Green Data Center Market Size - By Component (Solution [Cooling, Networking, Power, Management Software], Service), Application (Colocation, BFSI, Energy, Government, Healthcare, Manufacturing, IT & Telecom), Regional Outlook & Global Forecast, 2024 - 203

Green Data Center Market Size - By Component (Solution [Cooling, Networking, Power, Management Software], Service), Application (Colocation, BFSI, Energy, Government, Healthcare, Manufacturing, IT & Telecom), Regional Outlook & Global Forecast, 2024 - 2032

Green Data Center Market is predicted to register at a CAGR of over 14% between 2024 and 2032, owing to the shift towards sustainable business practices and environmental consciousness. In December 2023, Infosys, an IT services company collaborated with Shell, an energy company to accelerate the adoption of immersion cooling services for data centers. There is an increasing awareness of the environmental impact of traditional data centers, marked by high energy consumption and carbon emissions. Companies are recognizing the importance of reducing their carbon footprint, and the implementation of energy-efficient technologies in data centers.

Green data centers utilize energy-efficient technologies such as advanced cooling systems, virtualization, and renewable energy sources to optimize resource utilization and minimize energy consumption. The cost savings associated with energy efficiency and reduced reliance on non-renewable energy sources make green data centers an economically viable choice for businesses aiming to enhance operational efficiency while controlling costs.

Green data centers industry is segmented on the basis of component, application and region.

Service segment will generate notable revenues in the forecast period, due to the specialized expertise and support in implementing and managing sustainable data center solutions. As organizations increasingly shift to green data centers to align with environmental goals, they seek comprehensive services to navigate the complexities of the transition effectively. Service providers offer consulting, design, and implementation services, assisting businesses in optimizing energy efficiency, adopting renewable energy sources, and implementing eco-friendly technologies.

IT & Telecom segment is anticipated to witness a strong CAGR throughout 2024 and 2032, favored by the substantial energy consumption and the commitment to sustainability. Realizing the environmental impact of traditional data centers, the IT & telecom companies have been at the forefront of adopting green data center solutions. As the demand for digital services continues to surge, these companies are investing in energy-efficient technologies, renewable energy sources, and advanced cooling systems.

Europe green data center industry is slated to witness decent growth rate during 2024-2032, attributed to the stringent regulatory frameworks. Governments in the region actively promote eco-friendly practices, offering incentives and enforcing policies that encourage businesses to invest in energy-efficient technologies. The region's significant investments in renewable energy, such as wind and solar power, create an ideal environment for the integration of sustainable practices in data center operations, creating a positive market outlook.