Green Data Center Market Size, Share, & Trend Analysis Report By Component (Solution, Services), By Enterprise Size (Large Enterprises, SMEs), By End Use (BFSI, Retail, IT & Telecom, Healthcare, Manufacturing), By Region, And Segment Forecasts, 2025 - 2030

Green Data Center Market Summary

Rising demand for cloud computing, internet of things (IoT), and big data analytics necessitates scalable and eco-friendly data centers, while advancements in cooling technologies, renewable energy integration, and modular designs enhance efficiency. The stringent government regulations and policies promoting sustainable IT infrastructure are also contributing to the green data center industry. Governments worldwide are implementing carbon emission reduction targets and energy efficiency standards, compelling organizations to adopt eco-friendly data center solutions. For instance, the European Union’s Climate Neutral Data Centre Pact and the U.S. Energy Efficiency and Renewable Energy Initiatives encourage the adoption of green technologies. Compliance with these regulations not only helps companies avoid penalties but also enhances their corporate social responsibility (CSR) profiles, attracting environmentally conscious investors and customers.

The rising awareness of environmental sustainability among corporations and consumers is also fueling market growth. Large tech companies like Google, Microsoft, and Amazon are investing heavily in carbon-neutral data centers to meet their net-zero commitments. This trend is encouraging smaller enterprises to follow suit, driving demand for green data center solutions. Furthermore, the increasing popularity of edge computing and 5G networks necessitates decentralized, energy-efficient data centers, further propelling market expansion.

The proliferation of artificial intelligence (AI) applications has led to an unprecedented demand for data processing capabilities, necessitating the expansion of data center infrastructures. This growth has intensified the focus on energy efficiency and sustainability. For instance, in December 2024, Google partnered with Intersect Power, a U.S.-based Green energy supplier and TPG Rise Climate a U.S.-based impact investing platform to develop renewable energy and storage projects alongside new data centers across the U.S. Intersect will build the clean energy assets, with Google as the main offtaker and anchor tenant, supporting its goal to add gigawatts of new data center capacity

Component Insights

The solution segment led the market with the largest revenue share of 63.3% in 2024, driven bythe rising demand for advanced cooling solutions, such as liquid cooling and free cooling, which significantly reduce energy consumption compared to traditional air-based cooling systems. As data centers expand and power densities increase, efficient thermal management becomes critical, pushing companies to invest in innovative cooling technologies that lower operational costs and carbon footprints. The segment is further segmented into monitoring and management systems, cooling systems, networking systems, and power systems.

The services segment is anticipated to grow at the fastest CAGR of 21.3% during the forecast period, driven by the rising demand for consulting and assessment services, as businesses seek guidance on transitioning to energy-efficient data center models. Sustainability consultants help organizations evaluate carbon footprints, optimize power usage effectiveness (PUE), and comply with environmental regulations such as the EU’s Energy Efficiency Directive and LEED certifications. As regulatory pressures intensify, companies are increasingly outsourcing these assessments to ensure compliance and maximize operational efficiency. The segment is further segmented into installation & deployment, consulting, and support & maintenance.

Enterprise Size Insights

Thelarge enterprises segment led the market with the largest revenue share of 72.0% in 2024. Large enterprises generate and process exponentially growing volumes of data from digital transformation initiatives, enterprise software, customer relationship management (CRM), artificial intelligence, and edge computing. This requires high-density and high-performance data centers, which often consume significant energy. Green data centers, with their optimized energy use and advanced virtualization, offer scalable solutions that balance performance and efficiency.

The SMEs segment is expected to grow at the fastest CAGR during the forecast period. SMEs are undergoing rapid digital transformation, adopting cloud-based applications, data analytics, and digital platforms to remain competitive and agile. This shift naturally increases their reliance on third-party or co-located data centers, many of which are now green-certified or marketed as energy-efficient. SMEs increasingly prefer cloud and managed service providers with strong environmental credentials, indirectly driving demand for green data centers.

End Use Insights

The BFSI segment led the market with the largest revenue share of 23.7% in 2024, driven by the growth of digital banking and fintech, which has exponentially increased data processing needs. With the rise of mobile banking, blockchain, AI-driven fraud detection, and real-time transaction processing, financial institutions require high-performance, low-latency data centers that minimize energy waste. Green data centers, equipped with advanced cooling systems, renewable energy integration, and AI-powered energy management, enable BFSI firms to handle massive workloads while reducing operational costs.

The IT & telecom segment is expected to grow at the fastest CAGR over the forecast period, due to the rise of edge computing. As latency-sensitive applications (e.g., augmented reality, smart cities) proliferate, decentralized edge data centers must balance performance with energy efficiency. Modular green data centers, equipped with battery storage, solar panels, and passive cooling, for edge deployments, reducing reliance on fossil fuels in remote locations.

Regional Insights

North America dominated the green data center market with the largest revenue share of 37.0% in 2024, driven by the expansion of hyper scale and cloud providers such as Amazon Web Services (AWS), Microsoft Azure, Google Cloud, and Meta, all of which are aggressively investing in green data centers. These hyperscalers are building massive renewable-powered facilities across the U.S. and Canada, setting industry benchmarks and driving economies of scale. Their commitment to using 100% renewable energy and achieving carbon neutrality is creating a ripple effect across the data center supply chain, prompting colocation providers and enterprises to follow suit.

U.S. Green Data Center Market Trends

The green data center market in the U.S. is expected to grow at a significant CAGR of 16.2% from 2025 to 2030. The U.S. government has introduced several policies that incentivize the development of green data centers. The Inflation Reduction Act (IRA) of 2022, for example, includes significant clean energy tax credits and funding programs aimed at reducing carbon emissions across industries.

Europe Green Data Center Market Trends

The green data center market in Europe is anticipated to register at a considerable CAGR from 2025 to 2030. Europe's market benefits from early adoption of smart grid technologies, AI-based energy management, and real-time environmental monitoring. These technologies allow data centers to dynamically adjust cooling systems, optimize server workloads, and reduce idle energy use.

The UK green data center market is expected to grow at a rapidly CAGR during the forecast period. Advanced technologies such as AI-powered cooling, modular data center architecture, and heat reuse systems are being rapidly adopted in the UK to improve energy efficiency and sustainability. Data centers are increasingly designed to repurpose excess heat for district heating projects or nearby residential and commercial facilities.

The green data center market in Germany accounted for a substantial market revenue share in Europe in 2024. Large German enterprises and multinational corporations are integrating Environmental, Social, and Governance (ESG) benchmarks into their IT sourcing decisions. This has led to greater demand for green-certified data centers that can help reduce carbon footprints and support climate disclosures.

Asia Pacific Green Data Center Market Trends

The green data center market in Asia Pacific is expected to register at the fastest CAGR of 22.2% from 2025 to 2030, driven by accelerating digital transformation, rising data traffic, government sustainability mandates, and a strong focus on energy-efficient infrastructure. With booming economies, increasing cloud adoption, and a push for decarbonization, countries across the region are investing heavily in eco-friendly data centers.

The Japan green data center market is expected to grow at a rapid CAGR during the forecast period. Japan aims to become carbon neutral by 2050, with interim milestones set for 2030. The government is promoting green innovation through subsidies, tax incentives, and R&D funding under programs like the Green Growth Strategy and the Digital Garden City Nation vision. Data centers, which account for significant energy use, are central to these efforts.

The green data center market in China accounted for a substantial market revenue share in Asia Pacific in 2024. China is relocating data center capacity from the energy-constrained eastern provinces to resource-rich western regions, where hydropower and wind energy are more abundant. This policy reduces strain on urban grids while supporting the green transition.

Key Green Data Center Company Insights

Key players operating in the green data center industry are Schneider Electric, Vertiv Group Corp., Equinix, Inc., Digital Realty Trust, and Huawei Technologies Co., Ltd. The companies are focusing on various strategic initiatives, including new product development, partnerships & collaborations, and agreements to gain a competitive advantage over their rivals.

Recent Developments

• In December 2024, Schneider Electric announced the launch of advanced AI-ready data center solutions to address escalating energy and sustainability challenges driven by the rapid expansion of AI workloads. Central to the update is the introduction of the Galaxy VXL, a compact, high-density uninterruptible power supply (UPS) designed specifically for data centers and large-scale electrical environments.

• In November 2024, Vertiv partnered with Compass Datacenters to introduce the Vertiv CoolPhase Flex, a hybrid cooling solution designed to streamline the adoption of liquid cooling for AI-driven data center environments. As the latest evolution of the Vertiv Lieber DSE Packaged System, CoolPhase Flex combines liquid and air cooling technologies within a single integrated unit. It allows data centers to begin with efficient air-based direct expansion (DX) cooling and built-in economization, and seamlessly transition to liquid cooling as high-density computing demands increase—offering a flexible and future-ready approach to thermal management in AI-focused facilities.

Green Data Center Market Report Scope

Global Green Data Center Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the green data center market report based on component, enterprise size, end use, and region.

• Component Outlook (Revenue, USD Billion, 2018 - 2030)

  • Solution

    • Monitoring & Management System

    • Cooling System

    • Networking System

    • Power Systems

    • Others

  • Services

    • Installation & Deployment

    • Consulting

    • Support & Maintenance

• Enterprise Size Outlook (Revenue, USD Billion, 2018 - 2030)

  • Large Enterprises

  • SMEs

• End-use Outlook (Revenue, USD Billion, 2018 - 2030)

  • BFSI

  • Retail

  • IT & Telecom

  • Healthcare

  • Manufacturing

  • Government & Defense

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • India

    • China

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • South Africa