- Summary
- Table Of Content
- Methodology
Green Data Center Market Size:
Green Data Center Market size is estimated to reach over USD 217.03 Billion by 2032 from a value of USD 63.87 Billion in 2024 and is projected to grow by USD 73.23 Billion in 2025, growing at a CAGR of 18.5% from 2025 to 2032.
Green Data Center Market Scope & Overview:
Green data centers are also known as sustainable data centers that are used for storage, processing, management and delivering applications and services for organizations. Moreover, sustainability in organizations and businesses is a vital part of the environmental, social and governmental practices. A green data center, also known as sustainable data center, is a facility that uses fuel-efficient technologies to minimize environmental impacts. Additionally, sustainable data center offers broad range of benefits such as less carbon emission, decreased water use, reduced electricity consumption and others. Therefore, by adopting technologies such as virtualizations, renewable energy sources and energy-efficient hardware in data centers, organization can lower the use of energy and save fuel cost, hence rising the adoption of green data center.
Green Data Center Market Dynamics - (DRO) :
Key Drivers:
Increasing adoption of environmental sustainability and responsibility are significantly driving the market
There is an increasing adoption of green data centers by organizations to minimize carbon impact, longer infrastructure cycles, reduce data center costs and achieve greater energy resources. Moreover, there are a few metrics to access the effectiveness of data centers known as power usage effectiveness (PUE) and carbon usage effectiveness. Sustainable data centers adopts various advanced technologies such as virtualization, integration of 5-G cellular and internet of things applications. In addition, cloud providers can implement energy-efficient technologies contributing to energy savings on a larger scale. Therefore, by incorporating eco-friendly technologies, sustainable data centers help reduce carbon footprints and minimize electronic e-waste and preserves natural resources.
- For instance, in November 2023, Vertiv launched TimberMod variant, which significantly reduces carbon emissions compared to steel for prefabricated modular data center solutions.
Therefore, increasing adoption of environmentally sustainable solutions in data enters is driving the green data center market size.
Key Restraints:
High initial costs, longer payback periods, and limited access to green financing are hindering the green data center market growth
There is an increase in the adoption of long-term sustainability, however, sustainable data centers often require high initial investments as compared to the traditional data centers. Moreover, integration of advanced technology such as efficient cooling systems and renewable energy sources requires professional and specialized expertise, in turn increasing the complexity and cost. Moreover, the generators and uninterruptible power supply are often most expensive components of the sustainable data centers.
Additionally, the financial barrier can restraint the organizations from making transitions, particularly if they have short-term financial goals or are facing the pressure to reduce cost. Therefore, high initial costs, longer payback periods and limited access to green financing are hindering the adoption of green data center market growth.
Future Opportunities :
Technological advancements associated with integration of artificial intelligence are expected to drive the green data center market opportunities
The integration of new technologies such as artificial intelligence can help data centers become more sustainable. However, various advanced technologies used in sustainable data centers are server visualization, artificial intelligence and machine learning. Monitoring, ultra-efficient cooling systems, hybrid cloud deployments and cloud native which suggests end to end precision timing solutions. Moreover, by implementing software defined data centers, many operators can use virtualization to allocate processing powers and data storage on an as-needed basis. In addition, several data center operators adopt AI-powered predictive analysis to schedule repairs on time and anticipate threats. Further, hybrid cloud deployment allows flexibility and reduces the carbon footprints in most of the organizations to reduce CO2 emissions.
- For instance, according to WayofWard, a joint venture has been announced in August 2024 by various companies to invest in artificial intelligence and high performance computing data centers across United States.
Therefore, technological advancements associated with integration of AI in data centers are projected to drive the green data center market opportunities during the forecast period.
Green Data Center Market Segmental Analysis :
By Component:
Based on component, the market is segmented into hardware, software, and services.
Trends in the component:
- Increasing adoption of technological advancements such as AI and ML in sustainable data centers is driving the market growth.
- Rising trend towards the adoption of automation devices for monitoring energy consumption, optimizing data allocations, and automating processes.
Hardware segment accounted for the largest revenue share in the overall green data center market share in 2024.
- The primary hardware components comprises of power supplies, servers, sensors, and others.
- Moreover, data center infrastructure managements (DCIM) system monitors the energy consumption and identify areas of improvement.
- Additionally, various other cooling systems such as free cooling, liquid cooling and evaporative cooling uses hardware such as heat exchangers, fluid cooling towers control system and others.
- For instance, Vertiv offers traditional data center that is integrated with hardware components including climate-controlled environments to optimize humidity and provide air flow management, specifically designed for IT equipment.
- Therefore, the increasing advancements associated with various hardware components used in data centers are anticipated to boost the green data center market size during the forecast period.
The software segment is anticipated to register fastest CAGR growth during the forecast period.
- Software in sustainable data center refers to a server management solution in which all the infrastructure elements such as networking, storage and compute are visualized and delivered as a service.
- Moreover, datacenter infrastructure management software (DCIM) provides various features such as power usage effectiveness, energy monitoring and metering, capacity planning and optimization, automated server cooling and others.
- For instance, in November 2023, Schneider Electric launched DCIM (data center infrastructure management) software for data centers for integrating physical infrastructure, digital services with a focus power, cooling racks, and management systems.
- Therefore, increasing advancements associated with the software segment in sustainable data centers are driving the green data center market demand.
By Enterprise Type:
Based on the enterprise type, the market is segmented into small and medium enterprise and large enterprise.
Trends in the enterprise type:
- Increasing adoption of sustainable data center solutions in large enterprises for sustainability, fuel efficiency, technological innovations and others.
- Factors including growing investments in development of small and medium enterprises and rising technological advancements in SMEs are driving the small and medium enterprise segment.
Large enterprise segment accounted for the largest revenue in the overall market in 2024.
- Increasing adoption of technological advancements in large enterprise encourages cloud providers to adopt sustainability.
- Moreover, various large enterprises involved in sustainable data centers include cloud providers such as Google Cloud, Microsoft Azure and others.
- Moreover, large enterprise data centers such as Equinix, Digital Realty and more are focusing on sustainability infrastructure and fuel efficiency.
- For instance, according to green data market analysis, Google Cloud has heavily funded in carbon-neutral and energy-efficient infrastructure for sustainability.
- Therefore, the rising adoption of sustainable data center solutions by large enterprises are driving the green data center market share.
Small and medium enterprise (SME) segment is anticipated to register fastest CAGR growth during the forecast period.
- Small and medium enterprises are businesses that maintain assets, revenues and employees below a certain threshold.
- However, prioritizing sustainability has become increasingly attractive for small and medium enterprises since it offers cost effective solutions.
- There are various benefits for SMEs by optimizing sustainable data centers such as scalability and flexibility, improved reliability, reduce environmental impact, and others.
- For instance, according to Indian Industries Association, the Indian government is considering incentive-based policies to expand sustainable data center and benefit the SME enterprise.
- Thus, the rising number of small and medium enterprises is driving the adoption of sustainable data center solutions, in turn propelling the market during the forecast period.
By Technology:
Based on the technology, the market is segmented into server and storage visualization, containerization, cloud computing and others.
Trends in the technology:
- The adoption of server and storage visualization is primarily driven by factors such as full control over infrastructure, enhanced data security, and improved customization and visualization.
- Factors including the cost optimization, increasing consumer preference for flexible, scalability, reliable integration in data centers are driving the cloud computing segment.
Cloud computing segment accounted for the largest revenue in the overall market in 2024.
- Cloud computing refers to on-demand access of the computer services on a cloud platform where users can pay with pay-per-use pricing.
- Moreover, cloud computing emphasizes on reducing carbon footprint through various technologies and practices.
- For instance, according to the analysis by Google, with the adoption of renewable energy, Google has matched 100% of its energy consumption by global operations, assuring every Google Cloud product has zero net carbon emissions.
- Therefore, according to green data center market analysis, the increase in advancements related to cloud computing are driving the green data center market trends.
Server and storage visualization segment is anticipated to register fastest CAGR growth during the forecast period.
- Server storage and visualization in sustainable data centers plays a crucial role for sustainability, allowing various multiple physical servers to run on single server, in turn reducing hardware needs and environmental impact.
- Moreover, factors such as simplified management, improved resource utilization, and reduced energy consumptions are increasing the adoption of server and storage visualization in sustainable data center.
- For instance, in December 2024, Chenbro launched Nvidia MGX server, which offers standard hardware specifications and flexible configuration while integrating advanced networking capabilities for data center development.
- According to green data center market analysis, increasing advancements related to server and storage visualization segment are expected to propel the global green data center market during the forecast period.
By End User:
Based on the end user, the market is segmented into BFSI, retail, IT and telecommunication, healthcare, manufacturing, government and public sectors and others.
Trends in end user:
- Increasing technological advancements such as AI-driven energy management, efficient cooling techniques and renewable energy integration are primary factors driving the adoption of sustainable data center solution in the IT and telecommunication industry.
- Factors including rising need for enhanced data storage, security, and improved data integrity are key trends driving the adoption of data center solutions in BFSI segment.
IT and telecommunication segment accounted for the largest revenue share of 32.23% in the overall market in 2024.
- Green data centers in IT and telecommunication sector plays a crucial role for the adoption of digital future and high energy demands of data-intensive services.
- Moreover, as there is increasing demand in data storage and processing, the energy consumption of data center also increases.
- Additionally, various benefits such as energy efficiency, sustainable infrastructure, reduced environmental effect, and cost effectiveness are increasing the adoption of sustainable data center solutions in IT & telecommunication sector.
- For instance, T-Mobile decreased its total carbon footprint by 14% in 2023, resulting in improving energy efficiency in their operation.
- Therefore, the aforementioned factors are propelling the green data center market trends.
BFSI segment is anticipated to register fastest CAGR growth during the forecast period.
- Banking and finance sector plays a vital role in managing vast amount of financial data, enabling efficient transaction processing, fraud and detection while ensuring data security and regulatory compliance.
- However, financial sectors are increasingly growing with the environmental regulations and ESG initiatives to adopt sustainability.
- For instance, In October 2022, PhonePe launched its first sustainable data center in collaboration with Dell Technologies and NTT. Moreover, it is built to design with advanced cooling technologies such as direct contact liquid cooler and liquid immersion cooling.
- Therefore, the growing BFSI sector is projected to drive global green data center market expansion during the forecast period.
Regional Analysis:
The regions covered are North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Asia Pacific region was valued at USD 16.82 Billion in 2024. Moreover, it is projected to grow by USD 19.36 Billion in 2025 and reach over USD 59.83 Billion by 2032. Out of this, China accounted for the maximum revenue share of 37.24%. As per the analysis, there is an increasing adoption of cloud computation in the Asia-Pacific region for improving operational efficiency in operations. Additionally, increasing investments in BFSI sector are further accelerating the green data center market expansion.
- For instance, in November 2023, Infosys and Shell partnered to provide AI based technologies for sustainable data centers. Moreover, technologies such as shell immersion cooling fluid and Infosys Topaz are utilized to handle high computing loads.
North America is estimated to reach over USD 81.49 Billion by 2032 from a value of USD 23.98 Billion in 2024 and is projected to grow by USD 27.49 Billion in 2025. In North America, the adoption of green data center solution is driven by rising adoption of cloud services and increasing development of sustainable data center projects in the region. Similarly, rising advancements IT and telecommunication sectors are contributing to the green data center industry.
- For instance, according to Amazon, the company witnessed 3% reduction in carbon emissions in 2023 and 13% decrease in carbon intensity since 2022. Thus, the rising adoption of sustainability is driving the adoption of green data center market in North America.
Additionally, the regional analysis depicts that the prevalence of favorable government measures for facilitating industrial growth and increasing investments in IT & telecom infrastructure are driving the green data center market demand in Europe. Further, as per the green data market analysis, the market demand in Latin America, Middle East, and African regions is expected to grow at a considerable rate due to increasing investments in deployment of cloud services and rising adoption of sustainable solutions in BFSI sector among others is propelling the green data center market.
Top Key Players and Market Share Insights:
The green data center industry is highly competitive with major players providing solutions to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in green data center market. Key players in the green data center industry include
- Schneider Electric SE (France)
- Delta Electronics (Taiwan)
- DCX Liquid Cooling Systems (Poland)
- Hewlett Packard Enterprise (U.S)
- ZutaCore (U.S.)
- Dell Technologies Inc. (US)
- Midas Green Technologies, LLC (US)
- Green Revolution Cooling (US)
- Microsoft Corporation (U.S.)
- Inspur Group Co., Ltd. (China)
Recent Industry Developments :
Product Launches:
- In February 2023, Huawei launched several solutions for green data center industry which included fan wall chilled water cooling solution, power POD 3.0 and iSolar 2.0 to adopt sustainability and efficient cooling.
Green Data Center Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2019-2032 |
| Market Size in 2032 | USD 217.03 Billion |
| CAGR (2025-2032) | 18.5% |
| By Component |
|
| By Enterprise Type |
|
| By Technology |
|
| By End User |
|
| By Region |
|
| Key Players |
|
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage |
|
Key Questions Answered in the Report
How big is the green data center market? +
The green data center market was valued at USD 63.87 Billion in 2024 and is projected to grow to USD 217.03 Billion by 2032.
Which is the fastest-growing region in the green data center market? +
Asia-Pacific is the region experiencing the most rapid growth in the green data center market.
What specific segmentation details are covered in the green data center report? +
The green data center report includes specific segmentation details for component, enterprise type, technology, end user and region.
Who are the major players in the green data center market? +
The key participants in the green data center market are Schneider Electric SE (France), Delta Electronics (Taiwan), Dell Technologies Inc. (US), Midas Green Technologies, LLC (US), Green Revolution Cooling (US), Inspur Group Co., Ltd. (China), DCX Liquid Cooling Systems (Poland), Hewlett Packard Enterprise (U.S), ZutaCore (U.S.) and Microsoft Corporation (U.S.) and others.
