Carbon Neutral Data Center Market by Product, Data Center Type, Phase, Industry

Description

List of Tables

[183 Pages Report] The Carbon Neutral Data Center Market size was estimated at USD 19.55 billion in 2023 and expected to reach USD 23.18 billion in 2024, at a CAGR 20.79% to reach USD 73.37 billion by 2030.

Carbon-neutral data centers are advanced facilities designed to minimize environmental impact through sustainable practices and achieving net-zero carbon emissions. These centers operate by balancing the carbon they emit with an equivalent amount of carbon savings elsewhere, effectively making their net carbon footprint zero. This is achieved through a confluence of energy efficiency measures, direct use of renewable energy sources, and carbon offsetting practices. Stricter government policies on carbon emissions and sustainability targets are pushing organizations toward carbon-neutral solutions. The exponential increase in data generation and cloud computing services necessitates the expansion of data center capacity, driving the growth of carbon-neutral data centers. However, the high initial investments in green technologies, the complexity of transitioning existing facilities to carbon-neutral operations, and dependency on location for renewable energy sources are significant barriers. Additionally, the possible unreliability of renewable energy sources and the scalability issues of carbon offset projects could pose limitations for the widespread growth of carbon-neutral data centers. However, key players are developing integrated solutions for data centers to maximize the use of solar, wind, and bioenergy and offset capability limitations. Furthermore, innovations in battery technologies and energy storage to ensure reliability and manage energy sourced from renewable and research into liquid cooling, phase-change materials, and geothermal cooling to enhance energy efficiency can create new avenues of growth for the industry.

KEY MARKET STATISTICS
Base Year [2023]	USD 19.55 billion
Estimated Year [2024]	USD 23.18 billion
Forecast Year [2030]	USD 73.37 billion
CAGR (%)	20.79%

Regional Insights

In the Americas region, the shift towards environmentally friendly data centers is driven by corporate sustainability goals and a growing awareness among consumers about carbon footprints. The region is characterized by the presence of a robust technological architecture that demands the use of sustainable data centers, and a highly developed energy infrastructure provides a conducive environment for the progress of carbon-neutral data centers. Significant investments in renewable energy sources, advanced cooling technologies, and energy-efficient infrastructure underscore the commitment to achieving carbon neutrality. The European Union is at the forefront of the transition towards carbon-neutral data centers, with ambitious targets set by the Green Deal. Innovations in sustainable technology and sustainability regulations and policies support the development of green data centers. This includes advancements in cooling solutions, energy efficiency, and the integration of renewable energy sources. Middle East's several smart city initiatives and investments for renewable energy integration support the growth of carbon-neutral data centers. The growth of digitalization initiatives across the APAC region, especially in economies such as India, China, and Japan, constitutes a need for sustainable data centers. Governments across the APAC region have placed a strong emphasis on reducing carbon emissions, which has led to the adoption of stringent policies supporting the spread of carbon-neutral data centers.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Carbon Neutral Data Center Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers
- Exponential increase in data generation and consumption with growing reliance on cloud-based services
- Government initiatives to promote the utilization of renewable energy
- Increasing awareness and concern over climate change led to a higher demand for green data services

Market Restraints
- High cost of setting up carbon-neutral data centers

Market Opportunities
- Rising adoption of energy-efficient cooling systems, server architectures, and renewable energy sources
- Emergence of technology startups and the adoption of blockchain technology

Market Challenges
- Constraints related to space availability and chances of data breach

Market Segmentation Analysis
- Product: Advancements and innovations to improve the software components of carbon-neutral data centers
- Industry: Rising need to tackle carbon emissions and target sustainability goals in the IT & telecom sector

Market Disruption Analysis
Porter's Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Carbon Neutral Data Center Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Carbon Neutral Data Center Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

CGI Launches Digital Twin Platform for Data Centers

CGI has launched its innovative digital twin platform, CGI DataTwin360, which ushers in a new era for real-time carbon footprint monitoring and reduction in hosting platforms. By integrating data from diverse sources such as IoT devices, sensors, and system logs, CGI DataTwin360 offers unprecedented carbon accounting insights. It caters to the emerging regulatory demands for detailed carbon usage reporting, in line with the Task Force on Climate-Related Financial Disclosures (TCFD) and the Corporate Sustainability Reporting Directive (CSRD) of the EU, by providing a dashboard and 3D model for real-time reporting. [Published On: 2023-10-04]

Tech Giants Launch Net Zero Innovation Hub for Data Centres

In a pivotal move toward sustainability, Danfoss, Google, Microsoft, and Schneider Electric, in collaboration with the Danish Data Center Industry, have inaugurated the Net Zero Innovation Hub For Data Centers in Fredericia, Denmark. This groundbreaking initiative, forming in response to the urgent need for the data center sector to address its escalating energy consumption and carbon footprint amidst the digital and AI boom, aims to foster a consortium of European stakeholders dedicated to forging innovative, sustainable solutions. [Published On: 2023-10-02]

Yondr Signs the EU Climate Neutral Data Center Pact

In a significant stride towards sustainability, Yondr has aligned with the Climate Neutral Data Centre Pact (CNDCP), an initiative endorsed by the European Commission aimed at achieving climate neutrality for data centers by the year 2030. This commitment resonates with the broader objective of transitioning the European Union towards climate neutrality by 2050. The CNDCP sets forth ambitious goals, covering vital areas such as energy efficiency, the adoption of clean energy, water conservation, and the promotion of a circular economy. [Published On: 2023-09-25]

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Carbon Neutral Data Center Market. This critical assessment involves a thorough analysis of the organization's resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Carbon Neutral Data Center Market, highlighting leading vendors and their innovative profiles. These include ABB Ltd., Amazon Web Services, Inc., Apple Inc., Blackbox Corp., China Mobile Limited, Cisco Systems, Inc., CyrusOne LLC, Dell Inc., Digital Realty Trust Inc., Equinix, Inc., Fujitsu Limited, Google LLC by Alphabet Inc., Hewlett-Packard Development Company, L.P., Huawei Technologies Co., Ltd., Infosys Limited, International Business Machines Corporation, Johnson Controls International PLC, Lumen Technologies, Meta Platforms, Inc., Microchip Technology Inc., Microsoft Corporation, NEC Corporation, NEXTDC Ltd., NTT Data Group, Salesforce, Inc., SAP SE, Siemens AG, Switch, Telefonica S.A., Verizon Communications Inc., Vertiv Group Corp., and ZTE Corporation.

Market Segmentation & Coverage

This research report categorizes the Carbon Neutral Data Center Market to forecast the revenues and analyze trends in each of the following sub-markets:

Product
- Hardware
- Software & Platforms
- Support Services

Data Center Type
- Colocation Data Centers
- Enterprise Data Centers
- Hyperscale Data Centers

Phase
- Phase I
- Phase II
- Phase III
- Phase Iv
- Phase V

Industry
- Banking, Financial Services, & Insurance (BFSI)
- Government & Public Sector
- Healthcare
- IT & Telecom
- Manufacturing
- Retail

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

Product Code: MRR-5C6F41F5AF96

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Exponential increase in data generation and consumption with growing reliance on cloud-based services
  - 5.1.1.2. Government initiatives to promote the utilization of renewable energy
  - 5.1.1.3. Increasing awareness and concern over climate change led to a higher demand for green data services
- 5.1.2. Restraints
  - 5.1.2.1. High cost of setting up carbon-neutral data centers
- 5.1.3. Opportunities
  - 5.1.3.1. Rising adoption of energy-efficient cooling systems, server architectures, and renewable energy sources
  - 5.1.3.2. Emergence of technology startups and the adoption of blockchain technology
- 5.1.4. Challenges
  - 5.1.4.1. Constraints related to space availability and chances of data breach
5.2. Market Segmentation Analysis
- 5.2.1. Product: Advancements and innovations to improve the software components of carbon-neutral data centers
- 5.2.2. Industry: Rising need to tackle carbon emissions and target sustainability goals in the IT & telecom sector
5.3. Market Disruption Analysis
5.4. Porter's Five Forces Analysis
- 5.4.1. Threat of New Entrants
- 5.4.2. Threat of Substitutes
- 5.4.3. Bargaining Power of Customers
- 5.4.4. Bargaining Power of Suppliers
- 5.4.5. Industry Rivalry
5.5. Value Chain & Critical Path Analysis
5.6. Pricing Analysis
5.7. Technology Analysis
5.8. Patent Analysis
5.9. Trade Analysis
5.10. Regulatory Framework Analysis

6. Carbon Neutral Data Center Market, by Product

6.1. Introduction
6.2. Hardware
6.3. Software & Platforms
6.4. Support Services

7. Carbon Neutral Data Center Market, by Data Center Type

7.1. Introduction
7.2. Colocation Data Centers
7.3. Enterprise Data Centers
7.4. Hyperscale Data Centers

8. Carbon Neutral Data Center Market, by Phase

8.1. Introduction
8.2. Phase I
8.3. Phase II
8.4. Phase III
8.5. Phase Iv
8.6. Phase V

9. Carbon Neutral Data Center Market, by Industry

9.1. Introduction
9.2. Banking, Financial Services, & Insurance (BFSI)
9.3. Government & Public Sector
9.4. Healthcare
9.5. IT & Telecom
9.6. Manufacturing
9.7. Retail

10. Americas Carbon Neutral Data Center Market

10.1. Introduction
10.2. Argentina
10.3. Brazil
10.4. Canada
10.5. Mexico
10.6. United States

11. Asia-Pacific Carbon Neutral Data Center Market

11.1. Introduction
11.2. Australia
11.3. China
11.4. India
11.5. Indonesia
11.6. Japan
11.7. Malaysia
11.8. Philippines
11.9. Singapore
11.10. South Korea
11.11. Taiwan
11.12. Thailand
11.13. Vietnam

12. Europe, Middle East & Africa Carbon Neutral Data Center Market

12.1. Introduction
12.2. Denmark
12.3. Egypt
12.4. Finland
12.5. France
12.6. Germany
12.7. Israel
12.8. Italy
12.9. Netherlands
12.10. Nigeria
12.11. Norway
12.12. Poland
12.13. Qatar
12.14. Russia
12.15. Saudi Arabia
12.16. South Africa
12.17. Spain
12.18. Sweden
12.19. Switzerland
12.20. Turkey
12.21. United Arab Emirates
12.22. United Kingdom

13. Competitive Landscape

13.1. Market Share Analysis, 2023
13.2. FPNV Positioning Matrix, 2023
13.3. Competitive Scenario Analysis
- 13.3.1. CGI Launches Digital Twin Platform for Data Centers
- 13.3.2. Tech Giants Launch Net Zero Innovation Hub for Data Centres
- 13.3.3. Yondr Signs the EU Climate Neutral Data Center Pact
13.4. Strategy Analysis & Recommendation

14. Competitive Portfolio

14.1. Key Company Profiles
14.2. Key Product Portfolio