Market Size of North America Green Data Center Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 37.27 Billion |
Market Size (2029) | USD 94.21 Billion |
CAGR (2024 - 2029) | 20.38 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
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North America Green Data Center Market Analysis
The North America Green Data Center Market size is estimated at USD 37.27 billion in 2024, and is expected to reach USD 94.21 billion by 2029, growing at a CAGR of 20.38% during the forecast period (2024-2029).
- The expansion of mobile broadband, growth in big data analytics, and cloud computing are also expected to complement the growth of the North American green data center market.
- The market is fuelled by the increasing demand for high-performance virtual switches and machines and next-generation virtualization, enabling organizations to install software-oriented virtual application delivery control. The data center industry is witnessing rapid growth, focusing on efficiency and maximum uptime in the region.
- Hyperscale companies such as Facebook (Meta), Google, AWS, and Microsoft, and colocation companies such as Equinix, Digital Realty, Compass Datacenters, and DataBank are working to make their data centers sustainable. There is rising pressure on governments from environmentalists and the public to approach green sustainability.
- The advantages of green data centers are decreasing space requirements, lowering carbon emissions and long-term operating costs, and reducing water use and waste output. Moreover, investments are being made in technology to track carbon emissions and improve efficiency and the water use of facilities.
- The growth of the green data center is boosted by the increasing adoption of switching towards renewable energy sources. Moreover, the market's growth is expected to be supplemented by the modernization and construction of data features due to a surge in data production, putting a massive demand on energy sources to power and cool data centers.
- Higher Initial Investments restrain the market growth. Building or retrofitting a data center to meet green standards can be expensive. This includes the cost of energy-efficient servers, cooling systems, backup power supplies, and other infrastructure components.
- There was rapid digitalization and an increased emphasis on sustainability during the COVID-19 pandemic. Organizations had to ensure mission-critical systems were operational, had enough power to support them, and had obvious redundancy. To overcome all these challenges, Data center companies developed Data Structure Infrastructure Management (DCIM) software to remotely manage and inspect their data center infrastructure.
North America Green Data Center Industry Segmentation
A green data center, also known as a sustainable data center, is a data center that uses energy-saving technologies. It's a data storage, management, and dissemination facility with mechanical, lighting, electrical, and computer systems built for maximum energy efficiency and low environmental effects.
The North American green data center market is segmented by services (system integration, monitoring services, and professional services), by solutions (power, servers, management software, networking technologies, and cooling), by end-user industry (colocation providers, cloud service providers, and enterprises), by end-user industry (healthcare, financial services, government, and telecom and IT).
The market sizes and forecasts are provided in terms of value in USD for all the segments.
By Service | |
System Integration | |
Monitoring Services | |
Professional Services | |
Other Services |
By Solution | |
Power | |
Servers | |
Management Software | |
Networking Technologies | |
Cooling | |
Other Solutions |
By User | |
Colocation Providers | |
Cloud Service Providers | |
Enterprises |
By End-User Industry | |
Healthcare | |
Financial Services | |
Government | |
Telecom and IT | |
Other Industry Verticals |
North America Green Data Center Market Size Summary
The North American green data center market is experiencing significant growth, driven by the increasing demand for sustainable and energy-efficient data storage and processing solutions. This expansion is fueled by the rise of mobile broadband, big data analytics, and cloud computing, which necessitate high-performance virtual switches and next-generation virtualization. Major players in the industry, including hyperscale companies like Facebook (Meta), Google, AWS, and Microsoft, as well as colocation companies such as Equinix and Digital Realty, are actively working towards making their data centers more sustainable. The push for green data centers is further supported by the growing pressure from environmentalists and the public, as well as the advantages these centers offer, such as reduced carbon emissions, lower operating costs, and decreased water usage. Despite the higher initial investments required to build or retrofit data centers to meet green standards, the market is poised for substantial growth due to the increasing adoption of renewable energy sources and advancements in technology aimed at tracking and improving efficiency.
The demand for data storage and processing services in North America is on the rise, driven by the expansion of cloud computing, the Internet of Things (IoT), and big data analytics. This surge in demand has led to the construction and expansion of data center facilities, with many businesses and service providers investing in new or upgraded green data centers. These centers are designed to maximize energy efficiency and minimize environmental impact, employing advanced cooling techniques and renewable energy sources to reduce power consumption and carbon emissions. The market is characterized by fragmentation, with key industry players like Fujitsu Ltd, Cisco Technology Inc., HP Inc., Dell EMC Inc., and Hitachi Ltd implementing strategies such as partnerships and acquisitions to enhance their offerings. Notable developments include CleanArc Data Centers' plans to construct hyperscale data centers with clean energy contracts and Vantage Data Centers' acquisition of a green loan for sustainable design features. The focus on sustainability and energy efficiency is further underscored by certifications such as LEED and Energy Star, which recognize data centers for their environmental responsibility and resource efficiency.
North America Green Data Center Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Consumers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitute Products
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1.2.5 Intensity of Competitive Rivalry
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1.3 Industry Value Chain Analysis
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1.4 Impact of COVID-19 on the Market
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1.5 Industry Regulation and Policies
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2. MARKET SEGMENTATION
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2.1 By Service
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2.1.1 System Integration
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2.1.2 Monitoring Services
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2.1.3 Professional Services
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2.1.4 Other Services
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2.2 By Solution
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2.2.1 Power
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2.2.2 Servers
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2.2.3 Management Software
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2.2.4 Networking Technologies
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2.2.5 Cooling
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2.2.6 Other Solutions
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2.3 By User
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2.3.1 Colocation Providers
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2.3.2 Cloud Service Providers
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2.3.3 Enterprises
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2.4 By End-User Industry
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2.4.1 Healthcare
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2.4.2 Financial Services
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2.4.3 Government
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2.4.4 Telecom and IT
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2.4.5 Other Industry Verticals
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North America Green Data Center Market Size FAQs
How big is the North America Green Data Center Market?
The North America Green Data Center Market size is expected to reach USD 37.27 billion in 2024 and grow at a CAGR of 20.38% to reach USD 94.21 billion by 2029.
What is the current North America Green Data Center Market size?
In 2024, the North America Green Data Center Market size is expected to reach USD 37.27 billion.