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Carbon-neutral data center market revenue set to soar: BRI

Business intelligence firm BIS Research released a report on the carbon-neutral data center market this week that predicts revenue of $5.02 billion last year will more than triple by 2027.

According to the study, revenue will reach US$16.53 billion by then, as a result of the following factors:

  • Government regulations on carbon emissions and increasing emphasis on renewable energy
  • Development of energy efficient alternatives for data center cooling
  • Sustainability efforts and corporate social responsibility (CSR) activities
  • Increase in electricity prices around the world.

Rakhi Tanwar, principal analyst at BRI, said he expects carbon-neutral data centers to be “an excellent replacement for conventional energy sources and techniques used to operate data centers” .

“Through the adoption of renewable energy sources, global climate neutrality goals can be achieved and carbon emissions can be mitigated while increasing storage capacity.”

The 248-page report also cites recent market developments, such as the announcement in May that Alibaba Cloud, the foundation of Alibaba Group’s innovation and digital technology efforts, had opened its third sustainable data center in Germany. to meet the growing demand for digital transformation from customers across Europe. .

In the same month, nZero, a carbon management platform, and Corscale, Patrinely Group’s data center platform, partnered to provide customers with a sustainability offering that enables carbon accounting and a monitoring of broadcasts 24 hours a day, 7 days a week.

In March this year, Normative, a Swedish start-up sponsored by Google, released a free version of its carbon emissions tracker as businesses around the world scrambled to find ways to manage their carbon impact. .

Also in March, Amazon Web Services (AWS) gave customers access to a tool that measures the carbon footprint of cloud usage and compares it to the expected footprint of an on-premises data center. BIS said.

The company adds that carbon-neutral data centers are equipped with various types of technologies and advancements that can be used in large-scale centers, enterprises, colocation data centers and others, which include modular and mobile data. However, the market is expected to be dominated by hyperscale data centers, “because most major hyperscale and cloud service providers are committed to becoming carbon neutral,” BIS said.

The study analyzes and profiles key players in the global carbon neutral data center market, including cloud service providers, power and cooling service providers, data center vendors and device manufacturers. infrastructure. It also compares players operating in the global carbon neutral data center market to help the reader understand how they compare to each other.

The BIS forecasts the market to grow at a compound annual growth rate (CAGR) of 22.19% between 2022 and 2027.