What Does the Market Size Analysis Reveal about the Carbon Neutral Data Center Industry?
The carbon neutral data center market is experiencing rapid growth due to corporate sustainability initiatives and the increasing adoption of energy-efficient hardware. The market size has grown from $8.92 billion in 2024 to an expected $10.81 billion in 2025 at a compound annual growth rate (CAGR) of 21.2%. The same growth patterns are expected to continue, with the market size projected to reach $27.57 billion in 2029, showcasing a CAGR of 26.4%. These increases can be attributed to advancements in energy storage, market demand for carbon-neutral services, the implementation of lifecycle assessment and circular economy practices, government incentives, and investments in energy-efficient hardware.
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What Are the Key Drivers of the Carbon Neutral Data Center Market?
The growth of the carbon neutral data center market is significantly influenced by the rising emphasis on renewable energy. As renewable energy reduces pollutants and greenhouse gasses, there is an increasing demand for carbon-neutral data centers that create net-zero carbon emissions. The International Energy Agency reported in June 2024 that the supply of renewable energy grew by nearly 8% in 2022, increasing the share of renewable energy in the global supply by around 0.4 percentage points to reach 5.5%.
What Are the Key Segments in the Carbon Neutral Data Center Market?
1) By Data Center Type: Hyperscale Data Centers, Enterprise Data Centers, Colocation Data Centers, Other Data Center Types
2) By Solution: Hardware, Software And Platform, Support Service
3) By Industry: IT And Telecom, Banking, Financial Services, And Insurance (BFSI), Government Or Public Sector, Healthcare, Manufacturing, Retail, Other Industries
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Who Are the Major Players in the Carbon Neutral Data Center Market?
Major companies operating in the carbon neutral data center market include 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.
What Are the Emerging Trends in the Carbon Neutral Data Center Market?
The carbon neutral data center market is witnessing major product innovations. These aim to curb carbon emissions and increase the efficiency of data center operations. For example, in March 2022, Amazon Web Services Inc. (AWS) introduced a customer carbon footprint tool. This platform enables users to calculate the environmental impact of their AWS workloads.
Which Region Is Leading the Carbon Neutral Data Center Market?
In 2024, Europe was the largest region in the carbon neutral data market. The report covers regions such as Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
What Does The Carbon Neutral Data Center Market Report 2025 Offer?
A carbon-neutral data center is one that meets energy efficiency, emission, water efficiency, and clean energy standards. These data centers are powered by 100% renewable energy and help reduce carbon emissions from data centers. The Carbon Neutral Data Center Market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.
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