As digital transformation accelerates across industries, the demand for data storage and processing capabilities is reaching unprecedented levels. Yet, this surge in data consumption brings an urgent imperative for sustainability. The global sustainable data center market is stepping up to meet this challenge, focusing on energy efficiency, innovative cooling techniques, and renewable energy integration. 

The global demand for data centers is skyrocketing in an era were data drives decision-making and innovation. However, this exponential growth brings significant environmental challenges, as data centers consume vast energy and resources. In response, the sustainable data center market is emerging as a vital sector committed to reducing carbon footprints and enhancing energy efficiency. 

Arizton's Exclusive Research Reveals Prime Regions for Investment in Sustainable Data Centers: A Golden Opportunity for Market Vendors 

The APAC Sustainable Data Center Market Investment to Hit $22.91 Billion by 2029 

The Asia-Pacific (APAC) sustainable data center market is one of the fastest-growing sectors globally, featuring key hubs in countries like China, Singapore, South Korea, Japan, Australia, India, and Hong Kong. However, land and power shortages have emerged in regions like Singapore and Taiwan, prompting operators to shift focus to Tier 2 countries such as Malaysia, Indonesia, and Thailand. Within APAC, colocation providers lead the market, followed closely by internet and cloud service companies. A notable trend is the increasing adoption of green energy as operators aim to meet corporate and governmental carbon neutrality goals.  

Investment Analysis  

In 2024, investments in APAC data centers surged significantly, driven by a growing internet user population, the rising of online gaming, and the increasing adoption of artificial intelligence technologies, including Generative AI. The proliferation of smartphones, a shift toward cloud computing, and businesses' desire to move from in-house server setups to larger, more efficient data centers further fueled this trend.  

Key market players, such as Nxtra by Airtel, L&T Cloudfiniti, Sify Technologies, GDS Services, SUNeVision Holdings (iAdvantage), Equinix, and Digital Realty, made substantial investments aimed at integrating renewable energy sources into their operations to align with sustainability goals.  

Major cloud service providers, including Google, Facebook, Alibaba, Tencent, AWS, and Microsoft, significantly increased their investments. This influx of capital is expected to expedite the migration of businesses and government organizations to cloud-based systems while promoting a transition from traditional energy sources to renewables.  

In 2024, China, Australia, New Zealand, Japan, Singapore, and India led the APAC green data center market, collectively accounting for approximately 50% to 60% of the region's green data center investments. Meanwhile, Malaysia and Thailand have emerged as new contenders in this sector, responding to power and land availability limitations in more established data center locations.  

Recent power capacity and renewable energy sustainability initiatives in South Korea  

In May 2024, Digital Edge introduced a novel energy storage solution to replace lithium-ion batteries. Partnering with South Korea's Donghwa ES, Digital Edge has developed a Hybrid supercapacitor (HSC) to enhance power supply efficiency in its UPS systems.  

In December 2023, Amazon announced a new collaboration with SK E&S to initiate a solar energy project in South Korea. With a capacity of 60 megawatts (MW), this project represents a significant step toward Amazon's goal of achieving 100% renewable energy. The partnership will involve developing and managing a solar farm that provides clean energy for Amazon's data centers and corporate offices.  

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The U.S. Sustainable Data Center Market Investment is Projected to Reach USD 35.35 Billion by 2029 

Data center operators across the U.S. have increasingly embraced the trend of purchasing renewable energy throughout the year, marking a significant shift toward sustainability in the industry. Many operators, including colocation and hyperscale leaders such as AWS, Meta, CyrusOne, Equinix, Digital Realty, QTS Realty Trust, Microsoft, STACK Infrastructure, and Google, are actively opting for clean power sources like wind and solar to power their facilities. This collective effort reflects a strong commitment to fostering a cleaner and greener future for data center operations.  

The sustainable data center market in the US is booming as companies embrace eco-friendly practices. Businesses increasingly adopt energy-efficient technologies and renewable energy sources to power their data centers, aligning with a broader global push for sustainability. This shift reduces environmental impact and emphasizes the economic benefits of green data solutions.  

Major colocation operators such as Equinix, Digital Realty, STACK Infrastructure, NTT DATA CyrusOne, Vantage Data Centers, QTS Realty Trust, and others have pledged to become carbon neutral and procure renewable energy to power their data centers.  

Investment Analysis   

In October 2023, Microsoft announced its plan for a new data center campus in Floyd County outside Rome, Georgia, called Project Firecracker, which is expected to cost around $1 billion and expected to be online by 2027-2028.   

In September 2023, Aligned Data Centers announced its plan to develop a new data center campus in Northern Ohio, for which it acquired around 130 acres of land.  

Sustainable Data Center Growth in the Southeastern US: Northern Virginia and Atlanta Lead the Charge  

The Southeastern U.S. encompasses West Virginia, Virginia, Kentucky, Tennessee, North Carolina, South Carolina, Georgia, Alabama, Mississippi, Arkansas, Louisiana, and Florida. Northern Virginia, a prominent data center hub in the Americas, has achieved remarkable growth in its operational and under-development power capacity this year. Despite land and power availability challenges, operators continue to expand their projects in the region, with a swift pre-leasing trend for new developments. Any land that offers adequate power and fiber access is in high demand for both colocation and hyperscale data centers.  

Meanwhile, Atlanta has seen a significant surge in demand for data center space, which was previously lacking in the latter half of 2022. The market now boasts a substantial pipeline of projects, with growth occurring in established areas and emerging clusters nearby. The vacancy rate has dropped to a record low of less than 3%, supported by ongoing construction. Factors driving this growth include the increasing tech presence in the region, power constraints in Northern Virginia, a business-friendly environment, and heightened investor interest. Georgia has further solidified its commitment to the data center sector by implementing tax exemptions on high-tech data center equipment through 2033, leading to numerous projects in various stages of planning and development in the Atlanta market.  

Looking for Investing in the US Sustainable Data Center Market? Click: https://www.arizton.com/market-reports/us-green-data-center-market 

The Europe Sustainable Data Center Market Investment to Worth USD 16.89 Billion by 2029 

The Europe sustainable data center market is rapidly evolving as organizations increasingly prioritize energy efficiency and sustainability. Google stands out as a leading operator in this sector, renowned for its commitment to environmental responsibility. The company aims to power all its data centers with carbon-free energy by 2030 and employ AI technology to optimize cooling systems, achieving up to 30% energy reductions. Renewable energy firms like Orsted, Engie, GreenYellow, and Enel Group supply clean power to data center operators establishing new plants dedicated to their energy needs. For example, Google has secured a Power Purchase Agreement (PPA) with Engie for 118 MW of wind energy in Belgium. Additionally, colocation providers such as Equinix, Digital Realty, Vantage Data Centers, CyrusOne, and STACK Infrastructure, along with hyperscale giants like Microsoft, AWS, Google, Apple, and Meta, are integrating the latest sustainable technologies into their data center facilities.  

Investment Analysis  

In September 2024, Beyond.pl announced its plan to expand the Poznan data center campus. The company further announced that the new data center building will support high-density and AI workloads of over 130 kW per rack. The expanded campus will remain committed to being powered entirely by renewable energy sources. The new building will employ various cooling methods, such as liquid cooling, direct-to-chip technologies, immersion cooling, and rear door heat exchangers.  

In August 2024, Yondr received approval to build another facility in Slough, UK. The company announced the newly planned building will feature a green living wall facing the canal. This will not only offer visual and sound insulation but also boost the biodiversity present at the location.  

Geographical Overview   

The Nordic region is highly suitable for green data center development thanks to its lack of reliance on water-based cooling and a power supply primarily sourced from renewable energy. This position supports the growth of Europe’s sustainable data center market. Site selection for data centers across Europe increasingly hinges on access to renewable energy. Spain, Portugal, Greece, and others benefit from investments in this area and offer more available space compared to crowded markets like Germany and the UK. Western Europe and the Nordic region are expected to remain hotspots for data center development, attracting more companies to the sustainable data center sector. In Central and Eastern Europe, particularly in Poland, Czechia, Romania, and Austria, data centers are investing in renewable energy to lower their Power Usage Effectiveness (PUE) from 1.5 to around 1.3 or lower, presenting attractive opportunities for investors during the forecast period.  

Looking for Investing in the Europe Sustainable Data Center Market? Click: https://www.arizton.com/market-reports/europe-green-data-center-market 

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