Green Data Center Market

Global Green Data Center Market Overview:

The Green Data Center Market size was valued at USD 20.82 Billion in 2023. The green data center industry is projected to grow from USD 28.71 Billion in 2024 to USD 272.30 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 32.47% during the forecast period (2024 - 2032). The rise in demand for data storage and storage space, the rapid shift toward renewable power sources, and growing government initiatives to lower PUE are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Green Data Center Market Trends

• The emergence of Al in cooling and power technologies is driving market growth.

Market CAGR for the green data center is driven by the rising Al in cooling and power technologies. Al and ML are anticipated to play a major role in the future to efficiently power and cool data centers worldwide. For instance, Google has been collaborating with the British artificial intelligence startup DeepMind to create an Al algorithm that would enable reducing the electricity needed for cooling without necessitating costly data centre relocations. 

Al approaches the cooling power problem by optimizing effective power management. Leveraging deep learning techniques, Al breaks down vast quantities of historical data from several aspects of operating the data center and uses predictive modeling to gauge the effect on energy utilization. Google and DeepMind's algorithm, AlphaGo, involves the trial-and-error reinforcement education model to find out the best framework for cooling infrastructure, such as fans and ventilation, which would most virtually lower energy utilization. Recommendations from AlphaGo were then involved at Google's data centers, showing a 40% decrease in power expenses related to the cooling systems.

Additionally, the rapidly surging data traffic escalates the demand for efficient data storage and management. The green data center offers eco-friendly and effective data storage with reduced energy utilization. Thus, the optimistic outlook of the data center storage needs and the growing demand to decrease overall operational expenditure would likely drive the green data center's market growth. In various countries, the government is taking active measures to develop sustainable, eco-friendly, energy-efficient, and cost-effective data centers. Thus, stringent environmental energy-saving regulations will drive the green data center market revenue.

The green data center market is highly competitive because many players run their businesses domestically and internationally. The market is moderately concentrated. The prominent strategies adopted by the major players are product innovation and mergers and acquisitions. For instance, In November 2022, SB Energy Global partnered with Google to supply 942 MW of Green Energy to match Google's texas Data center consumption. Under the partnership, Google's investment in Texas and commitment to clean energy will be supported by 75% of the renewable energy generated by four solar projects of SB Energy that have a combined capacity of 1.2 gigawatts and are currently under construction. These projects aim to be operational by the middle of 2024.

Green Data Center Market Segment Insights:

Green Data Center Component Insights

The Green Data Center Market segmentation, based on components, includes hardware {servers, cooling equipment, power units, networking components}, and software. The hardware segment dominated the market, accounting for 35% of market revenue (7.29 Billion). In developing economies, category growth is driven by the growing adoption of various green initiatives solutions such as power systems and cooling equipment. However, the software is the fastest-growing category due to the growing adoption of green data services among end-users, as they ensure the effective functioning of solutions and platforms throughout the process.

Green Data Center Organization Size Insights

The Green Data Center Market segmentation, based on organization size, includes small & medium enterprises and large enterprises. The large enterprises' segment dominated the market over the forecast period due to large organizations' increased use of large data centers. However, small & medium enterprises are the fastest-growing category as they provide superior ceiling services implementation and a streamed operation flow on the production floor.

Green Data Center Verticals Insights

The Green Data Center Market segmentation, based on verticals, includes healthcare & life science, BFSI, IT & telecom, the public sector, and others. The BFSI segment dominated the market as green data centers provide a broad range of services to BFSI. All BFSI institutes and companies necessarily require intensively safe data transactions and storage. However, IT & telecom is the fastest-growing category as a massive amount of safe data must be stored and accessed in the healthcare sector.

Green Data Center End Users Insights

The Green Data Center Market segmentation, based on end users, includes cloud service providers and colocation providers. The cloud service providers category generated the most income (70.4%). This is due to the growing understanding of businesses about the advantages of scalability and flexibility by being available by the constraints levied by on-premises servers. However, colocation providers are the fastest-growing category due to the growing adoption of data centers among smaller businesses with limited IT resources.

Figure 1: Green Data Center Market, by End Users, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Green Data Center Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American green data center market will dominate owing to an increase in digitalization and adoption of green data center solutions by various sectors such as manufacturing, BFSI, and governments in this region. Further, the US green data center market held the largest market share, and the Canadian green data center market was the fastest-growing market in the North American region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Green Data Center Market SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's green data center market accounts for the second-largest market share due to the rapidly expanding population and the advent of e-commerce in this region. Further, the German green data center market held the largest market share, and the UK green data center market was the fastest-growing market in the European region.

The Asia-Pacific green data center market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to increasing IT and telecommunication sectors and enhancement in the healthcare industry driving the market in this region. Moreover, China’s green data center market held the largest market share, and the Indian green data center market was the fastest-growing market in the Asia-Pacific region.

Green Data Center Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the green data center market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the green data center industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global green data center industry to benefit clients and increase the market sector. Major players in the green data center market, including Schneider Electric SE, Hewlett Packard Enterprise Company, Green Revolution Cooling, Inc., Eaton Corporation PLC, Dell Technologies, Inc., and others, are attempting to increase market demand by investing in R&D operations.

Dell Technologies Inc provides desktop personal computers, software, and peripherals. The firm designs, manufactures, markets, sells, develops, and supports information technology infrastructure such as laptops, mobiles, desktops, workstations, storage devices, cloud solutions, software, and notebooks. It markets products under Dell, Pivotal, Dell EMC, SecureWorks, and Alienware, brand names. Dell also delivers a range of financial services, such as collecting, originating, and servicing customer receivables financing agreements related to the usage of its products, software, and service solutions. 

Dell serves corporate businesses, educational institutions, government, healthcare organizations, law enforcement agencies, and small and medium-sized businesses. In November 2020, Dell Technologies partnered with FedEx Corp and Switch Inc.; the companies developed a series of data centers all over the US to support low-latency edge workloads. Under this partnership, FedEx provides real estate and emerges as the first customer. In contrast, Switch develops the data center infrastructure, and Dell Technologies delivers storage, cloud computing, networking, and support services.

Volkswagen AG (Volkswagen), a Porsche Automobil Holding SE subsidiary, is an automobile manufacturer. The company develops vehicles and engines and produces and sells passenger cars, trucks, buses and motorcycles, light commercial vehicles, genuine parts, turbomachinery, large-bore diesel engines, propulsion components, special gear units and testing systems. It also provides leasing, banking and insurance, dealer and customer financing, fleet management and mobility services. Volkswagen markets products under brands such as Volkswagen, Porsche, Bugatti, Lamborghini, Bentley, Audi, Ducati, Scania and Cupra. 

In November 2022, Volkswagen AG aims to make its data center operations net carbon neutral by 2027. The company has enhanced its computing capacities at the Norwegian operator of CO₂-neutral data centers to reach this goal by partnering with Green Mountain. The partnership with Green Mountain will allow Volkswagen to hit this target, with all servers at Green Mountain running on 100% renewable electricity generated by hydropower. At the same time, they are naturally cooled by the adjacent fjord.

Key Companies in the Green Data Center market include

• Schneider Electric (France)

• Vertiv (US)

• Hewlett Packard Enterprise (US)

• Green Revolution Cooling (US)

• Midas Green Technologies (US)

• Delta Electronics (Taiwan)

• Rittal (Germany)

• Eaton (Ireland)

• Cisco (US)

• Nortek Air Solutions (US)

• Dell Technologies (US)

• Asetek (Denmark)

• Airedale (UK)

• Lenovo (Hong Kong)

Green Data Center Industry Developments

October 2022: Phonepe launched its first Green Data Center in India in Navi Mumbai using the technologies and solutions from Dell Technologies and NTT. The data center is built and designed with advanced alternative cooling technologies like direct contact liquid cooling (DCLC) and liquid immersion cooling (LIC) and has a 4.8 MW facility built in 13740 sqft.

Green Data Center Market Segmentation:

Green Data Center Component Outlook

• Hardware

• Servers

• Cooling Equipment

• Power Units

• Networking Components

• Software

Green Data Center Organization Size Outlook

• Small & Medium Enterprises

• Large Enterprises

Global Green Data Center Verticals Outlook

• Healthcare & Life Science

• BFSI

• IT & Telecom

• Public Sector

• Others

Global Green Data Center End Users Outlook

• Cloud Service Providers

• Colocation Providers

Green Data Center Regional Outlook

• North America

• US

• Canada

• Europe

• Germany

• France

• UK

• Italy

• Spain

• Rest of Europe

• Asia-Pacific

• China

• Japan

• India

• Australia

• South Korea

• Australia

• Rest of Asia-Pacific

• Rest of the World

• Middle East

• Africa

• Latin America

Green Data Center Market Segmentation

Green Data Center Component Outlook (USD Billion, 2018-2032)

• Hardware

• Servers

• Cooling Equipment

• Power Units

• Networking Components

• Software

Green Data Center Organization Size Outlook (USD Billion, 2018-2032)

• Small & Medium Enterprises

• Large Enterprises

Green Data Center Verticals Outlook (USD Billion, 2018-2032)

• Healthcare & Life Science

• BFSI

• IT & Telecom

• Public Sector

• Others

Green Data Center End Users Outlook (USD Billion, 2018-2032)

• Cloud Service Providers

• Colocation Providers

Green Data Center Regional Outlook (USD Billion, 2018-2032)

• North America Outlook (USD Billion, 2018-2032)

  • North America Green Data Center by Component

    • Hardware

      • Servers

      • Cooling Equipment

      • Power Units

      • Networking Components

    • Software

  • North America Green Data Center by Organization Size

    • Small & Medium Enterprises

    • Large Enterprises

  • North America Green Data Center by Verticals

    • Healthcare & Life Science

    • BFSI

    • IT & Telecom

    • Public Sector

    • Others

  • North America Green Data Center by End Users

    • Cloud Service Providers

    • Colocation Providers

  • US Outlook (USD Billion, 2018-2032)

  • US Green Data Center by Component

    • Hardware

      • Servers

      • Cooling Equipment

      • Power Units

      • Networking Components

    • Software

  • US Green Data Center by Organization Size

    • Small & Medium Enterprises

    • Large Enterprises

  • US Green Data Center by Verticals

    • Healthcare & Life Science

    • BFSI

    • IT & Telecom

    • Public Sector

    • Others

  • US Green Data Center by End Users

    • Cloud Service Providers

    • Colocation Providers

  • CANADA Outlook (USD Billion, 2018-2032)

  • CANADA Green Data Center by Component

    • Hardware

      • Servers

      • Cooling Equipment

      • Power Units

      • Networking Components

    • Software

  • CANADA Green Data Center by Organization Size

    • Small & Medium Enterprises

    • Large Enterprises

  • CANADA Green Data Center by Verticals

    • Healthcare & Life Science

    • BFSI

    • IT & Telecom

    • Public Sector

    • Others

  • CANADA Green Data Center by End Users

    • Cloud Service Providers

    • Colocation Providers

• Europe Outlook (USD Billion, 2018-2032)

  • Europe Green Data Center by Component

    • Hardware

      • Servers

      • Cooling Equipment

      • Power Units

      • Networking Components

    • Software

  • Europe Green Data Center by Organization Size

    • Small & Medium Enterprises

    • Large Enterprises

  • Europe Green Data Center by Verticals

    • Healthcare & Life Science

    • BFSI

    • IT & Telecom

    • Public Sector

    • Others

  • Europe Green Data Center by End Users

    • Cloud Service Providers

    • Colocation Providers

  • Germany Outlook (USD Billion, 2018-2032)

  • Germany Green Data Center by Component

    • Hardware

      • Servers

      • Cooling Equipment

      • Power Units

      • Networking Components

    • Software

  • Germany Green Data Center by Organization Size

    • Small & Medium Enterprises

    • Large Enterprises

  • Germany Green Data Center by Verticals

    • Healthcare & Life Science

    • BFSI

    • IT & Telecom

    • Public Sector

    • Others

  • Germany Green Data Center by End Users

    • Cloud Service Providers

    • Colocation Providers

  • France Outlook (USD Billion, 2018-2032)

  • France Green Data Center by Component

    • Hardware

      • Servers

      • Cooling Equipment

      • Power Units

      • Networking Components

    • Software

  • France Green Data Center by Organization Size

    • Small & Medium Enterprises

    • Large Enterprises

  • France Green Data Center by Verticals

    • Healthcare & Life Science

    • BFSI

    • IT & Telecom

    • Public Sector

    • Others

  • France Green Data Center by End Users

    • Cloud Service Providers

    • Colocation Providers

  • UK Outlook (USD Billion, 2018-2032)

  • UK Green Data Center by Component

    • Hardware

      • Servers

      • Cooling Equipment

      • Power Units

      • Networking Components

    • Software

  • UK Green Data Center by Organization Size

    • Small & Medium Enterprises

    • Large Enterprises

  • UK Green Data Center by Verticals

    • Healthcare & Life Science

    • BFSI

    • IT & Telecom

    • Public Sector

    • Others

  • UK Green Data Center by End Users

    • Cloud Service Providers

    • Colocation Providers

  • ITALY Outlook (USD Billion, 2018-2032)

  • ITALY Green Data Center by Component

    • Hardware

      • Servers

      • Cooling Equipment

      • Power Units

      • Networking Components

    • Software

  • ITALY Green Data Center by Organization Size

    • Small & Medium Enterprises

    • Large Enterprises

  • ITALY Green Data Center by Verticals

    • Healthcare & Life Science

    • BFSI

    • IT & Telecom

    • Public Sector

    • Others

  • ITALY Green Data Center by End Users

    • Cloud Service Providers

    • Colocation Providers

  • SPAIN Outlook (USD Billion, 2018-2032)

  • Spain Green Data Center by Component

    • Hardware

      • Servers

      • Cooling Equipment

      • Power Units

      • Networking Components

    • Software

  • Spain Green Data Center by Organization Size

    • Small & Medium Enterprises

    • Large Enterprises

  • Spain Green Data Center by Verticals

    • Healthcare & Life Science

    • BFSI

    • IT & Telecom

    • Public Sector

    • Others

  • Spain Green Data Center by End Users

    • Cloud Service Providers

    • Colocation Providers

  • Rest Of Europe Outlook (USD Billion, 2018-2032)

  • Rest Of Europe Green Data Center by Component

    • Hardware

      • Servers

      • Cooling Equipment

      • Power Units

      • Networking Components

    • Software

  • Rest Of Europe Green Data Center by Organization Size

    • Small & Medium Enterprises

    • Large Enterprises

  • Rest Of Europe Green Data Center by Verticals

    • Healthcare & Life Science

    • BFSI

    • IT & Telecom

    • Public Sector

    • Others

  • REST OF EUROPE Green Data Center by End Users

    • Cloud Service Providers

    • Colocation Providers

• Asia-Pacific Outlook (USD Billion, 2018-2032)

  • Asia-Pacific Green Data Center by Component

    • Hardware

      • Servers

      • Cooling Equipment

      • Power Units

      • Networking Components

    • Software

  • Asia-Pacific Green Data Center by Organization Size

    • Small & Medium Enterprises

    • Large Enterprises

  • Asia-Pacific Green Data Center by Verticals

    • Healthcare & Life Science

    • BFSI

    • IT & Telecom

    • Public Sector

    • Others

  • Asia-Pacific Green Data Center by End Users

    • Cloud Service Providers

    • Colocation Providers

  • China Outlook (USD Billion, 2018-2032)

  • China Green Data Center by Component

    • Hardware

      • Servers

      • Cooling Equipment

      • Power Units

      • Networking Components

    • Software

  • China Green Data Center by Organization Size

    • Small & Medium Enterprises

    • Large Enterprises

  • China Green Data Center by Verticals

    • Healthcare & Life Science

    • BFSI

    • IT & Telecom

    • Public Sector

    • Others

  • China Green Data Center by End Users

    • Cloud Service Providers

    • Colocation Providers

  • Japan Outlook (USD Billion, 2018-2032)

  • Japan Green Data Center by Component

    • Hardware

      • Servers

      • Cooling Equipment

      • Power Units

      • Networking Components

    • Software

  • Japan Green Data Center by Organization Size

    • Small & Medium Enterprises

    • Large Enterprises

  • Japan Green Data Center by Verticals

    • Healthcare & Life Science

    • BFSI

    • IT & Telecom

    • Public Sector

    • Others

  • Japan Green Data Center by End Users

    • Cloud Service Providers

    • Colocation Providers

  • India Outlook (USD Billion, 2018-2032)

  • India Green Data Center by Component

    • Hardware

      • Servers

      • Cooling Equipment

      • Power Units

      • Networking Components

    • Software

  • India Green Data Center by Organization Size

    • Small & Medium Enterprises

    • Large Enterprises

  • India Green Data Center by Verticals

    • Healthcare & Life Science

    • BFSI

    • IT & Telecom

    • Public Sector

    • Others

  • India Green Data Center by End Users

    • Cloud Service Providers

    • Colocation Providers

  • Australia Outlook (USD Billion, 2018-2032)

  • Australia Green Data Center by Component

    • Hardware

      • Servers

      • Cooling Equipment

      • Power Units

      • Networking Components

    • Software

  • Australia Green Data Center by Organization Size

    • Small & Medium Enterprises

    • Large Enterprises

  • Australia Green Data Center by Verticals

    • Healthcare & Life Science

    • BFSI

    • IT & Telecom

    • Public Sector

    • Others

  • Australia Green Data Center by End Users

    • Cloud Service Providers

    • Colocation Providers

  • Rest of Asia-Pacific Outlook (USD Billion, 2018-2032)

  • Rest of Asia-Pacific Green Data Center by Component

    • Hardware

      • Servers

      • Cooling Equipment

      • Power Units

      • Networking Components

    • Software

  • Rest of Asia-Pacific Green Data Center by Organization Size

    • Small & Medium Enterprises

    • Large Enterprises

  • Rest of Asia-Pacific Green Data Center by Verticals

    • Healthcare & Life Science

    • BFSI

    • IT & Telecom

    • Public Sector

    • Others

  • Rest of Asia-Pacific Green Data Center by End Users

    • Cloud Service Providers

    • Colocation Providers

• Rest of the World Outlook (USD Billion, 2018-2032)

  • Rest of the World Green Data Center by Component

    • Hardware

      • Servers

      • Cooling Equipment

      • Power Units

      • Networking Components

    • Software

  • Rest of the World Green Data Center by Organization Size

    • Small & Medium Enterprises

    • Large Enterprises

  • Rest of the World Green Data Center by Verticals

    • Healthcare & Life Science

    • BFSI

    • IT & Telecom

    • Public Sector

    • Others

  • Rest of the World Green Data Center by End Users

    • Cloud Service Providers

    • Colocation Providers

  • Middle East Outlook (USD Billion, 2018-2032)

  • Middle East Green Data Center by Component

    • Hardware

      • Servers

      • Cooling Equipment

      • Power Units

      • Networking Components

    • Software

  • Middle East Green Data Center by Organization Size

    • Small & Medium Enterprises

    • Large Enterprises

  • Middle East Green Data Center by Verticals

    • Healthcare & Life Science

    • BFSI

    • IT & Telecom

    • Public Sector

    • Others

  • Middle East Green Data Center by End Users

    • Cloud Service Providers

    • Colocation Providers

  • Africa Outlook (USD Billion, 2018-2032)

  • Africa Green Data Center by Component

    • Hardware

      • Servers

      • Cooling Equipment

      • Power Units

      • Networking Components

    • Software

  • Africa Green Data Center by Organization Size

    • Small & Medium Enterprises

    • Large Enterprises

  • Africa Green Data Center by Verticals

    • Healthcare & Life Science

    • BFSI

    • IT & Telecom

    • Public Sector

    • Others

  • Africa Green Data Center by End Users

    • Cloud Service Providers

    • Colocation Providers

  • Latin America Outlook (USD Billion, 2018-2032)

  • Latin America Green Data Center by Component

    • Hardware

      • Servers

      • Cooling Equipment

      • Power Units

      • Networking Components

    • Software

  • Latin America Green Data Center by Organization Size

    • Small & Medium Enterprises

    • Large Enterprises

  • Latin America Green Data Center by Verticals

    • Healthcare & Life Science

    • BFSI

    • IT & Telecom

    • Public Sector

    • Others

  • Latin America Green Data Center by End Users

    • Cloud Service Providers

    • Colocation Providers