Can data center green reform facilitate urban green technology innovation? Evidence from China

With the expansion of the digital information industry, the size of global data centers is exploding. As part of a high-energy-consuming industry, data centers can support sustainable urban development through green transformation. This study uses a quasi-natural experiment of China’s national green data center pilot policy implemented in 2015 to examine the impact of data center green transformation on green technology innovation in cities. Using a difference-in-difference (DID) analysis, this study finds that the national green data center pilot policy leads to higher levels of green technology innovation in cities, but the spillover effect of the policy on neighboring cities is insignificant. The mechanism test showed that the national green data center pilot policy could facilitate urban green technological innovation through capital deepening, market competition, and industrial agglomeration. In addition, the policy impact is more pronounced for cities with poorer environments, less civilization, high levels of network infrastructure, and more innovative endowments. The findings can provide new guidance for cleaner regional production from the standpoint of data center green development.