued at USD 84.92 billion in 2024 and is likely to cross USD 683.43 billion by 2037, registering more than 17.4% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of green data center is estimated at USD 96.74 billion. The requirement for green data centers is primarily being driven by the increase in demand for storage space and data storage. Huawei predicts that during the slated period, the demand for data centers will rise three to ten times globally.
Due to new construction brought about by regulations and the predicted rise in the need to reduce operational expenditure, along with the positive outlook for data center storage needs and the need to reduce energy consumption. green data centers offer practical and environmentally friendly options in terms of data storage and decrease in energy consumption should see high demand.
Green data centers use cutting-edge technologies including power management tools, sophisticated cooling systems, and virtualization to prioritize energy economy. These centers lower operating expenses considerably by reducing energy use, which attracts enterprises financially.
Green data centers are also using more and more renewable energy sources to harness the power of nature. By utilizing renewable energy sources like solar, wind, and hydroelectric power plants, we can lessen our need for fossil fuels and reduce our carbon footprint.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
17.4% |
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Base Year Market Size (2024) |
USD 84.92 billion |
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Forecast Year Market Size (2037) |
USD 683.43 billion |
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Regional Synopsis |
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Component (Solutions, Services)
In green data center market, solution segment is likely to hold more than 60% share by 2037. Cooling systems, electrical systems, network systems, management and monitoring systems, and other systems are included in the green data center solutions. It is anticipated that the segment's demand will be fuelled by the rising need for cooling systems, which will accelerate market expansion. More energy-efficient technology is used in the construction and design of these solutions, which eventually lowers operating expenses. Numerous businesses are examining the possibility of significant cost reductions in terms of upkeep and electricity bills.
Industry Vertical (BFSI, Power, IT & Telecom, Media & Entertainment, Healthcare, Government & Defense, Retail, Manufacturing)
In terms of industry vertical, the BFSI segment is assessed to hold a significant green data center market share between 2024-2037. This can be attributed to the increasing adoption of green data centers in this sector as a result of special regulatory pressures, industry dynamics, and increased emphasis on ensuring efficient operation with environmental sustainability.
Due to the energy-efficient, resilient technology, green data centers help reduce risks associated with interruptions of power supply, security breaches, and compliance infringements. It's good to see that, in 2022, 41% of respondents in the banking sector expect to increase investments in risk management technologies by up to 10%.
Our in-depth analysis of the global market includes the following segments:
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Component |
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Industry Vertical |
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Enterprise Size |
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North American Market Forecast
Green data center market in the North America region is set to hold the largest revenue share of 37% during the period between 2024-2037. This growth in the region can be impelled by the presence of numerous services and software providers.
The US, followed by Canada, is estimated to dominate the North American landscape, with high investments by colocation providers and hyperscale data center operators. The request for cost-effective and effective control arrangements has expanded, with more offices being created as green information centers in North America. Data centers account for around 2% of all electricity use in the United States, as claimed by the Department of Energy.
The main factors driving demand for new data center infrastructure in this region are the expansion of broadband access, 5G deployment, and a shift towards big data analytics and cloud computing services.
APAC Market Statistics
The green data center market in the Asia Pacific region is poised to hold a substantial share by the end of the forecast period. Increasing electricity demand is slated to drive growth in the Asia Pacific region, as to manage energy costs, a growing emphasis is placed on optimizing energy use and adopting environmentally friendly practices.
In addition, more stringent rules on energy consumption and emissions are being implemented by several countries in the Asia Pacific region.
Author Credits: Abhishek Verma
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