According to The Insight Partners' research, the North America Data Center Cooling Market was valued at US$ 6,794.6 Million in 2024 and is expected to reach US$ 19,351.8 Million by 2031, registering a CAGR of 16.2% from 2025 to 2031.
AI-optimized cooling and quieter cooling solutions and adoption of free cooling and ambient air solutions are among the critical factors attributed to drive the North America data center cooling market.
The future trend of AI-optimized cooling in the data center market is expected to gain traction in the coming years as organizations seek to efficiently manage excessive heat generated by using advanced technologies such as AI, machine learning, and edge computing. This trend is driven by the need to maintain optimal operating temperatures for high-density equipment, which is challenging for traditional cooling systems. AI-optimized cooling leverages artificial intelligence to dynamically monitor and adjust cooling systems in real-time, ensuring energy efficiency and hardware reliability in AI-driven data center environments. For instance, in 2024, companies such as Eaton introduced SmartRack modular data center solutions that integrate IT racks, cooling, and service enclosures, catering to the escalating need to incorporate machine learning, edge computing, and AI into the solutions. Additionally, in June 2024, Asetek and Fabric8Labs announced a partnership that might redefine the liquid cooling industry. At Computex 2024, these two innovative companies unveiled the AI-Optimized Cold Plate, a pioneering solution in liquid cooling technology designed to push the boundaries of performance and efficiency. As AI-optimized cooling continues to evolve, it is poised to play a paramount role in shaping the future of data center operations. It offers sustainable and efficient solutions for managing escalating thermal demands in modern data centers.
Cooling systems are often identified as the primary sources of noise in data centers, particularly due to the loud operation of compressors and fans, which can significantly impact the working environment for personnel within the data centers and the surrounding residents or workers. An increasing number of data center operators are acknowledging this concern, with some considering the adoption of liquid immersion cooling as a quieter alternative. In cases where data center operators are not yet ready to embrace immersion cooling, implementing straightforward adjustments to optimize airflow presents an effective strategy for mitigating the noise produced by traditional cooling systems.
On the contrary, high cost associated with data center cooling hampers the growth of the North America data center cooling market.
North America Data Center Cooling Market Segmentation Analysis:
- By Type, the North America Data Center Cooling Market is segmented into Air Cooling and Liquid Cooling. The Air Cooling segment is projected to expand at a CAGR of 10.2% during 2025 - 2031.
- By Component, the North America Data Center Cooling Market is segmented into Air Conditioning System, Chillers, Air Handling Units, Cooling Towers, Heat Exchangers, Humidifiers, and Others. The Air Conditioning System segment is projected to expand at a CAGR of 18.2% during 2025 - 2031.
- By Cooling Type, the North America Data Center Cooling Market is segmented into Room Based Cooling, Row Based Cooling, and Rack Based Cooling. The Room Based Cooling segment is projected to expand at a CAGR of 15.5% during 2025 - 2031.
- By Data Center Type, the North America Data Center Cooling Market is segmented into Hyperscale Data Center, Colocation Data Center, Wholesale Data Center, and Enterprise Data Center. The Hyperscale Data Center segment is projected to expand at a CAGR of 17.3% during 2025 - 2031.
- By Industry Vertical, the North America Data Center Cooling Market is segmented into IT and Telecom, BFSI, Healthcare, Manufacturing, Government and Defense, Media and Entertainment, Retail, Energy, and Others. The IT and Telecom segment is projected to expand at a CAGR of 18.8% during 2025 - 2031.
By country, the North America Data Center Cooling Market is categorized into the United States, Canada, and Mexico. The United States is projected to expand at a CAGR of 16.7% during 2025 - 2031.
Key players operating in the Data Center Cooling Market are Schneider Electric SE, Fujitsu Ltd, Rittal GmbH & Co KG, Delta Electronics Inc, Mitsubishi Corp, Daikin Industries Ltd, Carrier Global Corp, Vertiv Group Corp., Asetek, Inc, and Stulz SpA, among others.
- In December 2025, Daikin Applied, a global leader in commercial and industrial HVAC solutions, announced a US$ 163 million investment to build a state-of-the-art research and development test lab at its Plymouth, Minn., headquarters. This strategic investment underscores Daikin Applied's commitment to advancing HVAC innovation across its portfolio, from chillers and air handlers to heat pumps and hyperscale data center cooling technologies.
- In October 2025, Asetek A/S announced a long-term agreement with an undisclosed customer for the delivery of high-end liquid cooling solutions based on the Ingrid technology platform, which sets new standards for acoustic and thermal performance. Because of the agreement, the Company has raised the medium-term ambition for the Liquid Cooling segment. The agreement includes a minimum volume commitment estimated at $35 million during the first 2-year term, from the start of shipments, but revenues may be higher depending on actual order volumes.
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