Carbon Neutral Data Center Market Size More Than Triples to Reach USD 14.8 billion by 2028

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carbon neutral data center market is expanding at a rapid pace owing to favorable government policies, growing emphasis on reducing carbon dioxide emissions, and increasing investments in the development of cutting-edge technologies.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the size of global carbon-neutral data center market at USD 4.37 billion in 2021. During the forecast period between 2022 and 2028, BlueWeave expects the global carbon-neutral data center market size to grow at an impressive CAGR of 19.2% to reach a value of USD 14.81 billion by 2028. The market growth is attributed to the ongoing digital transformation among various industries, which has increased the volume of data produced. The International Climate Agreement and other policies and environmental regulations that the governments are increasingly imposing to reduce carbon emissions are also projected to contribute to the growth of the global carbon neutral data center market during the period in analysis.

Global Carbon Neutral Data Center Market – Overview

Carbon neutral data centers have features and capabilities similar to traditional data centers, but they use less space and energy and are more environmentally friendly. A carbon neutral data center speeds up the processing of an organization’s functions while using less energy and space. As a result, Carbon neutral data center are the preferred environmentally friendly option for data center operators.

With a greater global emphasis on achieving climate-neutral goals and managing data storage demand, the shift from non-renewable to renewable energy sources in the data center industry presents significant opportunities. The shift is more noticeable in places, such as Europe and North America. This is because countries in these regions, which have naturally colder climates almost all year, have the greatest market potential.

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Global Carbon Neutral Data Center Market – Technology Advancements

Global carbon neutral data center market is still in its initial stages. The expansion can be attributed to various environmentally friendly policies and government regulations. Increased R&D efforts are underway to develop carbon neutral data center technologies and products, which are expected to grow in response to an increasing demand for data storage and digital transformation.

Global Carbon Neutral Data Center Market – Segmental Information

Global carbon neutral data center market is divided into IT & Telecom, Banking, Financial Services and Insurance (BFSI), Government or Public Sector, Healthcare, Manufacturing, Retail, and Others based on the industry. The market is divided into four categories based on the type of data center: Cloud Data Centers, Enterprise Data Centers, Colocation Data Centers, and Edge Data Centers. The market is further divided into Hardware (Cooling and Power, Servers, Storage and Networking, and Others based on the solution. Geographic regions of the global carbon-neutral data center market are North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. During the forecast period, Europe is expected to hold a significant market share in the global carbon neutral data center market.

Impact of COVID-19 on Global Carbon Neutral Data Center Market

According to the data center industry, the number of carbon-neutral data centers has increased since 2019. Although other sectors have been negatively impacted by the COVID-19 pandemic, data center operators witnessed the demand for data storage double and redouble, driven by increasing digitalization, cloud, AI, and 5G adoption, as well as the pandemic itself. The effects of the pandemic on remote work, video conferencing, and internet traffic have been the primary drivers of increased data center capacity, hastening the transition of regions, such as Asia Pacific, Middle East, and Africa to fully digital economies. Data center operators, on the other hand, are reshaping data centers in greater depth and speed than ever before. Corporations and major technology firms are making bold commitments to reduce their carbon emissions, including the Climate Neutral Data Center Pact, which was unveiled in 2020. Companies across industry verticals are also making similar commitments. Hence, global carbon neutral data center market is forecast to grow at a significant rate in the coming years.

Competitive Landscape

Prominent players in global carbon neutral data center market include ABB Group, 3M, Alibaba Group,, Inc., Alphabet Inc., Cisco Systems, Inc., Dell Inc., Digital Realty Trust, Eaton Corporation plc, Equinix, Inc., FUJITSU, Hewlett Packard Enterprise Development LP, IBM Corporation, Intel Corporation, Microsoft, AND Group Limited, NEXTDC LTD., CYRUSONE, and DEAC. These companies use various strategies, including increasing investments in their R&D activities, mergers and acquisitions, joint ventures, collaborations, licensing agreements, and new product and service releases to further strengthen their position in global carbon neutral data center market.

Don’t miss the business opportunity in the Global Carbon Neutral Data Center Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of global carbon neutral data center market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in global carbon neutral data center market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.

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