Press Release

The global data center cooling market revenue surpassed US$ 10.17 billion in 2024 and is predicted to attain around US$ 32.61 billion by 2033, growing at a CAGR of 13.82% during the forecast period from 2025 to 2033. The increasing demand for energy-efficient data centers, along with substantial investments from colocation service providers and managed service providers, as well as the growing construction of hyperscale data centers, are key factors anticipated to drive market growth.

As data centers continue to expand and incorporate more high-density servers, cohosting facilities will need to implement effective cooling systems to maintain optimal operating conditions. The rise in heat generation and stress on these data centers exacerbates the challenge of maintaining efficiency.

Data Center Cooling Market Key Takeaways

• The data center cooling market is expected to reach a valuation of US$ 32.61 billion by 2033, growing at a CAGR of 13.82% from 2025 to 2033.
• North America continues to lead the data center cooling market, holding the largest market share recently.
• In terms of components, the solutions segment is projected to maintain its dominance, accounting for over 61% of the revenue share in the data center cooling market.
• When categorized by data center type, Tier 2 data centers represent a significant portion, with a 36.5% share. This is largely due to the increasing server densities and the rising demand for reliable digital infrastructure.
• The IT and telecom sectors play a crucial role in the growth of the global data center cooling market, driving the need for innovative cooling solutions. This industry held approximately 24.9% of the market share in 2024.
• Regarding cooling types, room-based cooling solutions dominate the market with a share exceeding 62.6%. Data center operators utilize these solutions to achieve optimal thermal conditions while effectively managing environmental factors.

North America to Lead the Data Center Cooling Market

North America continues to be the largest host in the data center cooling market, with the most recent market share recorded at 39.41%. This notable share can be attributed to the region's well-developed technology and communications infrastructure, which has fostered an environment conducive to technological advancements. The presence of numerous leading tech firms further strengthens North America's position, creating a robust ecosystem that supports the growth of data centers and, consequently, their cooling requirements.

The United States stands out as the largest single market within North America, primarily due to the significant capacity of hyperscale and colocation data center providers. These providers are expanding their operations in key states such as Virginia, Texas, and California. The strategic locations in these states not only offer ample space for growth but also leverage the existing technological infrastructure that enhances operational efficiencies.

One of the distinct advantages the United States possesses is its vast land area coupled with advanced fiber networks. These factors significantly contribute to its prominence in the North American data center capacity landscape. As the demand for cloud-based services, AI workloads, and edge computing continues to soar, the United States is well-positioned to meet these needs.

The region's rich research environment and ongoing innovations in cooling technology are expected to play pivotal roles in maintaining its leadership in the global data center cooling market in the coming years. This combination of infrastructure, demand, and technological progress underscores North America's critical importance in the evolving landscape of data center cooling solutions.

Market Overview

The data center cooling market is experiencing significant acceleration as organizations expand their capacity, adopt high-density computing solutions, and prioritize energy efficiency. This evolution is reshaping infrastructure strategies, with modern cooling solutions such as room-based systems, liquid cooling, and advanced airflow management taking center stage. These innovations not only enhance operational efficiency but also drive sustained growth across various industries, positioning data centers as critical components of the digital economy.

As the demand for data center resources increases, so do the sustainability concerns associated with their operation. Currently, data centers account for approximately 1.5 percent of global electricity consumption, placing them at the forefront of the effort to achieve net-zero emissions. This reality underscores the urgency for data center providers to enhance their energy efficiency. While improving efficiency presents numerous challenges for the industry, it simultaneously opens up exciting opportunities for innovative solutions that redefine operational norms.

At the core of addressing these challenges is the need for efficient and sustainable cooling solutions. On average, a modern data center allocates around 40 percent of its power consumption to cooling alone. This substantial energy requirement highlights the importance of maintaining optimal conditions for processors and other hardware to ensure secure and high-quality service delivery. As the industry evolves, there is a pressing need for future cooling techniques that not only effectively manage excess heat but also do so in a more environmentally friendly manner.

Data Center Cooling Market Growth Factors

• Increasing server densities necessitate the development of more robust and efficient cooling infrastructures.
• Rising energy costs further highlight the need for sustainable cooling practices aimed at reducing overhead expenses. As energy expenses continue to climb, data center operators are prioritizing energy efficiency.
• The global expansion of data centers also drives the need for scalable climate-control methods and systems. As new facilities are established worldwide, there is an urgent requirement for cooling solutions that can adapt to varying operational scales and environmental conditions.
• The implementation of liquid immersion techniques has emerged as a significant advancement in cooling performance.
• Automation and AI-driven solutions are revolutionizing the management of airflow, humidity, and power consumption within data centers.
• Modular cooling designs facilitate faster deployments, enabling data centers to quickly adapt to market demands.

Market Dynamics

Driver

Increasing Server Densities 

The rising server densities are driving the demand for more robust and efficient cooling infrastructures, significantly contributing to the growth of the global data center cooling market. As data centers worldwide prioritize temperature control, the need for effective cooling solutions has become paramount. This urgency stems from the deployment of cutting-edge Artificial Intelligence (AI) and High-Performance Computing (HPC) servers, which require substantial cooling capacities.

With power requirements ranging from 25 kW to 50 kW per rack, many data centers are testing the limits of their existing cooling systems. As organizations strive to maintain optimal operating conditions amidst these rising demands, the worldwide data center cooling market is experiencing significant growth, driven by the need for innovative and effective cooling solutions.

Restraint

Balancing Power Density and Estate Limitations

As urban expansion continues, the available space for data centers is becoming increasingly limited. This situation presents a significant challenge for data center operators, who find themselves needing to integrate more computing power into smaller areas. Consequently, this trend is placing additional pressure on the data center cooling market.

This issue is particularly pronounced in major cities across the United States, where real estate costs can soar to $1,000 per square foot. As operators attempt to maximize their computing capacity within these high-cost environments, the higher density of racks results in excessive heat generation. 

Traditional thermal management solutions, such as HVAC systems, often struggle to cope with these increased cooling demands.

The relationship between rack density and limited space introduces engineering challenges that can significantly elevate the total ownership costs of data centers.

Trend

Implementation of Liquid Immersion Techniques 

The immersion cooling technique has emerged as a pivotal technology in the modern data center cooling market. Users have increasingly reported that submerging entire servers or individual components in specially formulated dielectric fluids is significantly more effective at eliminating hotspots compared to traditional air cooling methods. This innovative approach not only enhances cooling efficiency but also addresses the challenges posed by increased server densities.

Beyond operational improvements, immersion cooling systems offer a range of operational benefits. For instance, these systems can lead to reduced maintenance requirements, as the dielectric fluids help to keep components cleaner and cooler, minimizing the wear and tear typically associated with air-cooled systems. 

Furthermore, immersion cooling provides the potential for heat recycling, allowing data centers to reclaim waste heat for other applications, thereby improving overall energy efficiency. As a result, immersion cooling stands out as a transformative solution in the quest for sustainable and effective data center cooling strategies.

Recent Developments

• In December 2024, Refroid Technologies, a leading provider of advanced cooling solutions, launched its locally developed single-phase Liquid Immersion Cooling Solutions. This innovative technology aims to meet the growing demand for energy-efficient cooling in data centers, addressing the challenges posed by increasing server densities and the need for sustainable practices.
• In December 2024, Microsoft introduced a new data center design optimized for artificial intelligence (AI) workloads. This design features a cutting-edge cooling system that reportedly consumes zero water, aligning with the company's commitment to reducing the strain on local resources in the communities where its data centers operate. As Microsoft continues to scale its infrastructure to support AI and other technology investments, this initiative reflects a significant step toward sustainability.
• In September 2024, Gates, a global manufacturer renowned for its innovative power transmission and fluid power solutions, announced the upcoming launch of the Data Master™ Data Center Cooling Hose. This new fluid conveyance solution, developed through Gates' Eco-Innovation™ process, represents a further expansion into the rapidly growing segment of data center liquid cooling. This segment is increasingly driven by compute-intensive applications, including AI, underscoring the importance of effective cooling technologies.
• In June 2024, Petronas Lubricants International, an oil and gas company, unveiled a new data center cooling fluid in collaboration with Iceotope. The newly announced Petronas Iona Tera is a specially formulated liquid coolant designed specifically for data centers, marking a significant addition to the portfolio of cooling solutions available.
• In April 2024, Innventure LLC announced that Accelsius Inc., a thermal management technology company launched by Innventure in 2022, revealed its two-phase, direct-to-chip liquid cooling technology. The NeuCool™ system is anticipated to deliver best-in-class thermal performance for high-performance processors running AI, machine learning, and other intensive workloads, further emphasizing the rapid advancements in data center cooling technologies.

Top Players in the Data Center Cooling Market 

• Asetek Inc.
• Coolcentric
• Daikin Industries Ltd
• Green Revolution Cooling
• Iceotope
• Johnson Controls International PLC
• Liquid Cool Solutions Inc.
• LiquidStack
• Mitsubishi Electric Corporation
• Munters Group AB.
• Nortek Air Solutions
• Parker Hannifin
• Rittal GmbH & Co. KG
• Schneider Electric SE
• SPX Cooling Technologies, Inc
• STULZ GMBH
• Telx Holdings, Inc. (Digital Realty Trust, Inc.)
• Vertiv Co.
• Other Prominent Players

Market Segmentation Overview

By Component

• Solution
• Air Conditioning
• Chilling Units
• Cooling Towers
• Economizer Systems
• Liquid Cooling Systems
• Control Systems
• Others
• Services
• Consulting
• Installation & Deployment
• Maintenance & Support

By Data Centre Type

• Tier 1
• Tier 2
• Tier 3
• Tier 4

By Type of Cooling

• Room-based Cooling
• Row/Rack-based Cooling

By Industry

• BFSI
• IT & Telecom
• Research & Academic
• Government & Defense
• Retails
• Energy
• Manufacturing
• Healthcare
• Others

By Geography

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa (MEA)

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