Green Data Centers Market By Solution (Monitoring & Management Systems, Networking Systems, Power Systems, and Others), Services (Consulting, Maintenance, System Integration, and Others), and Application (BFSI, Government, IT & Telecommunications, and Others), and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 - 2030

Market Perspective

The global Green Data Centers Market was valued at USD 50.21 billion in 2022 and is projected to reach a valuation of USD 187.71 billion by 2030 at a CAGR of roughly 19.52% between 2023 and 2030.

Green data centers are poised to drive multiple industry verticals throughout the forecast period due to their lower environmental impacts, improved energy efficiency, and sustainable integrated systems. These key factors are expected to support market growth, particularly as governments and regional commissions in both developed and developing countries offer encouraging policies to promote sustainability.

One of the defining characteristics of green data centers is their reliance on energy generated from sustainable or renewable sources. With an increase in industry verticals, the market is witnessing an increase in the number of corresponding data centers around the globe. According to the International Energy Agency, electricity consumption by data centers has already increased by 5%. However, the adoption of artificial intelligence in green data centers is expected to drive energy efficiency by enabling intelligent solutions and continuous monitoring.

Currently, the most prominent regions driving the expansion of the green data center market are North America, Europe, and Asia Pacific. Cold regions are expected to see significant growth as a result of the efficient cooling processes that are particularly effective in these areas. The United States currently leads the world in the number of green data centers, followed closely by Germany, China, and India, which is rapidly emerging as a key market for green data centers. In 2022, there were a total of 8,000 data centers globally.

Key Insights

• Based on the solution, the networking systems segment held the largest market share
• Based on application, the IT & telecommunication segment generated the highest revenue
• On the basis of region, North America accounted for the largest market share

Reduced Impacts of Green Data Centers On the Environment to Set the Trend

Increasing environmental concerns and the availability of sustainable solutions to lower the burden and dependency on conventional sources have contributed to the growing demand for green data centers. Innovative developments in sustainable solutions have also resulted in the utilization of efficient ways of cooling systems installed within the centers.

Additionally, support from countries in lowering the impact on the environment has aided the market. In 2022, energy efficiency in data centers was recorded at 10-20% as compared to previous years, owing to an increase in the generation of electricity through renewable sources.

High Capital Expenditure Associated with the Installation of Sustainable Systems Will Restrain the Market Growth

High capital costs associated with the installation or upgradation of green or sustainable data centers are anticipated to restrain market expansion, especially in developing countries. As a result, the entry of new players is restricted up to a certain extent. Additionally, setting up ecosystems to monitor and support the efficient operation of green data centers is associated with extra costs. However, favorable governmental support across the globe boosts the confidence of the market players and new entrants to some extent. Nevertheless, most of them are more likely to be reluctant for initial investments.

Recent Developments

In October 2022: Two of the modern and green data center facilities located in Stockholm were acquired by EcoDataCenter further expanding its solutions and services in Stockholm. This acquisition is anticipated to guide smart city infrastructure and solutions.

In June 2022: Infinity SDC Ltd., was acquired by Green Mountain AS, a green data center company in Norway. The data center is located in East London and it is the first acquisition for Green Mountain outside of Norway. Green Mountain AS was acquired by an investment group from Israel.

Segmentation Analysis

Based on the solution, the market is further categorized into monitoring & management systems, networking systems, power systems, and others. The networking systems held the largest share owing to increasing demand from businesses transitioning into digital platforms. Sustainable solutions have further fueled the expansion of this category. It is observed to be a complex structure aligning and connecting a network of servers, and routers. On the other hand, monitoring & management solutions are estimated to record the fastest growth owing to the increased dependability and importance of large data management.

Based on application, the market is further categorized into BFSI, Government, IT & telecommunications, and other applications. The IT & telecommunications category is generating the highest market revenue due to vast penetration and dependability on data centers for management, networking, and integration of systems. However, increasing the reliability of green data centers and transitioning of BFSI sector into digital markets is estimated to drive segmental growth further. Apart from this, the segment is projected to enjoy revenue growth on account of the rapid adoption of online transactions, payment portals, and other salient features offered by BFSI.

North America Dominates Global Green Data Centers Market

In 2022, North America dominated the global market by accounting for over 32% of the market. The widespread adoption and penetration of digital technology, IoT, online services, and solutions in every industry vertical along with rising concerns over conventional energy consumption are amongst key factors resulting in immense expansion of the green data center market.

In recent years, North America has observed a significant shift toward demand for green solutions in every industrial aspect. There has been a substantial increase in data centers consuming energy obtained from sustainable sources. Data center service providers are observed to be shifting to sustainable or green data centers owing to increasing awareness of sustainability in the region. The U.S. is the most prominent country in the region that has been contributing significantly towards the development of the market in North America.

Asia Pacific to Witness Fastest Growth in Green Data Centers Market

Asia Pacific is estimated to experience the fastest growth throughout the forecast period owing to the strong presence of rapidly developing countries such as China, India, Australia, and New Zealand, and developed countries such as South Korea and Japan. The adoption of online data solutions and services by businesses operating within the region has contributed to the largest revenue growth in recent years. The continued penetration of smart business solutions and the adoption of data center services are the key factors driving the market growth.

China and India are anticipated to contribute significantly owing to the increasing number of IT & telecommunications companies along with the adoption of technology in daily operations by the BFSI and government sectors. In 2022, there were more than 500 functional data centers in the Asia Pacific, with India having more than 150 out of the total. As reported by the Confederation of Indian Industry (CII), in 2022, there were over 35 data centers that were certified/registered with CII IGBC as green data centers. In the coming years, it is expected that a significant number of green data centers are likely to be built in the years to come.

Competitive Landscape

• Digital Realty Trust
• EQUINIX, INC.
• Hewlett Packard Enterprise Development LP
• Huawei Technologies Co., Ltd.
• Google
• Green Mountain AS
• Iron Mountain Incorporated
• Nortek Air Solutions, LLC
• Scala Data Centers
• SCHNEIDER ELECTRIC
• Siemens

The global green data centers market is segmented as follows:

By Solution

• Monitoring & Management Systems
• Networking Systems
• Power Systems
• Others

By Services

• Consulting
• Maintenance
• System Integration
• Others

By Application

• BFSI
• Government
• IT & Telecommunications Grade
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America