Market Dynamics
Introduction
The data center chillers market plays a critical role in supporting the thermal management needs of modern digital infrastructure. Chillers act as centralized cooling systems that remove heat from liquid, typically water, and dissipate it through refrigeration or heat exchange processes. In data centers, these systems supply chilled water to air handling units and cooling coils, ensuring precise temperature control for servers, storage devices, and networking equipment. As computing densities rise and workloads become more power-intensive, effective chiller performance is essential to maintain equipment reliability, optimize energy efficiency, and prevent downtime. Growing investments in hyperscale, colocation, and edge data centers, along with increasing emphasis on sustainable and energy-efficient cooling solutions, are driving steady growth in the data center chillers market.
Key Market Drivers
- High-capacity cooling is being demanded by high-capacity data centers that are rapidly expanding in size and number.
- Increasing server rack densities requires the need to be highly accurate and efficient in thermal management.
- Extreme emphasis on energy saving and minimization of power usage effectiveness (PUE) with the help of efficient chiller technology.
- Adopting more liquid cooling and hybrid cooling architectures.
- Strict uptime, reliability, and redundancy in critical facilities.
Recent Market JVs and Acquisitions:
A considerable number of strategic alliances, including M&As, JVs, etc., have been performed over the past few years:
- In 2025, Vertiv acquired PurgeRite to strengthen its HVAC services, commissioning expertise, and liquid-cooling and chiller service capabilities for data centers and other mission-critical facilities.
- In 2025, Daikin Applied acquired DDC Solutions to enhance its data center cooling portfolio by adding modular, high-density cooling systems that complement its large-capacity chiller and integrated thermal offerings.
- In July 2024, Munters announced the acquisition of Geoclima, an Italian chiller manufacturer, to expand its data center cooling solutions. Geoclima, known for its advanced cooling technologies, will become part of Munters' Data Center Technologies portfolio, strengthening its global cooling offerings.
Market Segments' Analysis
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Segmentations
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List of Sub-Segments
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Segments with High-Growth Opportunity
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Data-Center-Type Analysis
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Hyperscale, Colocation, Enterprise, and Edge
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Colocation data centers currently dominate the chillers market, while enterprise data centers represent the fastest-growing segment.
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Product-Type Analysis
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Air-cooled, Water-cooled, and Glycol-cooled
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The air-cooled segment dominates the product type, while water-cooled chillers show the fastest growth.
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Technology-Type Analysis
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Screw, Scroll, and Centrifugal
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Screw maintains market dominance due to proven reliability, while Scroll represents the fastest-growing segment.
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Region Analysis
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North America, Europe, Asia-Pacific, and The Rest of the World
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North America maintains market leadership, while Asia-Pacific exhibits the fastest regional growth.
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By Data Center Type
“Colocation data centers currently dominate the chillers market, while enterprise data centers represent the fastest-growing category.”
Based on data center type, the market is segmented into enterprise, colocation, hyperscale, and edge data centers. Among these, colocation data centers hold the largest market share, supported by the growing trend of enterprises outsourcing their IT infrastructure. Organizations increasingly turn to colocation providers to gain scalability, reduce capital expenditure, and improve operational agility, all of which drive the need for robust and efficient cooling infrastructure to support shared, high-performance environments.
Colocation facilities typically operate at high utilization levels and serve multiple tenants simultaneously, creating sustained demand for centralized, reliable, and redundant chiller systems. These environments must accommodate diverse workloads, fluctuating rack densities, and varying cooling requirements while consistently meeting strict uptime and service-level commitments. As availability and performance remain key differentiators for colocation operators, investment in resilient and scalable chiller solutions continues to be a critical priority.
By Product Type
“Air-cooled segment holds the largest market share, with water-cooled growing at the fastest rate.”
By product type, the market is classified into air-cooled and water-cooled chillers. The air-cooled segment holds the largest market share, primarily due to its lower upfront costs, simpler installation, and minimal water consumption compared to water-cooled systems. Air-cooled chillers are widely adopted in small-to-mid-scale data centers and regions facing water scarcity or regulatory constraints on water usage. Their ease of deployment, reduced maintenance requirements, and suitability for modular data center designs continue to support strong adoption across enterprise and edge facilities.
By Technology Type
“Screw technology continues to dominate the data center chiller market, supported by stable part-load performance and proven reliability in mission-critical environments.”
Based on technology, the data center chiller market is segmented into screw, centrifugal, scroll, and absorption chillers. Among these, screw chillers hold a dominant position, supported by their rugged construction and dependable performance. Their ability to operate efficiently across fluctuating load conditions makes them particularly suitable for data center environments, where cooling demand varies with server utilization. Designed for continuous, round-the-clock operation, screw chillers provide the reliability required for mission-critical facilities with strict uptime expectations.
Furthermore, screw chillers offer an effective balance between energy efficiency, cooling capacity, and overall cost, making them a preferred choice for large-scale deployments. This versatility supports their widespread adoption across both colocation and hyperscale data centers, where scalability and operational consistency are essential. As operators prioritize dependable cooling solutions that can adapt to evolving workloads while maintaining performance and cost efficiency, screw chillers continue to remain a cornerstone of data center cooling infrastructure.
By Region Type
“North America leads the data center chillers, while Asia-Pacific is the fastest-growing region driven by rapid capacity expansion.”
North America continues to dominate the global data center chiller market, supported by its large installed base of hyperscale and colocation data centers and a well-established digital infrastructure. The region’s early move toward advanced and energy-efficient cooling technologies has set industry benchmarks for performance and reliability. Ongoing investments by major cloud service providers, combined with strict efficiency and sustainability standards, are sustaining strong demand for high-capacity, technologically advanced chiller systems across both new facilities and upgrades.
Meanwhile, Asia-Pacific stands out as the fastest-growing regional market, driven by aggressive data center expansion and accelerating cloud adoption. Rapid digitalization across China, India, and Southeast Asia is fueling demand for scalable and efficient cooling solutions. Government-backed digital initiatives, expanding internet penetration, and rising enterprise data consumption are further accelerating chiller installations, positioning Asia-Pacific as a key growth engine for the global data center chiller market.
Key Players (Based on Dominance)
The market is highly fragmented, with around 50 players. Most of the major players compete in some of the governing factors, including price, product offerings, and regional presence etc. The following are the key players in the data center chillers market. Some of the major players provide a complete range of products.
Here is the list of the Top Players (Based on Alphabetical Order)
- Airedale
- Carrier Global
- Daikin
- Johnson Controls
- Mitsubishi
- Rittal
- Schneider
- Stulz GmbH
- Trane
- Vertiv
Note: The above list does not necessarily include all the top players in the market.
Are you the leading player in this market? We would love to include your name. Please write to us at [email protected]
Report Features
This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Product portfolio, New Product Launches, etc.
- COVID-19 impact and its recovery curve
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
The data center chillers market is segmented into the following categories.
Data Center Chillers Market by Data Center Type
- Hyperscale (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Colocation (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Enterprise (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Edge (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Data Center Chillers Market by Product Type
- Air-cooled (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Water-cooled (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Glycol-cooled (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Data Center Chillers Market by Technology Type
- Screw (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Scroll (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Centrifugal (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Data Center Chillers Market by Region Type
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, The UK, and the Rest of Europe)
- Asia-Pacific (Country Analysis: China, Australia, Japan, India, and Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Africa, and Others)
