Hydrotreated Vegetable Oil (HVO) is a renewable diesel fuel derived from waste oils and fats. It serves as a direct substitute for fossil diesel, offering compatibility with existing generator infrastructure, meaning data centers can adopt it without retrofitting equipment. This makes HVO for data center backup an attractive, low-barrier solution for operators seeking to decarbonize emergency power systems.
HVO delivers up to 90% of lifecycle greenhouse gas emission reductions compared to fossil diesel. It also emits significantly less nitrogen oxide and particulate matter, contributing to low-emission backup power. Because of its chemical similarity to diesel, HVO performs well even in cold climates, without the drawbacks of older biodiesel like microbial growth or fuel degradation. These characteristics make HVO a resilient and sustainable data center solution for operators aiming to meet carbon reduction targets without sacrificing reliability.
According to BIS Research, global HVO for data center backup market was valued at $11,694.6 thousand in 2024 and is set to reach $38,161.6 thousand by 2034, at a growing CAGR of 10.51%.
Since 2021, HVO has transitioned from trial use to mainstream adoption in data centers. Kao Data’s Harlow campus in the UK was among the first to demonstrate HVO’s viability on a scale, swapping out 45,000 liters of diesel for HVO to reduce emissions during COP26. Encouraged by its success, many global operators followed suit.
By 2023, generator manufacturers including Caterpillar, Cummins, Kohler, and Rolls-Royce (MTU) had certified their diesel gensets for HVO use, eliminating warranty concerns for operators. The development of FAME-free, second-generation HVO further resolved previous limitations related to fuel stability.
Major cloud players began transitioning to renewable diesel generators using HVO. Amazon Web Services (AWS) committed to converting all its European data centers to HVO, beginning with Ireland and Sweden. To ensure consistent supply, AWS partnered with Certa and other renewable fuel suppliers to establish global logistics.
Vantage Data Centers, a leader in colocation, launched an HVO working group under the Data Center Coalition to scale supply across Europe and North America. Microsoft’s pledge to eliminate diesel use by 2030 further accelerated the search for scalable alternatives, positioning HVO as a near-term bridge.
Get to Know More About Market Growth and Trends Download Sample Report Here
Several leading companies and fuel providers are driving the adoption of HVO for data center backup globally. Amazon Web Services (AWS) has led large-scale transitions in Europe since 2023, supported by fuel partner Certa. Meta began piloting HVO at its Clonee, Ireland site in 2024, while Vantage Data Centers expanded usage across campuses in the UK and U.S. Equinix introduced HVO at select facilities in London, Paris, and Frankfurt, achieving up to 90% CO? reduction. Regional operators such as Kao Data, Ark, Datum, LCL, and DEAC have adopted HVO to replace fossil diesel in backup systems. In the U.S., Compass Datacenters integrated HVO at sites in Virginia, Arizona, and Texas. Enabling this shift are fuel suppliers like Foster Fuels, Crown Oil, and Certa, along with OEMs including Caterpillar, Cummins, and Rolls-Royce, all of whom have certified their generators for HVO use. Together, these players are building the infrastructure and trust needed to scale renewable diesel generators for reliable, low-emission backup power in data centers.
Explore More Insights on Data Center Industry
As of 2025, HVO has emerged as a critical sustainable alternative to fossil diesel in backup systems. It provides an immediate path to Scope 1 emission reduction without relying on unproven technologies. Industry experts view HVO as a bridge solution while fuel cells and grid-scale battery storage mature.
That said, future adoption will depend on scaling supply chains and securing sustainable feedstocks. Industry alliances are working to address cost, availability, and certification to make HVO more accessible.
Overall, HVO’s rise reflects a growing convergence between sustainability and resilience. By enabling reliable, low-carbon emergency power, HVO is redefining how operators approach sustainable data center solutions, making it a standout technology in the industry’s green transition.
Looking to enter a new market but unsure where to start? At BIS Research, we provide first-hand insights directly from key opinion leaders (KOLs), backed by rigorous primary and secondary research. Whether you're exploring opportunities in data center type, regions or technology type in HVO for data center backup market, our segmentation-driven approach helps you tap into real market growth potential. Our strategic intelligence empowers you to make informed, confident decisions—from product positioning to pricing and regulatory planning.
