The global green data center market was worth $26.71 billion in 2025 and will reach $90.38 billion by 2035, a compound annual growth rate of 12.96%, according to a new report from London-based DC Market Insights. The firm says AI-driven rack density is raising the value of efficient power and cooling equipment for every megawatt of capacity.
Where the money goes
DC Market Insights puts green power and cooling content in AI halls at roughly $3.09 million per MW in 2025. Two segments stand out in the forecast.
| Segment | Starting value | 2035 forecast |
|---|---|---|
| Direct-to-chip liquid cooling | $2.41 billion (2025) | $17.33 billion |
| Retrofit spending | $5.21 billion | $18.41 billion |
The report ties retrofit growth to existing facilities adapting to denser AI workloads and stricter efficiency targets. The market itself stood at $7.25 billion in 2020.
Regional split
North America held 41.4% of the 2025 market. Asia Pacific had 28.4% and Europe 21.3%, followed by Latin America at 4.7% and the Middle East and Africa at 4.2%. The report describes Europe as strategically important because of its efficiency and sustainability requirements, and says Asia Pacific benefits from rapid new capacity deployment.
Power and water limits
The report says grid capacity is an increasingly important constraint, and that water constraints and energy costs are pushing operators toward liquid cooling, heat reuse, renewable power and retrofits. Satyabrat Rajawat, the report's author and a senior research analyst at DC Market Insights, said green data center investment is shifting from a compliance conversation to a capacity conversation, because efficient cooling and power distribution can determine whether a site supports the next phase of compute growth.
Vendors and recent deals
The report names Schneider Electric, Vertiv and Eaton among companies expanding portfolios around high-density power and liquid cooling. Eaton agreed to acquire Boyd Thermal for $9.5 billion and completed the deal in March 2026.
The report also lists a Microsoft data center design that it says uses no water for cooling and can avoid more than 125 million liters of water use per year per site, with first sites expected online in late 2027. It also cites a 25-year agreement between NextEra Energy and Google tied to the planned restart of the 615 MW Duane Arnold nuclear plant in Iowa, subject to regulatory approvals. We reported earlier that the DOE closed a $1.9 billion loan to restart NextEra's Duane Arnold nuclear plant (/article/doe-closes-19-billion-loan-to-restart-nexteras-duane-arnold-nuclear-plant).
These are the research firm's projections, not reported results.
