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Report: Green datacentre market to top $45bn by 2016

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Companies looking to balance rising prices of electricity and real estate with increasing demand for more storage

The market for green datacentres is set to be worth more than $45bn a year by 2016 as companies seek to balance rising energy costs, increasing demand for more powerful computers and environmental concerns, analyst firm Pike Research reports.

In a report published last week, Pike says datacentres currently consume around 1.5 per cent of the world’s energy production and companies will struggle to manage their demand as the sector increasingly embraces mobile technology, virtualisation and cloud computing.

It adds the need to balance “insatiable” demand for more storage with carbon cutting legislation and rising electricity and property prices will push the market for green datacentres from just over $17bn in 2012 to $45.4bn by 2016 – at a compound annual growth rate of nearly 28 per cent.

Dominic Philips, managing director of UK-based green datacentre company Datum, said he expected “the lion’s share of datacentre expenditure will be … investment in newer infrastructure to replace the existing datacentre estate” rather than upgrades.

This seems to be borne out in the experiments companies have undertaken with different technologies to minimise cost and carbon. Earlier this year, HP unveiled a “zero-energy” datacentre that uses renewable sources for energy and cooling, along with smart demand management software that cuts power demand by 30 per cent.

Meanwhile, Google and Facebook are among several firms investing in datacentres installed in Scandinavian caves that keep them naturally cool.

However, Pike research director Eric Woods said there is no one technology that makes a datacentre green. Rather, the rise is connected to a broader “transformation that encompasses technical innovation, operational improvements, new design principles, changes to the relationship between IT and business, and changes in the datacentre supply chain.”

Original article posted in Report: Green datacentre market to top $45bn by 2016

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