The global green data center market was expected to be worth ***** billion U.S. dollars in 2023, with the North American market accounting for ***** billion U.S. dollars, the most of any global region. Strong growth is forecast over the coming years, with the global market expected to surpass *** billion U.S. dollars by the end of the decade.Further information on the green data center market can be found here.

Green Data Center Market is Segmented by Component (Service, Solution), Data Center Type (Colocation Providers, Hyperscalers/Cloud Service Providers, Enterprise, and Edge), Tier Type (Tier 1 and 2, Tier 3, Tier 4), Industry Vertical (Healthcare, BFSI, Government and More) and by Geography. The Market Forecasts are Provided in Terms of Value (USD).

With a steady 19.40% CAGR, the Green Data Center Market is well on its way to achieving a market size of $289.20 billion by 2032

Asia Pacific Green Data Center Market Report is Segmented by Services (System Integration, Monitoring Services, and More), Solutions (Power, Servers, Management Software, and More), Users (Colocation Providers, Cloud Service Providers, Enterprises), End-User Industries (Healthcare, Financial Services, and More), and by Country. The Market Forecasts are Provided in Terms of Value (USD).

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Green Data Center Market Size 2025-2029

The green data center (GDC) market size is forecast to increase by USD 90.65 billion, at a CAGR of 13.2% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing electricity consumption and rising costs associated with traditional data centers. This trend is pushing organizations to adopt energy-efficient solutions, making GDCs an attractive alternative. Another key driver is the growing adoption of Data Center Infrastructure Management (DCIM) solutions and automation technologies, which enable better energy management and resource utilization in GDCs. However, the high cost of building and maintaining these facilities remains a significant challenge.
Additionally, partnerships and collaborations between industry players can help reduce costs and share best practices, making GDCs a strategic investment for businesses seeking to reduce their carbon footprint and optimize operational efficiency. Despite this, companies can capitalize on the market's potential by focusing on innovative design and construction methods, utilizing renewable energy sources, and implementing advanced cooling technologies to minimize energy consumption and costs.

What will be the Size of the Green Data Center (GDC) Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market continues to evolve, driven by the increasing demand for cloud computing efficiency and the need to reduce carbon footprint. Hardware optimization and server virtualization play significant roles in this evolution, enabling data centers to house more servers while consuming less energy. For instance, a leading technology company was able to increase its server capacity by 50% while reducing energy consumption by 30% through server consolidation and virtualization. Ensuring data security and privacy is a major concern for organizations, necessitating significant investments in cybersecurity measures. Moreover, the adoption of advanced technologies such as software-defined networking, energy management systems, and automation technologies contributes to the market's dynamism. These solutions optimize network performance, improve power usage effectiveness, and enhance security protocols.

In fact, industry experts anticipate a 15% compound annual growth rate (CAGR) for the GDC market over the next five years, driven by the increasing adoption of renewable energy sources, sustainable building design, and thermal management solutions. Furthermore, free cooling techniques, such as liquid cooling technology and geothermal cooling, are gaining traction in the market, as they offer significant energy savings. Additionally, the integration of AI-powered optimization and predictive maintenance systems allows for more efficient use of resources and minimizes waste heat recovery. The GDC market is characterized by continuous innovation and the integration of various technologies aimed at reducing greenhouse gas emissions and improving cloud computing efficiency.

From hardware optimization and server virtualization to software solutions and advanced thermal management techniques, the market's evolution is driven by the need for sustainability and energy efficiency. Data center infrastructure continues to evolve, with modularity and building automation systems becoming increasingly popular, enabling energy storage systems and remote monitoring systems to improve overall energy efficiency metrics.

How is this Green Data Center (GDC) Industry segmented?

The green data center (GDC) industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Component

  IT infrastructure
  Power solutions
  General construction
  Cooling solutions
  Monitoring and management


End-user

  BFSI
  Energy
  IT and telecom
  Others


Type

  Hyperscale data centers
  Colocation data centers
  Enterprise data centers


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    Spain
    UK


  APAC

    China
    India
    Japan


  Rest of World (ROW)

By Component Insights

The IT infrastructure segment is estimated to witness significant growth during the forecast period. The digital transformation of businesses has led to an increasing reliance on cloud computing, with 90% of small and medium enterprises projected to adopt cloud storage by 2025. This shift necessitates the construction of data centers to accommodate the demand for higher computational power and network traffic. The growing complexity of data storage systems and the exponential increase in data necessitate adva

The global green data center market size was around USD 84.92 billion in 2024 and is likely to expand at a CAGR of around 17.7%, surpassing USD 706.49 billion revenue by 2037. Solution segment is projected to dominate 60% share by 2037, influenced by rising need for cooling systems, which is anticipated to fuel market expansion.

Europe Green Data Center Market Report Segments the Industry Into Service (System Integration, Monitoring Services, Professional Services, Other Services), Solution (Power, Servers, Management Software, and More), User (Colocation Providers, Cloud Service Providers, Enterprises), and End-User Industry (Healthcare, Financial Services, Government, and More). The Market Forecasts are Provided in Terms of Value (USD).

Green Data Center Market Outlook

The global green data center market size was estimated at approximately USD 53 billion in 2023, and it is projected to reach an impressive USD 145 billion by 2032, growing at a compound annual growth rate (CAGR) of around 12%. This robust growth is driven by increasing demands for energy-efficient infrastructure, coupled with heightened regulatory pressures to reduce carbon footprints across all industries. As organizations worldwide become more environmentally conscious, the adoption of green data centers is becoming an essential component of their corporate social responsibility strategies. These centers help in minimizing energy consumption and greenhouse gas emissions, while simultaneously lowering operational costs through innovative cooling solutions and sustainable energy sources.

One of the primary growth drivers for the green data center market is the escalating environmental concerns and regulatory mandates that push for energy-efficient solutions. Governments and environmental bodies across the globe have been introducing stringent regulations regarding energy consumption and carbon emissions, which has prompted organizations to shift towards sustainable data center solutions. Moreover, the rising cost of electricity and the increasing demand for data storage and processing power are encouraging companies to adopt innovative solutions that enhance energy efficiency. This trend is further fueled by advancements in technology that enable the deployment of high-performance, energy-efficient computing equipment, reducing the environmental impact of data centers.

Another significant factor contributing to the market's growth is the rapid digitization and increasing reliance on cloud services, big data, and IoT applications. As businesses continue to digitize their operations, the demand for data centers has surged, necessitating greater storage capacities and efficient data management solutions. Green data centers, with their sustainable energy usage and reduced carbon footprints, provide the ideal solution for companies looking to align their technological growth with environmental sustainability. Furthermore, the use of renewable energy resources, such as solar and wind power, is becoming increasingly common, allowing data centers to operate with minimal impact on the environment while also providing cost savings in energy expenditure.

The emergence of innovative cooling technologies, such as liquid cooling and free cooling, also plays a pivotal role in the growth of the green data center market. Traditional data centers are often burdened with high energy costs due to inefficient cooling systems. However, advances in cooling technologies have significantly reduced energy consumption, enabling data centers to operate more sustainably. Organizations are increasingly adopting these advanced solutions to optimize their energy consumption and reduce their environmental impact. Additionally, the incorporation of AI and machine learning technologies to monitor and manage data center operations has further enhanced efficiency, enabling predictive maintenance and optimizing energy usage.

Regionally, North America is expected to hold a substantial share of the green data center market, driven by early technology adoption and strong regulatory frameworks promoting sustainability. Europe follows closely, with the EU's stringent environmental policies providing a robust impetus for the development of green data centers. The Asia Pacific region is anticipated to witness the fastest growth over the forecast period, due to significant investments in IT infrastructure and increasing awareness of environmental sustainability. In contrast, the Middle East & Africa and Latin America are gradually emerging markets, with growing awareness and adoption of green practices in the data center industry, albeit at a slower pace compared to their global counterparts.

Component Analysis

The green data center market can be segmented into components comprising solutions and services. Solutions in the green data center space encompass energy-efficient infrastructure, encompassing advanced cooling technologies, energy management systems, and the integration of renewable energy sources. These solutions are designed to optimize the energy usage of data centers, thereby reducing operational costs and minimizing environmental impact. With the need for sustainable practices becoming more urgent, organizations are increasingly investing in these solutions to align with their corporate responsibility goals. The solutions segment is witnessing rapid technological advancements, with the devel

The green data center market in the Asia-Pacific region is forecast to be worth ***** billion U.S. dollars by 2030, up from an expected ***** billion U.S. dollars in 2023. Strong growth is expected in each region, with China accounting for around half of the Asia-Pacific market.Further information on the green data center market can be found here.

The North American green data center market was forecast to be worth 21.85 billion U.S. dollars in 2023, with the U.S. market accounting for 19.24 billion U.S. dollars. Northern Virginia is a key hub for U.S. data center capacity, with a total inventory of over two thousand megawatts as of the second half of 2022.

Further information on the green data center market can be found here.

Green Data Center Market Outlook

According to our latest research, the global Green Data Center market size in 2024 stands at USD 16.2 billion. The market is experiencing robust growth, with a recorded CAGR of 15.4% from 2025 to 2033. By the end of 2033, the Green Data Center market is forecasted to reach USD 49.4 billion, driven by escalating demand for energy-efficient and sustainable IT infrastructure across industries. This impressive growth is primarily fueled by stringent environmental regulations, rising energy costs, and the increasing adoption of cloud computing and digital transformation initiatives worldwide.

The growth of the Green Data Center market is underpinned by a convergence of environmental, technological, and economic factors. Organizations globally are recognizing the imperative to reduce their carbon footprint, comply with evolving government regulations, and enhance corporate social responsibility profiles. The mounting pressure to adopt sustainable practices has accelerated investments in energy-efficient cooling systems, renewable energy sources, and advanced power management solutions within data centers. These efforts are not only helping companies achieve compliance with environmental standards, such as the Paris Agreement and local emission norms, but are also enabling significant reductions in operational costs over time. The synergy between sustainability and profitability is shaping the strategic direction of data center operators and end-users alike, making green data centers a cornerstone of future-ready digital infrastructure.

Technological innovation is another critical driver for the Green Data Center market. The integration of artificial intelligence, machine learning, and IoT-driven monitoring tools has revolutionized energy management and resource optimization in data centers. Advanced analytics facilitate real-time monitoring of power usage effectiveness (PUE), temperature, humidity, and equipment health, allowing operators to make data-driven decisions that minimize waste and maximize efficiency. The proliferation of modular and prefabricated data center solutions is further enhancing scalability and flexibility, enabling organizations to expand their IT footprint with minimal environmental impact. As digital transformation accelerates in sectors such as BFSI, healthcare, retail, and manufacturing, the demand for high-performance, sustainable data centers continues to soar.

Another significant growth factor is the rising adoption of cloud computing and hybrid IT environments, which necessitate resilient, scalable, and energy-efficient data center infrastructure. As enterprises migrate workloads to the cloud and adopt distributed architectures, the need for green data centers that can support high-density computing while minimizing energy consumption becomes paramount. Cloud service providers and colocation operators are increasingly differentiating themselves by offering green-certified facilities, leveraging renewable energy sources, and implementing cutting-edge cooling and power solutions. This trend is particularly evident in regions with ambitious renewable energy targets and supportive policy frameworks, further propelling the expansion of the green data center market.

From a regional perspective, North America and Europe are leading the adoption of green data center solutions, driven by stringent environmental regulations, advanced technological ecosystems, and a strong focus on sustainability among enterprises. However, the Asia Pacific region is emerging as a significant growth engine, fueled by rapid digitalization, expanding hyperscale data center investments, and government initiatives promoting energy efficiency and renewable energy integration. Latin America and the Middle East & Africa are also witnessing increased activity, albeit at a slower pace, as organizations in these regions begin to prioritize sustainability and energy cost optimization in their data center strategies.

Component Analysis

North America Green Data Center Market Report Segments the Industry Into Service (System Integration, Monitoring Services, Professional Services, Other Services), Solution (Power, Servers, Management Software, and More), User (Colocation Providers, Cloud Service Providers, Enterprises), and End-User Industry (Healthcare, Financial Services, Government, and More). The Market Forecasts are Provided in Terms of Value (USD).

The ******************************** accounted for ***** billion U.S. dollars of the global green data center market in 2022, the most of any industry sector. It is forecast to account for the largest share through to 2030, with the ************************************************ the second largest.Further information on the green data center market can be found here.

The U.S. sustainable data center market by investment was valued at USD 17.00 billion in 2023 and is expected to reach USD 35.35 billion by 2029, growing at a CAGR of 12.98%

The Global Green Data Center Market size accounted for USD 217.03 Billion by 2032 from a value of USD 63.87 Billion in 2024 and is predicted to reach USD 73.23 Billion in 2025, expanding at a CAGR of 18.5% from 2025 to 2032.

The forecast for the global Green Data Center market predicts substantial growth, with market size projected to soar to USD 509.77 Billion by 2033, a significant increase from the USD 94.96 Billion recorded in 2024. This expansion reflects an impressive compound annual growth rate (CAGR) of 20.53% anticipated between 2025 and 2033.

The Global Green Data Center market size to cross USD 509.77 Bill

Green Data Centers Market size was valued at around USD 88 billion in 2024 and is projected to reach USD 240 billion by 2030 with a CAGR of 18%.

The Green Data Center Market size was valued at USD 70.14 USD Billion in 2023 and is projected to reach USD 206.76 USD Billion by 2032, exhibiting a CAGR of 16.7 % during the forecast period. A green data center is a service facility which utilizes energy-efficient technologies. They do not contain obsolete systems and take advantage of newer, more efficient technologies. With the exponential growth and usage of the Internet, power consumption in data centers has increased significantly. Due to the resulting environmental impact, increase in public awareness, higher cost of energy and legislative action, increased pressure has been placed on companies to follow a green policy. For these reasons, the creation of sustainable data centers has become essential in an environmental and a business sense. With substantial energy demands for operation and the need to develop efficient cooling technology to safeguard equipment, data centers present a particularly interesting field for achieving sustainability. And, at the center of this need, lies energy efficiency. Recent developments include: December 2023: Liberation Technology Services (LTS) partnered with E-New Data Corp. to revolutionize the data centre landscape by building a state-of-the-art, environmentally friendly facility in 2024. The partnership between LTS and E-New Data Co., Ltd. helps significantly reduce power and water consumption compared to traditional data centres., May 2023: Sonic Edge, a U.K.-based modular data centre firm, partnered with Deep Green to offer its customers low power costs by using immersion cooling technologies. The partnership will aid Sonic Edge in launching 50 new HPC/EdgePods across the U.K. by 2024., February 2023: Micro Hub opened a solar-powered data center in Dubai by partnering with technology players such as Dell Technologies, Microsoft, Huawei, and VMWare. The data centre utilizes 100% renewable energy and includes the latest advances such as Internet of Things (IoT), digital twin technologies, cybersecurity, Artificial Intelligence (AI), and others., October 2022: PhonePe, with the help of Dell Technologies and NTT, launched its first data center in India. The data center was designed and built with advanced green cooling technologies, such as Liquid Immersion Cooling (LIC) and Contact Liquid Cooling (DCLC)., September 2022: NEC Corporation planned to establish two data centers utilizing 100% renewable energy. The NEC Kanagawa Data Center and the NEC Kobe Data Center would be built and designed specifically to reduce greenhouse gas emissions.. Key drivers for this market are: Rapid Emergence of Artificial Intelligence in Power & Cooling Technologies to Drive Market Growth. Potential restraints include: Cost Considerations Associated with Initial Investment & Modifying Existing Infrastructure to Impede Market Progress. Notable trends are: Increasing Adoption of Renewable Energy Resources to Reduce Carbon Footprint will Bolster Market Growth.

The Europe sustainable data center market by investment was valued at USD 8.88 billion in 2023 and is expected to reach USD 16.89 billion by 2029, growing at a CAGR of 11.32%

The North America green data center market is experiencing robust growth, driven by increasing environmental concerns, stringent government regulations promoting energy efficiency, and the rising adoption of sustainable business practices. The market, valued at $37.27 billion in 2025, is projected to expand at a Compound Annual Growth Rate (CAGR) of 20.38% from 2025 to 2033. This significant growth is fueled by several key factors. The increasing demand for energy-efficient data center infrastructure from cloud service providers and enterprises seeking to reduce their carbon footprint is a primary driver. Furthermore, advancements in green technologies, such as energy-efficient cooling systems, renewable energy integration (solar, wind), and optimized power distribution, are making green data center solutions more cost-effective and attractive. The segment breakdown reveals significant contributions from system integration, power solutions, and management software. Colocation providers and cloud service providers are key users, reflecting the industry's reliance on outsourced data center capabilities. The healthcare, financial services, and government sectors are prominent end-user industries, highlighting the critical role of reliable and sustainable data infrastructure across diverse sectors. While exact regional breakdowns within North America are not provided, it's reasonable to expect the United States to hold the largest market share due to its advanced technological infrastructure and high concentration of data centers. The competitive landscape is characterized by established players like Fujitsu, Cisco, HP, Dell EMC, IBM, and Schneider Electric, alongside other significant contributors. These companies are actively investing in research and development to offer innovative green data center solutions, further intensifying competition and driving innovation within the market. The market's continued expansion will likely be influenced by factors such as government incentives for green initiatives, technological advancements in renewable energy sources and energy storage, and the rising adoption of AI and machine learning, which demand significant computing power and energy efficiency. Potential restraints include the high initial investment costs associated with implementing green technologies and the complexity of integrating various sustainable solutions into existing data center infrastructure. However, the long-term benefits of reduced energy consumption, lower operational costs, and improved brand image are expected to outweigh these challenges, ensuring the market's continued growth trajectory. Recent developments include: October 2022: Dell Technologies and NTT collaboratively established a cutting-edge, environmentally friendly data center for the fintech firm Phone Pay. This state-of-the-art facility features robust data security measures, exceptional power efficiency, streamlined operational procedures, and cloud solutions. These innovations enable Phone Pay to create a sustainable and efficient infrastructure, facilitating the seamless nationwide expansion of their operations., April 2022: Iron Mountain, a global leader in forward-thinking storage solutions, data center infrastructure, asset lifecycle management, and information management services, proudly announced the prestigious BREEAM design certification for its Phoenix, AZ (AZP-2) data center. This accomplishment marks a significant milestone, as it becomes the inaugural data center in North America to attain this top-tier certification, recognized as the pinnacle of sustainable construction standards.. Key drivers for this market are: Increasing Demand for Data Storage, Focus on Energy Efficiency. Potential restraints include: Increasing Demand for Data Storage, Focus on Energy Efficiency. Notable trends are: Increasing Demand for Data Storage Expected to Drive the Market Growth.