Green Data Center Market to Register 28.31% CAGR Through 2032, Amid Rising Sustainability Mandates | MarkNtel Advisors

NEW DELHI, Feb. 24, 2026 /PRNewswire/ -- According to the latest market research study published by MarkNtel Advisors, the Global Green Data Center Market is estimated to grow at a CAGR of around 28.31% during 2026–2032. The Market size was valued at USD 49.28 billion in 2025 and is projected to grow from USD 52.76 billion in 2026 to USD 235.4 billion by 2032. North America leads the global market with more than 35% share, supported by strong hyperscale cloud presence, aggressive carbon neutrality targets, and early adoption of energy-efficient data infrastructure technologies.

Global Green Data Center Market Overview & Highlights

• The Global Green Data Center Market was valued at USD 52.76 billion in 2026, driven by rising ESG commitments, corporate decarbonization strategies, and increasing demand for energy-efficient digital infrastructure.
• Strong government support, sustainability regulations, and renewable energy integration are propelling the industry toward USD 235.4 billion by 2032, expanding at a CAGR of 28.31% during 2026–2032.
• Cloud service providers account for over 25% of the total market share, fueled by the rapid expansion of cloud computing, AI workloads, and hyperscale data processing needs.
• Large enterprises hold more than 60% of the market share due to extensive data volumes, structured ESG accountability, and investments in sustainable IT modernization.
• North America dominates the global market with over 35% share, supported by advanced digital ecosystems, strong hyperscale presence, and sustainability-driven regulatory frameworks.
• Leading players shaping the competitive landscape include Hitachi Ltd., Cisco Systems Inc., HP Inc., IBM Corporation, Dell Inc., Fujitsu Ltd., Eaton Corporation, Vertiv Corporation, Green Revolution Cooling Inc., HCL Technology Inc., Iron Mountain Inc., Arc Data Centers, Adobe Systems, Inspur, Delta Power Solutions, and others.

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Fundamental Drivers Supporting Green Data Center Market Development

Leading Drivers

• Surging Demand for Cloud & AI Infrastructure: The exponential growth of cloud computing, AI workloads, big data analytics, and hyperscale deployments is driving the need for energy-efficient, scalable, and high-performance green data centers.
• Enterprise Net-Zero & ESG Commitments: Corporations are accelerating investments in renewable-powered facilities, advanced cooling systems, and low-carbon IT infrastructure to align with sustainability targets and regulatory compliance requirements.

Emerging Trends and Opportunities

• Adoption of Advanced Cooling Technologies: Liquid cooling, immersion cooling, and AI-driven thermal management systems are gaining traction to reduce power usage effectiveness (PUE) and enhance operational efficiency.
• Integration of Renewable Energy Sources: Data center operators are increasingly incorporating solar, wind, and energy storage systems to minimize carbon footprints and stabilize long-term energy costs.
• Expansion of Edge & Modular Green Data Centers: Rising demand for low-latency services and decentralized computing is creating opportunities for compact, energy-efficient edge facilities.

Key Challenges

• High Capital Expenditure Requirements: The deployment of sustainable infrastructure, renewable integration, and energy-efficient hardware involves significant upfront investments.
• Legacy Infrastructure Modernization Complexity: Retrofitting conventional data centers to meet green standards presents technical, operational, and financial hurdles.

AI Transforming the Future of Sustainable Green Data Centers

Artificial Intelligence (AI) is rapidly reshaping the green data center landscape by enabling intelligent energy management and high-density computing optimization. As AI workloads such as generative AI, machine learning, and advanced analytics expand, data centers are experiencing unprecedented power and cooling demands. AI-driven systems are increasingly deployed to monitor real-time energy consumption, predict thermal fluctuations, optimize cooling performance, and dynamically allocate workloads to reduce energy waste while maintaining operational reliability.

Advanced liquid and immersion cooling technologies, supported by AI-based automation, are significantly lowering power usage effectiveness (PUE) and overall carbon emissions. AI also strengthens renewable energy integration by forecasting energy demand and synchronizing workloads with grid availability, enhancing sustainability outcomes.

• June 2025: At GTC Paris 2025, Schneider Electric and NVIDIA introduced a co-developed AI-ready infrastructure platform integrating OCP racks, EcoStruxure Pods, and advanced liquid cooling to support Europe's AI factory expansion under the "AI Continent Action Plan."
• December 2024: Canada proposed a $15 billion investment to expand AI-driven green data centers, prioritizing clean energy solutions to meet growing AI energy demands.

AI is thus positioning green data centers as intelligent, resilient, and environmentally responsible digital infrastructure hubs.

Strategic Investments and Policy Initiatives Accelerating the Global Green Data Center Market

The Global Green Data Center Market is witnessing strong momentum driven by capital investments, cross-border collaborations, and government-backed sustainability initiatives. Across major regions, hyperscale operators, infrastructure funds, and public authorities are committing substantial resources to renewable-powered and AI-ready data center ecosystems. The following developments highlight the prominent expansion of sustainable digital infrastructure worldwide.

Middle East & Africa

• 2025 – Morocco: The government announced plans to develop a 500 MW green data center in Dakhla, reinforcing the country's ambition to position itself as a renewable-powered digital infrastructure hub in Africa.
• 2025 – Kazakhstan: Kazakhstan and China agreed to jointly build an advanced green data center, strengthening regional cooperation in sustainable technology deployment and energy-efficient computing infrastructure.

Asia-Pacific

• 2025 – India: Uttar Pradesh Chief Minister Yogi Adityanath and Union Minister Dr. Jitendra Singh laid the foundation stone for a state-of-the-art Green Data Centre at Central Electronics Limited (CEL), Ghaziabad, marking a significant step toward sustainable public-sector digital infrastructure.
• 2025 – Singapore: The government launched its second Data Center Call for Application, allocating at least 200 MW of capacity with a strong emphasis on green energy adoption and AI-focused infrastructure development.
• 2025 – Japan: Parties signed a memorandum of understanding (MoU) to develop an offshore floating green data center powered entirely by renewable energy, showcasing innovation in marine-based sustainable infrastructure solutions.

Europe

• 2025 – Switzerland: InfraVia announced the sale of Switzerland's Green Datacenter to IFM, reflecting sustained investor confidence in energy-efficient digital infrastructure assets.
• 2025 – Nordic Region: Areim raised USD 977 million to accelerate green data center expansion across renewable-rich Nordic markets.

Industry Analysis by Enterprise Size, End-User & Region

By Enterprise Size, large enterprises captured more than 60% of the Global Green Data Center Market, maintaining a dominant position due to their extensive digital transformation initiatives, hyperscale IT deployments, and formalized ESG reporting frameworks. Multinational corporations operate vast data ecosystems that require centralized, energy-efficient, and carbon-optimized infrastructure. Their ability to allocate substantial capital toward renewable-powered facilities, advanced cooling systems, and AI-enabled energy management platforms further reinforces segment leadership.

By End User, cloud service providers accounted for over 25% of the total market share. The rapid proliferation of cloud computing, AI model training, and data-intensive enterprise applications has significantly increased demand for scalable, high-density, and energy-efficient data centers. Cloud operators are prioritizing green infrastructure to reduce operational costs, enhance power usage effectiveness (PUE), and meet sustainability commitments while supporting exponential workload growth.

By Region, North America led the global market with more than 35% share in 2026, supported by strong hyperscale investments, advanced renewable energy integration, and a mature regulatory ecosystem promoting sustainability. The region continues to witness strategic collaborations that strengthen its leadership.

For instance, in June 2025, Oklo and Vertiv partnered to co-develop advanced power and thermal management solutions for U.S. hyperscale and colocation data centers. By combining Oklo's advanced nuclear energy capabilities with Vertiv's cooling and power systems, the collaboration aims to deliver resilient, energy-efficient, and integrated sustainable data center designs, further reinforcing North America's position as a hub for next-generation green infrastructure innovation.

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Major Companies in the Global Green Data Center Market

Prominent companies driving innovation and market expansion include:

• Hitachi Ltd.
• Cisco Systems Inc.
• HP Inc.
• IBM Corporation
• Dell Inc.
• Fujitsu Ltd.
• Eaton Corporation
• Vertiv Corporation
• Green Revolution Cooling Inc.
• HCL Technology Inc.
• Iron Mountain Inc.
• Arc Data Centers
• Adobe Systems
• Inspur
• Delta Power Solutions
• Others

Global Green Data Center Market Scope:

• By Component: Solutions, Services
• By Enterprise Size: Large Enterprises, Medium Enterprises, SMEs
• By End User: Cloud Service Providers, Manufacturing, Healthcare, Telecom, Government, Banking and Financial Services, others.
• By Type: Enterprise Data Center, Colocation Data Center, Edge Data Center, Hyperscale Data Center
• By Region: North America, Europe, Asia-Pacific, Middle East & Africa, South America

Browse More Reports on Data Center

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Australia Data Center Market Research Report:  The Australia Data Center Market size was valued at around USD 5.81 billion in 2024 and is projected to reach USD 7.32 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 3.93% during the forecast period, i.e., 2025-30.

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Global Data Center Infrastructure Management Market Research Report: The Global Data Center Infrastructure Management Market size was valued at around USD 4.73 billion in 2025 and is projected to reach USD 11.54 billion by 2032. Along with this, the market is estimated to grow at a CAGR of around 13.59% during the forecast period, i.e., 2026-32.

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