Green Data Center Market

Green Data Center Market Overview

The global Green Data Center Market size was valued at USD 77.48 billion in 2023 and is predicted to reach USD 259.27 billion by 2030 with a CAGR of 18.7% from 2024-2030. The green data center market, also known as sustainable data center market involves designing, operating, and maintaining infrastructure specifically used for hosting computing resources.

This system includes servers, storage systems, networking equipment, and related services such as cloud computing and connectivity solutions. Green data centers differentiate themselves by integrating advanced technologies and sustainable practices such as energy-efficient infrastructure, optimized cooling systems, and renewable energy sources such as solar and wind power that minimizes energy consumption and environmental impact. The market represents a pivotal shift towards eco-friendly infrastructure solutions that promise both operational excellence and environmental stewardship for forward-thinking industries.

Market Dynamics and Trends

The increasing investment by the government and private sector of various countries for the development of clean energy sectors, aiming to contribute toward global sustainability goals drives the demand for green  data centers. Organizations are adopting sustainable data hubs to reduce carbon emissions and achieve eco-friendly objectives by aligning with broader environmental goals and regulatory compliance.

A report from International Energy Agency states that the global energy investment grew to USD 3 trillion in 2024, out of which, investment in clean energy technologies reached USD 2 trillion. Such huge investments in the adoption of clean energy, aiming to transition towards a greener future drives the demand for energy efficient infrastructures including green data centres.

Moreover, the advancement in technologies such as energy-efficient cooling systems and optimized server utilization, that reduced energy consumption and enhances the operational efficiency of data centers further drives the green data center market growth.

For instance, in October 2023, GRC and DCV Industries collaborated with Dell Technologies to deliver cutting-edge, immersion-cooled, modular data centers that eliminates the need for power consuming chillers and air conditioning. This enables data center operators to achieve a power usage effectiveness, reducing energy consumption while enhancing data center’s efficiency.

Additionally, the global shift towards digitalization is driving businesses and individuals to adopt digital technologies including cloud services and data-driven operations for improved efficiency. This surge in digitalization drives the demand for sustainable data centers, as companies prioritize energy-efficient and sustainable solutions to support their digital operations.

According to the latest report published by International Data Corporation (IDC) the spending for digital transformation is expected to reach USD 3.9 trillion by 2027 globally, growing at a CAGR of 16.1% in the next five years. With the shift towards global digitalization, the need for sustainable data centers is on a rise, as they offer solutions to support these operations while minimizing environmental impact.

However, the high initial investment for the construction of data centers along with the high ongoing maintenance cost specifically for small and medium-sized enterprise restrains the growth of the market. On the contrary, the adoption of smart building technologies, such as artificial intelligence (AI) powered energy management systems, real-time IoT sensors for monitoring, and predictive maintenance tools, creates future market opportunity for sustainable data centers. These innovations are anticipated to significantly enhance operational efficiency and minimize energy consumption, thereby supporting the growth and sustainability of green data center infrastructure.

Market Segmentations and Scope of the Study

The green data center market report is segmented into components, enterprise type, end-user and region. On the basis of component, the market is segmented into solution and services. Solution is further segmented into cooling, power and IT. Services is further segmented into design and consulting, installation and deployment, and maintenance and support. On the basis of enterprise type, the market is classified into large enterprise and small & medium size enterprise. On the basis of end-user, the market is divided into BFSI, IT and telecom, media and entertainment, government and defense, retail, manufacturing and others. Regional breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America dominates green data center market share and is expected to continue its dominance during the forecast period. This is attributed to the growing investments for clean energy by countries such as the U.S., Canada, and Mexico, aiming to promote sustainability while reducing the overall carbon emission.

 As per the report published by America Clean Energy in August 2022, the government of U.S. invested USD 488 billion for the development of clean energy sector. With such increase in investment for clean energy, the demand for sustainable solutions including the adoption of green data centers in this region is on the rise.

Moreover, the presence of tech companies such as Microsoft Corporation, Equinex and Manage Engine who are actively promoting the adoption of sustainable data centers is further boosting the market growth in this region. For instance, in May 2024, Microsoft launched its first hyperscale cloud data center in Mexico to promote digital transformation and sustainable innovation in the country. Its aims it to provide secure cloud services with high speed to accelerate digital transformation and drive economic growth in the country.

On the other hand, Asia-Pacific shows a steady rise in green data center market expansion during the forecast period due to the growing focus towards digitalization in this region. For instance, the Government of China launched a comprehensive action plan to drive the digital transformation of its commercial sectors by 2026.  This action plan highlights innovation, international cooperation, and initiatives to boost consumer spending in digital, green, and health-related sectors. The surge in digitalization while maintaining the sustainability standards drives the demand for sustainable and efficient data infrastructure significantly boosting the market growth.

Moreover, the exponential growth in data generation and processing, driven by digitalization, cloud computing, and the widespread adoption of internet-connected devices is driving the demand for the construction of data centers in this region. This surge in data center development is directly driving the demand for green data centers, as organizations seek sustainable solutions to manage the escalating volumes of data while minimizing environmental impact and maximizing energy efficiency. 

For instance, in June 2024, South Korean internet company Kakao Corp. launched data centers in Ansan, addressing the growing demand for data storage, processing, and security in a rapidly digitizing economy. With this launch the company strives to bring new services more effectively and efficiently going out their way to capture a cleaner environment. 

Competitive Landscape

Various key players operating in the green data center industry includes Amazon.com, Inc., IBM Corporation, Microsoft Corporation, Cisco System Inc., Oracle Corporation, SAP SE, Hewlett Packard Enterprise Company, NTT Communications Corporation, Equinix Inc., Digital Reality Trust Inc. and others. These market players are adopting various strategies such as product launches and collaborations to remain dominant in the market. 

For instance, in June 2024, Amazon.com, Inc. announced billions of dollars investment for next 15 years to build data centers in Taiwan. Through this investment the company aims to enhance its cloud infrastructure while maintaining the environmental guidelines to meet the rising demand for cloud services in the region.

Additionally, in June 2024, Hewlett Packard Enterprise (HPE) collaborated with Danfoss to introduce an improved modular data center solution. The business aims to minimize environmental impact through advanced cooling systems and the reuse of excess heat for sustainable energy.

Moreover, in October 2023, SAP SE launched multiple SAP cloud solution in India. With this launch the company aims to support India's growing demand for cloud solutions and contributes to the green data center industry by promoting energy-efficient operations within SAP's infrastructure expansion. 

Key Benefits

• The report provides quantitative analysis and estimations of the market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the current and future green data center market trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the market provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Green Data Center Market Key Segments

By Component

• Solution

  • Cooling

  • Power

  • IT

• Services

  • Design and Consulting

  • Installation and Deployment

  • Maintenance and Support

By Enterprise Type

• Large Enterprise

• Small & Medium-Sized Enterprise  

By End User

• BFSI

• IT and Telecom

• Media and Entertainment

• Government and Defense

• Retail, Manufacturing

• Others 

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• RoW

  • Latin America

  • Middle East 

  • Africa

REPORT SCOPE AND SEGMENTATION

Parameters	Details
Market Size in 2023	USD 77.48 billion
Revenue Forecast in 2030	USD 259.27 billion
Growth Rate	CAGR of 18.7% from 2024 to 2030
Analysis Period	2023–2030
Base Year Considered	2023
Forecast Period	2024–2030
Market Size Estimation	Billion (USD)
Growth Factors	The rising government investment to reduce carbon emission boosts the market growth. The advancement in technologies fuels the market growth. The global shift towards digitalization drives the expansion of green data center market.
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent to up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs

Key Players

• IBM Corporation

• Microsoft Corporation

• Cisco System Inc.

• Oracle Corporation

• SAP SE

• Hewlett Packard Enterprise Company

• NTT Communications Corporation

• Equinix Inc.

• Digital Reality Trust Inc.

• Amazon.com, Inc.

• and others.