The Green Data Center Market is driven by renewable-powered hyperscale expansion, AI-driven energy optimization, and stringent sustainability regulations, with North America leading adoption and Asia Pacific emerging as the fastest-growing region.
Hyderabad, April 21, 2026 (GLOBE NEWSWIRE) — According to a new report by Mordor Intelligence, the green data center market size is experiencing strong expansion driven by sustainability-focused digital infrastructure transformation across enterprises worldwide. The green data center market is valued at USD 85.68 billion in 2025 and is projected to reach USD 99.17 billion in 2026, eventually surging to USD 206.15 billion by 2031, registering a CAGR of 15.74% during 2026–2031. The steady green data center market growth reflects increasing global emphasis on energy-efficient IT infrastructure, hyperscale data center deployment, and rising corporate commitments toward carbon neutrality.
The green data center industry is evolving rapidly as organizations prioritize low-carbon operations, improved Power Usage Effectiveness (PUE), and renewable-powered facilities. The green data center market forecast remains highly positive, supported by long-term digitalization trends such as AI, IoT, and cloud computing expansion. In addition, green data center market trends indicate a clear shift toward liquid cooling technologies, modular data center designs, and widespread adoption of 100% renewable energy-powered infrastructure, all of which are reshaping the competitive landscape and influencing green data center market share globally.
Adoption Trends in Green Data Center Market
Grid Constraints Slowing Renewable Adoption in Emerging Markets
In many emerging regions, strong renewable energy potential exists, but limited grid infrastructure slows down its effective use for data center expansion. As a result, developers often depend on temporary solutions like private solar arrangements or backup gas-based systems, which can increase overall carbon impact and delay the shift to fully sustainable facilities. While collaborations with local utilities to expand renewable capacity are being explored, long development timelines continue to create bottlenecks for large-scale green infrastructure rollout.
Rising Efficiency Regulations Driving Data Center Modernization
Stricter energy-efficiency regulations across developed economies are pushing data center operators to improve transparency around power usage and environmental impact. Authorities in regions like the EU and the U.S. are increasingly focusing on efficiency benchmarks and disclosure requirements related to cooling performance and carbon emissions. This has encouraged operators to adopt advanced technologies such as AI-driven workload management and liquid cooling systems to improve operational efficiency and stay compliant. Early adoption of such upgrades is also helping companies reduce operating costs and remain competitive in long-term contracts, while rising compliance pressure is accelerating investment in energy-efficient infrastructure.
Ashish Gautam, Senior Research Manager, Mordor Intelligence, says, “The green data center market reflects steady enterprise focus on energy efficiency and regulatory alignment, with adoption patterns shaped by cost discipline and infrastructure readiness. Mordor Intelligence applies consistent validation and cross-market benchmarking, offering decision-makers a dependable view grounded in verifiable industry data.”
Discover comprehensive insights and stay ahead of the latest industry trends, including the Japanese edition for in-depth localized analysis: https://www.mordorintelligence.com/ja/industry-reports/global-green-datacenter-market-industry?utm_source=globenewswire
Table of Contents (Partial) – Green Data Center Industry
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET LANDSCAPE
4.1 Market Overview
4.2 Market Drivers
4.2.1 Hyperscale cloud build-outs shifting to 100% renewable power
4.2.2 Regulatory push for PUE ≤ 1.3 across OECD economies
4.2.3 On-site hydrogen fuel-cell pilots in >10 MW campuses (2025–2028)
4.2.4 AI-workload waste-heat reuse for district heating networks
4.2.5 Others
4.3 Market Restraints
4.3.1 Up-front CAPEX premium (30–40%) versus brownfield retrofits
4.3.2 Limited green-power grid capacity in emerging economies
4.3.3 Scarcity of recycled-water rights near urban cores
4.3.4 Supply-chain volatility for low-GWP refrigerants
4.3.5 Others
4.4 Supply-Chain Analysis
4.5 Regulatory Landscape
4.6 Technological Outlook
4.7 Porter’s Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Buyers
4.7.3 Threat of New Entrants
4.7.4 Intensity of Competitive Rivalry
4.7.5 Others
4.8 Assessment of Macroeconomic Factors on the Market
5. MARKET SIZE AND GROWTH FORECASTS (VALUE)
5.1 By Component
5.1.1 By Service
5.1.1.1 System Integration
5.1.1.2 Monitoring Services
5.1.1.3 Professional Services
5.1.1.4 Others
5.1.2 By Solution
5.1.2.1 Power
5.1.2.2 Cooling
5.1.2.3 Servers
5.1.2.4 Networking Equipment
5.1.2.5 Others
5.2 By Data Center Type
5.2.1 Colocation Providers
5.2.2 Hyperscalers/Cloud Service Providers
5.2.3 Enterprise and Edge
5.3 By Tier Type
5.3.1 Tier 1 and 2
5.3.2 Tier 3
5.3.3 Tier 4
5.4 By Industry Vertical
5.4.1 Healthcare
5.4.2 BFSI
5.4.3 Government
5.4.4 Telecom and IT
5.4.5 Others
5.5 By Geography
5.5.1 North America
5.5.1.1 United States
5.5.1.2 Canada
5.5.1.3 Mexico
5.5.1.4 Others
5.5.2 South America
5.5.2.1 Brazil
5.5.2.2 Argentina
5.5.2.3 Others
5.5.3 Europe
5.5.3.1 Germany
5.5.3.2 United Kingdom
5.5.3.3 France
5.5.3.4 Others
5.5.4 Asia-Pacific
5.5.4.1 China
5.5.4.2 Japan
5.5.4.3 India
5.5.4.4 Others
5.5.5 Middle East and Africa
5.5.5.1 Middle East
5.5.5.2 Africa
5.5.5.3 Others
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles
6.4.1 Fujitsu Ltd
6.4.2 Cisco Systems Inc.
6.4.3 Hewlett Packard Enterprise Co.
6.4.4 Dell Technologies Inc.
6.4.5 Schneider Electric SE
6.4.6 IBM Corporation
6.4.7 Eaton Corporation
6.4.8 Vertiv Holdings Co
6.4.9 Equinix Inc.
6.4.10 Others
7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK
7.1 White-space and Unmet-Need Assessment
Explore more insights into the green data center market: https://www.mordorintelligence.com/industry-reports/global-green-datacenter-market-industry?utm_source=globenewswire
Regional Market Performance Analysis – Green Data Center Industry
North America continues to be a leading region in the adoption of sustainable data center infrastructure, supported by strong renewable energy availability, supportive tax structures, and concentrated hyperscale development in key states. Regulatory focus on environmental reporting is also encouraging operators to adopt smarter energy optimization technologies, making the region more advanced in efficiency-driven data center operations.
In Asia Pacific, growth is accelerating as countries focus on digital sovereignty, carbon neutrality goals, and expansion of renewable energy infrastructure. While power grid limitations remain a challenge in some areas, innovative approaches such as private renewable energy sourcing and hybrid power solutions are helping drive new capacity. Meanwhile, Europe is progressing steadily under unified climate policies, with strong use of hydropower and solar integration, alongside innovative heat reuse systems that improve overall energy efficiency in data center operations.
Check out related reports published by Mordor Intelligence:
Containerized Data Center Market Share – The containerized data center market is expanding rapidly, driven by demand for modular, rapidly deployable infrastructure that supports edge computing and scalable workloads. The market is expected to grow from USD 17.13 billion in 2025 to USD 20.19 billion in 2026, reaching USD 46.16 billion by 2031 at a CAGR of 17.99% (2026–2031). Growth is fueled by increasing need for flexible deployment, reduced installation time, and efficient energy usage in distributed IT environments.
Vertiv Holdings Co, Schneider Electric SE, Huawei Technologies Co Ltd, Dell Technologies Inc, and Hewlett Packard Enterprise Co are the major companies operating in this market.
Read more about companies active in containerized data center market:
https://www.mordorintelligence.com/industry-reports/containerized-data-center-market/companies?utm_source=globenewswire
Data Center Construction Market Growth – The data center construction market continues to grow steadily, supported by rising hyperscale investments, cloud adoption, and AI infrastructure expansion. The market is projected to increase from USD 281.34 billion in 2025 to USD 300.38 billion in 2026, reaching USD 431.39 billion by 2031, growing at a CAGR of 7.51% (2026–2031). Expansion is driven by demand for high-capacity, energy-efficient facilities across global digital infrastructure projects.
AECOM, DPR Construction, Fortis Construction Inc., Turner Construction Co., and Whiting-Turner Contracting Company are the major companies operating in this market.
Read more about companies active in data center construction market:
https://www.mordorintelligence.com/industry-reports/data-center-construction-market/companies?utm_source=globenewswire
Data Center Cooling Market Forecast – The data center cooling market is witnessing strong growth due to rising heat loads from high-density computing, AI workloads, and cloud expansion. The market was valued at USD 10.80 billion in 2025 and is projected to reach USD 12.41 billion in 2026, further growing to USD 28.54 billion by 2032 at a CAGR of 14.90% (2026–2032). Increasing adoption of liquid cooling and energy-efficient thermal management systems is a key growth driver.
Stulz GmbH, Rittal GmbH & Co. KG, Vertiv Group Corp., Alfa Laval AB, and Johnson Controls Inc are the major companies operating in this market.
Read more about companies active in data center cooling market:
https://www.mordorintelligence.com/industry-reports/global-data-center-cooling-market-industry/companies?utm_source=globenewswire
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