Global Green Data Center Market Outlook, 2030

The global green data center market is experiencing rapid growth due to increasing concerns over energy consumption, carbon emissions, and sustainability in IT infrastructure. The demand for green data centers is growing significantly as businesses and governments worldwide prioritize energy efficiency and carbon footprint reduction. Traditional data centers consume vast amounts of electricity, contributing to high operational costs and environmental degradation. In response, companies are investing in energy-efficient technologies such as advanced cooling systems, renewable energy integration, and AI-driven energy management to optimize performance while reducing environmental impact. The rise of cloud computing, artificial intelligence (AI), and the Internet of Things (IoT) has further fueled the need for sustainable data centers, as these technologies require extensive computational power and storage. Governments and regulatory bodies are implementing stricter energy efficiency regulations, encouraging data center operators to transition to eco-friendly alternatives. Certifications like LEED (Leadership in Energy and Environmental Design) and energy-efficient standards such as ENERGY STAR are driving adoption, ensuring compliance with sustainability goals. Furthermore, hyperscale data centers operated by tech giants like Amazon Web Services, Google Cloud, and Microsoft Azure are leading the way in green initiatives by integrating renewable energy sources such as solar and wind power. The increasing preference for colocation and edge computing solutions is also prompting smaller data center operators to invest in green infrastructure. As businesses strive for carbon neutrality, the global green data center market is expected to witness exponential growth, making sustainable IT infrastructure a key priority across industries.

According to the research report, “Global Green Data Center Market Outlook, 2030” published by Bonafide Research, the Global Green Data Center market is anticipated to grow at more than 19.1% CAGR from 2024 to 2030 . The market is witnessing a surge in demand due to environmental concerns, regulatory pressure, and the increasing adoption of cloud computing services. Organizations across sectors such as IT, telecom, banking, healthcare, and government are investing in sustainable data center operations to reduce energy consumption and operational costs. Key players in the market, including Amazon, Google, Microsoft, and IBM, are actively working towards carbon neutrality by integrating renewable energy sources into their data center operations. Governments worldwide are supporting green initiatives through tax incentives, subsidies, and stringent energy efficiency regulations, further accelerating market growth. For instance, the European Union has introduced energy efficiency targets under the Green Deal, pushing data centers to adopt sustainable practices. Moreover, advancements in cooling technologies, AI-powered energy management, and the use of modular data centers are expected to drive innovation within the industry. Countries in North America, Europe, and Asia-Pacific are at the forefront of green data center adoption, with investments in renewable energy-backed facilities increasing year after year. With the digital economy expanding and sustainability becoming a top priority, the green data center market is poised for substantial long-term growth.

Market Dynamics

Market Drivers

Rising Demand for Energy-Efficient Data Centers The exponential growth of data processing and storage has increased energy consumption in data centers. Companies are investing in green data center solutions to reduce power usage effectiveness (PUE) and lower operational costs.



Government Regulations and Sustainability Initiatives Stringent policies on carbon emissions and energy efficiency are driving the adoption of eco-friendly data centers. Incentives, tax benefits, and green certification programs further encourage organizations to shift towards sustainable infrastructure.

Market Challenges

High Initial Investment in Green Technologies The deployment of energy-efficient cooling systems, renewable energy sources, and sustainable materials requires substantial upfront capital, making it challenging for small and medium-sized enterprises (SMEs) to adopt green data center solutions.

Complexity in Upgrading Legacy Data Centers Many enterprises operate traditional data centers that lack sustainability features. Transitioning to green infrastructure requires significant modifications, including hardware upgrades and new operational strategies.

Market Trends

Growing Adoption of Liquid Cooling and Free Cooling Techniques Data centers are increasingly replacing conventional air-based cooling systems with liquid cooling and free cooling solutions, which significantly reduce energy consumption and enhance thermal management.

Integration of AI and Automation for Energy Optimization Artificial intelligence and machine learning are being leveraged to monitor and optimize energy usage in real-time, ensuring maximum efficiency while reducing environmental impact.

Segmentation Analysis

Cooling systems are the largest segment within the green data center market, as efficient thermal management is crucial for reducing overall energy consumption.

Cooling systems are the largest segment within the green data center market, as efficient thermal management is crucial for reducing overall energy consumption. Traditional data centers rely on energy-intensive air conditioning systems, leading to excessive electricity usage. In contrast, green data centers integrate advanced cooling technologies such as liquid cooling, immersion cooling, and free-air cooling, significantly improving energy efficiency. Liquid cooling systems, which circulate chilled water or coolant directly around servers, are gaining popularity due to their ability to maintain optimal operating temperatures while reducing power usage. Immersion cooling, where servers are submerged in thermally conductive dielectric fluids, is another innovative method being explored to enhance efficiency. Meanwhile, free-air cooling takes advantage of natural airflow to reduce dependency on artificial cooling systems. Many leading technology companies are actively adopting AI-driven cooling systems that optimize temperature control in real-time based on workload fluctuations. Google, for example, utilizes AI-powered cooling to reduce energy consumption by up to 40% in its data centers. Similarly, Microsoft has experimented with underwater data centers to leverage oceanic cooling, further reducing energy consumption. As sustainability regulations become stricter, data center operators are increasingly focusing on eco-friendly cooling solutions to comply with energy efficiency standards. This trend is expected to drive continued innovation and growth within the cooling systems segment, making it a critical component of the global green data center market.

The IT and telecom sector holds the largest share in the green data center market, fueled by the increasing demand for cloud computing, big data analytics, and high-speed network infrastructure.

The IT and telecom sector holds the largest share in the green data center market, fueled by the increasing demand for cloud computing, big data analytics, and high-speed network infrastructure. With the exponential rise in internet usage, mobile connectivity, and 5G deployment, IT companies and telecom operators are investing heavily in energy-efficient data centers to meet growing digital demands while reducing environmental impact. Tech giants such as Amazon Web Services (AWS), Google Cloud, and Microsoft Azure have set ambitious sustainability goals, incorporating renewable energy sources and energy-efficient infrastructure into their global data centers. Telecom companies, including AT&T, Verizon, and Vodafone, are also adopting green data centers to enhance their network performance while reducing carbon footprints. The surge in AI-driven applications, edge computing, and IoT connectivity has further increased the need for sustainable data storage and processing solutions. IT firms are turning to modular and colocation data centers to optimize energy use, allowing businesses to scale their operations without excessive environmental impact. Additionally, companies are deploying AI-based energy management systems to improve power usage effectiveness (PUE) and drive operational efficiency. As digital transformation continues to accelerate, the IT and telecom industry will remain the primary driver of the green data center market. Organizations will increasingly adopt renewable energy-backed facilities, further pushing the industry toward achieving carbon-neutral operations.

Hyperscale data centers dominate the green data center market, as major cloud service providers and enterprises require large-scale infrastructure to support high-performance computing workloads.

Hyperscale data centers dominate the green data center market, as major cloud service providers and enterprises require large-scale infrastructure to support high-performance computing workloads. Companies such as Google, Microsoft, Amazon, and Facebook are continuously expanding their hyperscale data center footprints while prioritizing energy efficiency and sustainability. These hyperscale facilities integrate renewable energy sources such as wind, solar, and hydroelectric power to reduce reliance on fossil fuels. For instance, Google’s data centers operate on 100% renewable energy, and Amazon is rapidly expanding its investment in wind and solar farms to power its cloud operations. Microsoft has also committed to achieving carbon-negative operations by 2030 by incorporating energy-efficient designs and innovative cooling solutions. One of the key advantages of hyperscale data centers is their ability to optimize energy consumption using AI-powered energy management systems. These systems analyze real-time data to adjust power distribution, cooling, and server utilization, enhancing efficiency while reducing overall electricity use. Additionally, hyperscale facilities benefit from economies of scale, allowing operators to implement cost-effective green technologies at a larger scale compared to traditional data centers. With the increasing adoption of AI, machine learning, and high-performance computing applications, the demand for hyperscale green data centers is expected to grow further. Companies will continue to invest in sustainable, large-scale infrastructure to meet the growing digital economy’s needs while reducing environmental impact.

Regional Analysis

North America dominates the global green data center market due to its strong regulatory framework, government incentives, and significant investments in sustainable IT infrastructure.

North America dominates the global green data center market due to its strong regulatory framework, government incentives, and significant investments in sustainable IT infrastructure. The U.S. and Canada are home to some of the largest data center hubs, with companies actively transitioning to energy-efficient solutions to reduce operational costs and carbon emissions. The U.S. government and environmental agencies, such as the Environmental Protection Agency (EPA) and the Department of Energy (DOE), have introduced stringent policies promoting green data center adoption. Programs like the ENERGY STAR certification and Leadership in Energy and Environmental Design (LEED) encourage data center operators to implement energy-saving practices. Additionally, tax incentives and renewable energy credits are driving investments in solar- and wind-powered data centers. Major technology firms, including Google, Microsoft, and Apple, have committed to achieving carbon neutrality by deploying AI-driven energy management, modular data centers, and innovative cooling solutions. Hyperscale data centers in Silicon Valley, Virginia, and Texas have set industry benchmarks for sustainable operations, with many facilities running entirely on renewable energy. As enterprises shift towards sustainable cloud computing and colocation services, North America is expected to maintain its leadership in the global green data center market. With continuous advancements in energy-efficient technologies and policy-driven sustainability initiatives, the region will play a crucial role in shaping the future of green IT infrastructure.

Key Developments

• January 2024: Microsoft launched a new green data center in Sweden powered entirely by renewable energy.
• March 2024: Google invested in AI-driven energy optimization for its hyperscale data centers, reducing carbon emissions by 30%.
• June 2024: Amazon Web Services (AWS) announced a $1 billion investment in sustainable data center projects across Europe.
• August 2024: Equinix partnered with renewable energy providers to transition its colocation data centers to 100% green energy.
• October 2024: IBM introduced a liquid cooling system designed to improve energy efficiency in enterprise data centers.

Considered in this report
* Historic year: 2018
* Base year: 2023
* Estimated year: 2024
* Forecast year: 2029

Aspects covered in this report
* Green Data Center Market with its value and forecast along with its segments
* Country-wise Green Data Center Market analysis
* Various drivers and challenges
* On-going trends and developments
* Top profiled companies
* Strategic recommendation

By Component
• Cooling Systems
• Power Systems
• Networking Equipment

By Industry Vertical
• IT & Telecom
• Banking, Financial Services, and Insurance (BFSI)
• Government & Public Sector

By Data Center Type
• Hyperscale Data Centers
• Colocation Data Centers
• Enterprise Data Centers