Market intelligence firm BIS Research this week released a report on the carbon neutral data centre market that predicts last year’s revenues of US$5.02 billion will more than triple by 2027.
According to the study, revenue will reach US$16.53 billion by then, the result of the following factors:
- Government regulations on carbon emissions and rising emphasis on renewable energy
- Growing energy-efficient alternatives for data centre cooling
- Sustainable development efforts and corporate social responsibility (CSR) activities
- Rising electricity tariffs globally.
Rakhi Tanwar, principal analyst at BIS, said he expects carbon neutral data centres to be a “great replacement of the conventional power sources and techniques used for operating data centres.
“Through the adoption of renewable sources of energy, the global climate neutral goals can be achieved, and carbon emissions can be mitigated along with an increase in storage capacity.”
The 248-page report also cites recent market developments such as May’s announcement that Alibaba Cloud, the foundation of Alibaba Group’s digital technology and innovation efforts, had opened its third sustainable data centre in Germany to meet the growing demand for digital transformation from clients across Europe.
That same month, nZero, a carbon management platform, and Corscale, the Patrinely Group’s data centre platform, partnered to provide customers with a sustainability offering that enables 24×7 carbon accounting and emission tracking.
In March of this year, Normative, a Swedish start-up sponsored by Google, released a free version of its carbon emissions tracker as businesses around the world struggled to figure out ways of managing their carbon impacts.
Also in March, Amazon Web Services (AWS) allowed customers to access a tool that measures the carbon footprint of cloud usage and compares it to the expected footprint of a data center located on-site, BIS said.
The firm adds that carbon neutral data centres come equipped with various types of technologies and advancements that can be used in hyperscale centres, enterprise, co-location data centres, and others, which include modular and mobile data facilities. However, the market is expected to be dominated by hyperscale data centres, “because most of the leading hyperscale and cloud service providers have committed to going carbon neutral,” said BIS.
The study analyzes and profiles key players in the global carbon neutral data center market, including cloud service providers, power and cooling service provider, data center provider, and infrastructure manufacturers. It also benchmarks players operating in the global carbon neutral data center market to help the reader understand how they stack up against each other.
BIS is projecting the market to grow at a compound annual growth rate (CAGR) of 22.19 per cent between 2022 and 2027.