USD 17.0 billion
Report ID:
SQMIG45D2155 |
Region:
Global |
Published Date: June, 2025
Pages:
198
|Tables:
122
|Figures:
77
Global Data Center Cooling Market size was valued at USD 16.35 billion in 2023 and is poised to grow from USD 19.57 billion in 2024 to USD 65.11 billion by 2032, growing at a CAGR of 16.21% during the forecast period (2025-2032).
Increasing demand for cloud platforms, rising number of hyperscale data centers, expansion of 5G infrastructure, increasing rack densities and heat loads, and rise in demand for managed data services and colocation are slated to bolster the demand for data center cooling solutions.
The exponential growth of cloud computing, big data analytics, and IoT services has driven demand for hyperscale data centers globally, which also necessitates the need for better data center cooling solutions. Data center operators are prioritizing energy-efficient cooling to reduce operational costs and environmental impact. The rapid rollout of 5G and the proliferation of edge computing require decentralized micro-data centers closer to end users. Governments and international organizations are enforcing energy efficiency and environmental regulations on data center operations, directly influencing cooling system designs thereby promoting data center cooling market growth as well.
On the contrary, high initial investments and operating costs, complex retrofitting in legacy data centers, water scarcity, environmental concerns, and lack of skilled professionals with technical expertise are slated to inhibit the global data center cooling market penetration across the forecast period and beyond.
How is Artificial Intelligence Altering Data Center Cooling Adoption?
Artificial Intelligence and Machine Learning are transforming data center cooling by enabling real-time monitoring, predictive analytics, and automated system optimization. AI-powered solutions dynamically adjust fan speeds, temperature setpoints, and airflow distribution based on workload patterns and ambient conditions. These systems improve Power Usage Effectiveness (PUE), reduce operational costs, and minimize downtime risk. Companies like Google and Microsoft have achieved substantial energy savings through AI-based cooling algorithms. Integration of IoT sensors and digital twins enhances data-driven insights. As data centers become increasingly complex and distributed, the demand for autonomous thermal management platforms is rising, making AI a cornerstone of modern cooling strategy.
Market snapshot - 2025-2032
Global Market Size
USD 17.0 billion
Largest Segment
Solutions
Fastest Growth
Services
Growth Rate
13.2% CAGR
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The global data center cooling market is segmented by component, data center type, cooling type, end-use industry, and region. Based on components, the market is segmented into solutions and services. Based on data center type, the market is segmented into mid-sized data centers, enterprise data centers, and large data centers. Based on cooling type, the market is segmented into room-based cooling and row/rack-based cooling. Based on end-use industry, the market is segmented into BFSI, IT & telecom, research & academic, government & defense, retail, energy, manufacturing, healthcare, and other end-use industries. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
The solutions segment is forecasted to hold a significant chunk of the global data center cooling market share in the future. Innovation of new data center cooling technologies has resulted in the development of new cooling solutions, which are in high demand across the world. Growing emphasis on improving operational efficiency and sustainability of data centers are also helping cement the dominance of this segment.
Meanwhile, the services segment is forecasted to exhibit rewarding opportunities as per this global data center cooling industry analysis going forward. Growing outsourcing of data center maintenance and operations is helping create new opportunities for data center cooling service providers in the future.
Room-based cooling is estimated to spearhead the global data center cooling market revenue generation potential in the long run. High suitability of room-based cooling solutions to handle higher heat loads efficiently is helping this segment hold sway over others. Reduced risk of equipment failure and downtime offered by room-based cooling is also driving up its adoption.
On the other hand, demand for row/rack-based cooling is expected to rise at an impressive CAGR over the coming years. Increasing adoption of high rack densities in data centers and expansion of hyperscale data centers are creating new business scope via this segment in the long run.
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High concentration of hyperscale data centers, cloud service providers, and colocation facilities in North America makes it the top spot for data center cooling companies. Continual investments in expansion of IT infrastructure and regulatory emphasis on promoting energy efficiency and sustainable operations in data centers are expected to boost data center cooling demand. Federal and state-level environmental policies further incentivize the shift toward eco-friendly and cost-efficient thermal management solutions in the North American region going forward.
Hyperscale data center expansions, cloud dominance, and early adoption of advanced technologies are helping United States lead global data center cooling demand. The presence of leading tech giants such as AWS, Google, and Meta and their investments in data center construction is further driving up the adoption of novel data center cooling technologies. Government policies and incentives encourage eco-friendly designs and emissions reductions. High rack densities and demand for edge computing further enhance the need for modular, adaptive cooling solutions in the country to cement its dominance in North America.
Increasing colocation activity, favorable climate conditions, and supportive government policies are expected to bolster the demand for data center cooling in Canada. Free cooling technologies are especially popular in the country owing to their cooler ambient temperatures. Growth in AI, cloud services, and remote work are further fueling the demand for advanced data center infrastructure, thereby providing data center cooling solutions as well.
The robust increase in digitalization, cloud adoption, and rapidly rising data center construction activities is making Asia Pacific the fastest-growing region for data center cooling providers. The surge in mobile usage, 5G rollout, and internet penetration is expected to bolster the demand for hyperscale data centers in the region. Tropical climates of countries in this region further cement the adoption of highly advanced data center cooling technologies in the long run. With a large population, increasing data traffic, and expanding industrial base, Asia Pacific is poised for accelerated data center cooling innovation and deployment.
Limited space, high energy costs, and a strong push for efficiency are governing the adoption of data center cooling solutions in Japan. Compact high-performance cooling technologies like direct-to-chip liquid cooling and advanced airflow management are preferred in the country. The country’s vulnerability to natural disasters is also driving up the adoption of resilient and disaster-proof cooling systems. Tokyo, Osaka, and Fukuoka prefectures are projected to be highly opportune for data center cooling companies operating in Japan through 2032.
Expansion of 5G, smart cities, and cloud infrastructure are primarily driving the uptake of advanced data center cooling technology in the country. Strong government backing for digital transformation and carbon neutrality targets accelerates innovation in liquid cooling and smart control technologies. Growing data consumption, increasing AI workloads and edge deployments, and collaborations between telecom giants and global hyperscalers are creating new opportunities for data center cooling companies.
Imposition of stringent sustainability regulations, high energy costs, and strong digital transformation initiatives are augmenting the demand for data center cooling in Europe. The EU’s Green Deal and Climate Neutral Data Centre Pact are pushing data center operators toward energy-efficient cooling technologies. Liquid cooling, free cooling, and AI-powered systems are highly popular among data center operators in the region. Europe's temperate climate in some areas supports natural cooling methods, while environmental consciousness in certain areas supports selection of responsible cooling solutions.
Post-Brexit energy policy shifts and ESG compliance pressures are expected to play a crucial role in supporting the demand for data center cooling in the country. London’s stance as a key hub for hyperscale, colocation, and financial sector infrastructure is also slated to boost the adoption of innovative data center cooling solutions. Data center operators also prioritize real estate efficiency in the country due to urban space limitations, which also influences adoption of data center cooling tech. Emerging edge data centers across the United Kingdom are slated to bolster the sales of compact data center cooling systems.
Data sovereignty laws, energy efficiency regulations, and industrial digitization are governing the demand for data center cooling in Germany. The presence of leading hyperscale data centers and colocation centers in Frankfurt, Berlin, and Munich is driving up the demand for innovative data center cooling solutions. The country’s high electricity costs and strict adherence to environmental standards prompt adoption of energy-efficient solutions like indirect evaporative cooling and free cooling. Germany’s engineering expertise and focus on green data centers contribute to steady growth in efficient thermal infrastructure.
Digital infrastructure expansion and rising sustainability commitments are shaping the adoption of data center cooling in the country. Positioning of Paris and Marseille as key data traffic hubs in France also makes them key markets for data center cooling providers going forward. France’s participation in EU-wide climate initiatives and local emphasis on digital sovereignty are also promoting the establishment of localized data centers requiring sustainable cooling. Public-private partnerships are elemental in boosting the business scope of data center cooling vendors in France.
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Rise in Demand for Colocation and Managed Data Services
Increasing Rack Densities and Heat Loads
Water Scarcity and Environmental Concerns
Complex Retrofitting in Legacy Data Centers
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Data center cooling providers should focus on creating solutions that are eco-friendly and use minimal water. Developing customized data center cooling strategies and solutions for different types of data centers is also a key opportunity for market players as per this global data center cooling industry analysis.
The robust increase in data center infrastructure expansion has created an opportune setting for data center cooling startups. Here are a few startups that are influencing the demand for data center cooling on a global level.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, high adoption of cloud technologies and growing emphasis on sustainability are slated to primarily drive the demand for data center cooling going forward. However, environmental concerns and challenges in retrofitting legacy data centers are anticipated to slow down the adoption of Data center cooling in the future. North America is slated to emerge as the dominant region owing to the presence of multiple hyperscale data centers and investments in data center construction from companies such as AWS, Google, Meta, and Microsoft. Adoption of liquid cooling technologies and development of modular cooling systems are key trends driving the data center cooling sector through 2032.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 16.35 billion |
Market size value in 2032 | USD 65.11 billion |
Growth Rate | 16.21% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Data Center Cooling Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Data Center Cooling Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Data Center Cooling Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Data Center Cooling Market for additional countries.
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Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
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Global Data Center Cooling Market size was valued at USD 17.0 billion in 2023 and is poised to grow from USD 19.24 billion in 2024 to USD 51.89 billion by 2032, growing at a CAGR of 13.2% during the forecast period (2025-2032).
Data center cooling providers should focus on creating solutions that are eco-friendly and use minimal water. Developing customized data center cooling strategies and solutions for different types of data centers is also a key opportunity for market players as per this global data center cooling industry analysis. 'Schneider Electric SE (France) ', 'Vertiv Co. (US) ', 'Eaton Corporation plc (Ireland) ', 'Rittal GmbH & Co. KG (Germany) ', 'STULZ GmbH (Germany) ', 'Asetek A/S (Denmark) ', 'Coolcentric (US) ', 'ClimateWorx International Inc. (Canada) ', 'Delta Electronics Inc. (Taiwan) ', 'Fujitsu Limited (Japan) ', 'Hewlett Packard Enterprise Development LP (US) ', 'IBM Corporation (US) ', 'Johnson Controls International plc (Ireland) ', 'Mitsubishi Electric Corporation (Japan) ', 'Trane Technologies plc (Ireland) ', 'Vigilent Corporation (US) ', 'Lenovo Group Limited (China) ', 'Huawei Technologies Co., Ltd. (China) ', 'CommScope Holding Company, Inc. (US) ', 'Emerson Electric Co. (US)'
Surging demand for colocation and third-party managed data centers by enterprises has boosted demand for reliable, scalable cooling systems. Such infrastructure houses varied workloads and densities within a single framework. To attract clients, colocation providers invest in state-of-the-art cooling technologies that ensure consistent temperature, uptime, and energy efficiency. Furthermore, Service-Level Agreements (SLAs) mandate strict thermal compliance, prompting cooling system upgrades.
Adoption of Liquid Cooling and Immersion Technologies: Data center cooling providers are moving towards liquid cooling technologies to keep up with rising rack densities and performance-intensive workloads like AI and HPC. Liquid cooling is gaining traction due to its higher thermal efficiency and compact footprint. Tech giants and hyperscale operators piloting or scaling liquid-cooled data centers. As hardware evolves, vendors are developing standardized, modular liquid cooling systems compatible with existing infrastructures, which makes this a mainstay data center cooling industry trend for the future.
What Allows North America to Lead Data Center Cooling Adoption?
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Report ID: SQMIG45D2155
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