Europe Carbon Neutral Data Center Market Revenue Grows at a CAGR of 12.3%

Introduction

Straits Research published a report, “Europe Carbon Neutral Data Center Market Size & Outlook, 2026–2034”. According to the study, the market size is valued at USD 7.8 billion in 2025 and is projected to expand to USD 22.3 billion by 2034, registering a compound annual growth rate (CAGR) of 12.3%.

Market Dynamics

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.

Market Highlights

• Segmental Leadership: Hyperscale Data Centers hold the largest share (43.26%), while Edge Data Centers record the fastest CAGR (14.38%).
• Technology Outlook: Renewable Power Procurement leads with a 42.57% market share, while Energy Storage Systems (BESS) are expected to witness the fastest CAGR during the forecast period.
• End-Use Insights: The Healthcare segment is projected to grow at the fastest CAGR (13.74%), driven by rising digitalization and data-intensive workloads.

Competitive Players

1. Equinix Europe
2. Interxion
3. OVHcloud
4. AtNorth
5. Green Mountain
6. DEAC Data Centers
7. Stack Infrastructure
8. GlobalConnect
9. VIRTUS Data Centres
10. Data4 Group
11. Maincubes
12. NTT Global Data Centers EMEA
13. Telehouse Europe
14. Interxion
15. T5 Data Centers Europe
16. Colt Data Centre Service
17. Iron Mountain Data Centers
18. EcoDataCenter
19. LuxConnect
20. Schneider Electric
21. Others

Recent Developments

Segmentation

1. By Data Center Type
   1. Hyperscale Data Centers
   2. Colocation Data Centers
   3. Enterprise Data Centers
   4. Edge Data Centers
   5. Others
2. By Decarbonization Technology
   1. Renewable Power Procurement
   2. On-Site Renewable Generation
   3. Energy Storage Systems (BESS)
   4. Advanced Cooling Technologies
3. By End-Use Industry
   1. ICT
   2. BFSI
   3. Government & Public Sector
   4. Healthcare
   5. Manufacturing
   6. Retail 
   7. Others
4. By Region
   1. Germany
   2. UK
   3. France
   4. Russia
   5. Rest Of Europe