Increasing Demand for Compute-Intensive Workloads Fuels the Data Center Cooling Market Growth
According to our latest study, “Data Center Cooling Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Type, Component, Cooling Type, Data Center Type, Industry Vertical, and Geography," the market was valued at US$ 15,431.02 million in 2024 and is expected to reach US$ 45,705.31 million by 2031; it is estimated to record a CAGR of 16.9% during 2025–2031. The report includes growth prospects owing to current data center cooling market trends and their foreseeable impact during the forecast period.
Data Center Cooling Market Analysis — by Geography
Data Center Cooling Market Size, Share & Growth Scope by 2031
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Data Center Cooling Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Type (Air Cooling and Liquid Cooling), Component (Air Conditioning System, Chillers, Air Handling Units, Cooling Towers, Heat Exchangers, Humidifiers, and Others), 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 Cooling Market Size, Share & Growth Scope by 2031
Download Free SampleData Center Cooling Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Type (Air Cooling and Liquid Cooling), Component (Air Conditioning System, Chillers, Air Handling Units, Cooling Towers, Heat Exchangers, Humidifiers, and Others), 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
• High-volume data generation and storage by organizations have necessitated the development of increasingly powerful tools and technologies to help convert this data into actionable insights that drive real business outcomes. Over the years, computing hardware has been continuously upgraded to enhance computing capacity, paving the way for the current era of high-performance computing. This change in computing hardware is a reflection of a move to meet the ever-increasing demands of data processing, analytics, and transformative technologies.
• As organizations explore the potential of AI and machine learning, the continuous upgrading of computing hardware remains instrumental in enabling the cost-effective and efficient processing and utilization of vast amounts of data. This allows organizations to make informed decisions and analyze data assets effectively. The increased computing capacity and hardware demands have led to higher power consumption and heat generation. As a result, higher-density hardware has increased data center temperatures, driving the adoption of liquid cooling to address thermal challenges.
Asetek, Inc, Fujitsu Ltd, Mitsubishi Corp, Rittal GmbH and Co KG, Schneider Electric SE, Stulz SpA, Carrier Global Corp, Daikin Industries Ltd, Delta Electronics Inc, and Vertiv Group Corp. are among the key players profiled in the data center 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 cooling market forecast by type, component, cooling type, data center type, and industry vertical. By type, the market is segmented into air cooling and liquid cooling. In terms of component, the market is segmented into chillers, air conditioning systems, heat exchangers, cooling towers, air handling units, humidifiers, and others. 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 and telecom, media and entertainment, retail, government and defense, healthcare, energy, and others. Geographically, the data center cooling market is segmented into North America, Europe, Asia Pacific, the Middle East and Africa, and South and Central America.
The scope of the data center cooling market report focuses on North America (the US, Canada, and Mexico), Europe (Russia, the UK, Germany, 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 and Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East and Africa), and South and Central America (Brazil, Argentina, and the Rest of South and Central America). Asia Pacific dominated the market in 2024, followed by North America and Europe.
The data center 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 cooling market share in the Asia Pacific.
The market growth in China is attributed to rapid digitalisation, cloud adoption, and the rise of AI, machine learning, and big data. Shanghai, Beijing, Guangzhou, Shenzhen, and Chengdu are among China’s largest and most influential cities for data center infrastructure and colocation services. According to BAXTEL, China presently has 92 facilities, with Equinix being the top provider of eight sites, followed closely by iAdvantage (SUNeVision) with seven facilities.
The most popular facilities in China are Equinix Hong Kong HK1 and Global Switch Hong Kong. The country is adopting measures to cut the power consumption of data centers, one of which is ocean cooling. The demand for data center cooling in China is increasing at a rapid pace due to the growing use of cloud computing, big data analytics, artificial intelligence, and the Internet of Things (IoT). Thus, the need for cooling solutions—such as economizer systems, liquid cooling systems, control systems, air conditioning, chilling units, and cooling towers—to meet the requirements of different industries is contributing to market growth.
The data center cooling market in India has gone through a rapid transition in recent years. Rising priorities around energy efficiency and sustainability have led to a positive market outlook for energy-efficient cooling solutions. In January 2023, NTT revealed its plan to introduce Direct Contact Liquid Cooling and Liquid Immersion cooling in Indian data centers with the objective of energy reduction by nearly 30% in comparison to conventional cooling systems. Major contributors such as Schneider Electric, Rittal, and Nortek Air Solutions, LLC are actively addressing shifting user demands for data center cooling solutions through customized air management systems, precision air conditioning units, and innovative cooling technologies.
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