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According to a new report from Meticulous Research, the green data center market is expected to reach $315.8 billion by 2032, at a CAGR of 18.3% from 2025 to 2032. It was valued at $83.6 billion for 2025.
What is a green data center?
Data centers can be a major burden on energy resources, but data center expansion ha been accelerated by technologies such as generative AI. A green data center is a type of data center containing IT infrastructure, but one that is intended to mitigate environmental impact by using technology that is energy efficient. Using a combination renewable energy sources, advanced cooling systems, and efficient power management to reduce harmful emissions.
The growth of this market can be attributed to several factors, including the growing adoption of cloud services and IoT applications, rising data center energy consumption, and increasing government regulations and sustainability initiatives. Additionally, the increasing availability and affordability of renewable energy sources and the expansion of edge computing is expected to create market growth opportunities.
Data center growth
The rapid expansion of data centers and the impact on the environment, as well as costs, is not going unnoticed. Companies are looking at ways to collaborate and innovate to ensure the expansion is sustainable.
As David Chernicoff writes in Data Center Frontier, "...the data center industry is now witnessing even more numbers of significant partnerships and acquisitions aimed at addressing escalating power demands while also enhancing energy efficiency. All such strategic moves now must be viewed as part of an ongoing cycle informing the sector's commitment to sustainable growth and operational resilience in the face of unprecedented power demands."
How much power does a data center use?
Data Centers make up for about 2% of power consumption in the U.S., however that is expected to double by the end of the decade, according to Goldman Sachs.
Generative AI is set to be a major contributor. Delloite says, "On average, a gen AI–based prompt request consumes 10 to 100 times more electricity than a typical internet search query."
Deloitte remarks that that the growth "comes against the backdrop of a multi-decade power industry transformation, as electric companies build, upgrade, and decarbonize electric grid infrastructure, and digitalize systems and assets."