23 Jul, 2026
According to Straits Research, the Europe carbon neutral data center market size was valued at $2.84 billion in 2025 and is projected to reach $10.04 billion by 2034, registering a CAGR of 15.4% during the forecast period 2026–2034.
The rapid expansion of cloud computing, AI-driven workloads, and enterprise digital transformation is driving demand for high-efficiency, low-emission data-center infrastructure across the region and, therefore, supports the Europe Carbon Neutral Data Center Market. Increasingly, the deployment of renewable-powered hyperscale campuses and the increasing deployment of edge facilities to support latency-sensitive applications are some of the factors accelerating market growth in the ICT, healthcare, BFSI, government, and manufacturing sectors. The imminent transition towards 24/7 carbon-matched operations and state-of-the-art energy-optimization systems is transforming Europe's digital ecosystem and strengthening the need for sustainable, large-scale compute environments.
Strong regional momentum toward sustainability compliance, driven by evolving environmental standards in Europe, corporate decarbonization commitments, and growing investments in renewable-energy partnerships, has become one of the drivers for market growth. The trend toward energy-efficient cooling systems, integration with battery storage, and other models of circular energy, including district-heating collaboration, opens up new avenues for data center developers and operators. All these put together enable Europe to shift toward a resilient, low-carbon digital infrastructure framework, thereby fueling long-term growth for the carbon-neutral data center market.
sales@straitsresearch.com