Green Data Center Market Outlook 2026–2031: USD 206.15 Billion by 2031 at 15.74% CAGR, Driven by AI and Sustainability Demand, Reports Mordor Intelligence
The Green Data Center Market is driven by renewable-powered hyperscale expansion, AI-driven energy optimization, and stringent sustainability regulations, with North America leading adoption and Asia Pacific emerging as the fastest-growing region.
According to a new report by Mordor Intelligence, the green data center market size is experiencing strong expansion driven by sustainability-focused digital infrastructure transformation across enterprises worldwide. The green data center market is valued at USD 85.68 billion in 2025 and is projected to reach USD 99.17 billion in 2026, eventually surging to USD 206.15 billion by 2031, registering a CAGR of 15.74% during 2026–2031. The steady green data center market growth reflects increasing global emphasis on energy-efficient IT infrastructure, hyperscale data center deployment, and rising corporate commitments toward carbon neutrality.
The green data center industry is evolving rapidly as organizations prioritize low-carbon operations, improved Power Usage Effectiveness (PUE), and renewable-powered facilities. The green data center market forecast remains highly positive, supported by long-term digitalization trends such as AI, IoT, and cloud computing expansion. In addition, green data center market trends indicate a clear shift toward liquid cooling technologies, modular data center designs, and widespread adoption of 100% renewable energy-powered infrastructure, all of which are reshaping the competitive landscape and influencing green data center market share globally.
Adoption Trends in Green Data Center Market
Grid Constraints Slowing Renewable Adoption in Emerging Markets
In many emerging regions, strong renewable energy potential exists, but limited grid infrastructure slows down its effective use for data center expansion. As a result, developers often depend on temporary solutions like private solar arrangements or backup gas-based systems, which can increase overall carbon impact and delay the shift to fully sustainable facilities. While collaborations with local utilities to expand renewable capacity are being explored, long development timelines continue to create bottlenecks for large-scale green infrastructure rollout.
Rising Efficiency Regulations Driving Data Center Modernization
Stricter energy-efficiency regulations across developed economies are pushing data center operators to improve transparency around power usage and environmental impact. Authorities in regions like the EU and the U.S. are increasingly focusing on efficiency benchmarks and disclosure requirements related to cooling performance and carbon emissions. This has encouraged operators to adopt advanced technologies such as AI-driven workload management and liquid cooling systems to improve operational efficiency and stay compliant. Early adoption of such upgrades is also helping companies reduce operating costs and remain competitive in long-term contracts, while rising compliance pressure is accelerating investment in energy-efficient infrastructure.
Ashish Gautam, Senior Research Manager, Mordor Intelligence, says, “The green data center market reflects steady enterprise focus on energy efficiency and regulatory alignment, with adoption patterns shaped by cost discipline and infrastructure readiness. Mordor Intelligence applies consistent validation and cross-market benchmarking, offering decision-makers a dependable view grounded in verifiable industry data.”
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