PUBLISHER: The Business Research Company | PRODUCT CODE: 1658877
PUBLISHER: The Business Research Company | PRODUCT CODE: 1658877
A carbon-neutral data center is one that aligns with stringent criteria in energy efficiency, emission control, water efficiency, and the utilization of clean energy. Operated exclusively on 100% renewable energy sources, these data centers play a crucial role in mitigating carbon emissions associated with data center operations.
Carbon-neutral data centers come in various forms, including hyperscale data centers, enterprise data centers, colocation data centers, and other specialized variants. Hyperscale data centers play a crucial role in meeting the extensive data and cloud computing needs of their users. Characterized by modern infrastructure, these facilities provide the necessary space, electricity, cooling, and network capabilities to efficiently handle large-scale data and cloud computing requirements. The primary categories of solutions offered by carbon-neutral data centers encompass hardware, software and platform, and support services. These solutions find widespread application across diverse industries such as IT and telecom, banking, financial services, and insurance (BFSI), government or public sector, healthcare, manufacturing, retail, and other sectors. Carbon-neutral data centers thus serve as vital components supporting sustainability initiatives across various business domains.
The carbon neutral data center market research report is one of a series of new reports from The Business Research Company that provides carbon neutral data center market statistics, including carbon neutral data center industry global market size, regional shares, competitors with a carbon neutral data center market share, detailed carbon neutral data center market segments, market trends and opportunities, and any further data you may need to thrive in the carbon neutral data center industry. This carbon neutral data center market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The carbon neutral data center market size has grown exponentially in recent years. It will grow from $8.92 billion in 2024 to $10.81 billion in 2025 at a compound annual growth rate (CAGR) of 21.2%. The growth in the historic period can be attributed to corporate sustainability initiatives, energy-efficient hardware adoption, shift in consumer preferences, government support and incentives.
The carbon neutral data center market size is expected to see exponential growth in the next few years. It will grow to $27.57 billion in 2029 at a compound annual growth rate (CAGR) of 26.4%. The growth in the forecast period can be attributed to advancements in energy storage, market demand for carbon-neutral services, lifecycle assessments and circular economy practices, investment in energy-efficient hardware, government initiatives and incentives. Major trends in the forecast period include renewable energy adoption, energy-efficient infrastructure, carbon offsetting programs, green building standards, efficient cooling solutions.
The increased focus on renewable energy is a significant driver for the growth of the carbon-neutral data center market. Renewable energy, sourced from natural elements, is gaining popularity due to its capacity to reduce pollutants and greenhouse gas emissions. Carbon-neutral data centers aim to achieve net-zero carbon emissions, necessitating a reliance on renewable energy sources. Notably, a December 2021 report by the International Energy Agency predicts renewables to contribute nearly 95% of the global power capacity increase through 2026, further bolstering the carbon-neutral data center market.
The increasing focus on renewable energy is playing a significant role in the expansion of the carbon-neutral data center market. Renewable energy, sourced from natural elements, is gaining traction as it helps reduce pollutants and greenhouse gas emissions. Carbon-neutral data centers aim to achieve net-zero carbon emissions, which necessitates the use of renewable energy sources. For example, in June 2024, the International Energy Agency, a France-based autonomous intergovernmental organization, reported that in 2022, the supply of renewable energy from solar, wind, hydro, geothermal, and ocean sources grew by nearly 8%. Consequently, the contribution of these technologies to the global energy supply rose by approximately 0.4 percentage points, reaching 5.5%. Therefore, the growing emphasis on renewable energy is expected to drive the carbon-neutral data center market forward.
The telecommunications sector encompasses the industry that facilitates global communication through various channels, including phones, the internet, airwaves, and cables. Data centers play a crucial role in this industry by providing constant storage and processing capabilities, which are essential for delivering high-quality services. Additionally, the telecom industry is increasingly investing in carbon-neutral data centers to minimize carbon emissions and enhance sustainability. For instance, in July 2023, Ofcom, a UK-based government office, reported that by the end of Q1 2023, the number of active mobile subscriptions (excluding M2M) reached 86.9 million, representing an increase of 1.6 million (1.9%) compared to the previous year. Consequently, the growth of the telecommunications sector is significantly contributing to the expansion of the carbon-neutral data center market.
A notable strategy among major players in the carbon-neutral data center market is the expansion of computing capacities to achieve net carbon-neutrality and gain a competitive advantage. Computing capacity expansion involves increasing resources for computing, such as storage, processing power, and network capabilities. As an illustration, in November 2022, Volkswagen AG expanded its data center operations in Green Mountain, Norway, with the goal of achieving net carbon-neutrality by 2027. This expansion, powered entirely by hydropower with natural cooling, positions Volkswagen to operate 25% of its global data centers carbon-neutrally, resulting in a significant annual reduction of 10,000 tons of CO2 emissions.
In March 2022, Kohlberg Kravis Roberts & Co. (KKR) and Global Infrastructure Partners (GIP) jointly acquired CyrusOne for $15 billion, marking a significant move in the carbon-neutral data center market. The acquisition integrates CyrusOne's data center business into KKR's portfolio of technology and infrastructure companies. CyrusOne, a US-based data center company providing carbon-neutral solutions, becomes a strategic addition to KKR's investment in the evolving landscape of technology and infrastructure.
Major companies operating in the carbon neutral data center market are 3M Company, ABB Ltd., Alibaba Group Holding Limited, Alphabet Inc., Amazon.com Inc., Cisco Systems Inc., Dell Inc., Digital Realty Trust Inc., Eaton Corporation PLC, Equinix Inc., Fujitsu Ltd, Hewlett Packard Enterprise, The International Business Machines Corporation, Intel Corporation, Microsoft Corporation, Ark Data Centres Limited, Cologix Holdings Inc., CyrusOne Inc., DataBank Holdings Ltd., Digital Fortress Inc., Lunavi Inc., Iron Mountain.Inc, NTT Communications Corporation, QTS Realty Trust, ServerFarm, SingleHopLLC, Sungard Availability Services LP, Switch Inc., Telehouse America Inc., Carbon60 Networks Inc.
Europe was the largest region in the carbon neutral data market in 2024. The regions covered in the carbon neutral data center market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the carbon neutral data center market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The carbon-neutral data center market includes revenues earned by entities edge data centers, professional and managed services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Carbon Neutral Data Center Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on carbon neutral data center market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for carbon neutral data center ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The carbon neutral data center market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.