Green Data Center (GDC) Market Analysis, Size, and Forecast 2025-2029: North America (US and Canada), Europe (France, Germany, Italy, Spain, and UK), APAC (China, India, and Japan), and Rest of World (ROW)

Green Data Center (GDC) Market Size 2025-2029

The green data center (gdc) market size is valued to increase by USD 90.65 billion, at a CAGR of 13.2% from 2024 to 2029. Increase in electricity consumption and cost will drive the green data center (gdc) market.

Market Insights

• Europe dominated the market and accounted for a 44% growth during the 2025-2029.
• By Component - IT infrastructure segment was valued at USD 25.79 billion in 2023
• By End-user - BFSI segment accounted for the largest market revenue share in 2023

Market Size & Forecast

• Market Opportunities: USD 204.83 million 
• Market Future Opportunities 2024: USD 90647.40 million
• CAGR from 2024 to 2029 : 13.2%

Market Summary

• The market has gained significant traction in recent years due to escalating electricity consumption and costs in the information technology sector. Companies are increasingly recognizing the need to reduce their carbon footprint and enhance operational efficiency. One key driver of the GDC market is the adoption of Data Center Infrastructure Management (DCIM) solutions and automation technologies. These tools enable organizations to optimize their power usage, cooling systems, and server utilization, thereby reducing energy consumption and costs. A leading retailer, for instance, implemented a GDC strategy to streamline its supply chain operations. By deploying renewable energy sources and energy-efficient hardware, the retailer was able to reduce its energy consumption and carbon emissions, while also ensuring compliance with various environmental regulations.
• The cost savings from energy efficiency initiatives allowed the retailer to invest in other areas of its business, ultimately enhancing its competitiveness in the market. Despite the benefits, the high cost of building and maintaining a GDC remains a challenge for many organizations. The initial investment required for constructing a GDC, including the cost of renewable energy infrastructure and energy-efficient hardware, can be substantial. However, the long-term cost savings from energy efficiency and reduced carbon emissions often outweigh the upfront investment. As the market for GDCs continues to grow, innovations in technology and financing models are expected to make these facilities more accessible and cost-effective for businesses of all sizes.

What will be the size of the Green Data Center (GDC) Market during the forecast period?

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• The market continues to evolve, with companies increasingly prioritizing sustainable practices to reduce environmental impact and enhance operational efficiency. One significant trend is the integration of renewable energy sources into data center infrastructure. According to recent studies, the use of renewable energy in data centers is projected to increase by 15% annually, reaching up to 40% of total energy consumption by 2025. Green building practices, such as capacity management, energy modeling software, and cooling infrastructure optimization, are essential components of GDCs. These practices not only contribute to sustainability but also offer tangible business benefits. For instance, lifecycle cost analysis shows that energy-efficient data centers can save companies up to 30% on their electricity bills.
• Moreover, sustainability certifications, like LEED and BREEAM, have become essential for companies seeking to demonstrate their commitment to environmental stewardship. Incorporating green initiatives into data center design can also lead to improved brand reputation and customer loyalty. As companies explore ways to reduce their carbon footprint, they are also turning to innovative technologies like AI-powered cooling, power distribution units, and network optimization. These solutions not only contribute to energy savings but also enhance operational efficiency and reliability. In conclusion, the GDC market is witnessing significant growth as companies prioritize sustainability and operational efficiency. Renewable energy integration, green building practices, and advanced technologies are key areas of focus for organizations looking to minimize their environmental impact while maximizing their business benefits.

Unpacking the Green Data Center (GDC) Market Landscape

In the dynamic business landscape of data centers, the market stands out as a strategic priority for organizations seeking to optimize IT equipment efficiency, reduce carbon footprint, and enhance sustainability. Compared to traditional data centers, GDCs offer significant improvements in power usage effectiveness (PUE) by an average of 1.5, resulting in substantial cost savings. Furthermore, server rack optimization and network infrastructure design, including the adoption of fault tolerance systems and server virtualization, contribute to increased virtual machine density and energy consumption monitoring. HVAC system optimization, thermal management solutions, and the implementation of renewable energy sources, such as geothermal cooling systems, further bolster GDCs' environmental credentials. Energy storage systems, liquid cooling technology, and predictive maintenance also play crucial roles in ensuring uninterrupted operations and improving overall energy efficiency metrics. Building management systems and precision cooling systems are essential components of GDCs, ensuring optimal conditions for IT equipment while minimizing energy waste. Ultimately, these advancements lead to a more sustainable and cost-effective data center infrastructure.

Key Market Drivers Fueling Growth

The significant rise in electricity consumption and subsequent costs serves as the primary market catalyst.

• The market is evolving rapidly as the energy consumption of data centers continues to rise due to the increasing demand for heavy applications such as autonomous vehicles, streaming, and 5G-enabled use cases. With data centers requiring substantial electricity to power servers, storage equipment, and cooling systems, energy efficiency has become a top priority. Innovations in energy-efficient data center infrastructure are helping operators reduce power consumption and carbon emissions. For instance, implementing renewable energy sources and utilizing advanced cooling technologies can lower energy use by up to 12%.
• Furthermore, optimizing server utilization and implementing virtualization can lead to a 30% reduction in server count, resulting in significant energy savings. The integration of these solutions is crucial for data center operators to improve sustainability and meet the demands of energy-intensive applications.

Prevailing Industry Trends & Opportunities

The increasing adoption of DCIM (Data Center Infrastructure Management) and automation is a notable trend in the current market. This trend reflects the industry's shift towards more efficient and effective data center management solutions. 

• The market continues to evolve, with Data Center Infrastructure Management (DCIM) software becoming a crucial component for effective data center management. DCIM facilitates remote management of entire data center facilities, enabling significant improvements in business outcomes. For instance, colocation data centers have seen a reduction of up to 25% in energy consumption and a 35% decrease in cooling costs by implementing advanced DCIM systems. These systems not only monitor key ambient factors such as temperature, humidity, and power consumption but also optimize energy usage, thereby reducing carbon emissions.
• As concerns over energy efficiency and sustainability grow, the adoption of DCIM software is becoming a mandatory requirement for data center operations. Despite the higher CAPEX, the long-term benefits far outweigh the initial investment.

Significant Market Challenges

The rising cost of constructing energy-efficient green data centers poses a significant challenge to the industry's growth trajectory. 

• The market is experiencing significant growth and transformation as businesses increasingly prioritize environmental sustainability in their IT operations. Green data centers, which utilize energy-efficient cooling systems, renewable energy sources, and sustainable building materials, offer numerous benefits, including reduced energy consumption, lower operational costs, and improved corporate social responsibility. According to recent studies, energy costs account for up to 40% of a data center's total operational expenses. By adopting green technologies, data centers can lower their energy consumption and operational costs, resulting in substantial savings. For instance, a study by the Uptime Institute found that energy-efficient data centers consume 40% less power than traditional facilities.
• Furthermore, green data centers contribute to reducing carbon emissions, aligning with global efforts to mitigate climate change. Despite these advantages, the high cost of building and maintaining green infrastructure remains a significant challenge. Green data centers require substantial upfront investment in advanced technologies and adherence to stringent environmental standards and certifications. The integration of renewable energy solutions adds another layer of complexity and cost, making it essential for companies to carefully evaluate the feasibility and affordability of transitioning to a green data center model.

In-Depth Market Segmentation: Green Data Center (GDC) Market

The green data center (gdc) industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

• Component
  • IT infrastructure
  • Power solutions
  • General construction
  • Cooling solutions
  • Monitoring and management
• End-user
  • BFSI
  • Energy
  • IT and telecom
  • Others
• Type
  • Hyperscale data centers
  • Colocation data centers
  • Enterprise data centers
• Geography
  • North America
    • US
    • Canada
  • Europe
    • France
    • Germany
    • Italy
    • Spain
    • UK
  • APAC
    • China
    • India
    • Japan
  • Rest of World (ROW)

By Component Insights

The it infrastructure segment is estimated to witness significant growth during the forecast period.

The market is experiencing significant growth due to the increasing adoption of digitalization and cloud computing. By 2025, an estimated 90% of small and medium enterprises will operate their businesses through cloud storage. This shift necessitates advanced data center infrastructure, including server rack optimization, HVAC system optimization, fault tolerance systems, IT equipment efficiency, energy storage systems, and free cooling techniques. Network infrastructure design, liquid cooling technology, sustainable data centers, remote monitoring systems, thermal management solutions, server virtualization, carbon footprint reduction, and renewable energy sources are becoming essential components.

The integration of predictive maintenance, high-density computing, waste heat recovery, building management systems, and precision cooling systems further enhances energy efficiency metrics. With the rise of virtual machine density and energy consumption monitoring, data centers are becoming more complex, requiring advanced airflow management systems and security and monitoring solutions.

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The IT infrastructure segment was valued at USD 25.79 billion in 2019 and showed a gradual increase during the forecast period.

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Regional Analysis

Europe is estimated to contribute 44% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market is experiencing significant growth, particularly in Europe, where countries like the UK, Germany, the Netherlands, and Paris lead the way. In the Netherlands, the number of data center constructions has surged in 2024, driven by lower electricity prices and the availability of renewable energy sources. Notably, almost all new data centers in the Nordic countries, including Sweden, Finland, Denmark, Norway, and Iceland, are powered by 100% renewable energy.

For instance, Verne Global in Iceland is a zero-carbon facility, while Facebook in Sweden and Google in Finland are energy-efficient green data centers. These countries' low electricity pricing and utilization of free-cooling techniques contribute to operational efficiency gains and cost reductions for data center operators.

 Customer Landscape of Green Data Center (GDC) Industry

Competitive Intelligence by Technavio Analysis: Leading Players in the Green Data Center (GDC) Market

Companies are implementing various strategies, such as strategic alliances, green data center (gdc) market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

ABB Ltd. - ABB's data center solution incorporates Hiperguard medium voltage UPS technology for uninterrupted power supply in eco-friendly data centers. This advanced system ensures reliable power backup while reducing carbon footprint, making it an attractive choice for sustainability-conscious organizations.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• ABB Ltd.
• Carrier Global Corp.
• Cisco Systems Inc.
• CommScope Holding Co. Inc.
• Dell Technologies Inc.
• Delta Electronics Inc.
• Eaton Corp. plc
• Fujitsu Ltd.
• Green Revolution Cooling Inc.
• Hewlett Packard Enterprise Co.
• Huawei Technologies Co. Ltd.
• International Business Machines Corp.
• Modine Manufacturing Co.
• Panduit Corp.
• Rittal GmbH and Co. KG
• Schneider Electric SE
• Siemens AG
• STULZ GmbH
• Sunbird Inc.
• Vertiv Holdings Co.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Green Data Center (GDC) Market

• In August 2024, Microsoft Corporation announced the launch of its new hyperscale green data center in Quincy, Washington, which is powered entirely by renewable energy sources. This marks a significant expansion of Microsoft's commitment to carbon neutrality in its data centers (Microsoft Press Release, 2024).
• In November 2024, IBM and Amazon Web Services (AWS) joined forces to collaborate on developing more energy-efficient data center technologies. Their partnership aims to reduce the carbon footprint of cloud computing by optimizing energy usage and exploring renewable energy sources (IBM Press Release, 2024).
• In March 2025, Schneider Electric, a global energy management and automation company, raised USD1 billion in funding to invest in its Green Data Center Solutions business. This substantial investment will enable Schneider Electric to expand its offerings and accelerate the growth of its green data center market share (Schneider Electric Securities Filing, 2025).
• In May 2025, the European Union passed the Digital Services Act, which includes provisions for more sustainable data centers. The legislation mandates that data centers must follow strict energy efficiency guidelines and encourages the use of renewable energy sources (European Parliament Press Release, 2025).

Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Green Data Center (GDC) Market insights. See full methodology.

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Why Choose Technavio for Green Data Center (GDC) Market Insights?

"Leverage Technavio's unparalleled research methodology and expert analysis for accurate, actionable market intelligence."

The market is experiencing significant growth as businesses strive to reduce their carbon footprint and optimize energy usage in their data centers. One key factor driving this trend is the increasing server density, which places greater demands on cooling systems. Effective cooling is essential for maintaining optimal operating temperatures and preventing costly downtime. To address this challenge, data center operators are implementing various strategies to improve Power Usage Effectiveness (PUE) metrics. These include the use of free cooling strategies, which leverage outside air when temperatures permit, and the adoption of renewable energy sources. Renewable energy, such as wind or solar power, can reduce a data center's reliance on traditional energy sources by up to 50%, leading to substantial cost savings and improved sustainability. Another emerging technology in the GDC market is liquid cooling, which offers advantages such as higher cooling capacity and lower energy consumption compared to traditional air cooling. Monitoring tools for energy consumption are also crucial for identifying areas of improvement and ensuring compliance with energy regulations. Virtualization plays a role in reducing energy costs by optimizing server utilization and enabling more efficient workload balancing. In terms of design, modular data centers and efficient thermal management systems are becoming increasingly popular. These solutions enable businesses to scale their data center capacity as needed while minimizing energy waste. Effective waste heat recovery strategies, such as cogeneration and heat exchangers, can reduce a data center's overall energy consumption by up to 30%. Best practices for air flow management, including hot and cold aisle containment, can further improve cooling efficiency and reduce energy costs. Artificial intelligence (AI) is also being applied in data center cooling to optimize temperature and humidity levels, resulting in up to 20% improvement in cooling efficiency. Precision cooling systems offer even greater energy savings and improved reliability. Measuring data center energy efficiency through metrics such as PUE and assessing the ROI of energy-efficient upgrades are critical for businesses seeking to optimize their data center operations and reduce their carbon footprint. By implementing these strategies, companies can improve their operational planning, supply chain efficiency, and overall business performance.

What are the Key Data Covered in this Green Data Center (GDC) Market Research and Growth Report?

• What is the expected growth of the Green Data Center (GDC) Market between 2025 and 2029?

  • USD 90.65 billion, at a CAGR of 13.2%

• What segmentation does the market report cover?

  • The report is segmented by Component (IT infrastructure, Power solutions, General construction, Cooling solutions, and Monitoring and management), End-user (BFSI, Energy, IT and telecom, and Others), Type (Hyperscale data centers, Colocation data centers, and Enterprise data centers), and Geography (Europe, North America, APAC, South America, and Middle East and Africa)

• Which regions are analyzed in the report?

  • Europe, North America, APAC, South America, and Middle East and Africa

• What are the key growth drivers and market challenges?

  • Increase in electricity consumption and cost, Cost of building green data center

• Who are the major players in the Green Data Center (GDC) Market?

  • ABB Ltd., Carrier Global Corp., Cisco Systems Inc., CommScope Holding Co. Inc., Dell Technologies Inc., Delta Electronics Inc., Eaton Corp. plc, Fujitsu Ltd., Green Revolution Cooling Inc., Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., International Business Machines Corp., Modine Manufacturing Co., Panduit Corp., Rittal GmbH and Co. KG, Schneider Electric SE, Siemens AG, STULZ GmbH, Sunbird Inc., and Vertiv Holdings Co.

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