London – October 16, 2026 -- The global green data center market will grow from USD 26.71 billion in 2025 to USD 90.38 billion by 2035, a CAGR of 12.96%, according to a new DC Market Insights report. AI-driven rack density is raising the value of efficient power and cooling per MW, while water constraints, grid pressure and energy costs push operators toward liquid cooling, heat reuse, renewable power and facility retrofits.
AI halls carried USD 3.09 million of green content per MW in 2025
Green power and cooling content in AI halls reached approximately USD 3.09 million per MW in 2025. The report says this materially raises green infrastructure value per unit of IT capacity. The market stood at USD 7.25 billion in 2020.
Direct-to-chip liquid cooling to climb from USD 2.41 billion to USD 17.33 billion
Direct-to-chip liquid cooling is projected to reach USD 17.33 billion by 2035, up from USD 2.41 billion in 2025. Retrofit spending is forecast to rise from USD 5.21 billion to USD 18.41 billion as existing facilities adapt to denser AI workloads and stricter efficiency targets. Operators are increasing liquid cooling and retrofit investment because AI rack densities exceed the practical limits of conventional air-only designs.
The report also tracks power quality, monitoring software, economization, heat reuse and water-saving designs as contributors to spending.
North America holds 41.4% of the market as Asia Pacific and Europe follow
The 2025 regional split was North America 41.4%, Asia Pacific 28.4%, Europe 21.3%, Latin America 4.7% and Middle East and Africa 4.2%. North America leads in absolute spending, and Asia Pacific benefits from rapid new capacity deployment. Europe remains strategically important because of efficiency and sustainability requirements.
Grid capacity turns efficiency into a capacity question
Grid capacity is an increasingly important constraint, making energy efficiency a capacity-enablement issue rather than only an ESG objective. Report author Satyabrat Rajawat, Senior Research Analyst at DC Market Insights, said investment is shifting from a compliance conversation to a capacity conversation, with the strongest opportunities in technologies that improve both sustainability and usable capacity.
Schneider Electric, Vertiv and Eaton expand around high-density power and liquid cooling
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 vendors compete in thermal management. M&A is reinforcing the convergence of power and cooling capabilities.
Eaton agreed to acquire Boyd Thermal for USD 9.5 billion and completed the transaction in March 2026. 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.