Global Carbon Neutral Data Center Market Size is valued at USD 9.0 Bn in 2024 and is predicted to reach USD 65.2 Bn by the year 2034 at a 22.0% CAGR during the forecast period for 2025-2034.
The Carbon Neutral data centers are beneficial for reducing an organization’s carbon footprint. The market growth attributes to the ongoing digital transformation in various businesses that have aided the amount of data produced. Besides, the surging imposition of numerous policies & environmental regulations laid in the international climate agreement has further boosted the global Carbon Neutral data center market growth.
Moreover, Carbon Neutral data centers exhibit features and capabilities similar to traditional ones but consume less space and energy and are environmentally friendly. Therefore, carbon neutral data centers are the preferred eco-friendly options.
However, due to the high cost of carbon neutrality and the COVID-19 pandemic, data center operators have seen demand for data storage double and redouble, driven by increasing digitalization and the pandemic itself. The growth in remote work, video conferencing, and internet traffic alone caused by the pandemic have been the major factors for the boosting data centers capacity, increasing the accelerating transition of regions.
The Carbon Neutral data center market is segmented on the basis of industry, data center type, and carbon neural solution. Industry segment includes IT and Telecom, Banking, Financial Services, and Insurance (BFSI), Government or Public Sector, Healthcare, Manufacturing, Retail and Others. Based on data center type, the market is segmented as hyper-scale data centers, enterprise data centers, colocation data centers, and others. By carbon neural solution, the market is segmented into Hardware, Software and platforms and Support Services.
Based on type, the Carbon Neutral data center market is segmented into hyper-scale centers, enterprise types, colocation data centers, and others. The hyperscale centers catered to significant demand in the Carbon Neutral data center market. It is mainly owing to the strong growth in demand for data center services continues to be mostly offset by ongoing efficiency improvements for servers, storage devices, network switches, and data center infrastructure, as well as the high and growing share of services met by highly efficient hyper-scale data centers.
Based on industry, the Carbon Neutral data center market is classified into the IT and Telecom, BFSI, Government and public sector, healthcare and others. The IT and Telecom segment holds an extensive market share in the Carbon Neutral data center market share. The telecom industry is dependent on data centers as data transmission during internet services requires constant storage and processing, a primary criterion for quality services. Thus, the industry must rely on data center facilities to maintain quality.
Over the past few years, Europe has created a substantial share of the Carbon Neutral data center market. It is also expected to have an influential growth rate in the forecasted period. It is mainly due to the implementation of carbon-free energy government policies and digital strategy in the region that has positively influenced the market size of the Carbon Neutral data center.
| Report Attribute | Specifications |
| Market size value in 2024 | USD 9.0 Bn |
| Revenue forecast in 2034 | USD 65.2 Bn |
| Growth rate CAGR | CAGR of 22.0% from 2025 to 2034 |
| Quantitative units | Representation of revenue in US$ Bn,and CAGR from 2025 to 2034 |
| Historic Year | 2021 to 2024 |
| Forecast Year | 2025-2034 |
| Report coverage | The forecast of revenue, the position of the company, the competitive market statistics, growth prospects, and trends |
| Segments covered | Industry, Data Center Type, And Carbon Neural Solution |
| Regional scope | North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
| Country scope | U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; The UK; France; Italy; Spain; China; Japan; India; South Korea; Southeast Asia; South Korea; Southeast Asia |
| Competitive Landscape | 3M, ABB Group, Alibaba Group, Alphabet Inc., Amazon.com, Inc., Cisco Systems, Inc., Dell Inc., Digital Realty Trust, Eaton Corporation plc, Equinix, Inc., FUJITSU, Hewlett Packard Enterprise Development LP, IBM Corporation, Microsoft, ANS Group Limited, NEXTDC LTD., CYRUSONE, DEAC, and Intel Corporation. |
| Customization scope | Free customization report with the procurement of the report, Modifications to the regional and segment scope. Particular Geographic competitive landscape. |
| Pricing and available payment methods | Explore pricing alternatives that are customized to your particular study requirements. |
Carbon Neutral Data Center Market By Industry-
Carbon Neutral Data Center Market By Data Center Type-
Carbon Neutral Data Center Market By Carbon Neutral Solution-
Carbon Neutral Data Center Market By Region-
North America-
Europe-
Asia-Pacific-
Latin America-
Middle East & Africa-
This study employed a multi-step, mixed-method research approach that integrates:
This approach ensures a balanced and validated understanding of both macro- and micro-level market factors influencing the market.
Secondary research for this study involved the collection, review, and analysis of publicly available and paid data sources to build the initial fact base, understand historical market behaviour, identify data gaps, and refine the hypotheses for primary research.
Secondary data for the market study was gathered from multiple credible sources, including:
These sources were used to compile historical data, market volumes/prices, industry trends, technological developments, and competitive insights.
Primary research was conducted to validate secondary data, understand real-time market dynamics, capture price points and adoption trends, and verify the assumptions used in the market modelling.
Primary interviews for this study involved:
Interviews were conducted via:
Primary insights were incorporated into demand modelling, pricing analysis, technology evaluation, and market share estimation.
All collected data were processed and normalized to ensure consistency and comparability across regions and time frames.
The data validation process included:
This ensured that the dataset used for modelling was clean, robust, and reliable.
The bottom-up approach involved aggregating segment-level data, such as:
This method was primarily used when detailed micro-level market data were available.
The top-down approach used macro-level indicators:
This approach was used for segments where granular data were limited or inconsistent.
To ensure accuracy, a triangulated hybrid model was used. This included:
This multi-angle validation yielded the final market size.
Market forecasts were developed using a combination of time-series modelling, adoption curve analysis, and driver-based forecasting tools.
Given inherent uncertainties, three scenarios were constructed:
Sensitivity testing was conducted on key variables, including pricing, demand elasticity, and regional adoption.