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Market Overview

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The global green data center market is projected to reach a size of USD 35.18 billion by 2027, growing at a CAGR of 7.58% from 2022 to 2027. The market has become known for its ability to help companies reduce energy costs and achieve significant savings. Governments worldwide are implementing policies to support the green data center market in order to reduce emissions and power consumption from these facilities. For example, Pennsylvania has announced the construction of one of the largest government solar energy projects in the United States, known as the Pennsylvania PULSE project. This initiative involves the development of seven large solar arrays across different counties, contributing to the growth of the North America green data center market.

A green data center is a physical facility designed to maximize energy efficiency and minimize environmental impact. It incorporates efficient infrastructure, such as servers, cooling systems, and power systems. The focus on green data centers is driven by the need to reduce carbon dioxide emissions generated by power generators, which is further encouraged by government carbon taxes. Green data centers not only help protect the environment but also offer cost savings. The global green data center market, based on power capacity, was valued at 5,495 MW in 2021 and is expected to grow at a CAGR of 6.11% to reach 7,842 MW by 2027.

Major hyperscale operators like AWS, Facebook, Google, and Microsoft are leading investors in renewable energy. AWS, for instance, has 274 renewable projects globally, including utility-scale wind and solar projects, as well as on-site solar projects. Colocation operators such as Equinix, Digital Realty, CyrusOne, and QTS Realty Trust are also making significant investments in renewable energy to align with their sustainability goals, contributing to the global green data center market.

The North America green data center market is a mature market with a growth rate of 3.75% during 2021-2027. North America and Europe are leading in the adoption of renewable energy and sustainable green data center technologies. Most facilities in these regions are green certified and utilize renewable energy sources.

The Asia-Pacific (APAC) market is experiencing rapid growth in renewable energy investment. Although APAC lags behind in green deployment, it is expected to accelerate over the forecast period. Colocation providers dominate the APAC industry, followed by internet and cloud service providers who rely on colocation providers for wholesale space.

The increasing number of hyperscale centers worldwide and the demand for powering these facilities with renewable energy will significantly contribute to the revenue growth of renewable energy suppliers, energy companies, and the global green data center market.

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Market Segmentation

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The market is segmented based on various factors, including infrastructure, electrical infrastructure, mechanical infrastructure, cooling systems, cooling technique, general construction, tier standards, geography.

Segmentation by Infrastructure
IT Infrastructure
Electrical Infrastructure
Mechanical Infrastructure
General Construction

Segmentation by IT Infrastructure
Server
Storage
Network

Segmentation by Electrical Infrastructure
UPS Systems
Generators
Transfer Switches & Switchgear
PDUS
Other Electrical Infrastructure

Segmentation by Mechanical Infrastructure
Cooling Systems
Racks
Other Mechanical Infrastructure

Segmentation by Cooling Systems
CRAC & CRAH Units
Chiller Units
Cooling Towers, Condensers, & Dry Coolers
Economizers & Evaporative Coolers
Other Cooling Units

Segmentation by Cooling Technique
Air-Based Cooling Technique
Liquid-Based Cooling Technique

Segmentation by General Construction
Core & Shell Development
Installation & Commissioning Services
Building & Engineering Design
Physical Security
Fire Detection & Suppression
DCIM/BMS

Segmentation by Geography
North America – US, Canada
Latin America – Brazil, Other Latin American Countries
Western Europe – UK, Germany, France, Netherlands, Ireland, Switzerland, Other Western European Countries
Nordics – Sweden, Denmark, Norway, Finland & Iceland
Central & Eastern Europe- Russia & Czech Republic, Poland & Austria, Other Central & Eastern Europe
Middle East – UAE, Saudi Arabia, Other Middle Eastern Countries
Africa – South Africa, Other African Countries
APAC – China & Hong Kong, Australia & New Zealand, Japan, India, South Korea, Rest Of APAC, Southeast Asia

The green data center market is expected to witness an increasing adoption of lithium-ion batteries, Nickle-Zinc batteries, and Prussian Blue sodium-ion batteries. Among these, lithium-ion batteries are projected to experience a steep adoption rate.

Microgrids are evolving as a reliable power backup solution for grids, particularly benefiting regions with higher power costs and uncertain power supplies.

In terms of power generation, natural gas generators are likely to replace diesel generators due to their lower carbon emissions. Additionally, fuel cells, especially those powered by natural gas or hydrogen, will emerge as prime or backup power sources for data centers. Operators have already started adopting fuel cells in their operations.

A notable development in the green data center market is the emergence of HVO (Hydrotreated Vegetable Oil), a 100% biodegradable, sustainable, and non-toxic alternative to conventional fossil fuels. Operators such as Kao Data and Interxion have already adopted HVO as a convenient and environmentally friendly fuel option.

To optimize energy efficiency, data center operators are using free cooling methods that reduce water and power usage for cooling IT infrastructure. Furthermore, underwater and floating data centers are gaining traction, with companies like Nautilus Data Technologies and Beijing Highlander leading the way in deploying such facilities. Some operators also explore unconventional cooling methods, such as using snow, as seen in Japan.

Waste heat generated by data centers presents an opportunity to reduce operational expenses by selling the excess heat. This practice is gaining attention, and district heating systems are expected to be adopted in North America, Western Europe, South Korea, Japan, parts of China, and Australia in the coming years.

Key operators and architecture/engineering firms are continuously evolving the design and engineering of data center facilities, leading to multiple innovations in the green data center market. Modular facility build-outs address challenges such as high PUE (Power Usage Effectiveness), high operational costs, and environmental impact associated with traditional data centers. The use of templatized plug-and-play modules in modular data center deployment streamlines material requirements and minimizes wastage.

As countries deploy 5G networks, there will be a development of Performance-Optimized Datacenter (POD) facilities in places like Australia, the United States, and China. Developing regions such as Latin America, Eastern Europe, Southeast Asia, and the Middle East & Africa are also expected to witness modular deployment to operate in a green environment.

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Competitive Landscape

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The AES Corporation, Datafarm Energy, DESRI, EDF Renewables, NTR, Ørsted, Engie, Sunseap Group, Enel Group, Rocky Mountain Power, TotalEnergies, RWE Renewables, and Avaada Energy are among the energy companies that globally supply renewable power to hyperscale operators. These hyperscale operators have entered into power purchase agreements with renewable energy providers and government power entities.

Major data center service providers, including Digital Realty, Equinix, Vantage Data Centers, QTS Realty Trust, CyrusOne, STACK Infrastructure, and STT Telemedia, are actively operating data centers that utilize renewable energy. These providers have set a goal of achieving carbon neutrality by 2030. STACK Infrastructure and Equinix, for instance, currently power their facilities using 100% renewable energy sources.

Key companies profiled in this report include 21Vianet Group, Africa Data Centres, AQ Compute, Airtel, AirTrunk Operating, Apple, Alibaba Cloud, Aligned, Amazon Web Services, atNorth, Big Data Exchange (BDx), Bridge Data Centres, Canberra Data Centers, Chayora, Chindata, Cologix, Colt Data Centre Services (COLT DCS), Compass Datacenters, COPT Data Center Solutions, CoreSite Realty, CyrusOne, DATA4, DataBank, DigiPlex, Digital Realty, EdgeConneX, Etisalat Group, Equinix, Facebook (Meta), Flexential, GDS Services, Global Switch, Google, Green Mountain (AZRIELI GROUP), HostDime, Huawei Technologies, Iron Mountain, Keppel Data Centres, Microsoft, Moro Hub, Nautilus Data Technologies, Netia, NEXTDC, NTT Global Data Centers, ODATA, Oracle, Orange Business Services, Pure Data Centres Group, QTS Realty Trust, RackBank, Raxio Group, Rostelecom Data Centers, Scala Data Centers, Sify Technologies, STACK INFRASTRUCTURE, ST Telemedia Global Data Centres, Switch, Tenglong Holdings Group, T5 Data Centers, Vantage Data Centers, Yandex, Yondr, Yotta Infrastructure Solutions.

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Key Questions Answered

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What is the projected size of the global green data center market by 2027?

The global green data center market is expected to reach a size of USD 55.18 billion by 2027. This growth is attributed to benefits such as reduced electrical power consumption, decreased e-waste, and government initiatives supporting sustainability.

What is the anticipated growth rate of the global green data center market?

The global green data center market is forecasted to grow at a compound annual growth rate (CAGR) of 7.58% from 2022 to 2027.

Who are the major investors in the global green data center market?

Key investors in the global green data center market include hyperscale operators such as AWS, Microsoft, Google, and Facebook, as well as colocation operators like Digital Realty, Equinix, CyrusOne, AirTrunk Operating, and ST Telemedia Global Data Centres.

How would you define a green data center?

A green data center refers to a physical facility where the infrastructure, including servers, cooling systems, and power systems, is designed with optimal energy efficiency and minimal environmental impact.

What are the driving factors behind the growth of the global green data center market?

The growth of the global green data center market is driven by initiatives promoting the use of renewable energy by hyperscale and cloud operators, increasing adoption of cloud services, as well as automation and intelligent monitoring solutions. Additionally, the growing interest from governments and operators in reducing power consumption and carbon emissions contributes to market development.

Which region holds the largest share of the global green data center market?

The North American region currently holds the largest share of the global green data center market. This can be attributed to early availability and adoption of innovative technologies, as well as investments from colocation service providers and government agencies in the region.