The current trend is for companies to move away from traditional data centers and investing in green data centers. Recently, Capital Ventures announced that it would be investing in green data centers., which provides energy efficiency solutions to businesses. The company’s focus is on helping companies reduce their energy usage and carbon footprint.
This move is driven by several factors, including the desire to reduce energy costs, increase sustainability efforts and improve efficiency.
Why are Capital Ventures Investing in Green Data Centers
The capital costs of building a new data center are substantial. While some companies may have the resources to build their own data centers, others will need to partner with an investor or developer.
Green data centers are becoming increasingly popular as businesses seek greener alternatives to traditional facilities. Green data centers use less energy and water than traditional facilities, and they recycle waste materials to reduce their carbon footprint.
The cost of building a green data center can range from $50 million to $100 million. As a result, many companies will need financing from investors or developers to build the facility. If your business plans on investing in a green data center, then read on for information on how you can secure funding for your project.
The green data center industry is expected to grow from $8 billion in 2017 to more than $20 billion by 2023, according to a recent report from Allied Market Research. That’s a compound annual growth rate of 18%.
A new capital venture fund has been formed to investing in green data center projects, to fund $1 billion in new construction and retrofits.
Jeffrey Hernreich, who is also the founder of Green Data Centers (GDC), created the Green Data Center Infrastructure Fund, or GDIF.
GDC was a company that created a software platform to help businesses measure their carbon footprint. Schneider Electric acquired it in 2016 for an undisclosed amount. Now Hernreich is back with a new venture fund that will focus exclusively on funding green data centers.
GDIF plans to invest $100 million per year over the next five years in North America, Europe, and Asia-Pacific regions. Interxion Holding NV (NYSE: INXN) will invest $50 million in a renewable energy-powered data center in Arizona.
The advantage of investing in green data centers
Green data centers can improve efficiency, reduce costs, and lower carbon emissions. They also provide other benefits such as easier infrastructure management and enhanced cybersecurity.
The most obvious is that you’ll be doing your part to help the environment by reducing your carbon footprint and decreasing your company’s overall impact on the environment.
This can also improve employee morale and productivity, since employees may feel good about the work their company is doing for the environment.
The benefits of green data centers include:
Reduced operational costs
Energy consumption accounts for about one-third of operational costs for a typical on-premises data center. Optimizing power consumption can reduce these costs by 30 percent or more.
A green data center requires less energy to operate than an average data center. This means that you will be able to save money on your monthly electricity bills when compared with your non-green counterparts.
It also means that you will spend less money on cooling systems, which can increase the lifespan of your hardware.
Using renewable energy sources such as wind and solar can reduce carbon emissions while increasing power availability and reliability.
Going green can help companies save money on energy costs and avoid paying penalties for exceeding energy consumption limits.
The U.S. Environmental Protection Agency estimates that every kilowatt-hour saved translates into $2,500 in annual savings for large commercial buildings like data centers.
Efficiency is a top priority in a green data center. It’s not just about cooling and server rooms, it also involves virtualization and renewable energy sources.
Improved customer experience
Green initiatives can help your business attract new customers who are interested in sustainability and corporate social responsibility (CSR).
Business awareness of the importance of protecting and preserving the environment will bring data center user behavior in a “greener” direction.
Employees who work in a green environment report feeling more energized and productive because of lower temperatures and better air quality than conventional buildings provide. This increased productivity can lead to increased revenue for your business!
Lower carbon footprint
To date, energy use and greenhouse gas emissions have accounted for about 69% of the total footprint of a cloud data center facility. Net zero buildings will decrease the carbon footprint of the data center facilities by combining power and cooling with renewable energies and new technologies.
One of the biggest benefits of investing in a green data centers is a lower carbon footprint compared to conventional facilities. Since there is less electricity required by computers and servers than traditional buildings require heating systems, there is less greenhouse gas produced overall by these facilities
A data center with low carbon footprint can help businesses in lowering the cost of electricity and produce fewer emissions that could harm the environment.
Green data centers are the future of the data center industry. By 2022, green data centers will account for more than half of all new data center construction and have replaced traditional facilities as the dominant model.
Green Data Centers: A Global Market Opportunity, a report from Pike Research, forecasts that global green data center revenue will grow at a compound annual growth rate (CAGR) of 22.8% between 2012 and 2022 to reach $41 billion by 2022.
The U.S. market accounts for the majority of green data center construction, with a total capacity expected to reach more than 200 MW by 2022.
However, Europe is rapidly gaining ground in terms of investment dollars spent on this sector, thanks to increasing demand for more energy-efficient facilities among European businesses looking to cut costs and reduce carbon emissions.
Southeast Asia is experiencing high internet penetration growth. Indonesia, with 180 million internet users, makes the need for green data centers increase.
Based on the latest news that we got, several venture capitalists who previously showed interest, in 2022 have begun to realize the construction of the data center that they funded.