Data Centers process megabytes of data every month which means a lot of energy is needed to power them. The more energy consumed; the more carbon gets released into the environment. Carbon neutrality is when an organization efficiently uses energy and balance out carbon emissions through carbon removal.
According to the MarkNtel Advisors' research report, "Global Carbon Neutral Data Center Market Analysis, 2021," the market is likely to grow at a CAGR of around 23% during 2021-26. The Carbon Neutral Data Centers are beneficial for reducing an organization's carbon footprints. The market growth attributes to the ongoing digital transformation in various businesses that have aided the amount of data produced. Besides, the surging imposition of numerous policies & environmental regulations laid by the government to reduce carbon emissions like the International Climate Agreement has further boosted the Global Carbon Neutral Data Center Market growth.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Regions Covered||North America: USA, Canada, Mexico|
|Europe: Germany, UK, France|
|Asia-Pacific: China, India, Japan, South Korea|
|South America: Brazil|
|Middle East & Africa: UAE, Saudi Arabia, South Africa|
|Key Companies Profiled||3M Company, ABB Group, Alibaba Group, Alphabet Inc., Amazon.com, Inc., Cisco Systems, Inc., Dell Inc., Digital Realty Trust, Inc., Eaton Corporation plc, Equinix, Fujitsu Ltd, Hewlett Packard Enterprise (HPE), IBM Corporation, Intel Corporation, Microsoft Corporation|
|Unit Denominations||USD Million/Billion|
Impact of COVID-19
The lockdown imposed & travel restrictions commenced by the governments in the wake of the sudden outbreak of the COVID-19 pandemic restricted the growth of most of the end-user industries across the globe. These stringent norms and guidelines undertaken by the government have disrupted the entire supply chain of the data center industry. Additionally, the lockdown has also resulted in restricting the imports and exports of various raw materials, equipment, and devices, which are crucial for the operation of the data centers, thereby bringing many ongoing projects to a standstill position. Thus, negatively impacting the overall market growth.
Hyperscale Center Accounted for the Largest Market Share
Based on the Data Center Type, the market bifurcates into Hyperscale Center, Enterprise Type, and Colocation Data Center. Among these segments, Hyperscale Center acquired the largest share in the Global Carbon Neutral Data Center Market in the past few years as the most Hyperscale operators like Microsoft, AWS, and Google pledged to attain carbon neutrality in their entire value chain. Further, the rising trend of cloud migration has also supported the growth of the Hyperscale Data Center, reveals MarkNtel Advisors in their research report, "Global Carbon Neutral Data Center Market Analysis, 2021."
Hardware Segment Attained the Highest Market Share
Based on the Carbon Neutral Solutions, the market segments into Hardware, Software & Platforms, and Support Services. The Hardware segment held the largest share in the past few years among other solutions and is likely to maintain its dominance during the forecast period. It is because hardware equipment and devices are the most crucial parts in any Data Center required for its operation.
The hardware segment includes Servers, Cooling & Power, Storage, and Networking. All these devices are prime equipment in all Data Centers. Among these, the Servers segment consumes maximum energy, followed by Cooling & Power. However, in the coming future, power consumption would significantly decline with the help of efficient cooling systems.
North America Held the Largest Market Share
Geographically, North America dominated the Global Carbon Neutral Data Center Market in the previous few years due to the wide availability of numerous service providers in the region. Additionally, the rising usage of mobile broadband, the development of 5G technology, and the mounting adoption of big data analytics & cloud computing are primary factors fueling the demand for data center infrastructures, thereby propelling the overall market in North America.
Progressive Technological Advancements Supported the Market Growth
The use of advanced technologies and strategies helps IT organizations to reduce environmental impact as these high-end technologies efficiently manage the scheduling and implementation of the data center environment. The adoption of advanced technologies is beneficial for using power efficiently. Further, it helps process an organization's functions at a faster rate and uses less amount of energy & space. Therefore, Carbon Neutral Data Centers are the preferred eco-friendly options.
According to MarkNtel Advisors, the major leading players in the Global Carbon Neutral Data Center market are 3M Company, ABB Group, Alibaba Group, Alphabet Inc., Amazon.com, Inc., Cisco Systems, Inc., Dell Inc., Digital Realty Trust, Inc., Eaton Corporation plc, Equinix, Fujitsu Ltd, Hewlett Packard Enterprise (HPE), IBM Corporation, Intel Corporation, and Microsoft Corporation.
Key Questions Answered in the Market Research Report:
Market Outlook, Segmentation and Statistics
Frequently Asked Questions
A. The historical data has been provided since 2016, while the base year is 2020, and the data forecast is up to 2026.
A. The measuring units of market size/industry size or the market value are USD Million.
A. Global Carbon Neutral Data Center Market is forecast to grow at a CAGR of 23% during 2021-26.
A. 3M Company, ABB Group, Alibaba Group, Alphabet Inc., Amazon.com, Inc., Cisco Systems, Inc., Dell Inc., Digital Realty Trust, Inc., Eaton Corporation plc, Equinix, Fujitsu Ltd, Hewlett Packard Enterprise (HPE), IBM Corporation, Intel Corporation, Microsoft Corporation are few of the leading players in the Global Carbon Neutral Data Center Market.
A. Hyperscale is likely to attain the highest CAGR during the forecast period and maintain its significant market share.
A. North America continues to grow at the highest CAGR during 2021-26, thereby presenting immense opportunities to market players of the Global Carbon Neutral Data Center Market.