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Major Growth Driver Identified in 2025 Green Data Center Market: Rising Energy Demands Of Data Centers Fueling Growth In The Green Data Center Market
Green Data Center
Green Data Center Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
In the last few years, the size of the green data center market has seen a swift escalation. Its progression is marked to swell from $77.12 billion in 2024 to $90.2 billion in 2025, with a 17.0% compound annual growth rate (CAGR). The expansion during the historical period can be credited to environmental regulations, escalated energy costs, the need for efficient data storage and management, regulations, and government agendas.
Green Data Center Market Size Forecast: What's the Projected Valuation by 2029?
It is projected that the green data center market will witness staggering expansion in the coming years, climbing to a market value of $202.29 billion in 2029, with a compound annual growth rate (CAGR) of 22.4%. The anticipated growth during the forecast period can be contributed to factors such as the increase in edge computing, the boom in cloud computing, the necessity of carbon footprint reduction, and the development of emerging markets. Noteworthy trends during this future timeframe encompass innovative liquid cooling techniques, the use of sustainable materials and designs, advancements in water-efficient cooling technologies, and the integration of renewable energy sources.
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What Are the Drivers Transforming the Green Data Center Market?
The escalating power usage of data centers is likely to fuel the expansion of the green data center market. Data centers are proliferating globally due to increased digitalisation and regulations, which further requires more electricity for operation. The growing count of data centers means an escalation in energy usage, since more power is necessary for various data center functions. As energy usage escalates, operating costs will also rise, leading to environmental issues. This will trigger a surge in demand for green data centers, which are eco-friendly alternatives with reduced operational costs, powered by renewable energy. For instance, as per the US Energy Information Administration, a government agency in the US, in May 2022, the United Kingdom produced 934,000 barrels per day (b/d) in total liquid fuels and 1.1 trillion cubic feet (Tcf) of natural gas in 2021. Consequently, the escalating power usage by data centers will dictate the expansion of the green data center market.
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What Long-Term Trends Will Define the Future of the Green Data Center Market?
The increasing popularity of cloud services is emerging as a significant trend in the green data center market. These services, provided on-demand via the internet server to companies, eliminate the requirement for in-house hardware or infrastructure. Cloud services are not only supportive of the existing facilities like a cloud center but also present several benefits in green data center usage. These include simplifying complex processes, retaining data ownership, and managing workloads with its functionalities. Market leaders are strategizing their growth by incorporating cloud services into their solutions. An example of this is Soluna Cloud, a US-based green data center developer, which introduced an AI cloud service named the "Helix data center" in May 2024. This groundbreaking service provides a growth trajectory for their consumers by meeting the escalating need for environmentally friendly data centers fueled by renewable energy. [i]
Which Segments in the Green Data Center Market Offer the Most Profit Potential?
The green data center market covered in this report is segmented -
1) By Components: Solutions, Services
2) By Data Center Size: Small and Medium-Sized Data Centers, Large Data Centers
3) By Verticals: BFSI, IT and Telecom, Media and Entertainment, Healthcare, Government and Defense, Manufacturing, Other Verticals
Subsegments:
1) By Solutions: Energy Management Solutions, Cooling Solutions, Virtualization Solutions, Renewable Energy Solutions
2) By Services: Consulting Services, Managed Services, Maintenance and Support Services, Training and Education Services
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Which Firms Dominate the Green Data Center Market by Market Share and Revenue in 2025?
Major companies operating in the green data center market include Schneider Electric SE, Vertiv Holdings Co., Hewlett Packard Enterprise, Green Revolution Cooling, Midas Green Tech LLC, International Business Machines Corporation, Cisco Systems Inc., Dell Inc., Fujitsu Ltd., Hitachi Ltd., Delta Electronics Inc., Rittal GmbH & Co. KG, Eaton Corporation Plc, Nortek Air Solutions LLC, Airedale International Air Conditioning Ltd., Asetek A/S, Bloom Energy Corporation, Carbon Relay Inc., Chatsworth Products Inc., Cologix Inc., CyrusOne Inc., Digital Realty Trust Inc., Equinix Inc., Green House Data Inc., Iron Mountain Inc., Johnson Controls International plc, Legrand SA, Panduit Corporation, Raritan Inc., Server Technology Inc.
Which Regions Offer the Highest Growth Potential in the Green Data Center Market?
North America was the largest region in the green data center market in 2024 and is expected to be the fastest-growing region in the forecast period. The regions covered in the green data center market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
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