Green Data Center 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 organizational performance, reliability, and serviceability. The shifting trends toward the deployment of green data centers 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 centers for regaining cooling and power capacities, thereby providing impetus to green data center industry share.
The networking solutions in the green data center market will grow substantially with a CAGR of around 27% due to the rising demand for these solutions to minimize the power consumption. The conventional network infrastructure ensures interconnection of physical and network-based equipment and devices within a facility that consumes over 65% of the overall power. Moreover, there is a growing trend of virtualized networking environments. Network virtualization is being increasingly implemented by enterprises to reduce costs, improve efficiency, and enhance agility.
The BFSI sector in the green data center market valued at over USD 900 million in 2017 is witnessing a rapid growth globally with the growing number of financial organizations adopting digitalization. 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 center infrastructures that ensure the safe storage of the ever-increasing data. The flourishing BFSI industry will provide lucrative growth opportunities to the green data center market growth.
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The green data center market in Asia Pacific will experience a strong growth of over 30% from 2018 to 2024 owing to the widespread adoption of cloud and IoT technologies in countries such as China and India. The rapid growth in the number of startups in India coupled with the favorable government initiatives such as Make in India will support the green data center market growth in the country. The booming industrial sector in Japan is demanding high performance equipment for mounting volumes of data from connected factories. The rise in the number of smartphone users in China are also demanding data center set ups for data storage. Infocomm Media Development Authority (IMDA) has collaborated with government agencies to develop a Singapore Standard for green infrastructure under the IT standards committee.
Presently, many tech giants are looking forward to investing in data center 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 center 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% 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 center over the coming 30 years. It is thus overt that massive investments in renewable data center facilities are likely to impel green data center market across several geographies.
In addition to already established behemoths like Google and Facebook, many start-up companies are also entering green data center market. For instance, the U.S.-Norwegian start-up company, Kolos is planning to build the world’s largest data center in Northern Norway that will apparently use local hydropower and chilled air for minimizing energy costs. In order to develop this 600,000 sq/m, four-storey green data center 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 center as this plant will receive all the required energy from wind and hydropower, which will reduce energy costs by 60% and provide cost-effective benefits to customers.
Players operating in the green data center market comprise Dell Inc., Huawei Technologies Co., Ltd., HCL Technologies Limited, IBM Corporation, Microsoft Corporation, Fujitsu Ltd., Schneider Electric SE, and Hewlett-Packard Enterprise Company. Companies are striving to launch new data centers to strengthen their market presence.