Press release
Global Carbon Neutral Data Center Market Growth Accelerates: Strategic Forecast Predicts $26.31 Billion by 2029
Carbon Neutral Data Center Market
What Will the Carbon Neutral Data Center Industry Market Size Be by 2025?
There has been a brisk expansion in the size of the carbon neutral data center market in the past few years. The market is poised to escalate from $8.92 billion in 2024 to $10.69 billion in 2025, with a compound annual growth rate (CAGR) of 19.8%. The growth witnessed in the historic period is largely due to factors such as corporate sustainability maneuvers, the embrace of energy-efficient hardware, changes in consumer preferences, and government backing and incentives.
What's the Long-Term Growth Forecast for the Carbon Neutral Data Center Market Size Through 2029?
The market size of carbon neutral data centers is predicted to witness substantial growth in the forthcoming years, increasing to $26.31 billion by 2029 with a CAGR of 25.3%. This predicted surge in the forecasted period can be ascribed to improvements in energy storage, the growing market appetite for carbon-neutral services, lifecycle evaluations, circular economy strategies, investments in energy-efficient hardware, and governmental initiatives and incentives. Key trends during the prediction time entail the adoption of renewable energy, energy-efficient infrastructure, carbon offset initiatives, eco-friendly building norms, and effective cooling solutions.
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What Are the Key Growth Drivers Fueling the Carbon Neutral Data Center Market Expansion?
Increased attention towards sustainable energy significantly aids the growth of the carbon-neutral data center market. This type of energy originates from natural resources and has an increasing popularity due to its ability to lessen pollutants and greenhouse gas emissions. Carbon-neutral data centers strive for achieving zero carbon emissions, mandating the utilization of renewable energy. For example, the International Energy Agency, which is an independent intergovernmental organization based in France, reported in June 2024 that the provision of renewable energy, from sources such as solar, wind, hydro, geothermal, and the ocean, expanded by almost 8% in 2022. Consequently, these technologies' contribution to the worldwide energy supply rose by approximately 0.4 percentile points to reach 5.5%. Hence, the growing focus on sustainable energy is expected to stimulate the carbon-neutral data center market.
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What Are the Key Trends Driving Carbon Neutral Data Center Market Growth?
In the carbon neutral data center market, the main trend is the development of innovative products. Leading firms in the field of carbon-neutral data centers are striving to create new and innovative products to reduce carbon emissions and enhance data center operations efficiency. For example, in March 2022, Amazon Web Services Inc. (AWS), an American company offering on-demand cloud computing platforms, unveiled a unique carbon footprint tool for customers. This latest tech platform allows users to measure the environmental repercussions of their AWS workloads. The new tool employs data visualization to project the carbon emissions customers have potentially evaded by using AWS instead of an on-premises data center, supplying customers with their past carbon emissions data, and scrutinizing emission trends according to their AWS usage variations.
How Is the Carbon Neutral Data Center Market Segmented?
The carbon neutral data centermarket covered in this report is segmented -
1) By Data Center Type: Hyperscale Data Centers, Enterprise Data Centers, Colocation Data Centers, Other Data Center Types
2) By Solution: Hardware, Software And Platform, Support Service
3) By Industry: IT And Telecom, Banking, Financial Services, And Insurance (BFSI), Government Or Public Sector, Healthcare, Manufacturing, Retail, Other Industries
Subsegments:
1) By Hyperscale Data Centers: Cloud Service Providers, Large-Scale Web Services
2) By Enterprise Data Centers: In-House Data Centers, Private Data Centers
3) By Colocation Data Centers: Retail Colocation, Wholesale Colocation
4) By Other Data Center Types: Edge Data Centers, Micro Data Centers
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Which Companies Are Leading the Charge in Carbon Neutral Data Center Market Innovation?
Major companies operating in the carbon neutral data center market are 3M Company, ABB Ltd., Alibaba Group Holding Limited, Alphabet Inc., Amazon.com Inc., Cisco Systems Inc., Dell Inc., Digital Realty Trust Inc., Eaton Corporation PLC, Equinix Inc., Fujitsu Ltd, Hewlett Packard Enterprise, The International Business Machines Corporation, Intel Corporation, Microsoft Corporation, Ark Data Centres Limited, Cologix Holdings Inc., CyrusOne Inc., DataBank Holdings Ltd., Digital Fortress Inc., Lunavi Inc., Iron Mountain.Inc, NTT Communications Corporation, QTS Realty Trust, ServerFarm, SingleHopLLC, Sungard Availability Services LP, Switch Inc., Telehouse America Inc., Carbon60 Networks Inc.
Which Regions Are Leading the Global Carbon Neutral Data Center Market in Revenue?
Europe was the largest region in the carbon neutral data market in 2024. The regions covered in the carbon neutral data center market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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