Europe Green Data Center Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Europe Green Data Center Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Europe Green Data Center Market is expected to grow at a CAGR of 8.50% over the forecast period 2021-2026.

Key Highlights

• The technological innovations in data center technology coupled with new developments in design are enabling data centers to cut down on emissions and decrease power consumption by almost 80%. These are significant figures which are convincing firms across Europe to invest in the relatively expensive greener technologies and infrastructure to reap considerably higher rewards in the future.
• Western and Northern European countries are ahead of the rest of Europe in terms of sustainability and sustainable energy management, particularly Russia and Eastern Europe, which have traditionally been slow adopters of sustainability and efficiency practices. Iceland particularly is becoming a hot hub for data centers due to the 15-year visibility into energy pricing being provided by the National Power Company. A geologically and physically secure location with natural outside cooling is one of the key factors in its effective energy management.
• Sweden is an upcoming area of interest with its 'Node Pole' data center right next to the North Pole. Free Cooling and hydroelectric power for both efficiency and green credentials make it a lucrative prospect for green data centers. No earthquakes or volcanoes in the region are also an important factor in its favor.
• The Product Environmental Footprint (PEF) pilot, led by the European Commission, is set to provide a number of tangible benefits of the Environmental Product Footprint for the data center industry today, but the majority of the potential will be realized in later years. This is set to drive companies to incorporate processes and procedures that minimize their environmental footprint while not compromising the importance of bringing products to the market which meet evolving technology trends.
• Due to the COVID-19 epidemic, the supply chain has been disrupted, causing several project delays. The market is predicted to develop slowly in 2020 due to supply chain disruptions of hardware components from key IT manufacturers. However, after the infection has been confined, the market will resume its regular growth trajectory.

Key Market TrendsHyper-converged Infrastructure will Drive the Market

• Hyper-converged infrastructure (HCI) is a software-defined IT infrastructure that virtualizes all aspects of traditional hardware-defined systems. In order to reduce data center complexity and boost scalability, hyper-convergence combines storage, processing, and networking into a single system. Hyper-convergence began to be seen as a more feasible option to the traditional data center by businesses in the region.
• HCI has a number of advantages. It processes data where it's captured. For more efficiency, everything is on standard servers; thus, the infrastructure is simple, it's simple to administer because it's centralized and doesn't require any complicated setup.
• Due to rapid growth in the adoption of digital transformation among firms, the pandemic has in some ways ushered in a revolution in terms of operations. This has benefited data centers indirectly because more firms are choosing data centers over localized server rooms. Hyperconverged Infrastructure (HCI) is assisting these firms in benefiting from the modernization of application deployment and cloud service delivery in data centers as well as individual organizations, despite the present global paradigm shift in the way business is performed.
• Traditional three-tier architecture is costly to construct, complex to manage, and difficult to scale; therefore, implementing HCI will aid in maintaining control, lowering costs, and ensuring security. The Array vAPV virtual application delivery controllers (ADC) and vxAG virtual secure access gateways (SSL VPN) are ideal for applications and other workloads running on hyper-converged infrastructures, providing integrated networking and security functions that are critical to delivering a quality user experience and realizing the full benefit of HCI in the enterprise data center.
• Separate storage silos with unique layers of servers and specialized networking spanning the compute and storage silos make up a classic data center configuration. This worked before the cloud, but it's too inflexible for the cloud. HCI dramatically reduces the time and cost of managing data and delivering apps by significantly simplifying data center architectures and operations.
• HCI allows users to combine compute, network, and storage into a single box, allowing them to scale their solution rapidly and simply without experiencing any downtime. Whether they have 1,000 nodes or three nodes per site across 1,000 sites, whether they have 40 terabytes of data or 40 petabytes of data, they may start small and grow progressively larger while maintaining a consistent operating model experience. They have regular software updates and don't have to retrain their employees because the toolset remains the same.

Energy Efficiency and Carbon Neutrality will drive the adoption of Green Data Centers

• According to the International Energy Agency, data centers absorb 1% of all worldwide electricity, and by 2025, they will consume 1/5 of the world's power supply. The majority of the energy consumption is for powering the servers, but they also generate heat and must be cooled. HVAC and cooling systems are required to cool the entire system, which necessitates the use of additional power. As a result, to reduce power usage and carbon footprint, energy-efficient systems and technology are necessary.
• Green Data Centers are in charge of making optimum use of computer resources while also being environmentally friendly. In data centers, low-power servers are more energy-efficient than traditional servers. They employ smartphone computing technology, which aims to strike a balance between performance and energy usage.
• The European Green Deal aspires to make Europe the first continent to achieve carbon neutrality. Green and digital transformation should be viewed as complementary. The European Commission's paper Shaping Europe's Digital Future states specifically that data centers must be carbon-neutral by 2030.
• The European Union has made energy-efficient cloud computing a primary focus. With the goal of being carbon-neutral by 2030, data centers must become more energy-efficient, utilize waste energy such as heat, and employ more renewable energy sources.
• A group of Europe's major data center operators has formed and signed a green data center pact, pledging to self-regulate before European Union officials approve data center sustainability legislation — an uncomfortable possibility that has hung over the bloc's industry for more than a year. The Climate Neutral Data Centre Pact lays out efficiency and renewable energy goals for data centers, as well as ambitious targets for achieving them. It creates a framework for measuring progress toward those objectives.

Competitive Landscape

Europe Green Data Center Market is fragmented in nature as vendors are adopting inorganic growth strategies such as strategic partnerships and mergers and acquisitions to expand the market foothold. Key players are IBM, Cisco Systems, Inc., Dell Technologies Inc., etc.

• December 2020 - In Europe, Frankfurt and London have driven construction, with Frankfurt boasting 117.8MW under construction and London 117.5MW, out of a total of 418.2MW under construction across the continent. The construction pipeline in and around Paris, meanwhile, stood at 114.9MW, according to JLL.
• December 2020 - In Hamina, Finland, Google has begun construction on its sixth data center. In the same month, Google opened a new data center in Fredericia, Denmark, and a second data center in Middenmeer, the Netherlands.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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