HVO for Data Center Backup Market is Estimated to Reach $38,161.6 Thousand by 2034 - BIS Research

What is the HVO for Data Center Backup? 

Hydrotreated Vegetable Oil (HVO) is a renewable diesel made from sustainable feedstocks like used cooking oil, tall oil, and animal fats. For data centers, HVO serves as a low-emission, drop-in replacement for traditional diesel in backup generators. It offers high energy density, cold weather performance, and up to 90% reduction in greenhouse gas emissions, all without engine modifications, making it an ideal clean backup power solution for mission-critical data center environments. 

What is the Current Market Outlook for HVO for Data Center Backup? 

With global data center electricity use projected to exceed 1,000 TWh by 2030, the need for reliable and low-carbon backup power is urgent. Colocation and retail data centers lead HVO adoption. Europe remains a key growth hub, driven by sustainability regulations and fuel diversification goals.The global HVO (Hydrotreated Vegetable Oil) for data center backup market is forecasted to grow from $11,694.6 thousand million in 2024 to $38,161.6 thousand by 2034, registering a CAGR of 10.51%, according to BIS Research. 

What is the key Innovation & Trends in the HVO for Data Center Backup? 

The market is witnessing rapid innovation in feedstock diversification, standalone hydrotreating, and co-processing technologies. Companies are developing HVO from novel inputs like sludge palm oil mill effluent and non-edible oils to improve yield and reduce costs. In 2025, TotalEnergies and Air Liquide announced a 45,000-ton green hydrogen project, expected to complement HVO with integrated low-carbon energy systems. Additionally, real-time power management systems are being paired with HVO to enhance energy efficiency, reduce emissions, and support carbon tracking—key to ESG compliance for data center operators. 

How Does This Report Help Organizations Drive Strategic Growth? 

• Evaluate the use of HVO across colocation, hyperscale, and enterprise data centers 
• Understand the technological landscape: standalone vs. co-processing hydrotreating 
• Analyze feedstock economics: used cooking oil, tall oil, palm waste, animal fats 
• Benchmark key players like Neste, TotalEnergies, Repsol, and ENI 
• Identify emerging markets and sustainability-driven procurement opportunities 
• Track energy policies supporting renewable fuels in mission-critical infrastructure 

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What Are the Key Trends, Demand Driver and Challenges in HVO for Data Center Backup Market?

Trends: 

• Integration of HVO with smart grid and energy storage systems 
• Growth of drop-in biofuels in backup generators 
• Expansion of feedstock sourcing from agricultural and industrial waste 
• Renewable diesel contracts with hyperscale data center providers 
• Government mandates for GHG reduction in digital infrastructure 

Drivers: 

• Rising data center energy demand and need for uninterrupted backup 
• Up to 90% reduction in emissions vs. fossil diesel 
• No engine modifications required for HVO usage 

Challenges: 

• Limited global feedstock supply and regional availability 
• Price competitiveness with traditional diesel in emerging markets 
• Infrastructure gaps in HVO distribution and fuel certification 

What is the Market Segmentation in the HVO for Data Center Backup Market? 

By Data Center Type 

•    Colocation and Retail 

•    Hyperscale Data Center 

•    Others 

By Data Center Type 

•    Edible Vegetable Oils 

•    Crude Palm Oil 

•    Used Cooking Oil 

•    Tall Oil 

•    Animal Fats 

•    Others 

By Technology Type 

•    Standalone Hydrotreating Technology 

•    Co-Processing Technology 

By Region 

•    North America 

•    Europe 

•    Asia-Pacific 

•    Rest-of-the-World 

What Is the Competitive Landscape in the HVO for Data Center Backup Market? 

Key Players 

•    HVO Manufacturers 

        o    Neste 

        o    Rapsol 

        o    TotalEnergies 

        o    Phillips 66 

        o    ENI S.p.A. 

•    HVO Suppliers 

        o    Crown Oil 

        o    Foster Fuels 

        o    Certas Energy 

        o    LubiQ HVO Fuels 

•    HVO Generator Manufacturers 

        o    Kohler 

        o    Rolls Royce 

        o    CUMMINS 

        o    Catterpillar 

        o    Baudouin 

Strategic Initiatives 

In 2025, Neste partnered with Firmin and Verne to supply HVO100 for data centers in Italy and Finland. TotalEnergies and Air Liquide launched a green hydrogen JV, while Repsol advanced its $227M biofuels plant in Spain to boost renewable fuel production.  

Here Are Some Case Studies and Success Stories in HVO for Data Center Backup Market 

In October 2024, Finnish data center operator Verne partnered with Neste to switch all backup generators in Helsinki, Pori, and Tampere to HVO100. The switch led to an up to 90% reduction in GHG emissions, with no generator retrofitting required. This case highlights HVO’s real-world applicability in extreme weather, supporting carbon-neutral ambitions in colocation infrastructure. 

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Related Reports from BIS Research 

Hydrotreated Vegetable Oil Market                  

Data Center Colocation Market          

Data Center Cooling Market                  

About BIS Research 

BIS Research is a global B2B market intelligence and advisory firm focusing on deep technology and related emerging trends, which can disrupt the market dynamics in the near future. We publish over 200 market intelligence studies annually, focusing on several deep technology verticals.   

Our strategic market analysis emphasizes market estimations, technology analysis, emerging high-growth applications, deeply segmented granular country-level market data, and other important market parameters useful in the strategic decision-making for senior management.    

BIS Research offers syndicate and custom studies and expert consultations to firms, providing them with specific and actionable insights on novel technology markets, business models, and competitive landscapes.   

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