Carbon-Smart Web Hosting Market Report 2025

The carbon-smart web hosting market size has grown rapidly in recent years. It will grow from $6.28 billion in 2024 to $7.52 billion in 2025 at a compound annual growth rate (CAGR) of 19.8%. The growth in the historic period can be attributed to the rising demand for sustainable IT infrastructure, the increasing adoption of renewable energy in data centers, growing regulatory pressures related to carbon emissions, the expansion of cloud computing services, and the rising prevalence of digital transformation initiatives.

The carbon-smart web hosting market size is expected to see rapid growth in the next few years. It will grow to $15.32 billion in 2029 at a compound annual growth rate (CAGR) of 19.5%. The growth projected in the forecast period can be attributed to the increasing adoption of AI-driven energy management systems, the expansion of edge computing and distributed data centers, the rising demand for carbon-neutral and net-zero initiatives, the growth of green software and sustainable IT practices, and the increasing availability of government incentives for green technology adoption. Key trends expected during this period include advancements in AI and machine learning for energy optimization, innovations in sustainable software and coding practices, the development of next-generation low-power hardware, technological improvements in virtual private server (VPS) solutions, and progress in energy-efficient virtualization technologies.

The rising demand for renewable energy is expected to drive growth in the carbon-smart web hosting market. Renewable energy is generated from naturally replenishing sources such as sunlight, wind, water, geothermal heat, and biomass. Its adoption is increasing because it provides a sustainable and virtually inexhaustible source of power compared to finite fossil fuels. Carbon-smart web hosting benefits from renewable energy by powering data centers with clean energy, significantly reducing carbon emissions and promoting environmentally friendly website operations. For example, in March 2022, the Energy Information Administration, a US-based government agency, projected that renewable energy’s share of power generation would nearly triple, rising from 21% in 2021 to 44% in 2050, driven largely by new wind and solar projects.

The surge in streaming services is also expected to support growth in the carbon-smart web hosting market. Streaming services allow users to access and play media content such as music, videos, or live broadcasts instantly over the internet without downloading files. Their popularity is growing due to the demand for on-demand entertainment, which lets users consume content anytime and anywhere. Carbon-smart web hosting helps streaming services by using renewable energy to power data centers, meeting high energy demands efficiently while reducing carbon footprints. For instance, in August 2025, Uswitch Ltd., a UK-based comparison service provider, reported that by 2024, Netflix had around 58% of UK households subscribed, while YouTube accounted for nearly 72% of online visits in March 2024.

In April 2025, Iron Mountain Inc., a US-based enterprise information management company, acquired Web Werks for $168 million (Rs 1,400 crore). This acquisition enables Iron Mountain to expand its presence in India’s growing digital infrastructure sector by increasing data center capacity and supporting demand for secure, compliant, and scalable digital and AI-driven solutions. Web Werks is an India-based IT company that provides carbon-smart web hosting services.

Major players in the carbon-smart web hosting market are Amazon Web Services Inc., Google LLC, Microsoft Corporation, IONOS SE, Cloudflare Inc., OVHcloud SAS, SiteGround Hosting Ltd., InMotion Hosting Inc., Infomaniak Network SA, HostPapa Inc., DreamHost LLC, GreenGeeks Inc., Kinsta Inc., A2 Hosting Inc., UpCloud Ltd., 20i Ltd., Krystal Hosting Ltd., Eco Web Hosting Ltd., GreenHost BV, Hosting Ireland Ltd., and InstaHost Ltd.

North America was the largest region in the carbon-smart web hosting market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in carbon-smart web hosting report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the carbon-smart web hosting market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.

Carbon-smart web hosting refers to environmentally responsible web hosting services that actively reduce or offset the carbon emissions produced by data centers and server operations. These services utilize renewable energy sources, carbon offset initiatives, and energy-efficient technologies to lower the environmental footprint of hosting websites and digital content.

The main types of carbon-smart web hosting include shared hosting, virtual private server (VPS) hosting, dedicated hosting, cloud hosting, and others. Shared hosting involves hosting multiple websites on a single server, offering a cost-effective solution for smaller websites. These hosting solutions can be deployed via public, private, or hybrid clouds and serve organizations of various sizes, including small and medium-sized enterprises as well as large enterprises. Key end-users span industries such as information technology and telecommunications, banking and financial services, insurance, healthcare, retail and e-commerce, government, and more.

The carbon-smart web hosting market research report is one of a series of new reports that provides carbon-smart web hosting market statistics, including carbon-smart web hosting industry global market size, regional shares, competitors with a carbon-smart web hosting market share, detailed carbon-smart web hosting market segments, market trends and opportunities, and any further data you may need to thrive in the carbon-smart web hosting industry. This carbon-smart web hosting market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The carbon-smart web hosting market includes revenues earned by entities by providing services such as carbon offset programs, eco-friendly domain registration, green reseller hosting, and website carbon analytics. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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