Press Releases

Introduction

Data centers are under pressure from two directions at once. AI and high-performance computing workloads are driving electricity demand sharply higher, while regulators, investors and customers expect measurable progress on energy efficiency and carbon reduction. The result is a fast-growing market for the power, cooling, construction, IT and monitoring systems that let facilities do more with less energy.

Get the Complete Green Data Center Infrastructure Market Report

See the full picture behind the forecast. The IGTPS report covers market size and projections to 2034, segmentation by component, data center type, cooling technology and end user, regional and country analysis, competitive positioning and recent developments, in 180-190 pages with 60-70 market tables. Access the Full Market Report https://www.igtps.com/report/green-data-center-infrastructure-market

The Green Data Center Infrastructure Market was valued at USD 82.5 billion in 2025 and is projected to reach USD 340.0 billion by 2034, growing at a CAGR of 17.0% from 2026 to 2034, according to the IG Transformation Partners (IGTPS) market size and forecast analysis. This article covers the market definition, growth drivers, regulatory context, segmentation, regional outlook and competitive landscape. A preview of the report structure is available through the free sample pages.

What Is the Green Data Center Infrastructure Market?

The market covers the energy-efficient power, cooling, construction, IT hardware and monitoring systems used to minimize the energy consumption and carbon footprint of hyperscale, colocation, enterprise and edge data facilities.

IGTPS segments the market by component (IT infrastructure, power solutions, cooling solutions, general construction, monitoring and management), data center type (hyperscale, colocation, enterprise, edge), cooling technology (air-based, liquid, evaporative, others) and end user (IT and telecom, BFSI, government and public sector, healthcare, energy, others).

Market Size, Share and Forecast

The forecast implies that the market will grow more than fourfold between 2025 and 2034. In 2025, North America held about 42% of global share and Asia-Pacific about 25%.

Key Market Trends and Developments

High-density liquid cooling for AI. Operators are moving from air-based cooling to direct-to-chip and immersion liquid cooling to manage the thermal loads of GPU-dense racks, which can exceed 100 kW per rack. Equipment vendors are expanding coolant distribution unit manufacturing capacity and partnering with chipmakers to co-design liquid-cooled rack architectures.

Voluntary frameworks reinforcing the shift. Participation in initiatives such as the EU's Climate Neutral Data Centre Pact, which commits new facilities in cool climates to a PUE of 1.3 or below from January 2025, supports the move toward liquid cooling and heat-reuse systems.

Consolidation around liquid-cooling capability. Eaton completed its acquisition of Boyd Thermal in March 2026 for approximately USD 9.5 billion, a deal projected to add close to USD 1.5-1.7 billion of liquid-cooling revenue in 2026.

Recent developments include:

• April 2025: Google highlighted new power and cooling infrastructure for AI data centers, discussing racks that scale toward 1 MW and announcing plans to contribute its fifth-generation cooling distribution unit to the Open Compute Project.
• June 2026: Google introduced Brazos liquid cooling for existing air-cooled data centers, enabling high-density liquid-cooled workloads within existing facilities and reducing retrofit needs.
• June 2026: Meta partnered with Reliance to develop a 168 MW AI-enabled data center in Jamnagar, India, planned to use renewable energy and desalinated seawater for cooling.
• August 2026: Digital Realty was selected to develop a 50 MW AI-ready data center at Jurong Island's low-carbon data center park in Singapore, with more than 50% of capacity planned to be powered through green energy pathways.

Preview the Report Before You Decide

Review the report structure, sample tables and depth of analysis before purchasing. The free sample pages show how IGTPS presents market data, segmentation and insights. Download Free Sample Pages https://www.igtps.com/download-free-sample/green-data-center-infrastructure-market?P03

Market Growth Drivers

Surging AI and hyperscale workloads. Rising power density from AI training and inference compels hyperscale and colocation operators to invest in higher-capacity, energy-efficient power and cooling to avoid stranded capacity and grid constraints.

Corporate net-zero commitments. Commitments from major cloud providers increase procurement of renewable power purchase agreements and on-site generation to offset data center electricity demand.

Mandatory reporting and regulation. The EU Energy Efficiency Directive (2023/1791) requires annual reporting of energy and water performance for data centers above 500 kW, and the IGTPS report notes that a Data Centre Energy Efficiency Package and EU-wide rating scheme are expected to reinforce it in 2026. Operators invest in efficient infrastructure to avoid non-compliance and reputational risk.

Rising electricity costs. Higher energy prices strengthen the economic case for efficient power and cooling infrastructure independent of regulation.

Grid pressure. The European Commission confirmed in 2025 that data centers are projected to account for more than 3% of total EU electricity demand by 2030, according to the report, which adds urgency to efficiency programs.

Market Restraints and Challenges

These challenges reflect the dynamics in the IGTPS report and our reading of them.

Transition cost and legacy assets. Air-based cooling holds the largest share because of its installed base, lower upfront cost and compatibility with existing layouts. Moving to liquid cooling and modern power systems requires capital and design change.

Supply and lead-time pressure. Surging AI-driven demand creates lead-time pressure on equipment, prompting vendors to expand domestic manufacturing capacity.

Compliance complexity. Reporting obligations and evolving rating schemes require monitoring and management capability, and regulations differ across regions.

Fragmented competition. The market is fragmented. The five largest vendors held about 20-25% of share in 2025, so buyers face a wide field of regional specialists and global suppliers with differing capabilities.

Market Opportunities and Future Outlook

Modular, prefabricated and edge-ready designs. Demand for rapidly deployable, factory-built designs creates opportunities for vendors that supply power, cooling and enclosure systems that shorten construction timelines. U.S. Department of Energy initiatives such as COOLERCHIPS, which supported prefabricated modular data centers with energy-efficient cooling, point in the same direction.

Edge and distributed AI inference. Smaller, energy-efficient facilities closer to users require compact liquid-cooling and power solutions.

Waste-heat reuse and district heating. Encouraged by EU energy policy, heat reuse is emerging as a revenue and compliance opportunity for operators in cold-climate regions.

Vertical integration. Leading vendors are integrating power, cooling and monitoring software and forming partnerships with chipmakers and hyperscalers to secure long-term contracts.

IGTPS expects growth to stay strong as liquid cooling scales and as efficiency becomes a procurement requirement rather than an option.

Market Segmentation Analysis

By component. Power solutions led, supported by demand for high-efficiency UPS systems, power distribution units and busway capable of handling the higher current loads of dense AI racks. Power infrastructure is a recurring capital investment across new builds and retrofits. Cooling solutions are projected to grow fastest as operators shift to direct-to-chip and immersion cooling, and as large acquisitions of liquid-cooling specialists accelerate capacity. IT infrastructure, general construction and monitoring and management complete the segmentation.

By data center type. Hyperscale facilities led because major cloud and AI operators seek energy-efficient, large-scale sites that support gigawatt-level demand while meeting sustainability commitments. They are typically first movers in liquid cooling, on-site renewable generation and advanced DCIM platforms. Edge data centers are expected to grow fastest on distributed AI inference, low-latency applications and 5G densification. Colocation and enterprise facilities complete the segmentation.

By cooling technology. Air-based cooling led because of its installed base, lower upfront cost and suitability for lower-density workloads. Liquid cooling is projected to grow fastest as AI densities rise and as frameworks such as the Climate Neutral Data Centre Pact set low PUE thresholds. Evaporative cooling and others are also covered.

By end user. IT and telecom led, driven by cloud providers, telecom operators and managed service providers expanding infrastructure for AI, streaming and connectivity. BFSI is expected to grow fastest, supported by digital banking, data-residency requirements and enterprise commitments to sustainable IT operations. Government and public sector, healthcare, energy and others are also covered.

Regional Analysis

North America led in 2025 with about 42% share, supported by a dense concentration of hyperscale and colocation operators, strong renewable power procurement and relatively mature grid infrastructure. The United States is the largest country market. Canada benefits from its relatively clean electricity mix, particularly hydroelectric power, and Mexico is emerging as hyperscale providers expand capacity, particularly around Queretaro.

Asia-Pacific is projected to grow fastest and held about 25% share in 2025. Japan's binding net-zero 2050 commitment and expanding renewable power purchase agreements support cloud and colocation growth in Tokyo and Osaka. India is seeing strong hyperscale investment tied to national digitalization programs and is identified as the fastest-growing country market. China continues to expand large-scale data infrastructure alongside energy-efficient construction standards, and South Korea is advancing green data center incentives linked to carbon-neutrality targets.

Europe is led by Germany, with France, the United Kingdom and Italy also covered, and is shaped by regulation including the Energy Efficiency Directive. Latin America (Brazil largest, Chile fastest-growing) and Middle East & Africa (Saudi Arabia largest, United Arab Emirates fastest-growing) are covered in the full report.

Competitive Landscape and Key Companies

IGTPS describes the market as fragmented. Schneider Electric, Eaton, Vertiv, Daikin and ABB together accounted for approximately 20-25% of total share in 2025, alongside a broad base of regional cooling, power and construction specialists. Competitive intensity is rising as vendors pursue acquisitions to add liquid-cooling capability, with Eaton's acquisition of Boyd Thermal as an example, while expanding domestic manufacturing to address lead-time pressure.

Key players profiled in the report include:

• Schneider Electric SE (France)
• Vertiv Holdings Co. (United States)
• Eaton Corporation plc (Ireland)
• Daikin Industries Ltd. (Japan)
• ABB Ltd. (Switzerland)
• Delta Electronics Inc. (Taiwan)
• Siemens AG (Germany)
• Carrier Global Corporation (United States)
• Johnson Controls International plc (Ireland)
• Honeywell International Inc. (United States)
• STULZ GmbH (Germany)
• Rittal GmbH & Co. KG (Germany)
• Submer Technologies S.L. (Spain)
• Green Revolution Cooling, Inc. (United States)
• Trane Technologies plc (Ireland)

Leading companies are prioritizing vertical integration across power, cooling and monitoring software, partnerships with chipmakers and hyperscalers, and expansion into supply-chain-constrained regions.

Strategic Implications for Industry Participants

Operators should align infrastructure planning with reporting requirements such as the EU Energy Efficiency Directive and with the thermal needs of AI racks. Evaluating liquid cooling and heat reuse early may avoid costly retrofits.

Equipment vendors can strengthen their position through liquid-cooling capability, manufacturing capacity and integrated power, cooling and monitoring offerings. Acquisitions and chipmaker partnerships are active routes.

Colocation and edge providers can use modular, prefabricated and renewable-ready designs to expand outside traditional hubs.

Financial institutions are the fastest-growing end user, so providers with strong data-residency and sustainability credentials may find demand there.

Investors should note that the market is fragmented, so consolidation and capability-building acquisitions may continue.

Policymakers influence adoption through reporting rules, efficiency thresholds and programs that fund advanced cooling research.

Why Choose IG Transformation Partners

IG Transformation Partners is a market research and industry intelligence provider offering syndicated reports, customized research and consulting services across multiple industries. The Green Data Center Infrastructure report spans 180-190 pages with 60-70 market tables and is designed to help decision makers assess size, segmentation, competitive positioning and growth opportunities, with analyst support after purchase.

Conclusion

The Green Data Center Infrastructure Market is expanding as AI demand, regulation and corporate sustainability goals converge. Rising from USD 82.5 billion in 2025 to a projected USD 340.0 billion by 2034 at a 17.0% CAGR, the market is being shaped by liquid cooling, mandatory reporting, modular construction and heat reuse. Power solutions, hyperscale facilities, air-based cooling and IT and telecom lead today, while cooling solutions, edge, liquid cooling and BFSI are growing fastest. Stakeholders that plan for efficiency as a core requirement will be better positioned.

10 FAQs

What is the size of the Green Data Center Infrastructure Market?

The market was valued at USD 82.5 billion in 2025, according to IGTPS. It is estimated at USD 96.5 billion in 2026 and projected to reach USD 340.0 billion by 2034, driven by rising electricity costs, AI and HPC workloads and carbon-neutrality commitments from operators.

What is the CAGR of the Green Data Center Infrastructure Market?

The market is projected to grow at a CAGR of 17.0% over the 2026-2034 forecast period. Growth is supported by AI workloads, renewable energy adoption, efficiency regulation and rising demand for energy-efficient cooling and power infrastructure.

What is the forecast for the Green Data Center Infrastructure Market?

IGTPS forecasts the market to reach USD 340.0 billion by 2034, up from USD 82.5 billion in 2025. That is more than a fourfold increase, reflecting the shift toward high-density, liquid-cooled architectures built for AI and supported by modular construction.

What are the key trends in the Green Data Center Infrastructure Market?

Key trends include adoption of direct-to-chip and immersion liquid cooling for racks that can exceed 100 kW, expanded coolant distribution unit manufacturing, voluntary frameworks such as the Climate Neutral Data Centre Pact and consolidation, including Eaton's USD 9.5 billion acquisition of Boyd Thermal in March 2026.

What is driving growth in the Green Data Center Infrastructure Market?

Growth is driven by surging AI and hyperscale workloads, corporate net-zero commitments, rising electricity costs and regulation such as the EU Energy Efficiency Directive, which requires annual energy and water reporting for data centers above 500 kW. Grid pressure also adds urgency.

How is the Green Data Center Infrastructure Market segmented?

IGTPS segments the market by component, data center type, cooling technology and end user. Power solutions, hyperscale, air-based cooling and IT and telecom led in 2025. Cooling solutions, edge data centers, liquid cooling and BFSI are projected to grow fastest.

Which region dominates the Green Data Center Infrastructure Market?

North America held the largest share in 2025, at about 42%, supported by hyperscale and colocation concentration, renewable power procurement and mature grid infrastructure. Asia-Pacific held about 25% and is projected to be the fastest-growing region, led by China, India, Japan and South Korea.

Who are the key companies in the Green Data Center Infrastructure Market?

Key players include Schneider Electric, Vertiv, Eaton, Daikin, ABB, Delta Electronics, Siemens, Carrier, Johnson Controls, Honeywell, STULZ, Rittal, Submer, Green Revolution Cooling and Trane Technologies. The market is fragmented, with the top five holding about 20-25% share in 2025.

What are the main challenges in the Green Data Center Infrastructure Market?

Challenges include the cost of moving from installed air-cooled capacity to liquid cooling, equipment lead-time pressure from AI demand, compliance complexity across regulatory regimes and a fragmented competitive field. Operators must also balance efficiency investment against rapid capacity expansion.

What is the future outlook for the Green Data Center Infrastructure Market?

The outlook is strong. Opportunities include modular and prefabricated designs, edge and distributed AI inference, waste-heat reuse and district heating, and vertically integrated power, cooling and monitoring offerings. Cooling solutions, edge facilities, liquid cooling and BFSI are projected to grow fastest.

RELATED IGTPS REPORTS

Sustainable Data Center Market
Covers renewable power integration, liquid cooling and energy management for low-carbon facilities.
Explore the Full Report https://www.igtps.com/report/sustainable-data-center-market

Data Centers Liquid Immersion Cooling Market
Analyzes the immersion cooling technology at the center of high-density, efficient thermal management.
Explore the Full Report https://www.igtps.com/report/data-centers-liquid-immersion-cooling-market

Containerized Data Center Market
Examines prefabricated, modular facilities built for rapid and efficient deployment.
Explore the Full Report https://www.igtps.com/report/containerized-data-center-market

Data Center Real-Time Power Allocation Market
Covers software-driven power optimization that helps operators use existing capacity efficiently.
Explore the Full Report https://www.igtps.com/report/data-center-real-time-power-allocation-market