Government Regulations on Energy Efficiency Fuel the Data Center Air Cooling Market Growth
According to our latest study, “Data Center Air Cooling Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Cooling Type, Data Center Type, Industry Vertical, and Geography," the market was valued at US$ 11,189.77 million in 2024 and is expected to reach US$ 23,625.46 million by 2031; it is estimated to record a CAGR of 11.0% during 2025–2031. The report includes growth prospects owing to current data center air cooling market trends and their foreseeable impact during the forecast period.
Data Center Air Cooling Market Analysis — by Geography
Data Center Air Cooling Market Share, Demand & Forecast by 2031
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Data Center Air Cooling Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Cooling Type (Room-Based Cooling, Row-Based Cooling, and Rack-Based Cooling), Data Center Type (Hyperscale Data Center, Colocation Data Center, Wholesale Data Center, and Enterprise Data Center), Industry Vertical (IT and Telecom, BFSI, Healthcare, Manufacturing, Government and Defense, Media and Entertainment, Retail, Energy, and Others), and Geography (North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America)
Data Center Air Cooling Market Share, Demand & Forecast by 2031
Download Free SampleData Center Air Cooling Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Cooling Type (Room-Based Cooling, Row-Based Cooling, and Rack-Based Cooling), Data Center Type (Hyperscale Data Center, Colocation Data Center, Wholesale Data Center, and Enterprise Data Center), Industry Vertical (IT and Telecom, BFSI, Healthcare, Manufacturing, Government and Defense, Media and Entertainment, Retail, Energy, and Others), and Geography (North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America)
Source: The Insight Partners Analysis
- Energy efficiency, focused government policies, and related regulatory frameworks are among the key drivers of the data center air cooling market growth. Regions such as North America, Europe, and Asia Pacific are imposing stringent energy consumption and greenhouse gas emission limits, driving data centers to resort to eco-friendly and energy-efficient cooling technologies. Data center operators are installing advanced cooling solutions that optimize energy usage and maintain performance. Air cooling systems that conform to these standards typically feature precision controls, energy recovery mechanisms, and environmentally friendly refrigerants.
- Energy efficiency regulations also lead to technological innovations in cooling. The use of economizers, free air cooling, and AI-driven energy optimization systems has become a popular way of cutting electricity consumption and carbon footprints. Data centers that are able to demonstrate their compliance with green initiatives have a competitive advantage, as sustainability is a growing trend for customers and investors. Strict energy efficiency standards speed up the installation of sophisticated air cooling systems, thus fueling market expansion.
Asetek, Inc, Rittal GmbH & Co KG, Stulz SpA, Carrier Global Corp, Daikin Industries Ltd, Delta Electronics Inc, Fujitsu Ltd, Mitsubishi Corp, Schneider Electric SE, and Vertiv Group Corp. are among the key players profiled in the data center air cooling market report. Other major players were also studied and analyzed during the market study to get a holistic view of the market and its ecosystem.
The report includes the data center air cooling market forecast by cooling type, data center type, industry vertical, and geography. By cooling type, the market is categorized into room-based cooling, rack-based cooling, and row-based cooling. Based on data center type, the data center cooling market is segmented into enterprise data center, colocation data center, wholesale data center, and hyperscale data center. In terms of industry vertical, the market is categorized into BFSI, manufacturing, IT & telecom, media & entertainment, retail, government & defense, healthcare, energy, and others. Geographically, the data center air cooling market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America. North America holds largest data center air cooling market share in 2024.
The scope of the data center air cooling market report focuses on North America (the US, Canada, and Mexico), Europe (Russia, the UK, Germany, the Netherlands, France, Italy, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of the Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America). Asia Pacific dominated the market in 2024, followed by North America and Europe.
The data center air cooling market in Asia Pacific is segmented into Australia, China, Japan, India, South Korea, and the Rest of Asia Pacific. In terms of revenue, China held the largest data center air cooling market share in Asia Pacific.
China holds the largest data center air cooling market share in Asia Pacific. Rapid digitalisation, cloud adoption, and the rise of AI, machine learning, and big data are among the primary driving factors. Several hyperscale data centers in China are heavily loaded server environments due to the cloud service providers. These environments require efficient thermal management. Devices such as in-row cooling units, hot/cold aisle containment, and precision air conditioning are widely used to ensure reliability and operational stability. Policy measures related to energy and the environment promote market growth. These measures and policies provide support for energy-efficient cooling technologies, sustainable refrigerants, and renewable energy integration.
Smart cities, 5G deployment, and IoT expansion lead to increased data traffic and workload demands, which increase the need for scalable, high-performance cooling solutions. AI-driven adaptive cooling and IoT-based predictive maintenance are being adopted to optimize energy efficiency and reduce operational costs. Overall, regulatory support, technological innovation, and massive demand for digital infrastructure are expected to promote market growth in China.
There is increased cloud adoption, ongoing digitalization initiatives, and the expansion of hyperscale and colocation facilities in metros such as Mumbai, Bangalore, and Hyderabad. The growing demand for AI, big data analytics, and enterprise applications has increased server density and heat generation, thus increasing the need for energy-efficient and cooling solutions. To ensure data center availability and reduce the risk of equipment failure, precision air cooling, in-row cooling, and hot/cold aisle containment systems are widely used.
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