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What's Driving Green Data Center Demand?

Published
  • October 09 2015, 6:52am EDT

The U.S. market for green data center technologies is expected to grow at a compound annual growth rate (CAGR) of 26% from 2015 to 2019, according to research firm Technavio.

The market includes IT equipment such as storage systems and servers that enable maximum energy efficiency with minimal environmental impact; power management and cooling systems, and monitoring and management software. To calculate the market size, Technavio analyzed the revenue generated by these types of products.

The report, Green Data Center Market in the US 2015-2019, is based on an in-depth market analysis with input from industry experts, and includes an analysis of key vendors such as Cisco Systems, Dell, Emerson Network Power, HP and IBM.

Among the key market growth drivers are the rise in electricity consumption and costs and the need to reduce CO2 emissions. Among the market challenges are the cost of building green data centers and a lack of expertise in green technologies, the firm says.

The growing demand for data centers among large enterprises, cloud service providers, government agencies and telecommunication organizations has resulted in the increased adoption of data centers in the U.S. and expanded the growth of green data center technology, according to Faisal Ghaus, vice president of Technavio.

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