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Transformative Trends Impacting the Carbon Neutral Data Center Market Landscape: Product Innovations Drive Advancements In Carbon-Neutral Data Center Market
Carbon Neutral Data Center
How Large Will the Carbon Neutral Data Center Market Size By 2025?
In the previous few years, the market size of the carbon neutral data center has witnessed a rapid expansion. It is projected to increase from $8.92 billion in 2024 to $10.81 billion in 2025, reflecting a compound annual growth rate (CAGR) of 21.2%. The noticeable growth in the historical period can be ascribed to factors such as corporate sustainability practices, the adoption of energy-efficient devices, changes in customer preferences, and encouragement as well as incentives from the government.
How Big Is the Carbon Neutral Data Center Market Size Expected to Grow by 2029?
The market size for the carbon neutral data center is anticipated to witness immense growth in the coming years. Projections suggest that it will reach $27.57 billion in 2029, showing a Compound Annual Growth Rate (CAGR) of 26.4%. This growth during the prediction period can be attributed to the progression in energy storage, the demand in the market for carbon-neutral services, assessments of lifecycle, practices related to the circular economy, investments made in energy-efficient hardware, and government-led initiatives and incentives. Some major trends expected during the forecast period include the adoption of renewable energy, energy-efficient infrastructure, programs for carbon offsetting, standards for green building, and efficient cooling solutions.
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Which Key Market Drivers Powering Carbon Neutral Data Center Market Expansion and Growth?
The carbon-neutral data center market is notably influenced by the growing focus on renewable energy. Derived from natural resources, renewable energy is gaining traction due to its potential in reduction of contaminants and greenhouse gas emissions. Carbon-neutral data centers aim to achieve zero carbon emissions, hence the necessity for renewable energy. For instance, data by the International Energy Agency, an independent intergovernmental organization based in France, showed an increase in renewable energy supply by nearly 8% in 2022. The supply, comprised of solar, wind, hydro, geothermal, and ocean sources, resulted in an increase of about 0.4 percentage points in the global energy supply, reaching 5.5% in June 2024. Thus, the burgeoning focus on renewable energy is expected to accelerate the carbon-neutral data center market.
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Which Fast-Growing Trends Are Poised to Disrupt the Carbon Neutral Data Center Market?
The dominant trend in the market for carbon neutral data centers is product innovation, with prominent businesses in the sector focusing on launching inventive solutions to reduce carbon emissions and enhance the productivity of data center operations. For example, in March 2022, Amazon Web Services Inc. (AWS), a company rooted in the United States providing cloud computing platforms on a need basis, unveiled a tool for customer carbon footprints. This innovative platform facilitates users in assessing the environmental ramifications of their AWS workloads. The fresh tool employs data visuals to predict the anticipated reduction in carbon emissions by customers who chose AWS over on-site data centers. Furthermore, it presents clients with their past carbon emissions and scrutinizes emission trends correlated with their shifting AWS usage.
What Are the Emerging Segments in the Carbon Neutral Data Center Market?
The carbon neutral data center market 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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Who Are the Global Leaders in the Carbon Neutral Data Center Market?
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 are the Top Profitable Regional Markets for the Carbon Neutral Data Center Industry?
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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