Green data center market seen hitting $303.9B by 2031

By AI, Created 5:51 AM UTC, June 04, 2026, /AGP/ – Allied Market Research projects the global green data center market will surge from $49.7 billion in 2021 to $303.9 billion by 2031, powered by cloud adoption, AI, IoT and rising pressure to cut energy use. The report says North America leads today, while Asia-Pacific is set for the fastest growth.

Why it matters: - Green data centers are becoming central to how companies expand digital infrastructure without driving up power use and emissions. - The market’s projected rise to $303.9 billion by 2031 signals sustained spending on energy-efficient computing, cooling and power systems. - The shift matters for cloud providers, enterprises and governments facing rising electricity costs and sustainability targets.

What happened: - Allied Market Research said the global green data center market was valued at $49.7 billion in 2021 and is projected to reach $303.9 billion by 2031. - The report projects a compound annual growth rate of 20.1% from 2022 to 2031. - The market outlook is tied to cloud computing, artificial intelligence, big data analytics, the Internet of Things and digital transformation. - The report was published June 4, 2026. - More information is available in the sample brochure.

The details: - Green data centers are designed to store, manage and distribute data while minimizing environmental impact and improving energy efficiency. - Typical features include advanced cooling systems, renewable energy sources, efficient power management and sustainable building designs. - The report says these facilities use efficient servers, optimized airflow, energy-saving lighting and renewable energy integration to cut operating costs and carbon footprints. - Cloud computing is a major growth driver as enterprises move workloads, applications and data into cloud environments. - Cloud providers are investing in energy-efficient architectures, advanced cooling and renewable energy to meet customer demand and environmental goals. - Energy efficiency remains a core priority because data centers require constant power for servers, networking, cooling and storage. - Green data centers use intelligent power management and advanced cooling, including liquid cooling and free-air cooling, to reduce electricity use. - Digital transformation is increasing demand for infrastructure that can support AI, machine learning, automation, IoT and advanced analytics. - Multi-cloud adoption is creating additional demand because organizations need infrastructure that can manage data across multiple platforms. - 5G deployment is also boosting demand by increasing data generation and processing requirements for applications such as autonomous vehicles, smart cities, industrial automation and augmented reality. - The report says governments and regulators are supporting the market through incentives, energy-efficiency standards and environmental rules. - The report highlights security and privacy concerns, along with high upfront construction and upgrade costs, as key challenges. - Large enterprises held the biggest market share in 2021. - Small and medium-sized enterprises are expected to post the fastest growth. - The banking, financial services and insurance sector held the largest share in 2021. - North America led the market in 2021. - Asia-Pacific is expected to grow the fastest during the forecast period. - The report lists ABB Ltd., Dell Technologies, Digital Realty Trust, Eaton, Hewlett Packard, Huawei, IBM, NEC, Nortek Air Solutions, NTT, Schneider Electric and ZutaCore among the major companies in the market.

Between the lines: - The report frames green data centers as a response to two pressures at once: surging compute demand and tighter sustainability requirements. - The biggest near-term opportunity appears to be retrofitting and scaling infrastructure for cloud, AI and multi-cloud workloads without adding equivalent energy load. - Competitive advantage may increasingly hinge on cooling efficiency, renewable power access and the ability to lower operating costs.

What’s next: - The report expects demand to keep rising as cloud computing, AI, IoT and 5G expand. - Further investment is likely in intelligent cooling, renewable energy integration and smart energy management systems. - Environmental regulation and corporate sustainability commitments are expected to keep pushing new projects and upgrades. - A customized research report is also available.

The bottom line: - Green data centers are moving from a niche sustainability play to a core requirement for the next wave of digital infrastructure.