(Credit: Pexels)With the increase in advanced technologies and the need to make data center operations more sustainable, the green data center market is expected to surpass $300 billion by 2031, according to Allied Market Research.
The report looks at the green data center market by component, enterprise size, and industry. Allied Market Research says the market will grow by a CAGR of 20% from 2022 through 2031 and be valued at a total of $303.9 billion, up from $49.7 billion in 2021.
The rise of high-end cloud computing companies and an increase in expenditures for green data center technologies is driving the market, the report says. The continued rise of network upgrades to support technologies such as 5G will help keep demand strong.
Data Centers are energy- and water-intensive operations. With the growing need for data centers to fulfill operational and technological needs in a variety of industries, making them sustainable has become an increasing priority for companies.
Several recent projects have put a focus on data center initiatives. Castrol unveiled plans to build development and test facilities for immersion cooling technology to take on both energy and water wasted in data center operations. European data center operators set a water efficiency metric earlier this year.
A material traceability system by Aligned Data Centers is designed to take a transparent look at an operation’s carbon footprint by tracing the lifecycle of data center equipment as well as identifying recyclability options. Large technology companies such as Meta, Google, and Microsoft have all made developing more sustainable and efficient data centers a significant piece of their development strategies.
Large enterprises have dominated the market and created more than half of the green data center revenue in 2021. An increase in technology investments by small- and medium-sized businesses will have their share of the market grow by more than 21% a year through 2031, Allied Market Research says.
The media and entertainment industry is expected to see the highest market growth, especially with increased storage and data demands. The financial industry held one-fifth of the market share in 2021 due to the need for sustainable data management, the report finds.
The hardware aspect of green data centers will account for three-fifths of the global market throughout the forecast period, according to the report. However, the services segment is expected to have the highest CAGR during the forecast period, at 21.2%, due to a surge in the adoption of professional services for the integration and deployment of green data center platforms.
North America holds the highest share of the market, accounting for nearly two-fifths of the market share in 2021, according to the report. Asia-Pacific will see the highest growth throughout the forecast period, with nearly a 25% CAGR.
Key players in the green data center market according to Allied Market Research include ABB, Cyber Power Systems, Dell Technologies, Delta Electronics, Digital Realty Trust, Eaton, Hewlett-Packard, Huawei Technologies, IBM Corporation, NEC, Nortek Air Solutions, NTT, Schneider Electric, and ZutaCore.
