The Rise of Green Data Centre Market: A Step towards a More Sustainable and Eco-Friendly IT Industry

Ketan Mahajan
Ketan Mahajan

Updated · Feb 22, 2023

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The market for green data centre has grown significantly due to the increase in demand for environmentally friendly and energy-efficient technology solutions.

The growing demand to lessen the environmental effect and lower carbon footprints is one of the main drivers of this rise.

According to a report by, “The market for the green data centres is expected to increase at a CAGR of 19.9% from 2023 to 2032, from a value of USD 59.2 billion in 2022 to USD 342.8 billion in 2032.”

Green Data Center Market Size

More sustainable and energy-efficient technological solutions are required as environmental harm caused by carbon emissions is becoming more widely recognised.

Several major trends that are predicted to fuel the green data centre industry’s expansion in the upcoming years can be seen in the market now.

Modular data centres, which are intended to be more adaptable and energy-efficient, are in greater demand.

Organizations of all sizes are adopting these modular data centres more frequently to fulfil their changing business requirements and lessen their carbon footprint.

Anurag Sharma, a senior research analyst at, said, “Renewable energy sources like wind and solar power are increasingly being adopted because they are cost-competitive with conventional fossil fuels. The market for green data centres is anticipated to increase as a result of this shift towards renewable energy sources.”

A number of additional driving variables are anticipated to aid in the expansion of the green data centre market in addition to these trends.

The market for green data centres is anticipated to expand as a result of the rising demand for cloud computing services.

Large amounts of data storage and processing power are needed for cloud computing services, which is increasing the demand for more environmentally friendly and energy-efficient data centre solutions.

Advanced cooling technologies that are more energy-efficient than conventional air conditioning systems, like liquid cooling and free-air cooling, are becoming more and more popular.

Utilizing virtualization technologies, which allow businesses to use fewer physical servers and lessen their carbon footprint, is becoming more and more popular.

Despite these encouraging factors, the industry for green data centres nevertheless faces significant obstacles and limitations.

The high cost of deploying energy-efficient technological solutions is one of the main things that is preventing the green data centre business from expanding.

For many businesses, especially small and medium-sized ones that do not have the funds to engage in these solutions, the high cost is a significant hurdle.

Technology, service, and geographic segments can be used to divide the market for green data centres.

The industry can be divided into categories based on technology such as sophisticated cooling systems, renewable energy sources, and server virtualization.

The market can be divided into consultation, deployment and integration, and support and maintenance based on the type of service provided.

The market for green data centres is dominated by companies like IBM, Microsoft, Google, Amazon Web Services, and HP. To boost their market share, these businesses are concentrating on diversifying their product lines and breaking into new sectors.

There have been a number of significant advancements in the green data centre business in recent years. The growing need for environmentally friendly and more energy-efficient data centre systems is one of the most significant recent trends.

The growing use of liquid cooling solutions, which are more energy-efficient than conventional air conditioning systems, is another noteworthy development. The demand for sustainable and energy-efficient data centres is rising in many places as the global green data centre market has been expanding quickly.

Green data centres have an established market in North America, where investment has increased significantly in recent years. The trend is anticipated to continue in the years to come. Major giants like Microsoft, Amazon, and Google have made large investments in green data centres in the area.

Due to the region’s emphasis on lowering carbon emissions and the adoption of sustainable business practices, Europe has also been a significant market for green data centres.

Data centres are a crucial component of the European Union’s ambitious plan to reduce greenhouse gas emissions.

The market for green data centres is also expanding quickly in the Asia-Pacific area. The necessity to support the fast-expanding digital economy in the area, which is home to some of the greatest economies in the world, is what is driving demand for energy-efficient data centres. India, China, and Japan are anticipated to be the region’s main development engines.

Ketan Mahajan

Ketan Mahajan

Hey! I am Ketan, working as a DME/SEO having 5+ Years of experience in this field leads to building new strategies and creating better results. I am always ready to contribute knowledge and that sounds more interesting when it comes to positive/negative outcomes.