Energy Efficient Data Center Market Seeing Significant Growth

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by | Nov 22, 2021

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Energy efficient data centers that increasingly rely on renewable sources are becoming a tool for industries to reduce their emissions, which is driving the market’s growth, according to a new report.

The Research and Markets report says that energy efficient data centers were valued at $53.19 billion in 2020 and is expected to reach a market value of almost $182 billion by 2026 with a CARG of 23% over the next five years. The report says growing energy consumption by data centers and increasing government regulation on energy use is spurring the market growth.

The report says industries like manufacturing, transportation and buildings are expected to increasingly use efficient data centers to help lower their own emissions footprint. The rise of artificial intelligence, machine learning and other smart systems are also encouraging growth in the area.

Data centers alone use a large amount of energy. According to the Department of Energy, data centers account for 2% of all electricity use in the United States.

Because of this issue, industries have been looking at ways to reduce data center energy use and increase sustainability.

Kao Data in Europe announced that it would transition its backup generators energy use with hydrotreated vegetable oil. Web infrastructure company Cloudfare said earlier in 2021 that it was working on a blueprint for a net zero internet.

Smart systems can also be important in realizing in improving the efficiency of where the electricity comes from.

Data centers that use renewable energy do have a high initial investment, which could slow implementation some. But the overall return of investment can counter that, the report finds.

Data Centers need to use more efficiency because they can have a high rate of power consumption as well as needing to use cooling technology. The report says that data center energy costs have exceeded overall investments in equipment rooms and auxiliary devices.

Still, with the increased use of energy efficiency, those trends are slowing, especially as efficiency measures have been implemented in the US and Europe, research shows.

North America has the largest share in the data center market, according to the report. This is in part due to technology being based in the region for many industries as well as a move from hardware to software platforms.

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