Decarbonization is becoming an increasingly prevalent goal across any major sectors globally to lower carbon footprints, with many sustainable practices and innovations now being introduced. IDTechEx's portfolio of Semiconductors, Data Centers, AI Research Reports and Subscriptions covers the latest clean energy and decarbonization developments for data centers and the electronics sector, to meet growing sustainability goals.
Renewable power and data center innovations
Data centers require an inordinate amount of power to run, and with recent increases in demand for more to be built, the sector is also turning towards more sustainable means of operation. Some megatrends identified by IDTechEx as having potentially sustainable solutions include increased power availability, improved energy efficiency, and reduced Scope 3 emissions. Small modular reactors, solar energy, wind energy, hydropower, and battery energy storage are just some examples of more sustainable means of generating power for data centers, that don't rely on fossil-fuel based energy sources. The latest research into these alternative energy sources can be found in IDTechEx's portfolios of Batteries & Energy Storage and Energy & Decarbonization Research Reports and Subscriptions.
IDTechEx's report, "Sustainability for Data Centers 2027-2037: Green Technologies, Market Forecasts, and Players", also covers ways to reduce harmful emissions generated by data centers. Carbon dioxide removal, alongside the use of green steel and green cement, could be the first steps to reinventing current data center systems that play a large role in greenhouse gas emission reductions and in decarbonizing the sector. According to IDTechEx's research, data centers were responsible for 1% of global electricity consumption in 2024, and 0.5% of global carbon dioxide emissions, with this second figure expected to double by 2030.
The importance of these sustainable changes is great, coming about as a result of fast-growing AI and HPC applications, which are expected to continue on their trajectory. Hyperscalers such as Meta and Amazon have already contributed to these efforts, having bought 'enough clean energy to power Denmark', according to IDTechEx's report. Carbon dioxide removal credit systems are also in place to offset emissions. This is now a billion-dollar market, with Microsoft racking up huge market purchases as a result of their net-negativity goals.
Introducing sustainability to the electronics sector
The electronics sector is also seeing a rise in sustainability innovations. The sheer size of the market means it may be time for a change in approach, with semiconductor manufacturing energy consumption expected to reach 349 billion kWh by 2037, growing at a compound annual growth rate of 5.9%, and integrated circuits being the 3rd most traded products worldwide.
As decarbonization targets come into play, IDTechEx predicts that around 2030, after an initial increase in Scope 1 and 2 emissions from semiconductor manufacturing, emissions within the electronics sector are expected to decrease. This is predicted to be as a result of increasing efficiency and a greater adoption of renewable energy sources to enable operations.
IDTechEx's report, "Sustainable Electronics and Semiconductor Manufacturing 2027-2037: Markets, Technologies, Forecasts", states that APAC dominates the electronics supply chain. Despite interest in localizing supply chains, competing with APAC will prove to be tricky in the short term, given its longstanding position. IDTechEx identifies that miniaturizing the size of components could potentially help to cut back on costs and emissions and reduce the size and volume of shipping containers.
There are also competitive initiates ongoing across the globe to increase investments and subsequently market share covered within IDTechEx's report. The EU Chips Act sees US$47 billion public and private investments, while the US CHIPS and Science Act has US$50 billion in federal funding, highlighting an already large global and geopolitical interest in the semiconductor market, with onshoring initiatives widespread.
For more information, visit IDTechEx's portfolio of Semiconductors, Data Centers, AI Research Reports and Subscriptions for the latest research and developments.
