HVO for Data Center Backup Market Size Evaluation and Growth Forecast 2026 to 2035
InsightAce Analytic Pvt. Ltd. announces the release of a market assessment report on the "Global HVO for Data Center Backup Market Size, Share & Trends Analysis Report By Data Center Type (Hyperscale Data Center, Colocation and Retail, Others), By Feedstock Type (Edible Vegetable Oils, Used Cooking Oil, Tall Oil, Crude Palm Oil, Animal Fats, and Others), By Technology (Standalone Hydrotreating Technology and Co-Processing Technology),-Market Outlook And Industry Analysis 2035"
Global HVO for Data Center Backup Market Size is valued at USD 14.3 Mn in 2025 and is predicted to reach USD 41.3 Bn by the year 2035 at a 11.6% CAGR during the forecast period for 2026 to 2035.
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Hydrotreated Vegetable Oil (HVO) is a next-generation, drop-in renewable diesel fuel developed to meet the stringent performance and reliability requirements of backup power systems in mission-critical environments such as data centers. Produced through the hydrotreatment of sustainable biological feedstocks—including waste vegetable oils, animal fats, and non-food biomass—HVO offers a high-quality alternative to conventional fossil diesel. Its core value proposition lies in enabling significant reductions in greenhouse gas emissions and local air pollutants while maintaining the operational dependability essential for continuous uptime. In doing so, HVO directly supports the data center sector’s transition toward more sustainable and resilient energy infrastructure.
The market for HVO in data center backup power is evolving from early-stage adoption into a strategic solution aligned with both energy resilience and corporate sustainability objectives. Market growth is closely linked to the rapid global expansion of hyperscale and colocation data centers, which are under increasing regulatory and stakeholder pressure to achieve net-zero emissions. A key advantage of HVO is its capacity to deliver immediate and substantial lifecycle carbon reductions—often up to 90% compared with conventional diesel—without requiring modifications to existing generator assets. As supply chains strengthen and feedstock diversification improves, HVO is expected to move beyond a niche option and become a core component of clean backup power strategies across the data center industry.
List of Prominent Players in the HVO for Data Center Backup Market:
Neste
Repsol
TotalEnergies
Phillips 66 Company
Eni S.p.A.
Crown Oil Ltd
Foster Fuels Inc.
Certas Energy
LubiQ HVO Fuels
Rehlko
Rolls-Royce plc
Caterpillar
Cummins Inc.
Moteurs Baudouin
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Market Dynamics
Drivers:
The HVO for data center backup market is expanding as operators increasingly seek low-emission and environmentally responsible alternatives to conventional diesel. The rapid growth of cloud computing, artificial intelligence, and digital services is intensifying the need for highly reliable backup power systems that also align with corporate sustainability objectives. HVO provides a drop-in renewable fuel that enables substantial lifecycle carbon reductions while maintaining the reliability required for continuous operations. In addition, mounting regulatory pressure to decarbonize data center activities, along with corporate net-zero commitments, is accelerating the adoption of HVO as a scalable and climate-aligned solution for backup generation.
Challenges:
Despite its environmental advantages, the market faces several constraints. The cost of HVO remains higher than that of traditional diesel, increasing operating expenses for data center operators focused on long-term cost efficiency. Limited regional availability and inconsistent supply chains further restrict large-scale deployment, particularly for hyperscale facilities that require uninterrupted and high-volume fuel access. Moreover, infrastructure-related considerations—such as fuel storage validation, logistics adjustments, and generator warranty compliance—can delay adoption and add complexity to implementation.
Regional Trends:
In 2025, North America accounted for the largest share of the HVO for data center backup market, supported by the high concentration of colocation and hyperscale facilities in the United States and Canada. Ongoing expansion by leading cloud service providers, coupled with stringent uptime requirements and increasing investments in resilient energy infrastructure, has strengthened demand for advanced and sustainable backup power solutions across the region.
Over the forecast period, Asia Pacific is expected to register the fastest growth. Rapid digitalization, government-driven data localization policies, and expanding IT infrastructure in countries such as China, India, Japan, and Singapore are driving large-scale data center development. Rising deployment of generator systems, combined with greater emphasis on energy security and sustainability, is creating strong momentum for HVO adoption as a clean and reliable backup power option in the region.
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Recent Developments:
In october 2024: Verne's backup generators will be powered by Neste's MY Renewable Diesel (HVO100) at data centers in Helsinki, Pori, and Tampere, Finland. Verne's dedication to sustainability is supported by this substantial 90% reduction in greenhouse gas emissions from fossil fuels to HVO. Neste's renewable diesel is a great option for backup power in data centers and helps achieve long-term environmental goals because it is produced entirely from renewable resources and guarantees dependable operation even in extremely cold conditions.
Segmentation of HVO for Data Center Backup Market-
By Data Center Type-
Hyperscale Data Center
Colocation and Retail
Others
By Feedstock Type -
Edible Vegetable Oils
Used Cooking Oil
Tall Oil
Crude Palm Oil
Animal Fats
Others
By Technology-
Standalone Hydrotreating Technology
Co-Processing Technology
By Region-
North America-
The US
Canada
Europe-
Germany
The UK
France
Italy
Spain
Rest of Europe
Asia-Pacific-
China
Japan
India
South Korea
South East Asia
Rest of Asia Pacific
Latin America-
Brazil
Argentina
Mexico
Rest of Latin America
 Middle East & Africa-
GCC Countries
South Africa
Rest of Middle East and Africa
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