Hyperscale Data Center Market to Experience Growth with Focus on Renewable Energy

June 2017

The cloud computing platforms are consuming so much electricity, vendors are shifting their focus toward solar and wind energy to provide power to their servers. Contracts for 1.6 gigawatts of renewable power have been signed by cloud computing providers in 2016. This reduced the dependence on ‘dirty coal’ and focused on renewable energy. The trend would continue in the coming years though administration of Trump decided to withdraw the United States from the Paris Agreement on climate change. “Withdrawing from the Paris climate agreement is bad for the environment, bad for the economy, and it puts our children’s future at risk,” said Mark Zuckerberg, Facebook co-founder and CEO. “For our part, we’ve committed that every new data center we build will be powered by 100 percent renewable energy. Stopping climate change is something we can only do as a global community, and we have to act together before its too late.“

Tech giant, Google is a leader to procure renewable energy to provide power to their data centers with agreements more than 2.6 gigawatts of wind and solar energy capacity. Joe Kava, Vice President of Data Centers, Google stated that cloud operators have a responsibility to utilize their buying power to bring transformation in the U.S. utility industry. This would boost the use of renewable sources such as wind and solar energy and offer clean energy to more customers. Moreover, Amazon and Microsoft have committed to provide power to their cloud servers with renewable energy.

Riding on the wave of adopting renewable power, hyperscale data center providers have also joined forces by powering their data centers. Providers who are operating in the regional or second-tier market are also procuring renewable power sources. SUPERNAP campus in Las Vegas is operated by hyperscale data center, Switch, and it is also opened its new Citadel Campus. Switch has been cited by Greenpeace owing to its leadership on utilization of renewable energy. It uses 100 percent renewable energy to provide power to all of its data centers, its support for policies of renewable energy, and its transparency to report greenhouse gas emissions on the basis of per-site. Other providers which prioritize renewable energy in their services include Equinix, Digital Realty, Infomart, and Iron Mountain.

Out of these providers, Iron Mountain stated that utilizing renewable energy helps it meet corporate social responsibility objectives. Moreover, addressing increase in demand for data center services that offer clean, affordable, and sustainable power. It is not only service providers but also customers who are seeking renewable sources to power their data centers.

Moreover, a group of tech companies is opting for methods to improve renewable power options for colocation customers. Fourteen companies are working with non-profit business for social responsibilities (BSR), which developed the Corporate Colocation and Cloud Buyers’ Principles that highlights best practices for utilization of renewable energy in multi-tenant facilities. These principles have been implemented by some of the largest users of colocation facilities, with signees such as Facebook, LinkedIn, eBay, Oracle, Akamai, Workday, Salesforce, Adobe, Intuit, HPE, VMware, and others. Hyperscale data centers are moving toward efficient data centers powered by renewable energy.

In its report on the world hyperscale data center market, Big Market Research offers a detailed analysis of changing market dynamics, geographical regions, and key market players. Moreover, key segments are also analyzed and insights on dominating segments are provided to help market players devise strategies for growth. The report also offered insights on top winning strategies, top investment pockets, and patent analysis across various geographies.

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