Data Center Cooling Market

Data Center Cooling Market Synopsis

The Global Data Center Cooling Market was valued at USD 16.3 billion in 2024 and is expected to grow from USD 18.6 billion in 2025 to USD 54.0 billion by 2033, reflecting a CAGR of 13.5% over the forecast period.

The market of data center cooling is experiencing phenomenal growth as there is a rise in the demand of the high performance computing, cloud services and data storage capacities in a lot of industries. Since the density of servers is increasing in data centres due to the increasing power, effective temperature control is crucial in order to guarantee good results, prevent over heated situations and instigate fewer intervals. Since the traditional air-based cooling process has certain limitations, hence another process with high energy efficiency, sustainability is considered; if liquid cooling, immersion cooling and direct-to-chip cooling.

Data Center Cooling Market Driver Analysis

Need for Efficient Thermal Management

High density computing environments that accommodate a great number of powerful servers and other IT devices within a physical space that is minimal, produce very high levels of heat when in use. With the rise in computing needs, which is caused by various applications like artificial intelligence, machine learning, and big data analytics, the heat burden of the environment must be escalated. When hardware is not cooled down, the high heat may give way to hardware failures, decreased speed, and even the failure of the whole system. Hence, high-performance cooling systems are urgent to reach the key an operative temperature, the increase of equipment efficiency, and the service life of critical facilities.

Data Center Cooling Market Restraint Analysis

Complexity in Integration

The retrofitting or addition of new cooling solutions to the current data center infrastructures may technically prove problematic because of a number of reasons. Many traditional data centers are not built to support newer and energy efficient solutions in cooling like liquid cooling or hot/ cold aisle containment. Installing such solutions can be associated with changes in the layout, electric and the air Humor patterns to an important extent. Moreover, the compatibility problems with the previous equipment, space constraints, or even the down time during installation may even make the process more complex.

Data Center Cooling Market Opportunity Analysis

Adoption of Liquid and Immersion Cooling

The surge in the adoption of high-performance computing (HPC) is creating opportunities to deploy liquid-based cooling solutions that are more efficient because of the high density heat emissions produced by fast workloads, like AI, scientific simulations, and real-time data analytics. Conventional cooling technology is usually not effective enough to stabilize the heat load of a high density server center. Direct-to-chip cooling, immersion cooling, and rear-door heat exchangers liquid-based cooling technologies are therefore associated with higher thermal conductivity, to remove more and faster heat deposits.

Data Center Cooling Market Trend Analysis

Shift Toward Liquid and Direct-to-Chip Cooling

The use of liquid cooling technologies has increased because of their effectiveness in managing heat and consumption of less power hence gaining popularity in contemporary data centres. In comparison to the conventional temperature control systems based on air, liquid cooling-based systems, e.g. direct-to-chip and immersion cooling are based on fluids with high thermal conductivity that can be relied upon to absorb and release the heat at the source. It will permit temperature management in high-density computing systems to be better implemented. Also, the liquid cooling will decrease dramatically the power needed to cool down infrastructure, which helps to minimize overall energy consumption and cut down on costs as well.

Data Center Cooling Market Segment Analysis

The Data Center Cooling Market is segmented on the basis of Product, Data Center Type, and Cooling Technique.

By Product

o   Air Conditioners

o   Precision Air Conditioners

o   Liquid Cooling

o   Air Handling Unit

o   Chillers

o   Other Products

By Data Center Type

o   Extruding

o   Rolling

o   Drawning

o   Forging

o   Casting

By Cooling Technique

o   Room-based Cooling

o   Rack-based Cooling

o   Row-based Cooling

By Industry

o   BFSI

o   IT and Telecom

o   Manufacturing

o   Retail

o   Healthcare

o   Energy and Utilities

o   Other Industries

By Region

o   North America (U.S., Canada, Mexico)

o   Eastern Europe (Bulgaria, The Czech Republic, Hungary, Poland, Romania, Rest of Eastern Europe)

o   Western Europe (Germany, UK, France, Netherlands, Italy, Russia, Spain, Rest of Western Europe)

o   Asia Pacific (China, India, Japan, South Korea, Malaysia, Thailand, Vietnam, The Philippines, Australia, New-Zealand, Rest of APAC)

o   Middle East & Africa (Turkey, Bahrain, Kuwait, Saudi Arabia, Qatar, UAE, Israel, South Africa)

o   South America (Brazil, Argentina, Rest of SA)

By Product, Air Handling Unit Segment is Expected to Dominate the Market During the Forecast Period

The products discussed in this research study, the air handling unit segment is expected to account for the largest market share of data center cooling market in the forecast period. AHUs are utilized as with the utmost importance to control and distribute cooled air within the facility, facilitating with the heat production of the servers and information technology. They are flexible during installation in different size and type of data centres and diverse cooling methods such as chilled water or direct expansion systems. Besides, their energy efficiency cooled AHU design and its connection to the intelligent monitoring system grant them additional attractiveness.

By Data Center Type, the Small Scale Segment is Expected to Held the Largest Share

The small scale segment is likely to dominate the market. Small and medium-sized enterprises (SMEs), retail business and remote branch offices are increasingly deploying small-scale data centers to fulfill their data storage and processing requirements with less latency. The facilities need small and powerful cooling solutions to handle heat in small spaces and at limited budgets.

By Cooling Technique, the Room-based Cooling Segment is Expected to Held the Largest Share

By Cooling Technique, the room-based cooling segment is Expected to Hold the Largest Share during the forecast period, owing to its widespread adoption, simplicity, and effectiveness in traditional data center environments. Room-based cooling entails regulation of the temperature and humidity within the whole area of the data center by utilizing facilities like precision air conditioners, air handling units. It is still a favorite among most operators because it is cost-effective, easy to install, and expand on previous infrastructures. This approach is especially applicable when faced with a moderate and low rack density data center where the local or intensity cooling is not critical.

By Industry, the IT and Telecom Segment is Expected to Held the Largest Share

The largest share of the data center cooling market is expected to be held by Industry specifically IT and telecom Segment on the basis of the high requirement of high-performance computing infrastructure in the sector and constant processing of data. As cloud services become widely popular, along with 5G networks, artificial intelligence, and applications that require high data, IT and telecom companies are spending heavily on data centers that are more effective and reliable in concerted efforts, as regards the effective operationalization of data centers and providing substantial cooling geared towards optimal performance and minimum disruptions.

Data Center Cooling Market Regional Insights

North America is Expected to Dominate the Market Over the Forecast period 

North America is Expected to Dominate the Market Over the Forecast Period due to the region's strong presence of hyperscale data centers, rapid adoption of advanced technologies, and robust digital infrastructure. The largest share of the data center cooling market is expected to be held by Industry specifically IT and Telecom Segment on the basis of the high requirement of high-performance computing infrastructure in the sector and constant processing of data. As cloud services become widely popular, along with 5G networks, artificial intelligence, and applications that require high data, IT and telecom companies are spending heavily on data centers that are more effective and reliable in concerted efforts, as regards the effective operationalization of data centers and providing substantial cooling geared towards optimal performance and minimum disruptions. The companies have large facilities, some of which are mission critical facilities, in which thermal management plays an important role in ensuring that the facility does not overheat and suffers downtime.

Recent Development

In March 2025, Vertiv Group Corp. entered into a partnership with Tecogen Inc., a U.S.-based clean energy company known for its ultra-efficient on-site power, heating, and cooling solutions. Through this collaboration, Vertiv will integrate Tecogen’s advanced natural gas-powered chiller technology into its global portfolio of data center cooling solutions.

Active Key Players in the Data Center Cooling Market

o   Asetek, Inc.

o   Air Enterprises

o   Climaveneta Climate Technologies PVT. LTD.

o   Dell Inc.

o   Coolcentric

o   Fujitsu

o   Johnson Controls

o   Hitachi, Ltd.

o   Mitsubishi Electric Corporation

o   NTT Ltd.

o   Nortek Air Solutions, LLC

o   Rittal GmBH & Co. KG

o   Other Key Players

Global Data Center Cooling Market Scope