Green Data Center Market Report 2025

This Green Data Center market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The green data center market size has grown rapidly in recent years. It will grow from $77.12 billion in 2024 to $90.2 billion in 2025 at a compound annual growth rate (CAGR) of 17%. The growth in the historic period can be attributed to environmental regulations, rise in energy costs, demand for efficient data storage and management, regulations and government initiatives.

The green data center market size is expected to see exponential growth in the next few years. It will grow to $202.29 billion in 2029 at a compound annual growth rate (CAGR) of 22.4%. The growth in the forecast period can be attributed to edge computing expansion, cloud computing growth, need to reduce carbon footprint, emerging market growth. Major trends in the forecast period include liquid cooling innovations, sustainable materials and design, water-efficient cooling technologies, renewable energy integration.

The escalating energy consumption by data centers is anticipated to drive the growth of the green data center market. The proliferation of data centers worldwide, fueled by increasing digitalization and regulatory requirements, is resulting in heightened electricity demand. The rising number of data centers leads to a surge in energy consumption, raising operational costs and causing environmental impact. This has spurred significant demand for green data centers, characterized by environmentally friendly practices and reduced operational costs through the utilization of renewable energy sources. Notably, a July 2023 report from the International Energy Agency reveals that the combined electricity consumption by major players like Amazon, Microsoft, Google, and Meta more than doubled in 2021, reaching approximately 72 terawatt-hours (TWh) and is projected to rise in the coming years. The increasing energy consumption by data centers is a driving force for the growth of the green data center market.

The growing demand for cloud computing is poised to propel the green data center market forward. Cloud computing, encompassing the delivery of various computing services over the internet, is utilized in green data centers to enhance environmental sustainability, resource optimization, scalability, virtualization, efficient cooling, and energy efficiency. As per a September 2022 report from AAG IT Support Service, a US-based digital transformation service provider, a global study of 753 technical and business professionals indicated that 63% reported heavy usage of cloud services in 2022, marking an increase from 59% in 2021 and 53% in 2020. The surge in cloud computing demand is expected to contribute significantly to the growth of the green data center market.

Cloud services are a significant trend gaining traction in the green data center market. These services encompass a variety of offerings delivered on-demand to businesses via the internet, eliminating the need for internal infrastructure or hardware. Additionally, cloud services can complement existing infrastructures, such as cloud centers or facilities. In green data centers, cloud services provide the benefits of cloud technology by simplifying operations while allowing data ownership and effectively managing workloads. Key market players are focusing on integrating or providing cloud services within their offerings to enhance their market presence. For example, in May 2024, Soluna Cloud, a US-based developer of green data centers, launched the Helix data center. This AI cloud service aims to facilitate growth for customers by addressing the rising demand for more sustainable data centers powered by renewable energy.

Major players in the green data center market are actively developing sustainable and efficient data center solutions to meet the demands of their customers. A notable example is the collaboration between Dell Technologies and Nippon Telegraph and Telephone Corporation (NTT), who joined forces to construct a green data center for PhonePe in India. Completed in October 2022, this data center is not only powered by renewable energy but also incorporates various energy-efficient technologies, including liquid immersion cooling. The facility prioritizes data security, power efficiency, streamlined operations, and cloud solutions, offering businesses a sustainable and efficient infrastructure for seamless nationwide scalability. Importantly, the green data center is expected to contribute to a significant reduction of up to 50% in PhonePe's carbon footprint while meeting the increasing demand for its services in India.

In November 2023, Ardian, a private equity firm based in France, acquired Verne Global for an undisclosed amount. This acquisition enhances Ardian’s extensive experience in investing and managing assets throughout the digital infrastructure value chain. Verne Global is a UK-based provider of green data centers.

Major companies operating in the green data center market include Schneider Electric SE, Vertiv Holdings Co., Hewlett Packard Enterprise, Green Revolution Cooling, Midas Green Tech LLC, International Business Machines Corporation, Cisco Systems Inc., Dell Inc., Fujitsu Ltd., Hitachi Ltd., Delta Electronics Inc., Rittal GmbH & Co. KG, Eaton Corporation Plc, Nortek Air Solutions LLC, Airedale International Air Conditioning Ltd., Asetek A/S, Bloom Energy Corporation, Carbon Relay Inc., Chatsworth Products Inc., Cologix Inc., CyrusOne Inc., Digital Realty Trust Inc., Equinix Inc., Green House Data Inc., Iron Mountain Inc., Johnson Controls International plc, Legrand SA, Panduit Corporation, Raritan Inc., Server Technology Inc.

North America was the largest region in the green data center market in 2024 and is expected to be the fastest-growing region in the forecast period. The regions covered in the green data center market share report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the green data center market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.

A green data center is a facility designed with mechanical, lighting, electrical, and computer systems specifically crafted to enhance energy efficiency and minimize environmental impact. Organizations utilize data centers to manage, store, and distribute vast amounts of information. The design and operation of green data centers incorporate advanced technologies and methods to achieve sustainability objectives.

The main components of green data centers encompass solutions and services. Solutions in this context refer to various green data center solutions, including advanced technologies, management assessment, green procurement practices, recycling initiatives, and more. The size of data centers can range from small and medium-sized to large facilities, catering to various industries such as BFSI (Banking, Financial Services, and Insurance), IT and telecom, media and entertainment, healthcare, government and defense, manufacturing, and other verticals.

The green data center market research report is one of a series of new reports that provides green data center market statistics, including green data center industry global market size, regional shares, competitors with a green data center market share, detailed green data center market segments, market trends and opportunities, and any further data you may need to thrive in the green data center industry. This green data center market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The green data center market includes revenues earned by entities by providing various solutions and services to the data centers to cater to enterprises' data storage and processing needs in data centers such as assessment data center framework, DC optimization, recycling, financial and resource planning, data center consolidation virtualization, power and cooling management, and IT infrastructure management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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