Market Trends of Green Data Center Industry
This section covers the major market trends shaping the Green Data Center Market according to our research experts:
Power Segment to Hold a Significant Market Share
- Green data centers are built to maximize energy efficiency and lower environmental impact. The key demand is for greater energy efficiency because these data centers' power consumption and cooling problems are two of the most significant problems that enterprises confront globally and invest heavily in these. It is vital to control these operating costs to improve business operations and maintain market competitiveness.
- Power plays a significant role in investments in green data centers. Both low-power and effective solutions assist organizations in achieving their goals. Moving to variable-speed fans is one technique to reduce energy consumption in the data center. According to recent research, lowering the central processing unit (CPU) fan speed can reduce power consumption by 20%. As a result, businesses should employ variable-speed fans to cool data center equipment and reduce energy use.
- Datacenter energy costs have exceeded the overall investments in equipment rooms and auxiliary devices. However, results from recent research have shown that this trend is slowing down due to the effective green efficiency measures taken up in mature markets of the United States and Europe.
- By switching to economy mode, where servers run on utility power, server virtualization, where physical servers are used as pools, increases server utilization, consolidates space and equipment and reduces energy consumption because it decreases the number of physical servers needed within the data center. Due to the reduced number of servers being utilized, energy consumption decreases significantly due to a reduced need for electricity and cooling.
- With the increasing electricity usage, billings, and increasing emissions of CO2 from these data centers, the need for green data centers is set to increase, thereby driving the market forward. According to the survey conducted by the Uptime Institute, Data center operators aim to get their average power usage effectiveness (PUE) ratio reduced from 1.98 to 1.55 over the last five years owing to the development of the newest data centers from hyper-scale and colocation providers with a particular focus of energy efficiency.
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North America Occupies the Largest Market Share
- The North American region holds the largest share in the green data center market, owing to the presence of many services and software providers driving the market forward. The United States is expected to dominate the market in North America, followed by Canada, with high investments by colocation providers and hyper-scale data center operators. The demand for cost-effective and efficient power solutions has increased, with more facilities being developed as green data centers in North America. According to the Department of Energy, data centers account for about 2% of all electricity use in the US.
- The expansion of mobile broadband, the emergence of 5G, growth in big data analytics, and cloud computing are the primary factors driving the demand for new data center infrastructures in this region. Network providers are working to ensure the implementation of 5G at a rapid pace for better innovation. Green data center providers have highlighted the reduction in the carbon footprint of corporations by reducing energy usage and increasing efficiency.
- North America, comprising a considerable amount of data centers and a large number of enterprises switching from hardware to software-based services, is expected to impact the market significantly and be a lucrative market for data center transformation. Microsoft, Amazon, and Facebook pledged to convert their existing data centers into green ones.
- The North American region also contributes substantially to the global data center requirements from the IT, banking, financial servcies, and insurance (BFSI), retail, and healthcare industries. In addition, data center service providers in the region are prompted to manage their operating costs, as the region is a lucrative market, considering the number of data centers and their expansions.
- The government across the region is taking active measures to maintain environmental sustainability, further accelerating data centers' deployment. The rising smartphone and internet penetration across this region lead to the development of the green data center market in the region.
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