Carbon Neutral Data Center Market: Segmented: By Data Center Type (Hyperscale Data Centers, Colocation Data Centers, Enterprise Data Centers, Others), By Solution (Hardware, Software and Platform, Support Services), By End Use Industry (BFSI, Retail, Healthcare, Government and Public Sector, IT and Telecom, Manufacturing, Others), And Region - Global Analysis of Market Size, Share & Trends For 2019-2021 And Forecasts To 2031
[ 170 + Pages Research Report ] Carbon Neutral Data Center Market to surpass USD 33.2 billion by 2031 from USD 4.2 billion in 2021 at a CAGR of 22.8% in the coming years, i.e., 2021-2031
With the increased demand for data, the data center sector is growing at a breakneck pace. Many aspects of our economic, commercial, and social lives rely on these hubs. They are also among the world's largest electricity consumers. It is known worldwide that data centers consume a lot of energy. Data centers are estimated to consume 2% of global energy, roughly similar to the aviation industry, according to various estimations. While significant progress has been made, one of the most significant difficulties facing developers, colocation operators, global cloud computing providers, and hyper scalers alike is planning, creating, and running sustainable data centers.
Global Carbon Neutral Data Center Market is expected to project a notable CAGR of 22.8% in 2031.
Carbon-neutral data center market revenue growth is being driven by the implementation of environmental legislation and government initiatives such as the "International Climate Agreement" to limit carbon emissions in data centers. Due to the data-intensive nature of the solution, the emergence of digital transformation and industry 4.0 has increased the amounts of data created in recent years, which is supporting revenue growth of the worldwide carbon-neutral data center market.
The Hyperscale Data Canter segment is expected to grow with the highest CAGR during 2021-31
Based on Data Center Type, the global Carbon Neutral Data Center Market is fragmented into Hyperscale Data Centers, Colocation Data Centers, Enterprise Data Centers, and Others. By data center type, hyperscale data centers have the most potential in the carbon-neutral data center market. Because most hyperscale operators and service providers, such as Google and Microsoft, have vowed to achieve carbon neutrality in their whole value chain by 2030, it is projected to be the most impacted kind.
The Hardware segment is expected to grow with the highest CAGR during 2021-31
Global Carbon Neutral Data Center Market is classified on the basis of Solution into Hardware, Software and Platform, and Support Services. Among other solutions, the Hardware category has had the highest position in recent years and is expected to continue to do so during the projection period. The fact that hardware equipment and devices are the most critical pieces in any Data Center necessary for its operation accounts for the segment's growth.
Multiple Government Policies and Environmental Regulations Aiming to Reduce Carbon Emissions
Various government policies and environmental laws, particularly those that are linked with reducing carbon emissions, such as the International Climate Agreement, are projected to fuel growth in the carbon-neutral data center industry. Aside from that, the market has been highly impacted by the continuous trend of Industry 4.0 and digital transformation, which has increased the amount of data created due to the data-heavy nature of the applications.
The Growing energy-efficient alternatives for Data Cooling
Apart from government controls on carbon emissions, they are also concentrating on the expanding importance of renewable energy. Another major driver is the rising number of energy-efficient data center cooling options. Additionally, the growth of the Carbon Neutral Data Center Market is influenced by global sustainable development efforts and CSR activities, as well as rising electricity rates.
Higher Dependency and Significant Prices of Implementation and Compatibility Issues
The key market restrictions are a high reliance on nonrenewable energy for data center operations, as well as greater installation costs and compatibility concerns.
Global Carbon Neutral Data Center Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. In 2020, Europe is expected to create the most money. This is largely due to market friendliness and customers' positive attitudes toward the carbon neutral movement, which is supported by government policies and other environmental legislation, all of which are positively affecting the market. Due to the colder climate, Europe also boasts some of the world's coldest places, which provide a particularly environmentally friendly data center option.
Government-mandated travel restrictions and a lockdown enforced in the aftermath of the abrupt emergence of the COVID-19 pandemic stifled the expansion of most end-user industries around the world. The government's strict regulations and rules have thrown the data center industry's whole supply chain into disarray. Furthermore, the lockdown has resulted in restrictions on the imports and exports of numerous raw materials, equipment, and devices that are critical to the operation of data centers, thereby halting several ongoing projects. As a result, the entire market growth is harmed.
Carbon Neutral Data Center Market is further segmented by region into:
Carbon Neutral Data Center Market Segments:
|Market size value in 2021||USD 4.2 billion|
|Revenue forecast in 2031||USD 33.2 billion|
|Growth Rate||CAGR of 22.8% from 2021 to 2031|
|Base year for estimation||2020|
|Quantitative units||Revenue in USD million and CAGR from 2021 to 2031|
|Report coverage||Revenue forecast, company ranking, competitive landscape, growth factors, and trends|
|Segments covered||Data Center Type, Solution, End Use Industry, and Region|
|Regional scope||North America, Europe, Asia Pacific, Latin America, Middle East & Africa (MEA)|
|Key companies profiled||3M Company, ABB Group, Alibaba Group, Alphabet Inc., Amazon.com Inc., Cisco Systems Inc., Dell Inc., Digital Realty Trust Inc., Eaton Corporation plc, Equinix, Fujitsu Ltd, Hewlett Packard Enterprise (HPE), IBM Corporation, Intel Corporation, Microsoft Corporation, and Other Prominent Players.|
Carbon Neutral Data Center Market size was estimated at USD 4.2 billion in 2021 and is expected to reach USD 33.2 billion in 2031.
Data centers handle gigabytes of data per month, which necessitates a lot of energy to keep them running. The greater the amount of energy consumed, the more carbon is emitted into the atmosphere. When a company uses energy effectively and offsets carbon emissions by removing carbon, it is said to be carbon neutral.
The Hardware segment accounted for the largest Carbon Neutral Data Center Market share.
Key players in the Carbon Neutral Data Center Market include 3M Company, ABB Group, Alibaba Group, Alphabet Inc., Amazon.com Inc., Cisco Systems Inc., Dell Inc., Digital Realty Trust Inc., Eaton Corporation plc, Equinix, Fujitsu Ltd, Hewlett Packard Enterprise (HPE), IBM Corporation, Intel Corporation, Microsoft Corporation, and Other Prominent Players.
The continuing digital transformation in various industries, which has helped to increase the amount of data created, is likely to fuel sector growth.
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