Green Data Center projects to grow 10%

By Dominic Ellis
More green data centers will be built as sustainable construction becomes a "game changer" according to Beroe report

The global market for green data center construction projects is expected to grow at a healthy 10 percent CAGR between 2019 and 2022, according to Beroe research.

Green building technology alludes to construction projects in a sustainable, responsible, and eco-friendly way, from the stage of planning and acquisition to design, architecture, and construction. It includes better construction, site selection, maintenance, design, and green building materials life cycle. 

“We are heading towards a phase where sustainable construction will be a game changer. This shift will bring plenty of advantages. For example, they are a powerful way to accomplish different global objectives on the economic, social, and environmental fronts. Economic green buildings deliver financial returns that incorporate work creation, high property estimation for building engineers, low development expenses, and cost investment funds,” said Gayathri Murali, Senior Research Analyst at Beroe. ''The cross-cutting categories of site selection, water conservation, energy efficiency, use of renewables, and interior environmental quality will play a predominant role in this sustainable makeover''. 

The construction industry accounts for 40 percent of the worldwide energy usage and is also a cause of 23 percent of air pollution and 40 percent of water pollution. As a result, with the deepening trends for green building, there are some common standards that have become quite popular, like Leadership in Energy and Environmental Design (LEED), DGNB System, Building Research Establishment & Environmental Assessment Method (BREEAM), Green Globes, and National Green Building Standard. 

Data Centers and Green Practices

In general, data centers consume tremendous amounts of energy. However, they do have green energy objectives, and it varies on the execution plan. Fabricating data centers demand extensive expertise and due diligence. Therefore, organizations need to pay particular consideration when it comes to hiring top-notch experts and consultants, engineers, architects, and subcontractors for work.

The best methodology is taking direction from the specialists on embracing modern energy-saving and cooling practices to save costs. Numerous server farms request a drawn-out industrialised methodology and conveyance of capital and assets to frame new offsite age. On the other side, many centers use onsite roof space to amplify solar generation and aim to opt for purchasing power agreements (PPAs) from renewable power plants. The pivotal area of sustainability in data centers is their power source that establishes the level of climate influence from a given unit of electricity. However, due to geographical and regulatory coercion, many business houses have low-carbon options.

There are various sustainability Regulations in the USA, Europe (Ireland and Spain), Singapore, Japan, Australia, and India. Each country has its own regulatory body that aims to assess buildings’ environmental performance according to sustainability regulatory standards. The APAC adoption is still low, but the adoption has begun in Singapore and Australia. 

“Today, consolidating energy-efficient landscaping into the overall building design bears out fruitful results. Green building technologies are gaining traction because of the buildings’ significant 40% share of global energy consumption. A fall in prices, government support, and growing awareness among building owners and users will further push this growth towards sustainability. Furthermore, the adoption of modern, efficient technologies will boost the complete process and extend greater investment potential”, added Murali. “Green building technologies that appear promising, as well as popular sustainable certifications or standards, will kickstart the construction of such buildings and hopefully convey the significance of sustainability worldwide.” 

Global investment in Data Centers announced in the first half of 2021 escalated to approximately $100 Billion with India benefiting as the largest single market outside the USA, in a report by Headwind Consultants.

The most significant singular investment is the US$4.2 billion Pioneer Point Partners/Davidson Kempner scheme announced for a large-scale data center in Portugal by 2025 and first mover on a strategically important site for transatlantic cables such as Ellalink, which connects Europe to South America. 

Scala Data Centers - a sustainable hyperscale data center platform, founded by DigitalBridge - the digital infrastructure investment holding company of DigitalBridge Group, Inc. recently signed a Power Purchase Agreement (PPA), a long-term energy purchase agreement, with ENGIE Brasil Energia, the Brazilian’s largest private energy producer. The contract – which extends Scala’s commitment to 100% renewable energy by five years – guarantees the supply of more than 1,600 GWh of clean energy by 2033, a volume sufficient to supply, for one year, a city of around 700,000 people.


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