A new market study released by Technavio forecasts the global green data center market to reach USD $55 billion by 2021, growing at a CAGR of almost 14 percent. The technology analyst’s new report, “Global Green Data Center Market 2017-2021,” states that the market is witnessing most growth through the construction of data center by cloud service providers (CSPs), colocation service providers, and telecommunication providers globally.
“Currently, there are many enterprises and CSPs that are involved in colocation spaces rather than constructing their own facilities to address demands immediately,” adds the firm. “CSPs and ISPs, such as Facebook, are the major contributors to the green data center market, which will continue throughout the forecast period.”
In the report, Technavio’s ICT research analysts categorize the global green data center market into the following segments by end-user: IT infrastructure; power solutions; general construction; cooling solutions; and monitoring and management. The top three end-user segments are thusly discussed by the report’s summary.
IT infrastructure: Technavio contends that “digitalization has enabled several organizations to adopt cloud-based services for their businesses. By 2020, it is expected that 90 percent of small and medium enterprises will operate their businesses through cloud storage either by colocating their infrastructure or by adopting cloud offerings by the major CSPs in the market.” According to Abhishek Sharma, lead data center research analyst at Technavio, “The growing amount of data is constantly increasing the complexity of storage systems in data centers and the computational power and network traffic exponentially. The efficient management of data center infrastructure will ensure uninterrupted service for B2B and B2C operations.”
Power solutions: The firm expects the global green data center market “will witness a significant growth in revenue because of the increasing concerns regarding the costs incurred due to increased power consumption and wastage of power in data center operations. There is more focus on reducing the environmental impact of the data center facilities along with power consumption,” adds the summary. “Commonly adopted power management solutions for data centers include UPS systems, energy storage products, such as batteries and flywheels, transfer switches and switchgears, generators, and power distribution units,” notes Technavio’s Sharma. “The generator is the widely adopted solution among data centers worldwide, but increasing carbon emissions due to the use of generators is expected to hinder the adoption of generators.”
General construction: Technavio expects the general construction market will grow along with the growth in brick-and-motor facility and modular data center construction projects worldwide. “Increased power consumption and carbon emission have resulted in the construction of eco-friendly data centers. Most of these data centers are being constructed in remote areas,” adds Sharma. The report states that the “cost of general construction varies based on the tiered design of data centers,” and that some new data centers are being designed with on-site wind and solar farms. “Many small vendors are also involved in the installation of solar arrays on top of the facility,” notes the summary. “Also, there is an increased focus on reusing water by recycling it for cooling purposes.”