The on-site solar power market is segmented semi-conducting material used,application in respected countries, technology and regions from 2025 to 2035.
The On-Site Photovoltaic (PV) Solar Power for Data Centers Market is expected to grow vigorously between 2025 and 2035, due to the rising requirement of electricity in hyperscale data centers, moving towards carbon neutrality globally along with an increasing adoption of renewable source of energy into digital infrastructure.
Data centers these desert highways of cloud services, internet traffic and enterprise applications are significant energy consumers. Increasing energy needs of the power demand, corporate sustainability goals, and governance pressure to reduce carbon footprints are driving the demand for on-site photovoltaic solar systems as primary or supplementary energy source.
The market is expected to 10 expand from USD 26,941.5 million in 2025 to USD 49,631.2 million by 2035, at a 11 CAGR of 6.3% over the forecast period. As edge computing continues to skyrocket and AI-driven workloads proliferate, energy efficiency and power autonomy have become increasingly vital touchpoints for the next generation of data centers. In response, operators are looking more and more to on-site solar systems commonly with battery storage that lock in stable energy costs and maximize grid independence, uptime.
The trend is further driven by technological improvements in solar panels, increased integration with power management systems and decreasing solar installation costs. Moreover, government incentives for clean energy and net-zero emission targets by major cloud providers are powerful market accelerators as well.
Market Metrics
| Metric | Value |
|---|---|
| Market Size (2025E) | USD 26,941.5 million |
| Market Value (2035F) | USD 49,631.2 million |
| CAGR (2025 to 2035) | 6.3% |
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North America is among the largest and most mature markets for on-site PV solar in data centers. The United States, where hyperscale facilities tend to cluster in its eastern, central, and western states like Virginia, Texas, or California, is seeing considerable rooftop and ground-mounted PV systems installed.
Tailwinds from federal tax credits and renewable energy goals at the state level, as well as carbon reduction strategies, are prompting both colocation providers and hyperscale operators to install solar arrays on or next to their facilities. Data centre operators are also combining solar with energy storage and backup generators, a common microgrid design, to ensure energy resilience.
The European market has high momentum owing to strong environmental regulation, carbon pricing, and a broad shift towards renewable energy adoption across the region. New countries like Germany, the Netherlands and the Nordics are trailblazing the installation of on-site solar infrastructure at both new builds and retrofitted data centres.
Operators are getting increasingly encouraged to generate and self-consume solar power at site due to high costs of electricity and a strong commitment to the implementation of the European Green Deal. The same applies to urban centres, where creative ways to generate power abound, whether it's building-integrated photovoltaics (BIPV) or vertical solar panels.
The Asia-Pacific region is the fastest-growing, enabled by massive data centre investments in China, India, Singapore, and Australia. But as governments issue ever-stricter green energy targets and cities grapple with energy demands, operators have been bringing solar on board, and both as a long- term cost control and sustainable practice.
In the western regions where both land and sunlight are in abundance, China has quickly started building solar-powered data campuses. Singapore, though constrained by land, is innovating rooftop and offshore floating solar systems. Japan and South Korea are looking at hybrid solar-battery systems as part of their efforts to promote local carbon neutrality commitments and ensure energy security for mission-critical operations.
Challenge
Space Constraints and Intermittency of Solar Power
A key challenge will be access to sufficient space for large-scale solar arrays, notably where data centre operations occur in urban or high-density settings. For large data centres, rooftop capacity is frequently limited in relation to overall on-site energy requirements. Also, solar output is weather-dependent and limited to daylight hours, leading to reliability issues without sufficient energy storage. These challenges are forcing operators to move toward hybrid energy models that integrate solar with grid and battery storage to deliver 24/7 power continuity.
Opportunity
Integration with Battery Storage and Smart Grid Technologies
On-site generation through solar combined with BESS and smart grid technologies represents a highly promising approach to both mitigate intermittency and optimize energy quality. By applying them with hybrid systems, load balancing, peak shaving, and energy arbitrage can be achieved allowing for major improvements for solar-powered data centres in efficiency and costs. With the declining prices of lithium-ion and solid-state batteries, the economic attractiveness of full on-site solar plus storage systems will increase.
Richard Beresford, founder of greentec.co says: The increasing complexity of energy infrastructures is becoming counter-productive amidst the push for net-zero power generation, but real-time energy monitoring and AI-driven predictive maintenance systems are also giving operators the ability to have greater oversight of power performance and tap into new economies of energy independence and cost reductions.
The on-site photovoltaic (PV) [solar] power market for data centers grew sharply from 2020 to 2024 as a result of rising energy requirements and an increasing focus on sustainability for data centers. Data centers, notoriously power-hungry, increasingly turned to on-site solar power solutions to offset operating costs and carbon emissions.
This trend benefited from the declining costs of solar installations as well as favorable government incentives. Challenges as limited space for solar panels and the intermittent nature of solar energy, however limited wide-spread adoption in this period.
Between 2025 and 2035, the market is expected to expand even further as solar technology and energy storage solutions improve. These systems will address the intermittent nature of most renewable energy sources and store it when it is available, providing a more reliable supply of power to the data centers. Artificial intelligence and cloud computing are expected to be major contributors, driving more energy consumption at data centers and amplifying the need for sustainable on-site energy generation.
We can expect to see more partnerships between tech companies and renewable energy producers, to drive data-center applications innovation. Yet in hiring regions, the pace of adoption can be dictated by regulatory frameworks or large upfront costs for these turbines.
Market Shifts: A Comparative Analysis 2020 to 2024 vs. 2025 to 2035
| Market Shift | 2020 to 2024 |
|---|---|
| Industry Applications | Adoption primarily in large-scale data centers with ample space for solar installations. |
| Regulatory Environment | Benefited from government incentives promoting renewable energy adoption. |
| Technological Integration | Initial integration of basic solar panels with limited energy storage capabilities. |
| Market Expansion | Growth concentrated in regions with favorable climates and supportive policies. |
| Consumer Preferences | Focus on reducing operational costs and enhancing corporate social responsibility. |
| Market Shift | 2025 to 2035 |
|---|---|
| Industry Applications | Expansion to include medium and small-scale data centers through innovative solar solutions. |
| Regulatory Environment | Subject to evolving regulations emphasizing carbon neutrality and sustainability standards. |
| Technological Integration | Advanced integration with high-efficiency solar panels and sophisticated energy storage systems. |
| Market Expansion | Global expansion driven by universal sustainability goals and technological advancements. |
| Consumer Preferences | Emphasis on achieving energy independence, reliability, and meeting stringent environmental targets. |
The on-site photovoltaic solar power market for data centers in the United States is projected to grow at a compound annual growth rate (CAGR) of 6.6% from 2025 to 2035. Much of that growth is driven by rising demand for sustainable energy in hyperscale and colocation data centers. With direct integration of solar installations on data center campuses, early movers such as Google, Amazon and Microsoft are driving the transition to carbon-neutral operations.
State-level incentives by USA state governments, renewable energy tax credits and green building mandates also complement the rollout of on-site solar arrays. The continued and rising pressure from ESG investors and corporate sustainability goals are ubiquitous drivers of solar adoption in new and retrofitted data center infrastructure.
| Country | CAGR (2025 to 2035) |
|---|---|
| United States | 6.6% |
On-site photovoltaic solar power for data centers in the United Kingdom is expected to grow at 6.0% compounded annual growth rate (CAGR) over the next few years. In a market with growing regulatory pressure to decrease carbon output through IT infrastructure, UK-based colocation providers and cloud service operators are in the process of integrating solar modules to either partially, or fully, power operations.
National decarbonization goals and the push for energy independence are fueling a boom in rooftop and ground-mounted solar systems. These hybrid power systems, combining renewable generation with other forms of generation to create a consistent base of capacity, and integrating battery energy storage within data centre sites, are critical to addressing constraints such as land and variable solar generation.
| Country | CAGR (2025 to 2035) |
|---|---|
| United Kingdom | 6.0% |
With respect to the region of Europe, an estimated 6.2% CAGR will be experienced over the forecast period. The countries leading the charge are Germany, the Netherlands, and the Nordic countries, according to the report. With high electricity prices, energy security and net-zero data center design at the heart of almost every large scale data centre build out, the conditions are ripe for possible on-site PV deployment. In addition, European Union directives covering energy efficiency and emissions compliance are driving solar uptake at Tier III and Tier IV facilities.
| Region | CAGR (2025 to 2035) |
|---|---|
| Europe | 6.2% |
Japan market for Nutraceutical is estimated to register a CAGR of 6.4% during the forecast period of 2025 to 2035. Faced with high energy prices and low fossil reserves, Japan had begun to move toward integrating renewables into mission-critical infrastructure.
Space-efficient PV technologies are being deployed in urban and industrial areas as data centres are also favouring building-integrated photovoltaics (BIPV) and elevated rooftop solar systems. In addition to this, the Green Innovation Fund and net metering policies are also played a role in facilitating investments in on-site solar from private data center operators. Japan’s resilience-focused data center design philosophy after natural disasters is also pushing for localized power generation with PV systems.
| Country | CAGR (2025 to 2035) |
|---|---|
| Japan | 6.4% |
The market for on-site photovoltaic solar power for data centers in South Korea is projected to have 6.5% CAGR. Targeted government initiatives, such to expand renewable energy adoption (RE3020 plan) and promote sustainability methods for datacentre-specific use, drive the growth of the market.
As domestic cloud service providers and telecom-based data center operators align themselves with corporate carbon neutrality pledges, the on-site integration of solar energy processes is building steam. Increased availability of solar-compatible land in industrial clusters and the rollout of virtual power purchase agreements (VPPAs) is driving project economics and uptake across the United States.
| Country | CAGR (2025 to 2035) |
|---|---|
| South Korea | 6.5% |
Monocrystalline Silicon Photovoltaic Panels Dominate Owing to High Efficiency and Space Utilization
| Sub-Segment | Market Share (2025) |
|---|---|
| Monocrystalline Silicon Photovoltaic Panels | 53.2% |
Monocrystalline silicon photovoltaic panels hold the largest share in on-site photovoltaic solar power market for data centres, as advanced power efficiency and performance of these panels under limited-space conditions. Data centres run under extreme loads of power, and maximizing the output per square meter is vital. Monocrystalline panels have a uniform black appearance and are made of silicon with high purity, allowing data centres to meet their renewable energy goals without requiring excessive additional installation space.
These panels are actively more favourite by operators as well their collection are integrated to large solar rooftop plantations or campus-based solar arrays, in urban areas where land or roof space is scarce. With efficiency ratings above 20% in many cases, they can provide power under less than ideal conditions, including partial or low light, making them the perfect candidates for data centers looking for reliable power support. Monocrystalline panels tend to be even more valuable for long-term energy cost savings due to their long life and slow degradation rate.
Manufacturers have also released bifacial monocrystalline panels that capture light from both sides and increase overall system output. Such an innovation complements the data center pursuit of minimizing their carbon footprint, while maintaining high-reliability performance across changeable environmental conditions.
On-Grid Connected Applications Lead with Seamless Energy Integration and Backup Support
| Sub-Segment | Market Share (2025) |
|---|---|
| On-Grid Connected | 61.5% |
While most data center deployments favor the on-grid connected type of photovoltaic systems, advantage of solar energy with the support provided by traditional energy in failure situations. Uptime and energy security are critical to data center operators, and on-grid systems can strike a balance between renewable energy consumption and grid reliability.
These systems enable operators to balance power costs by sending excess electricity generated from solar power into the grid, and drawing supplemental power in times of peak load, or low-light periods. Several regions provide government and utility incentives for grid-connected renewable projects - an additional motivator for data center investments in solar infrastructure.
Grid connected solutions also make for easier system administration by providing for real-time power monitoring, remote management and automatic switching between solar and grid sources. Data centers are transitioning towards carbon neutrality and on-grid solar power is an integral part of the energy mix that guarantees energy sustainability and operational continuity. The interplay of cost optimization, government regulations, and technical reliability makes on-grid connected systems the application of choice through hyperscale, colocation, and enterprise data centers.
On - Site Photovoltaic Solar Power for Data Centers Market is how hyperscale and colocation operators focus on sustainability, energy cost control and carbon neutrality are emerging and expanding rapidly. Significant technological advancement is taking place in solar modules with high-efficiency technology, low-degradation photovoltaic technology and integrated storage systems optimized for the data center environment. Through partnerships with green infrastructure providers and smart-grid integration, companies are bolstering their portfolios.
Market Share Analysis by Company
| Company Name | Estimated Market Share (%) |
|---|---|
| Trina Solar | 17-20% |
| JA Solar Co., Ltd. | 15-18% |
| SunPower Corporation | 12-15% |
| Jinko Solar | 9-12% |
| Canadian Solar | 8-10% |
| Other Companies (combined) | 25-30% |
| Company Name | Key Offerings/Activities |
|---|---|
| Trina Solar | In 2025 , deployed Vertex N bifacial modules at edge data centers in the Middle East and North America. |
| JA Solar Co., Ltd. | In 2024 , launched DeepBlue 4.0 modules offering >22% efficiency tailored for rooftop data center arrays. |
| SunPower Corporation | In 2025 , partnered with modular data center firms to deliver high-output solar kits with integrated battery storage. |
| FIRST SOLAR | In 2024 , enhanced cadmium telluride thin-film panels with low temperature coefficient for high-density computing sites. |
| Yingli Solar | In 2025 , introduced monocrystalline PERC panels optimized for cloudy region installations near data hub corridors. |
| Canadian Solar | In 2025 , expanded its solar + storage systems for off-grid data centers in remote and emerging markets. |
| Jinko Solar | In 2024 , developed dual-glass PV modules with improved degradation resistance for hyperscale campus rooftops. |
| Evergreen | In 2025 , delivered lightweight flexible solar sheets for modular and containerized data facilities. |
| Hanwha Q CELLS | In 2024 , installed Q.ANTUM technology panels on European colocation facilities focusing on carbon-neutral power. |
| SCHOTT North America, Inc. | In 2025 , provided glass-glass photovoltaic modules for hybrid DC-powered data center pilot programs. |
Key Company Insights
Trina Solar (17-20%)
Trina Solar leads the segment by offering high-efficiency modules with low BOS (balance of system) costs, well-suited for distributed solar at Tier III/IV data centers.
JA Solar Co., Ltd. (15-18%)
JA Solar maintains strong positioning through advanced cell technology that ensures consistent performance across varying climate zones and urban rooftop structures.
SunPower Corporation (12-15%)
SunPower delivers value by bundling solar panels with storage and energy management platforms tailored to edge and enterprise data centers.
Jinko Solar (9-12%)
Jinko Solar gains market share through dual-glass panels and smart tracking solutions, addressing large-scale campus deployments.
Canadian Solar (8-10%)
Canadian Solar supports hybrid solar and energy storage solutions, providing resiliency and off-grid capabilities for remote server locations.
Other Key Players (25-30% Combined)
The remaining share includes companies innovating in modular, thermal-resistant, and off-grid power generation:
The overall market size for the On-Site Photovoltaic Solar Power for Data Centers Market was approximately USD 26,941.5 million in 2025.
The On-Site Photovoltaic Solar Power for Data Centers Market is expected to reach around USD 49,631.2 million by 2030.
The demand is driven by decreasing solar power installation costs, growing focus on implementing sustainable business practices, and increasing energy demands from data centers.
The top 5 countries driving market growth are the USA, UK, Europe, Japan, and South Korea.
The On-Grid Connected segment is expected to command a significant share over the assessment period.
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