Green Data Center Market to Reach USD 90.38 Billion by 2035 as AI Density Accelerates Liquid Cooling, Power Efficiency and Retrofit Spending - DC Market Insights
Market expands at 12.96% CAGR; direct-to-chip liquid cooling grows to USD 17.33 billion while retrofit spending reaches USD 18.41 billion by 2035
LONDON, Oct. 16, 2026 /PRNewswire/ -- The "Green Data Center Market - Growth, Share, Opportunities & Competitive Analysis, 2026-2035" report has been added to the DC Market Insights offering. The global Green Data Center Market was valued at USD 26.71 billion in 2025 and is projected to reach USD 90.38 billion by 2035, growing at a CAGR of 12.96%. AI-driven rack density is increasing the value of efficient power and cooling systems per MW, while water constraints, grid pressure and energy costs are pushing operators to combine liquid cooling, heat reuse, renewable power and facility retrofits.
Key Takeaways
- AI halls carried approximately USD 3.09 million of green power and cooling content per MW in 2025, materially increasing green infrastructure value per unit of IT capacity.
- Direct-to-chip liquid cooling is projected to grow from USD 2.41 billion in 2025 to USD 17.33 billion by 2035.
- Retrofit spending is forecast to increase from USD 5.21 billion to USD 18.41 billion as existing facilities adapt to denser AI workloads and stricter efficiency targets.
- North America led with 41.4% of the 2025 market, followed by Asia Pacific at 28.4% and Europe at 21.3%.
- Grid capacity is an increasingly important constraint, making energy efficiency a capacity-enablement issue rather than only an ESG objective.
Scope & Segmentation - Green Data Center Market
The report covers green data center power solutions, cooling solutions, monitoring and management software and services. It evaluates air cooling with economizers, direct-to-chip liquid cooling, immersion cooling, rear-door and in-row heat exchangers and heat reuse systems across hyperscale, colocation, enterprise, edge and modular facilities.
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"Green data center investment is moving from a compliance conversation to a capacity conversation. AI racks create more heat and draw more power, so efficient cooling, power distribution and reuse strategies can determine whether a site can support the next phase of compute growth. The strongest opportunities are therefore in technologies that improve both sustainability and usable capacity."
- Satyabrat Rajawat, Senior Research Analyst, Strategic Advisory, DC Market Insights, report author
Why This Report Matters
Data center growth is increasingly limited by power and water availability. Green infrastructure can unlock capacity by reducing facility overhead, improving PUE and supporting higher rack densities. The report provides investors, operators and equipment vendors with a market view that connects sustainability spending directly to AI density, retrofit requirements and regional infrastructure constraints.
Market Overview
The market increased from USD 7.25 billion in 2020 to USD 26.71 billion in 2025 as operators invested in more efficient power, cooling and control systems. AI infrastructure is accelerating this shift because high-density halls require advanced thermal management and greater electrical efficiency. The forecast also includes a growing retrofit market as existing data centers are upgraded rather than replaced.
Market Insights
Direct-to-chip liquid cooling is one of the clearest growth pools, but the market extends beyond cooling. Power quality, monitoring software, economization, heat reuse and water-saving designs all contribute to green infrastructure spending. Europe remains strategically important due to efficiency and sustainability requirements, while North America leads in absolute spending and Asia Pacific benefits from rapid new capacity deployment.
Key Attributes
Attribute | Details |
Historical Market Size (2020) | USD 7.25 billion |
Market Size (2025) | USD 26.71 billion |
Forecast Market Size (2035) | USD 90.38 billion |
CAGR (2025-2035) | 12.96 % |
Leading Region / District | North America - 41.4% |
Base Year | 2025 |
Forecast Period | 2026-2035 |
Report Author | Satyabrat Rajawat, Senior Research Analyst, Strategic Advisory |
Report Updated | Oct. 7, 2026 |
Segmentation
Component: Power Solutions; Cooling Solutions; Monitoring and Management Software; Services.
Cooling Technology: Air Cooling with Economizers; Direct-to-Chip Liquid Cooling; Immersion Cooling; Rear-Door and In-Row Heat Exchangers; Heat Reuse Systems.
Data Center Type: Hyperscale Data Centers; Colocation Data Centers; Enterprise Data Centers; Edge and Modular Data Centers.
Vertical: IT and Telecom; BFSI; Government and Defense; Healthcare; Retail and E-commerce; Energy and Utilities.
Regional Analysis
North America led the market in 2025 with 41.4% share. The full regional distribution was North America 41.4%; Asia Pacific 28.4%; Europe 21.3%; Latin America 4.7%; Middle East and Africa 4.2%. The regional outlook reflects differences in hyperscale investment, AI adoption, power availability, semiconductor or equipment ecosystems and local data center construction pipelines.
Competitive Landscape
Competition spans electrical infrastructure, thermal management, building controls and integrated data center systems. Schneider Electric, Vertiv and Eaton are expanding portfolios around high-density power and liquid cooling, while HVAC specialists and regional equipment vendors compete in thermal management. M&A is reinforcing the convergence of power and cooling capabilities.
Companies profiled: Schneider Electric, Vertiv, Eaton, ABB, Siemens, Johnson Controls, Trane Technologies, Carrier, Daikin, STULZ, Rittal, Delta Electronics, Huawei Digital Power, Legrand and Mitsubishi Electric.
Recent Developments
- Microsoft said its newer data center design consumes zero water for cooling and can avoid more than 125 million liters of water use per year per data center, with the first sites expected online in late 2027.
- NextEra Energy and Google announced a 25-year agreement tied to the planned restart of the 615 MW Duane Arnold nuclear plant in Iowa, subject to regulatory approvals.
- Eaton agreed to acquire Boyd Thermal for USD 9.5 billion and completed the transaction in March 2026, expanding its thermal management capabilities for high-density computing.
- Operators continue to increase investment in liquid cooling and retrofit programs as AI rack densities exceed the practical limits of conventional air-only designs.
Full report: https://www.dcmarketinsights.com/report/green-data-center-market
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DC Market Insights Data & Tools
Explore DC Market Insights proprietary data tools for data center locations, operators, transactions, power and policy developments and PUE benchmarking:
- Data Center Map
- Data Center Operators
- Deal Tracker
- Power & Policy Tracker
- PUE Calculator
About Us
DC Market Insights, headquartered at 128 City Road, London, EC1V 2NX, United Kingdom, is a dedicated research and consulting firm that empowers data center leaders with actionable intelligence. We combine rigorous market research, advanced analytics and practical advisory support to help organizations make confident decisions in an increasingly complex digital infrastructure landscape. Our goal is to transform data into clarity, giving clients the ability to act decisively on strategy, investment and execution.
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