Data Center Cooling Market - Global Market Size, Trends & Revenue Analysis

The data center cooling market size is projected to reach US$ 45,705.31 million by 2031, from US$ 15,431.02 million in 2024. The market is expected to register a CAGR of 16.9% during 2025–2031.

Data Center Cooling Market Analysis

Data center cooling solutions are crucial to maintain a standard temperature in data centers. The market is fueled by the huge amount of data generation, the rise of cloud adoption, and the spread of high-density workloads. Operators are confronted with the challenge of increasing heat densities while having to meet strict energy efficiency and sustainability standards. Thus, the market is not just focused on traditional air cooling, but on a wide range of solutions such as advanced air handling, liquid cooling, and free cooling techniques. Intelligent monitoring and AI-driven control systems allow predictive maintenance and real-time optimization of cooling resources in any facility, from large hyperscale campuses to small edge installations.

Data Center Cooling Market Overview

The IT hardware that makes up the digital infrastructure needs to be constantly cooled in order to keep the reliability, performance, and longevity of the hardware intact. A wide array of solutions is available, including traditional computer room air conditioners (CRACs) and chilled water systems, as well as advanced direct-to-chip and immersion cooling technologies.

Trends in the data center cooling market are moving toward greater accuracy, efficiency, and flexibility. Modern cooling methods focus on containment architecture, such as hot and cold aisle containment, that can provide the greatest cooling effect. The use of economizers that utilize outside air or water for cooling is spreading rapidly, thus lowering the energy consumption for mechanical compression.

Hybrid cooling models—which carefully mix air and liquid cooling—are becoming popular as data centers are reaching higher power densities. This comprehensive method enables operators to determine which cooling technology is best suited for a specific heat load and application. It allows them to optimize both capital (CapEx) and operational (OpEx) expenditures while supporting corporate environmental, social, and governance (ESG) initiatives.

Data Center Cooling Market: Strategic Insights

Data Center Cooling Market Drivers and Opportunities

Market Drivers:

• Exponential Growth in Data and Compute Density: The rapid expansion of cloud services, AI/ML workloads, and 5G, driven applications is causing an increase in heat densities within server racks. Such increased heat densities call for efficient cooling equipment.
• Stringent Energy Efficiency and Sustainability Mandates: Global energy prices are on the rise. Carbon reduction targets and efficiency standards, such as power usage effectiveness (PUE), are forcing operators to invest in advanced cooling technologies that can also reduce their operational expenses.
• Expansion of Hyperscale and Edge Infrastructure: Large-scale hyperscale data center projects drive the demand for centralized, high-capacity cooling plants, while the distributed nature of edge computing creates a need for decentralized, ruggedized cooling units.

Market Opportunities:

• Adoption of Advanced Liquid and Immersion Cooling: The increasing demand for high, density AI servers and GPUs that need cooling is a significant opening for the development and use of liquid cooling technologies, such as direct, to, chip and full immersion, which not only provide superior heat transfer efficiency but also hold the promise of heat reuse.
• Integration of AI and IoT for Smart Cooling Management: The integration of cooling infrastructure with Data Center Infrastructure Management (DCIM) platforms, IoT sensors, and AI algorithms, among others, empowers the data center operators with predictive analytics, dynamic load balancing, and autonomous optimization capabilities. They, in turn, create new revenue streams for solution and service providers.
• Retrofit and Modernization of Legacy Facilities: There exists a large worldwide installed base of data centers that have been in operation for a long time and, thus, constitute a significant potential for the upgrading of obsolete cooling systems to modern, efficient solutions, which will fuel the strong aftermarket for retrofit projects and service contracts.

Data Center Cooling Market Report Segmentation Analysis

The data center cooling market is segmented into distinct categories to provide a clearer understanding of its operation, growth potential, and current trends. Below is the standard segmentation approach used in most industry reports:

By Cooling Type:

• Room-Based Cooling: Traditional perimeter systems—such as CRAC and CRAH units—cool the entire data hall. Room-based cooling is primarily used in enterprise and smaller facilities with moderate, uniform heat loads, and is valued for its simplicity and reliability.
• Row-Based Cooling: In-row cooling units are located between server racks for targeted, efficient heat removal. They are becoming popular in medium- to high-density environments for better precision and less air mixing.
• Rack-Based Cooling: Direct cooling is built into each rack, thus providing the highest level of precision for extreme density applications. Rack-based cooling is indispensable in certain HPC or AI clusters within mixed environments.

By Data Center Type:

• Hyperscale Data Center
• Colocation Data Center
• Wholesale Data Center
• Enterprise Data Center

By Industry Vertical:

• IT and Telecom
• BFSI
• Healthcare
• Manufacturing
• Government and Defense
• Media and Entertainment
• Retail
• Energy
• Others

By Geography:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

The data center cooling market in Asia Pacific is expected to witness the fastest growth.

Data Center Cooling Market Regional Insights

The regional trends and factors influencing the Data Center Cooling Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Data Center Cooling Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Data Center Cooling Market Report Scope

Data Center Cooling Market Players Density: Understanding Its Impact on Business Dynamics

The Data Center Cooling Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Data Center Cooling Market Share Analysis by Geography

Asia Pacific is witnessing the fastest growth. Emerging markets in Latin America, the Middle East, and Africa offer numerous untapped opportunities for data center cooling providers.

The data center cooling market experiences varying growth rates across different regions. Below is a summary of market share and trends by region:

1. North America

• North America is a mature, leading market where the growth is mainly driven by hyperscale expansions, AI infrastructure investments, and enterprise IT modernization. The region's commitment to energy efficiency and sustainability is a key driver behind the ongoing adoption of state-of-the-art cooling methods, such as liquid and free cooling.

2. Europe

• The European market is defined by strict environmental regulations, high energy costs, and ambitious sustainability goals. This drives strong demand for efficient cooling equipment, including free cooling in suitable climates such as the Nordics, and the adoption of advanced liquid cooling for high-density applications.

3. Asia Pacific

• Asia Pacific is the fastest-growing market, with its expansion attributed to the rapid digital transformation, the large-scale hyperscale data center construction, and the government initiatives in China, India, and Southeast Asia. The region offers a wide range of cooling solutions, from cost-effective air cooling for large-scale deployments to advanced liquid cooling for AI hubs.

4. South and Central America

• The market in South and Central America is gaining momentum as a result of the increasing cloud adoption, local data sovereignty trends, and digital infrastructure investments. Countries such as Brazil and Chile have strong potential to offer cooling solutions that strike an optimal balance between performance, cost, and resilience to local climatic conditions.

5. Middle East and Africa

• Market growth in Middle East and Africa is being driven by investments in digital infrastructure, particularly in Gulf Cooperation Council (GCC) countries, such as the UAE and Saudi Arabia. Extreme temperatures in this region make efficient mechanical cooling essential, driving demand for high-performance, energy-optimized air conditioning systems designed for harsh environments.

Data Center Cooling Market Players Density: Understanding Its Impact on Business Dynamics

High Market Density and Competition

The market is highly competitive. Asetek, Inc., Rittal GmbH & Co KG, Stulz SpA, and Carrier Global Corp are among the key players dominating the market. Additionally, regional and niche manufacturers offer specialized solutions tailored to specific industries or applications.

This high level of competition drives companies to stand out by offering:

• Continuous innovation in efficiency, intelligence (AI/ML integration), and novel cooling technologies.
• Comprehensive end-to-end solutions, covering design, deployment, and ongoing management and optimization services.
• Developing solutions with lower global warming potential (GWP) refrigerants, higher free cooling capability, and heat reuse potential.

Opportunities and Strategic Moves

• Forming Strategic Alliances
• Focusing on the Services and Software Layer
• Leading the Sustainability Charge

Other companies analyzed during the course of research:

1. Hitachi, Ltd.
2. Nortek Air Solutions
3. Airedale International Air Conditioning Ltd.
4. Huawei Technologies Co., Ltd.
5. Johnson Controls
6. Green Revolution Cooling Inc. (GRC)
7. CoolIT Systems Inc.
8. Submer Technologies SL
9. nVent Electric plc

Disclaimer: The companies listed above are not ranked in any particular order.

Data Center Cooling Market News and Recent Developments

• Schneider Electric Launches New Data Center Solutions: In November 2025, Schneider Electric—the leader in the digital transformation of energy management and automation—launched new data center solutions specifically engineered to meet the intensive demands of next-generation AI cluster architectures. Evolving its EcoStruxure™ Data Center Solutions portfolio, Schneider Electric introduced a Prefabricated Modular EcoStruxure Pod Data Center solution that consolidates infrastructure for liquid cooling, high-power busway, and high-density NetShelter Racks.
• OVHcloud Launches the Next Generation of AI-Powered Cooling: In October 2025, OVHcloud unveiled a new cooling architecture for its datacenters. The OVHcloud Smart Datacenter combines new industrial designs with AI features, reducing power and water consumption and enabling datacenters to react to their surrounding environments intelligently. Through this new technology, OVHcloud can reduce water consumption by up to 30% and cooling electricity consumption by up to 50%.

Data Center Cooling Market Report Coverage and Deliverables

The "Data Center Cooling Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:

• Data Center Cooling Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Data Center Cooling Market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• Data Center Cooling Market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the Data Center Cooling Market
• Detailed company profiles