Carbon Neutral Data Centers

Global Carbon Neutral Data Centers Market to Reach US$18.5 Billion by 2030

The global market for Carbon Neutral Data Centers estimated at US$6.6 Billion in the year 2024, is expected to reach US$18.5 Billion by 2030, growing at a CAGR of 18.7% over the analysis period 2024-2030. Hyperscale Data Centers, one of the segments analyzed in the report, is expected to record a 19.7% CAGR and reach US$10.9 Billion by the end of the analysis period. Growth in the Enterprise Data Centers segment is estimated at 16.4% CAGR over the analysis period.

The U.S. Market is Estimated at US$1.8 Billion While China is Forecast to Grow at 24.7% CAGR

The Carbon Neutral Data Centers market in the U.S. is estimated at US$1.8 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$4.2 Billion by the year 2030 trailing a CAGR of 24.7% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 13.8% and 17.0% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 15.0% CAGR.

Global Carbon Neutral Data Centers Market – Key Trends & Drivers Summarized

Why Are Carbon Neutral Data Centers Gaining Strategic Relevance Across Cloud Infrastructure, ESG Compliance, and Sustainable Digital Transformation?
Carbon neutral data centers are becoming a strategic priority as hyperscale operators, colocation providers, and enterprise IT leaders face mounting pressure to decarbonize digital infrastructure. With data centers accounting for a significant share of global electricity consumption and carbon emissions, transitioning to carbon neutrality is now a core requirement for long-term operational viability and corporate sustainability alignment. These facilities aim to eliminate or offset greenhouse gas emissions across both direct energy use and indirect supply chain activities—without compromising uptime, scalability, or service performance.

The rapid expansion of cloud computing, AI workloads, and real-time data services has intensified the environmental impact of data centers, prompting operators to shift toward renewable energy sourcing, energy-efficient architecture, and emissions accounting frameworks such as Scope 1, 2, and 3 under the GHG Protocol. As governments, investors, and customers demand measurable climate action, carbon neutral data centers are being positioned as mission-critical enablers of sustainable digital transformation across industries.

How Are Renewable Energy Integration, Energy-Efficient Design, and Emissions Offsetting Advancing Carbon Neutrality in Data Centers?
Operators are adopting multifaceted strategies to achieve carbon neutrality, with renewable energy procurement as the cornerstone. Long-term Power Purchase Agreements (PPAs), onsite solar and wind installations, and investments in renewable energy certificates (RECs) are enabling green power integration at scale. Some operators are also participating in virtual power plant (VPP) networks and grid decarbonization partnerships to extend impact beyond their operational footprint.

Data centers are being redesigned with energy-efficient cooling systems, waste heat reuse, high-density server optimization, and AI-powered workload distribution to reduce Power Usage Effectiveness (PUE). Liquid immersion cooling, rear door heat exchangers, and modular architecture are gaining traction to improve thermal performance and reduce energy overhead. Where full decarbonization is not yet possible, verified carbon offsets and nature-based solutions are being deployed to neutralize residual emissions.

Which Deployment Models, Regional Markets, and Industry Stakeholders Are Driving Growth in the Carbon Neutral Data Centers Market?
Hyperscalers—including Amazon Web Services (AWS), Microsoft Azure, Google Cloud, and Meta—are leading carbon neutrality commitments through aggressive renewable energy goals, data center electrification, and carbon offset investments. Colocation providers and edge data center operators are increasingly adopting carbon neutral strategies to meet enterprise customer ESG mandates and attract sustainability-conscious tenants.

Europe leads global activity, supported by stringent emissions regulations, green taxonomies, and proactive initiatives such as the EU Climate Neutral Data Centre Pact. North America follows with large-scale corporate decarbonization programs and maturing renewable energy markets. Asia-Pacific, particularly Singapore, Japan, and Australia, is showing accelerated momentum through government incentives and regional grid modernization.

Key stakeholders include energy utilities, cloud service providers, data center REITs, sustainability consultants, and carbon offset registries. Equipment OEMs and infrastructure vendors are co-developing low-carbon IT hardware, while green financing platforms and climate-aligned investment funds are supporting project scalability.

What Are the Factors Driving Growth in the Carbon Neutral Data Centers Market?
The carbon neutral data centers market is expanding as sustainability becomes integral to IT strategy, regulatory compliance, and brand differentiation. These facilities represent a convergence of operational resilience, energy transition, and climate risk mitigation in the digital economy.

Key growth drivers include escalating energy consumption from cloud and AI workloads, net-zero commitments by hyperscalers and enterprises, growing availability of renewable power, innovation in low-energy cooling and server technologies, and rising demand for ESG-aligned infrastructure services. Financial and reputational incentives are further accelerating market participation.

As digital infrastructure continues to scale globally, could carbon neutral data centers emerge as the blueprint for reconciling cloud growth with climate responsibility in the next generation of digital infrastructure planning?

SCOPE OF STUDY:

The report analyzes the Carbon Neutral Data Centers market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Data Center Type (Hyperscale Data Centers, Enterprise Data Centers, Colocation Data Centers); End-Use (IT & Telecom, BFSI, Government or Public Sector, Healthcare, Manufacturing, Retail, Other End-Uses)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 44 Featured) -

• Amazon Web Services (AWS)
• Apple Inc.
• Ark Data Centres
• Bridge Data Centres
• CyrusOne
• Digital Realty
• Equinix
• Google LLC
• IBM
• IONOS
• LCL Data Centers
• Meta Platforms, Inc.
• Microsoft Corporation
• NEXTDC
• NTT Communications
• OVHcloud
• Recycled Cloud (e-Durable)
• Scaleway
• VIRTUS Data Centres
• Yotta Infrastructure

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TARIFF IMPACT FACTOR
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