US Green Data Centers Industry Outlook 2025-2034: Market Growth to USD 109 Billion Supported by Regulatory Compliance and Renewable Energy Adoption

The Global Green Data Centers Market reached US$ 57.84 billion in 2023 and is projected to attain US$ 160.87 billion by 2031, expanding at a strong CAGR of 18.87% during the forecast period (2024-2031). This growth reflects the accelerating transition toward energy-efficient and sustainable IT infrastructure, driven by the surging demand for digitalization, cloud computing, and environmental responsibility.

Businesses and hyperscale operators are spending more money on facilities powered by renewable energy, cutting-edge cooling technologies, and AI-driven energy management systems as a result of growing concerns about carbon emissions and energy consumption. The market's trend toward high-performance, low-carbon data centers is being strengthened by the active support of green initiatives from governments and significant tech companies. The market for green data centers is establishing itself as a pillar of the sustainable future of the global digital economy as sustainability emerges as a differentiator in the marketplace.

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The green data centers market involves energy-efficient facilities designed to minimize environmental impact through optimized power usage, renewable energy integration, and advanced cooling technologies.

Key Developments

✅ August 2025 (United States): The U.S. Department of Energy approved the setup of multiple renewable-powered data centers across federal laboratories, promoting clean energy adoption and improving energy efficiency in public infrastructure.

✅ April 2025 (United States): Microsoft announced the construction of two new sustainable data centers in Arizona and Texas, powered entirely by renewable energy and equipped with advanced water-recycling systems to meet sustainability goals.

✅ October 2025 (Japan): Stack Infrastructure secured green financing of ¥39.7 billion for its TKY01 data center campus in Greater Tokyo. The project will begin with 18 MW capacity and expand to 36 MW, strengthening Japan's green digital ecosystem.

✅ June 2025 (Japan): Mitsubishi Heavy Industries partnered with Tokyo Electric Power Company (TEPCO) to implement waste-heat recovery technology in new data centers, aiming to lower energy consumption and emissions.

Mergers and Acquisitions

✅ February 2025 (United States): Equinix acquired a minority stake in a renewable energy firm to deploy on-site solar and battery storage systems across its U.S. data centers.

✅ May 2025 (Japan): NTT Data Corporation acquired multiple land parcels for a 1 GW expansion initiative focused on renewable-powered and energy-efficient data center development.

Key Players:

ABB Ltd. - US $32 billion

Asetek, Inc. - US $20 million

Delta Electronics, Inc. - US $13.6 billion

Digital Realty Trust - US $5.3 billion

Cisco Systems, Inc. - US $56.5 billion

Dell Technologies, Inc. - US $91 billion

Equinix, Inc. - US $8.1 billion

Fujitsu Ltd. - US $28 billion

General Electric (GE) - US $68 billion

Hewlett Packard Enterprise (HPE) - US $30 billion

Huawei Technologies Co., Ltd. - US $99 billion

Hitachi, Ltd. - US $53 billion

International Business Machines Corporation (IBM) - US $62 billion

Schneider Electric - US $37 billion

Siemens AG - US $77 billion

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Market Drivers:

Rising demand for energy-efficient IT infrastructure and sustainable operations is fueling the adoption of green data centers.

Growing data traffic from cloud computing, AI, and IoT applications is pushing enterprises to optimize power and cooling efficiency.

Government initiatives promoting renewable energy use and carbon reduction are supporting market growth.

Increasing awareness of environmental impact and operational cost savings drives adoption of eco-friendly technologies.

Industry Developments & Growth:

Data center operators are investing in renewable energy sources, liquid cooling systems, and modular infrastructure to enhance efficiency.

Technology collaborations between energy firms and hyperscale data center providers are accelerating innovation in sustainable designs.

The market is expected to witness significant growth as enterprises and cloud providers move toward carbon-neutral operations and net-zero goals.

Research Process:

Both primary and secondary data sources have been used in the Global Green Data Centers Market research report. During the research process, a wide range of industry-affecting factors are examined, including governmental regulations, market conditions, competitive levels, historical data, market situation, technological advancements, upcoming developments in related businesses, as well as market volatility, prospects, potential barriers, and challenges.

Key Segments:

➥ By Component: Comprises Solutions and Services that streamline data integration, quality, and analytics across enterprise systems.

➥ By Enterprise Size: Both Large Enterprises and Small & Medium Enterprises (SMEs) are adopting MDM to enhance operational efficiency and regulatory compliance.

➥ By End-Use: Widely implemented across BFSI, Media & Entertainment, Retail, IT & Telecom, Healthcare, Manufacturing, Government & Defense, and other sectors to ensure consistent and reliable data ecosystems.

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