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Green data centre industry is moving fast, here is what you need to know

(Image credit: Image Credit: Scanrail1 / Shutterstock)

Green data centre market is gaining immense popularity lately with the rise in concerns about the increasing energy costs impacting operational and economic efficiency. Most companies are presently implementing strategies to improve cooling and power infrastructure which is one of the vital factors influencing organisational performance, reliability, and serviceability. The shifting trends toward the deployment of green data centres for storing, managing, and distributing information have helped many software companies reduce energy consumption as well as the total energy cost. In fact, energy conscious companies are heavily investing in development of these centres for regaining cooling and power capacities, thereby providing impetus to green data centre industry share.

Statistics depict, data centre electricity consumption in U.S. would record nearly 140 billion kilowatt-hours per year by 2020 that is equivalent to 50 power plants’ annual output. In fact, this would emit around 100 million metric tons of carbon per year and would lead to cost Americans nearly USD 13 billion in electricity bills annually. These statistics clearly validates the massive growth prospect of U.S. green data centre industry over the ensuing years, which is forecast to exceed a target revenue of USD 6 billion by 2024.

It is prudent to mention that regional governmental push with regard to optimised energy utilisation, has undoubtedly complemented the business growth. Say for instance, under Energy Efficient Government Technology Act that got enforced in January 2017, the U.S. government has mandated regulatory norms on agencies to develop plan that are absolutely in compliance with U.S. EPA. This has subsequently led to an increased utilisation of energy-efficient technologies in data centres, which in effect has allowed U.S. to procure the maximum share of the global green data centre industry in 2017.

Presently, many tech giants are looking forward to investing in data centre infrastructure development across well-established industrial parks. Through this business expansion strategy, these companies plan to facilitate most of the energy so generated for enhancing operational efficiency. Validating the aforementioned fact, recently, social media giant, Facebook made it to the headlines for planning to invest USD 750 million to develop a data centre facility in Huntsville based in Alabama after receiving approval from the local officials. In order to supply power to this facility, Facebook plans to use 100 per cent energy from renewables. The company’s strategy is certain to help Alabama achieve economy benefits, as it is touted to receive about USD 300 million in new tax revenue from Facebook’s future data centre over the coming 30 years. It is thus overt that massive investments in renewable data centre facilities are likely to impel green data centre market size across several geographies.

In addition to already established behemoths like Google and Facebook, many start-up companies are also entering green data centre market. For instance, the U.S.-Norwegian start-up company, Kolos is planning to build the world’s largest data centre in Northern Norway that will apparently use local hydropower and chilled air for minimising energy costs. In order to develop this 600,000 sq/m, four-story green data centre building, Kolos has raised funds from the U.S. investment bank and several Norwegian investors. The start-up company declared that this project will be one of the world’s largest green data centre as this plant will receive all the required energy from wind and hydropower, which will reduce energy costs by 60 per cent and provide cost-effective benefits to customers.

The increasing awareness regarding green energy among the regulatory bodies of various topographies is certainly a pivotal factor driving green data centre market share. In fact, most of the European countries have already implemented strict regulatory norms to encourage the adoption of renewable energy facilities. In this regard, myriad technology contributors have also started deploying renewable energy powered data centres, which has considerably pushed product demand. The continuous investments in facility expansions for achieving higher working efficiency with the reduction of overall operational cost is likely to boost green data centre industry share. For the record, by the end of 2024, green data centre market will collect a revenue of USD 25 billion.

The research study of automotive coatings further segmented into component and end-user

Components is classified into Solution [Cooling, Networking, Power, Management Software], Service [Installation & Integration, Consulting, Managed]. The networking solutions in the green data centre market will grow substantially with a CAGR of around 27 per cent due to the rising demand for these solutions to minimise the power consumption. The conventional network infrastructure ensures interconnection of physical and network-based equipment and devices within a facility that consumes over 65 per cent of the overall power. Moreover, there is a growing trend of virtualised networking environments. Network virtualisation is being increasingly implemented by enterprises to reduce costs, improve efficiency, and enhance agility.

End-User is classified into Colocation, BFSI, Energy, Government, Healthcare, Manufacturing, IT & Telecom. The IT & telecom sector in the green data centre market is expected at a CAGR of 28 per cent owing to the rising move toward digitisation for conducting everyday activities such as payments, shopping, and more. This has led to the generation of a large amount of organisational data causing an increase in the number of data centres. The installation of energy-efficient solutions can allow companies to lower the power consumption and operating costs.

The BFSI sector in the green data centre market valued at over USD 900 million in 2017 is witnessing a rapid growth globally with the growing number of financial organisations adopting digitalisation. Traditional data handling techniques that involved paper documents are being replaced by modern digital technologies for higher efficiency, lower redundancies, and faster computation. This has led to a rise in the demand for highly efficient data centre infrastructures that ensure the safe storage of the ever-increasing data. The flourishing BFSI industry will provide lucrative growth opportunities to the green data centre market growth.

Speaking of the competitive spectrum, companies partaking in the green data centre market including Microsoft, Dell, Inc., Huawei Technologies Co. Ltd., Colocation America, Verne Global, Green House Data, and IBM Corporation have been going whole hog to bring energy-efficient solutions.

Pankaj Singh, content writer, Global Market Insights

Image Credit: Scanrail1 / Shutterstock

Pankaj Singh, an accomplished writer, currently develops content for a variety of portals pertaining to market research. Endowed with a post graduate degree in management, Pankaj worked as a content contributor.