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Green Data Center Market Projected to Reach USD 415.9 Billion by 2035, Driven by Sustainable IT Solutions

10-02-2025 01:27 PM CET | IT, New Media & Software

Press release from: PROPHECY MARKET INSIGHTS

Green Data Center

Green Data Center

Pune, India - 1 September - The Green Data Center Market is witnessing remarkable growth, with a market size of USD 71.2 billion in 2024 expected to reach USD 415.9 billion by 2035, registering a CAGR of 19.4% between 2025 and 2035. North America led the market in 2024, reflecting early adoption of energy-efficient and sustainable data infrastructure solutions.

Green data centers focus on energy efficiency, low carbon emissions, and sustainability, helping businesses and governments reduce their environmental footprint while maintaining high-performance IT operations. With the increasing demand for cloud computing, hyperscale data centers, and digital transformation, green solutions are becoming critical for modern IT infrastructure.

Read Report Insights: https://www.prophecymarketinsights.com/market_insight/green-data-center-market-6027

Market Growth Drivers
Several factors are propelling the growth of the green data center market:
♻️ Sustainability Goals: Companies aim to achieve net-zero emissions by adopting eco-friendly infrastructure and renewable energy.
⚡ Energy Efficiency Demand: Efficient cooling and power management systems reduce operational costs and energy consumption.
🖥️ Rising Data Consumption: The surge in digital services, cloud adoption, and AI workloads drives demand for advanced data centers.
🏢 Government Initiatives: Policies promoting green technologies and carbon reduction support market expansion.
🌍 Corporate Social Responsibility (CSR): Businesses are prioritizing green operations to meet environmental regulations and improve brand reputation.

Market Segmentation
The Green Data Center Market is categorized across several dimensions:
By Component
Solutions: Cooling Systems, Power Systems, and Others
Services: Design & Consulting, Installation & Deployment, and Others

By Data Center Type
Enterprise Data Centers
Colocation Data Centers
Hyperscale Data Centers
Others

By Center Size
Small Data Centers
Medium Data Centers
Large Data Centers

By End User
IT & Telecom
BFSI (Banking, Financial Services, Insurance)
Healthcare
Government & Defense
Manufacturing
Others

By Region
North America (largest market in 2024)
Europe
Asia-Pacific
Latin America
Middle East & Africa

This segmentation allows stakeholders to target solutions for specific data center sizes, technologies, and industries, driving efficiency and sustainability.

Key Companies in the Market
Prominent companies leading the Green Data Center Market include:
Sify Technologies
Submer
Microsoft
GE Vernova
Siemens
PHASIC ENERGY
IREN
Sims Lifecycle Services
Infosys Limited
Green Datacenter AG
Mitsubishi Heavy Industries, Ltd.
CyrusOne
Iron Mountain, Inc.

These companies are investing heavily in renewable energy integration, efficient cooling technologies, AI-based energy management, and green design consulting to improve sustainability and reduce operational costs.

Download Your Free Sample copy of Report: https://www.prophecymarketinsights.com/market_insight/Insight/request-sample/6027

Strategic Insights
Businesses looking to capitalize on the green data center market should consider:
🌟 AI-Driven Energy Management: Automating power consumption and cooling operations using AI and IoT sensors.
🌟 Renewable Energy Integration: Solar, wind, and other renewable sources to reduce carbon footprints.
🌟 Scalable Cloud Infrastructure: Supporting hybrid and hyperscale data centers for flexible expansion.
🌟 Consulting & Deployment Services: Offering end-to-end green solutions from planning to execution.

Green data centers not only enhance operational efficiency but also contribute to corporate sustainability targets, which is increasingly important for regulatory compliance and ESG reporting.

Business Relevance
The shift toward eco-friendly IT infrastructure presents opportunities for:
IT and Cloud Service Providers: To deploy sustainable solutions and attract environmentally conscious clients.
Government & Defense Agencies: To maintain green compliance while supporting critical operations.
Manufacturing & BFSI Sectors: To reduce operational costs while adhering to sustainability initiatives.
Startups & Technology Innovators: To develop innovative cooling systems, energy storage solutions, and AI-powered efficiency tools.

Market Trends and Future Outlook
Hyperscale Data Centers: Expected to dominate due to their high energy consumption and focus on renewable solutions.
AI & IoT Integration: Driving predictive maintenance and efficient energy management.
Global Sustainability Focus: Rising adoption of green building certifications, energy audits, and environmental standards.
Hybrid & Cloud-Based Operations: Offering flexibility and scalability while maintaining sustainable practices.
The Green Data Center Market is anticipated to grow rapidly due to increasing awareness about energy consumption, climate change, and operational efficiency, making sustainability a core part of IT infrastructure strategy.

Recent Industry Developments
Microsoft expanded its cloud data centers with renewable energy-powered operations in North America.
Siemens introduced advanced cooling and power management solutions for large-scale enterprise data centers.
Submer launched immersion cooling technologies to reduce energy use and improve server performance.
CyrusOne and Iron Mountain implemented energy-efficient designs across colocation and hyperscale facilities.
These developments reflect the growing emphasis on green practices and energy-efficient IT infrastructure in the global market.

FAQs
Q1: What is driving the growth of green data centers?
A1: Increasing energy efficiency requirements, sustainability initiatives, and government policies promoting eco-friendly IT infrastructure are the main drivers.
Q2: Which region leads the green data center market?
A2: North America accounted for the largest market share in 2024 due to early adoption of renewable energy and green technologies.
Q3: How are AI and IoT influencing green data centers?
A3: AI and IoT enable predictive energy management, smart cooling, and real-time monitoring, reducing operational costs and carbon footprints.

Conclusion
The Green Data Center Market is on a trajectory of rapid growth, driven by the demand for energy-efficient, sustainable, and high-performance IT infrastructure. With the market projected to reach USD 415.9 billion by 2035 at a CAGR of 19.4%, stakeholders including tech providers, governments, and large enterprises are presented with opportunities for innovation, strategic investments, and global sustainability impact.

Author: Article written by Riya B. More, Research Analyst at Prophecy Market Insights.

India: Sai Ambience, Kunal Icon Rd, Pimple Saudagar, Pune
Rest of world: + 91 7775049802

About Prophecy Market Insights:
Prophecy Market Insights is a leading global market research and consulting firm delivering actionable insights, strategic recommendations, and industry forecasts across diverse sectors. Our reports provide in-depth market analysis, competitive intelligence, and business growth opportunities, enabling clients to make informed strategic decisions.

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