Colocation Providers’ Green Data Center Market Is Estimated To Grow At A Steady CAGR Of 24.50% Over The Forecast Period

The global colocation providers’ green data center market size was worth around USD 62.5 billion in 2023 and is predicted to grow to around USD 449.1 billion by 2032, with a compound annual growth rate (CAGR) of roughly 24.5% between 2024 and 2032.

Colocation providers’ green data center services are eco-friendly facilities where businesses host their IT equipment using renewable energy, efficient cooling, and sustainable practices to reduce environmental impact. These services include the use of solar power, wind energy integration, advanced cooling systems, energy-saving server management, and carbon footprint tracking, providing sustainable data storage and processing solutions. Recent progress has been made in renewable energy optimization, liquid cooling systems, AI-powered energy management, and the development of carbon-neutral facility operations. These changes have improved energy efficiency, lowered operating costs, and supported environmental sustainability while meeting the rising demand for responsible digital infrastructure.

Browse the full “Colocation Providers Green Data Center Market By Solution (Management Software, Power Cooling, Networking, Server, and Green Solutions), By PUE Standards (PUE 1 to 1.5, PUE 1.5 to 2, and PUE Greater than 2), By Service (Professional Services, Monitoring Services, System Integration, and Other Support Services), By Organization Size (Large Organization and Small and Medium Organization), By Industry Vertical (Banking, Financial Services, and Insurance (BFSI), Telecom and IT, Healthcare, Government and Public, and Others), and By Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2024 - 2032”- Report at https://www.zionmarketresearch.com/report/colocation-providers-green-data-center-market

The growth of the colocation providers’ green data center industry is primarily driven by increasing corporate sustainability commitments, rising demand for carbon-neutral digital services, growing regulatory pressure for environmental compliance, and escalating energy costs requiring efficient power management solutions.

Market Growth Factors

Several factors are propelling the expansion of the colocation providers’ green data center market.

• Environmental responsibility initiatives: Companies are using green colocation services to cut their carbon footprint and reach sustainability goals in their digital operations.
• Energy cost optimization: Modern cooling methods and renewable energy sources help businesses lower operating costs while still giving reliable service.
• Regulatory compliance requirements: Government rules on environmental reporting and emission reduction are pushing companies toward green data centers with strong monitoring systems.

Restraints

• Infrastructure investment barriers: Substantial capital is required for renewable energy installations and efficient cooling systems, creating financial challenges for smaller colocation providers.
• Technology integration complexity: Green data center solutions need skilled engineers and careful planning for smooth integration with existing systems.

Colocation Providers Green Data Center Market: Report Scope

Market Segmentation

The colocation providers’ green data center market can be segmented by facility size, cooling technology, energy source, service type, deployment model, and region.

Based on facility size, the market is divided into small-scale facilities, medium-scale facilities, large-scale facilities, and hyperscale data centers. Large-scale facilities are expected to dominate the market during the forecast period due to their economies of scale in implementing renewable energy systems and advanced cooling technologies, which enable maximum efficiency.

Based on cooling technology, the colocation providers’ green data center market is segmented into air cooling systems, liquid cooling solutions, immersion cooling technologies, free cooling methods, hybrid cooling systems, and others. Liquid cooling solutions are expected to lead the market during the forecast period due to their energy efficiency and ability to handle high-density computing workloads with minimal environmental impact.

Based on energy source, the colocation providers’ green data center industry is categorized into solar power systems, wind energy solutions, hydroelectric power, geothermal energy, and hybrid renewable sources. Solar power systems lead the market due to their widespread availability and decreasing installation costs, making them an attractive option for sustainable data center operations.

Based on service type, the colocation providers’ green data center market is segregated into retail colocation services, wholesale colocation services, and managed hosting solutions. Wholesale colocation services lead the market, as they provide environmental solutions for large enterprises that require extensive sustainable computing infrastructure.

Based on the deployment model, the market is classified into on-site renewable systems, off-site renewable contracts, and hybrid energy models. On-site renewable systems hold the largest market share due to their direct control over energy generation and the immediate environmental impact reduction benefits they offer.

North America leads the global colocation providers’ green data center market because of strict environmental rules, strong corporate sustainability programs, and advanced renewable energy systems. The region has many facilities that use modern green technologies and employ skilled sustainability teams. These centers feature the latest renewable energy setups, comprehensive carbon tracking systems, and ongoing projects aimed at enhancing efficiency. Strict compliance laws and rising climate awareness are pushing investments in sustainable colocation services to cut emissions and save resources. Growing demand for eco-friendly cloud services is also boosting the development of green infrastructure across the region. Continuous innovation in energy management and sustainable design is helping North America strengthen its leadership in this market.

Key Market Players

Leading companies operating in the global colocation providers’ green data center market include:

• Schneider Electric
• Vertiv Group Corp.
• STULZ GMBH
• Eaton
• Fujitsu
• Rittal GmbH & Co. KG
• Daikin Applied
• Black Box
• ALFA LAVAL
• Nortek Air Solutions LLC
• AIREDALE INTERNATIONAL AIR CONDITIONING LTD
• 3M
• Coolcentric
• Delta Power Solutions
• EcoCooling

 Recent Developments

• In March 2025, GE Vernova partnered with Amazon Web Services (AWS) to supply clean, low-carbon electricity for scaling AWS’s data centers globally, supporting data infrastructure growth while reducing carbon emissions.
• In July 2025, Oklo and Vertiv announced a collaboration to bring clean nuclear energy together with efficient cooling systems to hyperscale and colocation data centers, optimizing energy efficiency for AI and high-density computing facilities.

The global colocation providers green data center market is segmented as follows:

By Product

• Management Software
• Power Cooling
• Networking
• Server
• Green Solutions

By PUE Standards

• PUE 1 to 1.5
• PUE 1.5 to 2
• PUE Greater than 2

By Service

• Professional Services
• Monitoring Services
• System Integration
• Other Support Services

By Organization Size

• Large Organization
• Small and Medium Organization

By Industry Vertical

• Banking, Financial Services, and Insurance (BFSI)
• Telecom and IT
• Healthcare
• Government and Public
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa

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