Carbon-Neutral Data Center Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Data Center Type, By Carbon Neutral Solutions, By End User, By Region & Competition, 2021-2031F

Description

The Global Carbon-Neutral Data Center Market is projected to expand significantly, rising from USD 10.01 Billion in 2025 to USD 32.73 Billion by 2031, reflecting a CAGR of 21.83%. These facilities are designed to reach net-zero carbon dioxide emissions by employing energy-efficient infrastructure, utilizing renewable power, and participating in carbon offsetting mechanisms. Key factors fueling this growth include rigorous government environmental regulations and the growing implementation of corporate Environmental, Social, and Governance (ESG) mandates worldwide. Furthermore, the fluctuating costs of fossil fuels are driving organizations to adopt sustainable operational models to ensure long-term stability in utility expenses.

Market Overview
Forecast Period	2027-2031
Market Size 2025	USD 10.01 Billion
Market Size 2031	USD 32.73 Billion
CAGR 2026-2031	21.83%
Fastest Growing Segment	Hardware
Largest Market	North America

However, the industry faces significant obstacles in modernizing legacy infrastructure to meet contemporary efficiency standards. Many older data centers lack the technical capabilities required for advanced cooling and power management systems, which hampers efforts to lower energy overhead and achieve neutrality. According to the Uptime Institute, the global industry average Power Usage Effectiveness (PUE) remained flat at 1.56 in 2024, underscoring the ongoing struggle operators encounter when attempting to optimize energy efficiency within established environments.

Market Driver

The surging demand for AI and digital workloads serves as a major driver for the carbon-neutral data center sector, drastically changing energy consumption patterns. Because generative AI models demand immense computational resources for both training and inference, server rack densities are increasing, creating a need for infrastructure that scales sustainably without increasing the carbon footprint. According to the 'GS SUSTAIN: Data Center Power Demand' report by Goldman Sachs in September 2025, global power demand from data centers is anticipated to increase by 165% by 2030, largely due to these intensive workloads. This trend compels operators to shift away from legacy fossil fuel dependence toward carbon-neutral architectures to manage the rising energy intensity.

Concurrently, the rapid uptake of renewable energy sources and Power Purchase Agreements (PPAs) is becoming a vital strategy for meeting decarbonization goals. Major industry players are actively acquiring clean energy to counterbalance their increasing usage, thereby driving market demand for green power integration. The International Energy Agency projects that global data center electricity consumption could hit 945 terawatt-hours by 2030, highlighting the critical nature of this shift. As a leader in this movement, Amazon noted in its July 2025 '2024 Sustainability Report' that it successfully matched 100% of the electricity used in its global operations with renewable sources, setting a new benchmark for operational standards within the industry.

Market Challenge

A major hurdle impeding the growth of the global carbon-neutral data center market is the difficulty associated with upgrading legacy infrastructure. Numerous existing facilities function with obsolete cooling and power distribution systems ill-equipped for modern sustainability requirements or high-density computing. Retrofitting these sites entails substantial capital investment and operational complexity, posing challenges for operators aiming to incorporate renewable energy or advanced efficiency solutions. As a result, the continued use of inefficient hardware compels organizations to maintain carbon-intensive operations, directly slowing the industry's progress toward net-zero emissions.

This technological shortfall also results in a significant lack of data visibility and reporting precision. Older facilities frequently miss the necessary instrumentation to accurately measure resource usage, which is crucial for adhering to environmental regulations. Data from the Uptime Institute in 2024 reveals that only 41 percent of data center operators monitored water usage effectiveness, suggesting that legacy infrastructure often lacks the sensor technology needed to track vital sustainability metrics. This absence of verifiable data hinders the execution of successful carbon offsetting initiatives and restricts the market's overall growth potential.

Market Trends

Data centers are increasingly adopting liquid and immersion cooling technologies to manage the intense thermal requirements of high-density AI workloads. As traditional air cooling methods fail to meet the needs of modern infrastructure, there is a strategic transition toward liquid-based systems that provide better heat rejection and energy efficiency. This shift is essential for the market, allowing for the sustainable expansion of computational power without corresponding rises in carbon emissions or operating expenses. In a December 2024 press release titled 'Schneider Electric Announces New Solutions to Address the Energy and Sustainability Challenges Spurred by AI', Schneider Electric introduced reference designs capable of supporting liquid-cooled AI clusters with densities reaching 132 kilowatts per rack, signaling the industry's move toward high-performance thermal management.

At the same time, the industry is investigating Small Modular Nuclear Reactors (SMRs) to ensure a consistent, carbon-free baseload that addresses the intermittency issues associated with wind and solar energy. Unlike typical renewable sources, SMRs offer the continuous, high-capacity power generation necessary to keep data centers running without depending on carbon-heavy fossil fuel backups. This development represents a significant step toward localized, zero-emission power grids tailored for digital infrastructure. Highlighting this trend, Google announced in an October 2024 blog post, 'New nuclear clean energy agreement with Kairos Power', that it has entered a corporate agreement to deploy a fleet of advanced small modular reactors, intending to add up to 500 megawatts of new 24/7 carbon-free power to the grid by 2035.

Key Market Players

ABB Limited
Amazon.com, Inc.
3M Company
Alphabet Inc.
Cisco Systems, Inc.
Hewlett Packard Enterprise (HPE)
Eaton Corporation plc
Fujitsu Ltd.
IBM Corporation
Microsoft Corporation

Report Scope

In this report, the Global Carbon-Neutral Data Center Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Carbon-Neutral Data Center Market, By Data Center Type

Hyperscale Data Centers
Enterprise Data Centers
Colocation Data Centers
Others

Carbon-Neutral Data Center Market, By Carbon Neutral Solutions

Hardware
Software & Platform
Support Services

Carbon-Neutral Data Center Market, By End User

BFSI
Retail
Healthcare
Government and Public Sector
IT and Telecom
Manufacturing
Others

Carbon-Neutral Data Center Market, By Region

North America
- United States
- Canada
- Mexico
Europe
- France
- United Kingdom
- Italy
- Germany
- Spain
Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
South America
- Brazil
- Argentina
- Colombia
Middle East & Africa
- South Africa
- Saudi Arabia
- UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Carbon-Neutral Data Center Market.

Available Customizations:

Global Carbon-Neutral Data Center Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

1. Product Overview

1.1. Market Definition
1.2. Scope of the Market
- 1.2.1. Markets Covered
- 1.2.2. Years Considered for Study
- 1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Key Industry Partners
2.4. Major Association and Secondary Sources
2.5. Forecasting Methodology
2.6. Data Triangulation & Validation
2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions/Countries
3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Carbon-Neutral Data Center Market Outlook

5.1. Market Size & Forecast
- 5.1.1. By Value
5.2. Market Share & Forecast
- 5.2.1. By Data Center Type (Hyperscale Data Centers, Enterprise Data Centers, Colocation Data Centers, Others)
- 5.2.2. By Carbon Neutral Solutions (Hardware, Software & Platform, Support Services)
- 5.2.3. By End User (BFSI, Retail, Healthcare, Government and Public Sector, IT and Telecom, Manufacturing, Others)
- 5.2.4. By Region
- 5.2.5. By Company (2025)
5.3. Market Map

6. North America Carbon-Neutral Data Center Market Outlook

6.1. Market Size & Forecast
- 6.1.1. By Value
6.2. Market Share & Forecast
- 6.2.1. By Data Center Type
- 6.2.2. By Carbon Neutral Solutions
- 6.2.3. By End User
- 6.2.4. By Country
6.3. North America: Country Analysis
- 6.3.1. United States Carbon-Neutral Data Center Market Outlook
  - 6.3.1.1. Market Size & Forecast
    - 6.3.1.1.1. By Value
  - 6.3.1.2. Market Share & Forecast
    - 6.3.1.2.1. By Data Center Type
    - 6.3.1.2.2. By Carbon Neutral Solutions
    - 6.3.1.2.3. By End User
- 6.3.2. Canada Carbon-Neutral Data Center Market Outlook
  - 6.3.2.1. Market Size & Forecast
    - 6.3.2.1.1. By Value
  - 6.3.2.2. Market Share & Forecast
    - 6.3.2.2.1. By Data Center Type
    - 6.3.2.2.2. By Carbon Neutral Solutions
    - 6.3.2.2.3. By End User
- 6.3.3. Mexico Carbon-Neutral Data Center Market Outlook
  - 6.3.3.1. Market Size & Forecast
    - 6.3.3.1.1. By Value
  - 6.3.3.2. Market Share & Forecast
    - 6.3.3.2.1. By Data Center Type
    - 6.3.3.2.2. By Carbon Neutral Solutions
    - 6.3.3.2.3. By End User

7. Europe Carbon-Neutral Data Center Market Outlook

7.1. Market Size & Forecast
- 7.1.1. By Value
7.2. Market Share & Forecast
- 7.2.1. By Data Center Type
- 7.2.2. By Carbon Neutral Solutions
- 7.2.3. By End User
- 7.2.4. By Country
7.3. Europe: Country Analysis
- 7.3.1. Germany Carbon-Neutral Data Center Market Outlook
  - 7.3.1.1. Market Size & Forecast
    - 7.3.1.1.1. By Value
  - 7.3.1.2. Market Share & Forecast
    - 7.3.1.2.1. By Data Center Type
    - 7.3.1.2.2. By Carbon Neutral Solutions
    - 7.3.1.2.3. By End User
- 7.3.2. France Carbon-Neutral Data Center Market Outlook
  - 7.3.2.1. Market Size & Forecast
    - 7.3.2.1.1. By Value
  - 7.3.2.2. Market Share & Forecast
    - 7.3.2.2.1. By Data Center Type
    - 7.3.2.2.2. By Carbon Neutral Solutions
    - 7.3.2.2.3. By End User
- 7.3.3. United Kingdom Carbon-Neutral Data Center Market Outlook
  - 7.3.3.1. Market Size & Forecast
    - 7.3.3.1.1. By Value
  - 7.3.3.2. Market Share & Forecast
    - 7.3.3.2.1. By Data Center Type
    - 7.3.3.2.2. By Carbon Neutral Solutions
    - 7.3.3.2.3. By End User
- 7.3.4. Italy Carbon-Neutral Data Center Market Outlook
  - 7.3.4.1. Market Size & Forecast
    - 7.3.4.1.1. By Value
  - 7.3.4.2. Market Share & Forecast
    - 7.3.4.2.1. By Data Center Type
    - 7.3.4.2.2. By Carbon Neutral Solutions
    - 7.3.4.2.3. By End User
- 7.3.5. Spain Carbon-Neutral Data Center Market Outlook
  - 7.3.5.1. Market Size & Forecast
    - 7.3.5.1.1. By Value
  - 7.3.5.2. Market Share & Forecast
    - 7.3.5.2.1. By Data Center Type
    - 7.3.5.2.2. By Carbon Neutral Solutions
    - 7.3.5.2.3. By End User

8. Asia Pacific Carbon-Neutral Data Center Market Outlook

8.1. Market Size & Forecast
- 8.1.1. By Value
8.2. Market Share & Forecast
- 8.2.1. By Data Center Type
- 8.2.2. By Carbon Neutral Solutions
- 8.2.3. By End User
- 8.2.4. By Country
8.3. Asia Pacific: Country Analysis
- 8.3.1. China Carbon-Neutral Data Center Market Outlook
  - 8.3.1.1. Market Size & Forecast
    - 8.3.1.1.1. By Value
  - 8.3.1.2. Market Share & Forecast
    - 8.3.1.2.1. By Data Center Type
    - 8.3.1.2.2. By Carbon Neutral Solutions
    - 8.3.1.2.3. By End User
- 8.3.2. India Carbon-Neutral Data Center Market Outlook
  - 8.3.2.1. Market Size & Forecast
    - 8.3.2.1.1. By Value
  - 8.3.2.2. Market Share & Forecast
    - 8.3.2.2.1. By Data Center Type
    - 8.3.2.2.2. By Carbon Neutral Solutions
    - 8.3.2.2.3. By End User
- 8.3.3. Japan Carbon-Neutral Data Center Market Outlook
  - 8.3.3.1. Market Size & Forecast
    - 8.3.3.1.1. By Value
  - 8.3.3.2. Market Share & Forecast
    - 8.3.3.2.1. By Data Center Type
    - 8.3.3.2.2. By Carbon Neutral Solutions
    - 8.3.3.2.3. By End User
- 8.3.4. South Korea Carbon-Neutral Data Center Market Outlook
  - 8.3.4.1. Market Size & Forecast
    - 8.3.4.1.1. By Value
  - 8.3.4.2. Market Share & Forecast
    - 8.3.4.2.1. By Data Center Type
    - 8.3.4.2.2. By Carbon Neutral Solutions
    - 8.3.4.2.3. By End User
- 8.3.5. Australia Carbon-Neutral Data Center Market Outlook
  - 8.3.5.1. Market Size & Forecast
    - 8.3.5.1.1. By Value
  - 8.3.5.2. Market Share & Forecast
    - 8.3.5.2.1. By Data Center Type
    - 8.3.5.2.2. By Carbon Neutral Solutions
    - 8.3.5.2.3. By End User

9. Middle East & Africa Carbon-Neutral Data Center Market Outlook

9.1. Market Size & Forecast
- 9.1.1. By Value
9.2. Market Share & Forecast
- 9.2.1. By Data Center Type
- 9.2.2. By Carbon Neutral Solutions
- 9.2.3. By End User
- 9.2.4. By Country
9.3. Middle East & Africa: Country Analysis
- 9.3.1. Saudi Arabia Carbon-Neutral Data Center Market Outlook
  - 9.3.1.1. Market Size & Forecast
    - 9.3.1.1.1. By Value
  - 9.3.1.2. Market Share & Forecast
    - 9.3.1.2.1. By Data Center Type
    - 9.3.1.2.2. By Carbon Neutral Solutions
    - 9.3.1.2.3. By End User
- 9.3.2. UAE Carbon-Neutral Data Center Market Outlook
  - 9.3.2.1. Market Size & Forecast
    - 9.3.2.1.1. By Value
  - 9.3.2.2. Market Share & Forecast
    - 9.3.2.2.1. By Data Center Type
    - 9.3.2.2.2. By Carbon Neutral Solutions
    - 9.3.2.2.3. By End User
- 9.3.3. South Africa Carbon-Neutral Data Center Market Outlook
  - 9.3.3.1. Market Size & Forecast
    - 9.3.3.1.1. By Value
  - 9.3.3.2. Market Share & Forecast
    - 9.3.3.2.1. By Data Center Type
    - 9.3.3.2.2. By Carbon Neutral Solutions
    - 9.3.3.2.3. By End User

10. South America Carbon-Neutral Data Center Market Outlook

10.1. Market Size & Forecast
- 10.1.1. By Value
10.2. Market Share & Forecast
- 10.2.1. By Data Center Type
- 10.2.2. By Carbon Neutral Solutions
- 10.2.3. By End User
- 10.2.4. By Country
10.3. South America: Country Analysis
- 10.3.1. Brazil Carbon-Neutral Data Center Market Outlook
  - 10.3.1.1. Market Size & Forecast
    - 10.3.1.1.1. By Value
  - 10.3.1.2. Market Share & Forecast
    - 10.3.1.2.1. By Data Center Type
    - 10.3.1.2.2. By Carbon Neutral Solutions
    - 10.3.1.2.3. By End User
- 10.3.2. Colombia Carbon-Neutral Data Center Market Outlook
  - 10.3.2.1. Market Size & Forecast
    - 10.3.2.1.1. By Value
  - 10.3.2.2. Market Share & Forecast
    - 10.3.2.2.1. By Data Center Type
    - 10.3.2.2.2. By Carbon Neutral Solutions
    - 10.3.2.2.3. By End User
- 10.3.3. Argentina Carbon-Neutral Data Center Market Outlook
  - 10.3.3.1. Market Size & Forecast
    - 10.3.3.1.1. By Value
  - 10.3.3.2. Market Share & Forecast
    - 10.3.3.2.1. By Data Center Type
    - 10.3.3.2.2. By Carbon Neutral Solutions
    - 10.3.3.2.3. By End User

11. Market Dynamics

11.1. Drivers
11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)
12.2. Product Launches (If Any)
12.3. Recent Developments

13. Global Carbon-Neutral Data Center Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry
14.2. Potential of New Entrants
14.3. Power of Suppliers
14.4. Power of Customers
14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. ABB Limited
- 15.1.1. Business Overview
- 15.1.2. Products & Services
- 15.1.3. Recent Developments
- 15.1.4. Key Personnel
- 15.1.5. SWOT Analysis
15.2. Amazon.com, Inc.
15.3. 3M Company
15.4. Alphabet Inc.
15.5. Cisco Systems, Inc.
15.6. Hewlett Packard Enterprise (HPE)
15.7. Eaton Corporation plc
15.8. Fujitsu Ltd.
15.9. IBM Corporation
15.10. Microsoft Corporation