Data Center Cooling Market Report

Attractive Opportunities

Global Demand Analysis & Sales Opportunities in Data Center Cooling Market 

• The annual demand for data center cooling was USD 14.3 billion in 2024 and is expected to reach USD 16.1 billion in 2025, up 12.8% than the value in 2024.
• During the next 8 years (forecast period of 2025-2032), the data center cooling market is expected to grow at a CAGR of 12.2%. The annual demand will reach USD 36.1 billion in 2032, which is more than 2 times the demand in 2025.
• During 2025-2032, the data center cooling industry is expected to generate a cumulative sales opportunity of USD 200.8 billion, which is more almost 3 times the opportunities during 2019-2024.

High-Growth Market Segments: 

• North America is expected to be the fastest-growing market during the forecast period.
• By component type, Services segment is anticipated to experience the fastest growth in the future.
• By solution type, Precision Air Conditioners segment is expected to be the largest data center cooling market segment during the forecast period.
• By service type, Maintenance Services grade is projected to account for the largest share of the PLA market.
• By type, Raised Floors segment holds the largest market share during the forecast period.
• By containment type, Raised Floor without Containment segment is expected to grow at a significant CAGR from 2025 to 2032.
• By structure type, Row-Based cooling segment is expected to grow at a significant CAGR over the forecast period.
• By application type, Retail segment is expected to grow at a significant CAGR over the forecast period.

Market Statistics 

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

Market Dynamics

Introduction:

What is Data Center Cooling?

Data center cooling refers to the systems and technologies used to regulate temperature and humidity within data centers to ensure optimal performance and prevent equipment failure. These solutions are critical for supporting the continuous operation of high-density servers, storage, and networking devices. Applications include hyperscale data centers, enterprise IT facilities, colocation centers, telecom networks, and edge computing sites, where maintaining thermal efficiency is vital for uptime, energy savings, and system reliability.

Market Drivers:

Rapid Growth of Data Centers and Cloud Computing

• The exponential rise in data generation, cloud computing, and AI workloads is driving significant demand for new and expanded data center infrastructure.
• As server densities increase, so does the heat generated, necessitating advanced cooling systems to maintain operational efficiency and prevent downtime.
• Hyperscale data centers operated by tech giants are rapidly adopting energy-efficient cooling solutions to reduce PUE (Power Usage Effectiveness), making cooling a critical element of modern data center design and sustainability strategies.

Focus on Energy Efficiency and Sustainable Infrastructure

• Amid growing global concerns over energy consumption and environmental impact, data center operators are increasingly adopting sustainable cooling technologies.
• Regulatory mandates, environmental compliance standards, and green building certifications are driving the shift toward advanced solutions such as liquid cooling, free cooling, and AI-enabled thermal optimization.
• These technologies not only enhance energy efficiency and reduce operational costs but also support organizations in meeting their ESG (Environmental, Social, and Governance) commitments. As a result, sustainability-focused cooling systems have become a critical catalyst for market growth.

Market Challenges:

High Capital and Operational Costs of Advanced Cooling Systems

• One of the most significant challenges hindering the growth of the global data center cooling market is the high capital expenditure required for deploying advanced cooling technologies.
• Solutions such as liquid cooling, immersion cooling, and AI-integrated thermal management systems involve substantial initial investment, complex infrastructure modifications, and skilled labor.
• Additionally, the ongoing operational and maintenance costs can be burdensome for small and medium-sized enterprises (SMEs), limiting widespread adoption and delaying modernization efforts across emerging markets.

Cooling Issues During Power Outage

• In high-temperature regions, power outages pose a severe risk to data centers when cooling systems fail. While UPS systems maintain server uptime, they typically do not support cooling infrastructure, allowing temperatures to surge to 135°F (57°C) within seconds, threatening equipment integrity.
• Facilities lacking redundant cooling or emergency thermal controls face increased downtime, hardware damage, and service disruption. To ensure operational continuity, data center operators must integrate backup cooling with UPS and establish comprehensive thermal response plans.

Market Opportunities: 

Rising Demand from Emerging Markets and Edge Data Centers

• A significant growth opportunity in the global data center cooling market is the rapid expansion of digital infrastructure in emerging economies and the proliferation of edge data centers.
• As governments and enterprises in regions such as Southeast Asia, Latin America, and the Middle East invest in 5G, IoT, and cloud adoption, the demand for localized, compact, and efficient cooling solutions is increasing. This shift opens new avenues for modular and energy-efficient cooling technologies tailored to smaller, decentralized data environments.

Segments' Analysis

By Component Type

“Services segment is anticipated to experience the fastest growth in the future.”

• The services segment is projected to record a strong CAGR during the forecast period, driven by the rising complexity of data center operations.
• The growing adoption of high-performance computing technologies, particularly those supporting AI and machine learning workloads, is intensifying the demand for continuous optimization and support services to ensure efficiency, scalability, and performance.

By Solution Type

“Precision Air Conditioners segment is expected to be the largest data center cooling market segment during the forecast period.”

• The precision air conditioners segment is anticipated to witness robust CAGR growth during the forecast period, driven by the rising deployment of modular and micro data centers, particularly in edge computing environments.
• These compact, distributed facilities often encounter space constraints and thermal management challenges, increasing the need for efficient, space-saving cooling solutions.
• Precision air conditioners address these requirements effectively, offering high cooling performance within limited footprints, making them ideal for edge and decentralized data center applications.

Regional Analysis

“North America is expected to be the fastest-growing market during the forecast period.”

• In 2024, North America accounted for a substantial share, exceeding 34.0% of the data center cooling market, driven by the growing demand for advanced data processing and storage infrastructure.
• This growth is primarily supported by the widespread adoption of high-performance computing (HPC) and the increasing need for efficient thermal management systems.
• Moreover, this trend is expected to continue during the forecast period.

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 cooling market -  

• Air Enterprises
• Asetek, Inc.
• Climaveneta Climate Technologies PVT. LTD.
• Coolcentric
• Dell Inc.
• Fujitsu
• Hitachi, Ltd.
• Johnson Controls
• Mitsubishi Electric Corporation
• Nortek Air Solutions, LLC

Note: The above list does not necessarily include all the top players in the market.

Are you a leading player in this market? We would love to include your name. Please write to us at [email protected]

Recent Developments/Mergers & Acquisitions:

• Vertiv and Tecogen Partnership (March 2025) - Vertiv Group Corp. partnered with Tecogen Inc. to integrate natural gas-powered chiller technology into its global data center cooling portfolio. The collaboration addresses power constraints and supports large-scale AI deployments, enhancing Vertiv’s energy-efficient cooling capabilities.
• Schneider Electric & NVIDIA Collaboration (December 2024) - Schneider Electric launched AI-ready data center solutions in partnership with NVIDIA, including a liquid-cooled reference design for up to 132 kW per rack. The new Galaxy VXL UPS offers 52% space savings and high power density, tailored to meet the efficiency and scalability needs of AI infrastructure.

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 global data center cooling market is segmented into the following categories. 

Global Data Center Cooling Market, by Component Type

• Solution
• Services

Global Data Center Cooling Market, by Solution Type

• Air Conditioners
• Precision Air Conditioners
• Chillers
• Air Handling Units

Global Data Center Cooling Market, by Service Type

• Installation & Deployment
• Support & Consulting
• Maintenance Services

Global Data Center Cooling Market, by Type

• Raised Floors
• Non-Raised Floors

Global Data Center Cooling Market, by Containment Type

• Raised Floor with Containment
• Raised Floor without Containment

Global Data Center Cooling Market, by Structure Type

• Rack-Based Cooling
• Row-Based Cooling
• Room-Based Cooling

Global Data Center Cooling Market, by Application Type

• Telecom
• IT
• Retail
• Healthcare
• BFSI
• Energy

Global Data Center Cooling 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 global data center cooling 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 14.3 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]