The carbon neutral data center market size has grown exponentially in recent years. It will grow from $8.92 billion in 2024 to $10.81 billion in 2025 at a compound annual growth rate (CAGR) of 21.2%. The growth in the historic period can be attributed to corporate sustainability initiatives, energy-efficient hardware adoption, shift in consumer preferences, government support and incentives.
The carbon neutral data center market size is expected to see exponential growth in the next few years. It will grow to $27.57 billion in 2029 at a compound annual growth rate (CAGR) of 26.4%. The growth in the forecast period can be attributed to advancements in energy storage, market demand for carbon-neutral services, lifecycle assessments and circular economy practices, investment in energy-efficient hardware, government initiatives and incentives. Major trends in the forecast period include renewable energy adoption, energy-efficient infrastructure, carbon offsetting programs, green building standards, efficient cooling solutions.
The increased focus on renewable energy is a significant driver for the growth of the carbon-neutral data center market. Renewable energy, sourced from natural elements, is gaining popularity due to its capacity to reduce pollutants and greenhouse gas emissions. Carbon-neutral data centers aim to achieve net-zero carbon emissions, necessitating a reliance on renewable energy sources. Notably, a December 2021 report by the International Energy Agency predicts renewables to contribute nearly 95% of the global power capacity increase through 2026, further bolstering the carbon-neutral data center market.
The increasing focus on renewable energy is playing a significant role in the expansion of the carbon-neutral data center market. Renewable energy, sourced from natural elements, is gaining traction as it helps reduce pollutants and greenhouse gas emissions. Carbon-neutral data centers aim to achieve net-zero carbon emissions, which necessitates the use of renewable energy sources. For example, in June 2024, the International Energy Agency, a France-based autonomous intergovernmental organization, reported that in 2022, the supply of renewable energy from solar, wind, hydro, geothermal, and ocean sources grew by nearly 8%. Consequently, the contribution of these technologies to the global energy supply rose by approximately 0.4 percentage points, reaching 5.5%. Therefore, the growing emphasis on renewable energy is expected to drive the carbon-neutral data center market forward.
The telecommunications sector encompasses the industry that facilitates global communication through various channels, including phones, the internet, airwaves, and cables. Data centers play a crucial role in this industry by providing constant storage and processing capabilities, which are essential for delivering high-quality services. Additionally, the telecom industry is increasingly investing in carbon-neutral data centers to minimize carbon emissions and enhance sustainability. For instance, in July 2023, Ofcom, a UK-based government office, reported that by the end of Q1 2023, the number of active mobile subscriptions (excluding M2M) reached 86.9 million, representing an increase of 1.6 million (1.9%) compared to the previous year. Consequently, the growth of the telecommunications sector is significantly contributing to the expansion of the carbon-neutral data center market.
A notable strategy among major players in the carbon-neutral data center market is the expansion of computing capacities to achieve net carbon-neutrality and gain a competitive advantage. Computing capacity expansion involves increasing resources for computing, such as storage, processing power, and network capabilities. As an illustration, in November 2022, Volkswagen AG expanded its data center operations in Green Mountain, Norway, with the goal of achieving net carbon-neutrality by 2027. This expansion, powered entirely by hydropower with natural cooling, positions Volkswagen to operate 25% of its global data centers carbon-neutrally, resulting in a significant annual reduction of 10,000 tons of CO2 emissions.
In March 2022, Kohlberg Kravis Roberts & Co. (KKR) and Global Infrastructure Partners (GIP) jointly acquired CyrusOne for $15 billion, marking a significant move in the carbon-neutral data center market. The acquisition integrates CyrusOne's data center business into KKR's portfolio of technology and infrastructure companies. CyrusOne, a US-based data center company providing carbon-neutral solutions, becomes a strategic addition to KKR's investment in the evolving landscape of technology and infrastructure.
Major companies operating in the carbon neutral data center market are 3M Company, ABB Ltd., Alibaba Group Holding Limited, Alphabet Inc., Amazon.com Inc., Cisco Systems Inc., Dell Inc., Digital Realty Trust Inc., Eaton Corporation PLC, Equinix Inc., Fujitsu Ltd, Hewlett Packard Enterprise, The International Business Machines Corporation, Intel Corporation, Microsoft Corporation, Ark Data Centres Limited, Cologix Holdings Inc., CyrusOne Inc., DataBank Holdings Ltd., Digital Fortress Inc., Lunavi Inc., Iron Mountain.Inc, NTT Communications Corporation, QTS Realty Trust, ServerFarm, SingleHopLLC, Sungard Availability Services LP, Switch Inc., Telehouse America Inc., Carbon60 Networks Inc.
Europe was the largest region in the carbon neutral data market in 2024. The regions covered in the carbon neutral data center market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the carbon neutral data center market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
A carbon-neutral data center is one that aligns with stringent criteria in energy efficiency, emission control, water efficiency, and the utilization of clean energy. Operated exclusively on 100% renewable energy sources, these data centers play a crucial role in mitigating carbon emissions associated with data center operations.
Carbon-neutral data centers come in various forms, including hyperscale data centers, enterprise data centers, colocation data centers, and other specialized variants. Hyperscale data centers play a crucial role in meeting the extensive data and cloud computing needs of their users. Characterized by modern infrastructure, these facilities provide the necessary space, electricity, cooling, and network capabilities to efficiently handle large-scale data and cloud computing requirements. The primary categories of solutions offered by carbon-neutral data centers encompass hardware, software and platform, and support services. These solutions find widespread application across diverse industries such as IT and telecom, banking, financial services, and insurance (BFSI), government or public sector, healthcare, manufacturing, retail, and other sectors. Carbon-neutral data centers thus serve as vital components supporting sustainability initiatives across various business domains.
The carbon neutral data center market research report is one of a series of new reports that provides carbon neutral data center market statistics, including carbon neutral data center industry global market size, regional shares, competitors with a carbon neutral data center market share, detailed carbon neutral data center market segments, market trends and opportunities, and any further data you may need to thrive in the carbon neutral data center industry. This carbon neutral data center market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The carbon-neutral data center market includes revenues earned by entities edge data centers, professional and managed services. 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.
This product will be delivered within 3-5 business days.
The carbon neutral data center market size is expected to see exponential growth in the next few years. It will grow to $27.57 billion in 2029 at a compound annual growth rate (CAGR) of 26.4%. The growth in the forecast period can be attributed to advancements in energy storage, market demand for carbon-neutral services, lifecycle assessments and circular economy practices, investment in energy-efficient hardware, government initiatives and incentives. Major trends in the forecast period include renewable energy adoption, energy-efficient infrastructure, carbon offsetting programs, green building standards, efficient cooling solutions.
The increased focus on renewable energy is a significant driver for the growth of the carbon-neutral data center market. Renewable energy, sourced from natural elements, is gaining popularity due to its capacity to reduce pollutants and greenhouse gas emissions. Carbon-neutral data centers aim to achieve net-zero carbon emissions, necessitating a reliance on renewable energy sources. Notably, a December 2021 report by the International Energy Agency predicts renewables to contribute nearly 95% of the global power capacity increase through 2026, further bolstering the carbon-neutral data center market.
The increasing focus on renewable energy is playing a significant role in the expansion of the carbon-neutral data center market. Renewable energy, sourced from natural elements, is gaining traction as it helps reduce pollutants and greenhouse gas emissions. Carbon-neutral data centers aim to achieve net-zero carbon emissions, which necessitates the use of renewable energy sources. For example, in June 2024, the International Energy Agency, a France-based autonomous intergovernmental organization, reported that in 2022, the supply of renewable energy from solar, wind, hydro, geothermal, and ocean sources grew by nearly 8%. Consequently, the contribution of these technologies to the global energy supply rose by approximately 0.4 percentage points, reaching 5.5%. Therefore, the growing emphasis on renewable energy is expected to drive the carbon-neutral data center market forward.
The telecommunications sector encompasses the industry that facilitates global communication through various channels, including phones, the internet, airwaves, and cables. Data centers play a crucial role in this industry by providing constant storage and processing capabilities, which are essential for delivering high-quality services. Additionally, the telecom industry is increasingly investing in carbon-neutral data centers to minimize carbon emissions and enhance sustainability. For instance, in July 2023, Ofcom, a UK-based government office, reported that by the end of Q1 2023, the number of active mobile subscriptions (excluding M2M) reached 86.9 million, representing an increase of 1.6 million (1.9%) compared to the previous year. Consequently, the growth of the telecommunications sector is significantly contributing to the expansion of the carbon-neutral data center market.
A notable strategy among major players in the carbon-neutral data center market is the expansion of computing capacities to achieve net carbon-neutrality and gain a competitive advantage. Computing capacity expansion involves increasing resources for computing, such as storage, processing power, and network capabilities. As an illustration, in November 2022, Volkswagen AG expanded its data center operations in Green Mountain, Norway, with the goal of achieving net carbon-neutrality by 2027. This expansion, powered entirely by hydropower with natural cooling, positions Volkswagen to operate 25% of its global data centers carbon-neutrally, resulting in a significant annual reduction of 10,000 tons of CO2 emissions.
In March 2022, Kohlberg Kravis Roberts & Co. (KKR) and Global Infrastructure Partners (GIP) jointly acquired CyrusOne for $15 billion, marking a significant move in the carbon-neutral data center market. The acquisition integrates CyrusOne's data center business into KKR's portfolio of technology and infrastructure companies. CyrusOne, a US-based data center company providing carbon-neutral solutions, becomes a strategic addition to KKR's investment in the evolving landscape of technology and infrastructure.
Major companies operating in the carbon neutral data center market are 3M Company, ABB Ltd., Alibaba Group Holding Limited, Alphabet Inc., Amazon.com Inc., Cisco Systems Inc., Dell Inc., Digital Realty Trust Inc., Eaton Corporation PLC, Equinix Inc., Fujitsu Ltd, Hewlett Packard Enterprise, The International Business Machines Corporation, Intel Corporation, Microsoft Corporation, Ark Data Centres Limited, Cologix Holdings Inc., CyrusOne Inc., DataBank Holdings Ltd., Digital Fortress Inc., Lunavi Inc., Iron Mountain.Inc, NTT Communications Corporation, QTS Realty Trust, ServerFarm, SingleHopLLC, Sungard Availability Services LP, Switch Inc., Telehouse America Inc., Carbon60 Networks Inc.
Europe was the largest region in the carbon neutral data market in 2024. The regions covered in the carbon neutral data center market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the carbon neutral data center market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
A carbon-neutral data center is one that aligns with stringent criteria in energy efficiency, emission control, water efficiency, and the utilization of clean energy. Operated exclusively on 100% renewable energy sources, these data centers play a crucial role in mitigating carbon emissions associated with data center operations.
Carbon-neutral data centers come in various forms, including hyperscale data centers, enterprise data centers, colocation data centers, and other specialized variants. Hyperscale data centers play a crucial role in meeting the extensive data and cloud computing needs of their users. Characterized by modern infrastructure, these facilities provide the necessary space, electricity, cooling, and network capabilities to efficiently handle large-scale data and cloud computing requirements. The primary categories of solutions offered by carbon-neutral data centers encompass hardware, software and platform, and support services. These solutions find widespread application across diverse industries such as IT and telecom, banking, financial services, and insurance (BFSI), government or public sector, healthcare, manufacturing, retail, and other sectors. Carbon-neutral data centers thus serve as vital components supporting sustainability initiatives across various business domains.
The carbon neutral data center market research report is one of a series of new reports that provides carbon neutral data center market statistics, including carbon neutral data center industry global market size, regional shares, competitors with a carbon neutral data center market share, detailed carbon neutral data center market segments, market trends and opportunities, and any further data you may need to thrive in the carbon neutral data center industry. This carbon neutral data center market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The carbon-neutral data center market includes revenues earned by entities edge data centers, professional and managed services. 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.
This product will be delivered within 3-5 business days.
Table of Contents
1. Executive Summary2. Carbon Neutral Data Center Market Characteristics3. Carbon Neutral Data Center Market Trends and Strategies4. Carbon Neutral Data Center Market - Macro Economic Scenario Including the Impact of Interest Rates, Inflation, Geopolitics, and the Recovery from COVID-19 on the Market32. Global Carbon Neutral Data Center Market Competitive Benchmarking and Dashboard33. Key Mergers and Acquisitions in the Carbon Neutral Data Center Market34. Recent Developments in the Carbon Neutral Data Center Market
5. Global Carbon Neutral Data Center Growth Analysis and Strategic Analysis Framework
6. Carbon Neutral Data Center Market Segmentation
7. Carbon Neutral Data Center Market Regional and Country Analysis
8. Asia-Pacific Carbon Neutral Data Center Market
9. China Carbon Neutral Data Center Market
10. India Carbon Neutral Data Center Market
11. Japan Carbon Neutral Data Center Market
12. Australia Carbon Neutral Data Center Market
13. Indonesia Carbon Neutral Data Center Market
14. South Korea Carbon Neutral Data Center Market
15. Western Europe Carbon Neutral Data Center Market
16. UK Carbon Neutral Data Center Market
17. Germany Carbon Neutral Data Center Market
18. France Carbon Neutral Data Center Market
19. Italy Carbon Neutral Data Center Market
20. Spain Carbon Neutral Data Center Market
21. Eastern Europe Carbon Neutral Data Center Market
22. Russia Carbon Neutral Data Center Market
23. North America Carbon Neutral Data Center Market
24. USA Carbon Neutral Data Center Market
25. Canada Carbon Neutral Data Center Market
26. South America Carbon Neutral Data Center Market
27. Brazil Carbon Neutral Data Center Market
28. Middle East Carbon Neutral Data Center Market
29. Africa Carbon Neutral Data Center Market
30. Carbon Neutral Data Center Market Competitive Landscape and Company Profiles
31. Carbon Neutral Data Center Market Other Major and Innovative Companies
35. Carbon Neutral Data Center Market High Potential Countries, Segments and Strategies
36. Appendix
Executive Summary
Carbon Neutral Data Center Global Market Report 2025 provides strategists, marketers and senior management with the critical information they need to assess the market.This report focuses on carbon neutral data center market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Reasons to Purchase:
- Gain a truly global perspective with the most comprehensive report available on this market covering 15 geographies.
- Assess the impact of key macro factors such as conflict, pandemic and recovery, inflation and interest rate environment and the 2nd Trump presidency.
- Create regional and country strategies on the basis of local data and analysis.
- Identify growth segments for investment.
- Outperform competitors using forecast data and the drivers and trends shaping the market.
- Understand customers based on the latest market shares.
- Benchmark performance against key competitors.
- Suitable for supporting your internal and external presentations with reliable high quality data and analysis
- Report will be updated with the latest data and delivered to you along with an Excel data sheet for easy data extraction and analysis.
- All data from the report will also be delivered in an excel dashboard format.
Description
Where is the largest and fastest growing market for carbon neutral data center? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The carbon neutral data center market global report answers all these questions and many more.The 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 market characteristics section of the report defines and explains the market.
- The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- The forecasts are made after considering the major factors currently impacting the market. These include:
- The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.
- Market segmentations break down the market into sub markets.
- The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
- The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
Scope
Markets Covered:
1) by Data Center Type: Hyperscale Data Centers; Enterprise Data Centers; Colocation Data Centers; Other Data Center Types2) by Solution: Hardware; Software and Platform; Support Service
3) by Industry: IT and Telecom; Banking, Financial Services, and Insurance (BFSI); Government or Public Sector; Healthcare; Manufacturing; Retail; Other Industries
Subsegments:
1) by Hyperscale Data Centers: Cloud Service Providers; Large-Scale Web Services2) by Enterprise Data Centers: in-House Data Centers; Private Data Centers
3) by Colocation Data Centers: Retail Colocation; Wholesale Colocation
4) by Other Data Center Types: Edge Data Centers; Micro Data Centers
Key Companies Mentioned: 3M Company; ABB Ltd.; Alibaba Group Holding Limited; Alphabet Inc.; Amazon.com Inc.
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita.
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Delivery Format: PDF, Word and Excel Data Dashboard.
Companies Mentioned
Some of the major companies featured in this Carbon Neutral Data Center market report include:- 3M Company
- ABB Ltd.
- Alibaba Group Holding Limited
- Alphabet Inc.
- Amazon.com Inc.
- Cisco Systems Inc.
- Dell Inc.
- Digital Realty Trust Inc.
- Eaton Corporation PLC
- Equinix Inc.
- Fujitsu Ltd
- Hewlett Packard Enterprise
- The International Business Machines Corporation
- Intel Corporation
- Microsoft Corporation
- Ark Data Centres Limited
- Cologix Holdings Inc.
- CyrusOne Inc.
- DataBank Holdings Ltd.
- Digital Fortress Inc.
- Lunavi Inc.
- Iron Mountain.Inc
- NTT Communications Corporation
- QTS Realty Trust
- ServerFarm
- SingleHopLLC
- Sungard Availability Services LP
- Switch Inc.
- Telehouse America Inc.
- Carbon60 Networks Inc.
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 200 |
| Published | February 2025 |
| Forecast Period | 2025 - 2029 |
| Estimated Market Value ( USD | $ 10.81 Billion |
| Forecasted Market Value ( USD | $ 27.57 Billion |
| Compound Annual Growth Rate | 26.4% |
| Regions Covered | Global |
| No. of Companies Mentioned | 31 |
