Data Center Chillers Market Report

Attractive Opportunities

Global Demand Analysis & Sales Opportunities in Data Center Chillers Market 

• The annual demand for data center chillers was USD 1.8 billion in 2024 and is expected to reach USD 1.96 billion in 2025, up 8.75% than the value in 2024.
• During the next 8 years (forecast period of 2025-2032), the data center chillers market is expected to grow at a CAGR of 8.17%. The annual demand will reach of USD 3.39 billion in 2032, which is almost 1.7 times the demand in 2025.
• During 2025-2032, the data center chillers industry is expected to generate a cumulative sales opportunity of USD 21.04 billion, which is more than 2 times the opportunities during 2019-2024.

High-Growth Market Segments: 

• North America generated the highest demand with the largest market share in 2024.
• By product type, Water-Cooled Chillers segment is expected to be the fastest-growing segment in the coming years.
• By technology type, Scroll Chillers segment is projected to be the fastest-growing segment of this market during the forecast period.
• By power type, Thermal-Powered segment is anticipated to have the highest growth rate during the forecast period.
• By data center size type, Large Data Centers segment is projected to have the largest share of the data center chillers market during the forecast period.

Market Statistics 

Have a look at the sales opportunities presented by the data center chillers market in terms of growth and market forecast.

Market Dynamics

Introduction:

What are data center chillers?

Data center chillers are specialized cooling systems used to manage the heat generated by servers and other IT equipment in data centers. Chillers absorb heat from the data center air and transfer it to a cooling medium to maintain stable environmental conditions, which is crucial for high-density server racks. Maintaining optimal temperatures is critical to prevent overheating, ensure performance, and prolong the lifespan of hardware.

Market Drivers: 

Rising Demand for Data Centers

• The growing demand for data centers, driven by IoT, AI, and cloud computing, is fueling the need for efficient cooling solutions. High-density servers generate substantial heat, making advanced chillers essential to prevent overheating and downtime.
• Additionally, increasing focus on energy efficiency and sustainability is pushing data center operators to adopt chillers with low power consumption and eco-friendly refrigerants, driving steady growth in the data center chillers market.

Market Challenges: 

High Capital and Maintenance Costs

• High capital and maintenance costs pose a significant challenge to the adoption of data center chillers. These technologies need significant amounts of initial capital expenditure for equipment, installation, and integration into the existing infrastructure.
• Moreover, ongoing maintenance like periodic checks, refrigerant management, and part replacement requires skilled technical professionals incurs recurring expenses, making it difficult for smaller or budget-constrained operators to afford long-term operational costs.

Segments' Analysis

By Product Type 

“Water-Cooled Chillers segment is expected to be the fastest-growing segment of the data center chillers market in the coming years.”

• The data center chillers market is segmented by product type into air-cooled chillers, water-cooled chillers, and glycol-cooled chillers.
• Water-Cooled Chillers segment is expected to be the fastest-growing segment of the data center chillers market in the coming years, due to its superior energy efficiency and scalability. Water-cooled chillers utilize water as a heat transfer medium, permitting more effective and stable cooling, particularly in high-density and large-scale data centers.
• Although the initial investment is higher, water-cooled systems typically offer longer service life and lower total cost of ownership over time, making them attractive for long-term infrastructure planning.
• Moreover, increasing need for sustainable and low-carbon cooling has spurred the use of solutions that enable free cooling or renewable energy-powered chilled water loops.

By Data Center Size Type 

“Large Data Centers segment is projected to have the largest share of the data center chillers market during the forecast period.”

• The data center chillers market is segmented by data center size into small data center, medium data center, large data center, and hyperscale data center.
• Large Data Centers segment is projected to have the largest share of the data center chillers market during the forecast period, due to the rapid expansion of hyperscale facilities driven by AI, cloud computing, and big data.  These data centers generate immense heat and require advanced cooling systems to ensure high-performance and energy efficiency. With increasing power densities and requirements for uptime, operators need scalable, redundant, and sustainable cooling solutions. 
• Additionally, global growth in digital infrastructure, especially in emerging markets, further fuels demand for chillers in large-scale data centers.

Regional Analysis 

“North America is expected to be the dominant and fastest-growing region over the forecasted period.”

• Based on region, the data center chillers market has been segmented into North America, Europe, Asia Pacific, and the Rest of the world.
• North America is expected to be the dominant and fastest-growing region over the forecasted period, driven by well-established technology infrastructure and significant investments in data center expansions in the region.
• North America boasts a well-established digital economy with high rates of adoption of the latest technologies such as artificial intelligence, Internet of Things (IoT), 5G, and edge computing, which generates the high demand for efficient cooling solutions.
• Moreover, the region is a home to some of the major hyperscale cloud providers like AWS, Azure, and Google Cloud, whose expanding data centers drive demand for efficient, scalable, and reliable chiller systems to support advanced workloads.

Competitive Landscape

Most of the major players compete in some of the factors, including price, service offerings, regional presence, etc. The following are the key players in the data center chillers market -  

• 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.

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Recent Developments/Mergers & Acquisitions: 

• In May 2025, Samsung Electronics made a deal to acquire German HVAC maker FlaktGroup for €1.5 billion ($1.68 billion). This strategic acquisition will help Samsung enhance its strengths in cooling solutions for high-demand data centers, especially those with artificial intelligence workloads. 

• In October 2024, Schneider Electric signed an agreement to buy 75% of U.S.-based Motivair Corporation for $850 million. Motivair is an expert in next-generation liquid cooling technologies that are required for high-performance computing and data center use. The deal fills out Schneider's portfolio in direct-to-chip liquid cooling systems, meeting the growing heat generated by high-performance computing. 

• In March 2024, STULZ launched the CyberCool CMU, a revolutionary coolant management and distribution unit with a mission to optimize heat exchange efficiency in liquid cooling applications. The product delivers industry-best levels of energy efficiency, flexibility, and reliability in a compact form factor.

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, Service 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.

Market Segmentation 

This report studies the market, covering a period of 15 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The data center chillers market is segmented into the following categories. 

Data Center Chillers Market, by Product Type

• Air-cooled chillers
• Water-cooled chillers
• Glycol-cooled chillers

Data Center Chillers Market, by Technology Type

• Scroll Chillers
• Screw Chillers
• Centrifugal Chillers
• Absorption Chillers
• Magnetic Bearing Chillers

Data Center Chillers Market, by Power Type

• Electric-Powered
• Thermal-Powered
• Hybrid-Powered  

Data Center Chillers Market, by Data Center Size Type

• Small Data Center
• Medium Data Center
• Large Data Center
• Hyperscale Data Center  

Data Center Chillers Market, by Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, Italy, The UK, and Rest of Europe)
• Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)

Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s Data Center Chillers market realities and future market possibilities for the forecast period. 
• The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruits available in the market and formulating growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respected clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across industries. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to [email protected]