Global Sustainable Data Center Market Outlook and Forecasts 2024-2028: Increased Focus On Renewable Energy Sources and Efficient Cooling

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Mar 20, 2024, 12:30 ET

DUBLIN, March 20, 2024 /PRNewswire/ -- The "Global Sustainable Data Center Market - Outlook & Forecast 2023-2028" report has been added to ResearchAndMarkets.com's offering.

The global sustainable data center market by investment was valued at USD 31.25 billion in 2022 and is expected to grow at a CAGR of 9.72% from 2022-2028.

Policy drivers and regulations such as The Paris Agreement, the RE100, and certifications such as Leadership in Energy and Environmental Design (LEED) and ISO50001 drive Latin America's green data center development market. The Climate Neutral Data Centre Pact has played a significant role in increasing the sustainability of European data centers, as all signatories will be relying on renewable energy for their facilities by 2030. APAC data centers seek green certifications like LEED (Leadership in Energy and Environmental Design) and BCA Green Mark to showcase their commitment to sustainability.

North America, Nordic countries, Singapore, Germany, Netherlands, and Switzerland are using over 90% of renewable energy in their operations. APAC countries, other Western European Countries, and the UAE work at 60% - 70% of renewable energy in data centers. African countries, other LATAM countries, other Middle Eastern countries, and Southeast Asian countries, excluding Singapore, utilize 30% -40 % of renewable energy in data centers.

Large-Scale Colocation and Hyperscale Data Center Operators Driving the Sustainable Data Center Market

In North America, colocation vendors such as Equinix, Digital Realty, QTS Realty Trust, Vantage Data Centers, CyrusOne, Compass Datacenters, and hyperscale vendors such as Microsoft, AWS, Google, Apple, Meta, and others are adopting lithium-ion UPS systems, Microgrid systems, Smart-grid systems, and many newer support systems supporting the sustainable data center market growth.

Companies such as Eaton, Vertiv, Schneider Electric, and many others are supplying lithium-ion-based UPS systems, smart-grid solutions, and new switchgears compatible with different sources of power supplies.

KEY MARKET TRENDS

Increased Focus On Renewable Energy Sources and Efficient Cooling

Hyperscale players such as AWS, Google, Facebook (Meta), Microsoft, and Apple are procuring renewable energy for their data centers.
QTS Realty Trust meets 35% of its energy requirements from renewable energy with a target of 100% renewable energy by 2025.
Free cooling chillers will increase to reduce power consumption and carbon emissions by data centers. Also, the shift will increase towards liquid cooling, leading to more sustainable data centers and bringing down PUE to a range of 1.1 to 1.4.
Air and liquid immersion cooling will also be used in most facilities in the sustainable data center market to reduce their impact on the environment and the PUE of data centers.
A tropical test bed is being tested in Singapore to make data centers more efficient in a tropical climate. If successful, this can also positively impact the Latin American market and further reduce the PUE of facilities.

Emerging Trends to Power Data Centers

Hydrotreated Vegetable Oil (HVO) Fuel is among the emerging trends concept in the sustainable data center market; however, in Latin America, data center operators didn't adopt this technology, but there is a development from some of the oil companies that are involved in the development of the HVO fuel stations, wherein it is witnessed that during the forecast period at least some operators will introduce HVO in their facilities.
Microgrids can be adopted by data center operators functioning in regions with an uncertain power supply due to natural disasters and power fluctuations.
Modern UPS systems are being innovated to be modular and occupy less space in facilities. It is expected that with a significant increase in data being generated and stored, low tolerance for downtime, and need for sustainability, lithium-ion adoption will increase significantly.

Government Push Toward Sustainability

The US Department of Energy announced a USD 42 million fund under the Advanced Research Projects Agency-Energy (ARPA-E) project to fund suitable companies working in high-performance energy-efficient cooling solutions for data centers.
Various Latin American governments, including those of Chile, Brazil, and Uruguay, are actively working toward increasing the adoption of renewable energy in the country, which is projected to support sustainable data center market growth.
The European Union is continuously working toward making energy consumption completely green with new laws and regulations. In recent meetings, the European Union decided to increase renewable energy share in the energy mix to more than 40% by 2030.
Carbon neutrality is a priority in the Middle East & Africa as governments invest heavily in renewable energy and climate mitigation programs to achieve it. However, research on carbon neutrality in the region is limited, particularly considering the effects of renewable energy, economic growth, and government efficacy.
The Middle East & Africa is one of the most vulnerable to climate change, with harsh temperatures, deserts, coastal ecosystems, and high levels of air pollution. As a result, the region is expected to take the lead in climate mitigation and adaptation efforts.
Given the growing concern about the APAC region's electronic trash (e-waste), authorities may implement measures encouraging the appropriate disposal and recycling of obsolete data center equipment to reduce environmental impacts.

Deployment of Modular Data Centers and Sustainable Materials Gathering Momentum

In North America and other regions across the globe, modular data centers are small, portable groups of components needed to supply data center capacities such as servers, networking environment, and storage. Modular data centers are great substitutes for traditional data centers. It is highly predictable, efficient, and flexible.
The cost of operating a modular data center costs around 30% less than a traditional data center facility.
The environmental impact of modular data center deployment is also lower since it entails less or no usage of concrete and can be constructed in a phased manner, eliminating the need for additional labor.
Plant-based and other sustainable materials such as wood, hemp, and Mycelium, which can revolutionize the construction process for data centers, are also being adopted by data center operators.
Modular data centers worldwide have shown themselves to be especially well-suited for scenarios prioritizing company flexibility, accelerated market entrance, or fulfilling unique operational objectives.

Electrical Infrastructure

Efficient and sustainable power infrastructure replacing traditional power systems supports sustainable data center market growth.
The increasing demand for efficiency in data centers has fueled the growth of efficient infrastructure such as Lithium-ion UPS systems, fuel cells, HVO, natural gas generators, nuclear energy reactors, and more.
Rolls Royce announced its plan to offer small nuclear reactors for US-based cloud operators such as AWS, Google, and Microsoft.
AWS will use HVO across all of its European data centers. It has already replaced diesel with HVO in Ireland.

Mechanical Infrastructure

Most companies have deployed free and zero-water cooling, leveraging the cold temperature across the regions.
In its Stockholm-based STO01 data center in Sweden, STACK Infrastructure has deployed indirect evaporative cooling for energy efficiency.
Innovative cooling techniques, such as underwater and floating data centers, bring in more efficiency in data center cooling.
Nautilus Data Technologies, which builds sustainable and floating data centers, has signed leases for a new 7.5 MW data center in Marseille, France.
Denv-R announced plans to launch floating data center facilities, which will be cooled by river water to decrease energy consumption and CO2 emissions.

General Construction

Hyperscale operators such as AWS, Microsoft, Apple, and Google are leading in using sustainable materials for data center construction, propelling the sustainable data center market.
Companies introduce technologies such as green concrete, modular data centers, and more in their data center construction.
AWS and American Rock Products collaborated to develop sustainable concrete for a concrete mix for its data centers.
Companies are investing in additional infrastructure like Aquifer Thermal Storage Systems to conserve heat.
District heating is prevalent in Europe, where data center firms transfer heat generated from data centers to nearby offices/residential places/swimming pools, and others.
Nordic countries are leading in developing district heating with data center firms.

Market Opportunities & Trends

Innovative Data Center Power Technologies
Adoption of Advanced Ups Batteries
Software-Defined Data Centers & AI in Power Monitoring
Microgrids
Sustainable Innovations in Data Center Power Technology
Ecodiesel Generators
Natural Gas Generators
Fuel Cells
Hydrotreated Vegetable Oil (Hvo) Fuel
Nuclear Energy Generation
Other Innovations
Innovative Data Center Cooling Technologies
Free Cooling
Underwater Data Centers
Floating Data Centers
Other Innovative Cooling Technologies
AI & Hpc Applications Boosting Liquid Immersion & Direct-To-Chip Cooling Adoption
Increasing Adoption of District Heating Concept
Increase in Industrial Electricity Pricing
Growth in Data Centers Targeting Pue < 1.5
Adoption of Advanced IT Infrastructure
Converged & Hyperconverged Infrastructure
Arm-based Servers
Server Virtualization
Government Push for Sustainable Data Center Development

Market Growth Enablers

Renewable Energy Initiatives by Hyperscale & Cloud Operators
Renewable Energy Initiatives by Colocation & Enterprise Operators
Growing Cloud Services Adoption
Automation & Intelligent Monitoring Solutions
Deployment of Modular Data Centers & Gensets

Market Restraints

Rising Carbon Emissions from Data Centers
Water Consumption by Data Centers
Lack of Skilled Data Center Professionals
Location Constraints for Sustainable Data Centers

Key Company Profiles

Africa Data Centres
Airtel (Nxtra Data)
AirTrunk
Alibaba Cloud
Aligned Data Centers
Amazon Web Services (AWS)
American Tower
Apple
AQ Compute
Atman
atNorth
Big Data Exchange (BDx)
CDC Data Centres
Chayora
China Telecom
Chindata Group
CloudHQ
Cologix
Colt Data Centre Services (COLT DCS)
Corscale Data Centers
Compass Datacenters
CtrlS Datacenters
CyrusOne
Cyxtera Technologies
Data4 Group
DataBank
Digital Edge DC
Digital Realty
EdgeConneX
Equinix
Flexential
GDS Services
Global Switch
Google
Green Mountain (AZRIELI GROUP)
GreenSquareDC
Gulf Data Hub
HostDime
Huawei Technologies
Iron Mountain
IXAfrica
Keppel Data Centres
Khazna Data Centers
KIO Networks
Kao Data
Lumen Technologies (Cirion Technologies)
Meta
Microsoft
Moro Hub
Nautilus Data Technologies
Netia
NEXTDC
NTT Global Data Centers
Novva Data Centers
OneAsia Network
Oracle
Orange Business Services
OVHcloud
Penta Infra
Princeton Digital Group
QTS Realty Trust
RackBank
Raxio Group
Rostelecom Data Centers
Sabey Data Centers
Scala Data Centers
Serverfarm
Sify Technologies
SpaceDC
STACK Infrastructure
ST Telemedia Global Data Centres
SUNeVision Holdings
Switch
T5 Data Centers
Telehouse
Tencent Cloud
Tenglong Holdings Group
Vantage Data Centers
VNET Group
Yandex
Yondr
Yotta Infrastructure

Renewable Energy Providers

ACCONIA Energia
Adani Green Energy (AGEL)
AGL
Algonquin Power & Utilities Corp.
AMP Energy
Apex Clean Energy
Avaada Energy
Better Energy
Bryt Energy
Conrad Energy
Datafarm Energy
DE Shaw Renewable Investments
Distributed Power Technologies
Dominion Energy
EDF Renewables
Eneco
Enel Group
Engie
ERG
Faro Energy
GreenYellow
HDF Energy
Iberdrola
Ilmatar Energy
Leeward Renewable Energy
Lightsource bp
MC Retail Energy
MP2 Energy
Neoen
NextEra Energy
NTR
Orsted
Pacific Gas and Electric Company
Pattern Energy
Renantis
ReNew Power
Rocky Mountain Power
RWE Renewables
RZK Energia
ScottishPower
Shell
Shizen Energy
Simply Energy
Solar Alliance
Sunseap Group
The AES Corporation
Torch Clean Energy
TotalEnergies

For more information about this report visit https://www.researchandmarkets.com/r/xb16w9

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