Data Center Cooling Market Research Report By Cooling Technique (Air-based Cooling, Liquid-based Cooling, Evaporative Cooling, Hybrid Cooling), By Data Center Type (Enterprise Data Center, Colocation Data Center, Hyperscale Data Center), By Component (Chillers, Cooling Towers, Condensers, Air Conditioners), By End User (IT and Telecom, BFSI, Government and Public Sector, Healthcare) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

Data Center Cooling Market Summary

As per MRFR analysis, the Data Center Cooling Market Size was estimated at 8.2 (USD Billion) in 2023. The Data Center Cooling Market Industry is expected to grow from 8.6 (USD Billion) in 2024 to 15.35 (USD Billion) by 2035. The Data Center Cooling Market CAGR (growth rate) is expected to be around 5.41% during the forecast period (2025 - 2035). the Data Center Cooling Market is projected to grow significantly, driven by the increasing energy consumption of data centers and the demand for efficient cooling solutions. The market is evolving with innovations in cooling technologies, emphasizing sustainability and adaptability to meet the unique requirements of edge computing and hyperscale data centers.

Key Market Trends & Highlights

Key trends shaping the Data Center Cooling Market include advancements in cooling technologies and a focus on sustainability.

• Data Center Cooling Market Size in 2024: USD 8.6 Billion; expected to reach USD 15.3 Billion by 2035.
• CAGR during 2025-2035: 5.41% ; driven by rising energy consumption and demand for cloud computing.
• North America leads the market in 2024 with a valuation of USD 3.4 Billion; projected to grow to USD 5.8 Billion by 2035.
• Liquid-based Cooling expected to grow from USD 2.5 Billion in 2024 to USD 4.0 Billion by 2035.

Market Size & Forecast

2024 Market Size: USD 8.6 Billion

2035 Market Size: USD 15.3 Billion

CAGR (2025-2035): 5.41%

Largest Regional Market Share in 2024: North America.

Major Players

Key players include Airedale International Air Conditioning, IBM, STULZ, Swegon, Nlyte Software, CoolIT Systems, Emerson Electric, Vertiv, Schneider Electric, Liebert, Rittal, Honeywell, Delta Electronics, Siemens, and Mitsubishi Electric.

Key Data Center Cooling Market Trends Highlighted

The Data Center Cooling Market is undergoing substantial changes as a result of the growing demand for sustainable practices and energy efficiency. As the world transitions to renewable technologies, innovative cooling solutions are being created. There has been a heightened emphasis on environmentally favorable cooling methods as governments worldwide are promoting initiatives to reduce carbon footprints. The industry's transition to energy efficiency while maintaining performance is underscored by the increasing prevalence of advanced cooling technologies, including liquid cooling and free air cooling. The market offers a vast array of opportunities, particularly in light of the expansion of cloud computing and big data.

Innovative cooling solutions can be developed to accommodate the evolving infrastructure as data centers expand to support these technologies. The demand for adaptive and efficient cooling systems that can accommodate fluctuating loads is increasing as data centers become more complex and larger. This change presents an opportunity for companies to investigate the incorporation of artificial intelligence into cooling management systems, which is expected to improve reliability and performance. In recent years, there has been a growing interest in modular data centers, which provide scalability and flexibility while simultaneously reducing the carbon footprint. Furthermore, the impact of edge computing has necessitated a reassessment of cooling strategies to facilitate localized data processing.

This emphasis on efficiency and minimal environmental impact is consistent with the global regulatory frameworks that are advocating for the adoption of sustainable technologies. In order to capitalize on opportunities and navigate the challenges that accompany a dynamically evolving market landscape, stakeholders must remain aware of these trends as the industry adapts.

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

Data Center Cooling Market Drivers

Increasing Demand for Data Centers

The rapid growth in data generation across the globe has led to an upsurge in demand for data centers. According to the International Data Corporation, global data creation is expected to reach approximately 175 zettabytes by 2025, indicating a compounding growth of 61% from the 33 zettabytes created in 2018. As businesses invest heavily in digital transformation and analytics, the necessity for efficient cooling solutions becomes crucial to maintain operational efficiency and system reliability in these data centers.

Leading technology companies such as Amazon and Google, which have extensive data center infrastructures, recognize this need and have begun incorporating advanced cooling technologies to enhance their facilities. This increase in data center construction and expansion is a primary driver for the Data Center Cooling Market Industry, translating to an increased demand for cooling solutions that can manage the intense heat generated by densely packed servers.

Environmental Sustainability Regulations

Governments worldwide are implementing stringent environmental regulations aimed at reducing carbon footprints across various sectors, including the technology sector. The Global Carbon Project has reported a steady increase in annual carbon emissions, surpassing 36 billion tonnes in recent years, which has prompted legislative measures for energy efficiency in data centers. For instance, the European Union’s Green Deal aims to make Europe the first climate-neutral continent by 2050, impacting data centers, which are significant energy consumers.

Organizations like Microsoft and Facebook are already taking steps to comply with these regulations by harnessing energy-efficient cooling systems. This trend towards sustainability is driving innovation in cooling technologies, thereby propelling growth within the Data Center Cooling Market Industry.

Advancements in Cooling Technologies

Advancements significantly influence the Data Center Cooling Market in cooling technologies. Innovations such as liquid cooling and indirect evaporative cooling systems are gaining traction due to their efficiency in managing heat and reducing energy usage. According to the U.S. Department of Energy, traditional air cooling methods consume about 40% of a data center's total energy. As novel cooling technologies emerge, companies can achieve reductions in energy consumption by as much as 20-30%.

Prominent players like IBM and Dell are actively pursuing Research and Development (R&D) in these technologies, showcasing the market's direction towards more efficient, scalable solutions. Such technological advancements play a vital role in sustaining the Data Center Cooling Market by allowing operators to meet the dual pressures of increasing cooling needs and energy efficiency.

Data Center Cooling Market Segment Insights

Data Center Cooling Market Cooling Technique Insights  

The Data Center Cooling Market is witnessing significant growth driven by the increasing demand for efficient cooling solutions as data centers expand globally. By 2024, the market is valued at 8.6 USD Billion, with a major focus on cooling techniques that ensure optimal performance while maintaining energy efficiency. The segmentation of the market reveals various cooling techniques, including Air-based Cooling, Liquid-based Cooling, Evaporative Cooling, and Hybrid Cooling, each contributing uniquely to the industry's dynamics. Air-based Cooling, valued at 3.2 USD Billion in 2024, is a dominant technique due to its simplicity and cost-effectiveness, providing efficient temperature regulation in numerous data center environments.

On the other hand, Liquid-based Cooling is gaining traction, projected to reach 2.5 USD Billion in 2024, as it offers superior thermal management, significantly improving cooling efficiency, especially for high-density server deployments, which aligns well with the growing trend towards compact and powerful data infrastructure. Evaporative Cooling, valued at 1.6 USD Billion in 2024, presents an environmentally friendly option leveraging natural processes to offset energy usage, marking its importance in sustainability initiatives. Finally, Hybrid Cooling, valued at 1.3 USD Billion in 2024, combines elements of both air and liquid-based cooling to optimize performance and reliability, effectively addressing the diverse cooling needs of modern data centers.

As industries push towards higher performance metrics, understanding these cooling techniques is crucial for enhancing operational effectiveness, reducing energy consumption, and supporting the growing intricacies of the Data Center Cooling Market. With significant innovations anticipated, the efficient use of these techniques will likely become a competitive advantage for companies operating within this expanding market sector.

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

Data Center Cooling Market Data Center Type Insights  

The Data Center Cooling Market Data Center Type segment focused on several key components such as Enterprise Data Centers, Colocation Data Centers, and Hyperscale Data Centers. Each type plays a significant role in driving the overall market dynamics. Enterprise Data Centers, often developed by large organizations, are significant due to their tailored cooling solutions that enhance performance and efficiency.

On the other hand, Colocation Data Centers provide shared space, offering flexibility and scalability, catering to various businesses seeking cost-effective solutions for their data management needs. Meanwhile, Hyperscale Data Centers are designed to support large-scale operations, making them essential to the growing demand for cloud services. The growth of cloud computing and data-intensive applications generates a need for innovative cooling technologies, thus creating opportunities in the Data Center Cooling Market. Consequently, understanding the Data Center Cooling Market segmentation reveals critical insights into market growth trends and challenges faced across different data center types.

Data Center Cooling Market Component Insights  

The Data Center Cooling Market, focusing on the Component segment, is poised for significant growth in the coming years. The segmentation within this market includes critical elements such as Chillers, Cooling Towers, Condensers, and Air Conditioners. Chillers play a vital role in maintaining optimal temperatures, while Cooling Towers are essential for dissipating heat effectively.

Condensers are crucial for converting refrigerant gases back into liquid form, and Air Conditioners help in distributing cooled air throughout data centers. With the push for energy efficiency and reduced operational costs, these components are becoming increasingly significant. The market is adapting to trends such as eco-friendly refrigerants and advanced cooling technologies, which address regulatory requirements and environmental concerns. However, challenges like the high initial investment for advanced cooling solutions and continuous innovation demand attention.

Opportunities abound as global data consumption rises, prompting the need for robust cooling infrastructures to support expanding data centers. The Data Center Cooling Market Statistics underline the importance of these components in the broader industry landscape, highlighting their critical role in ensuring data center reliability and performance.

Data Center Cooling Market End User Insights  

The Data Center Cooling Market is projected to reach a remarkable valuation of 8.6 billion USD by 2024, driven largely by its diverse end-user landscape, which includes sectors such as IT and Telecom, Banking, Financial Services, and Insurance (BFSI), Government and Public Sector, and Healthcare. Each of these areas presents unique demands for data center cooling solutions, which are crucial for maintaining optimal operational efficiency and reliability. The IT and Telecom sector plays a vital role, as the continuous evolution of technology and increased data consumption necessitate advanced cooling systems.

The BFSI segment also holds significant importance, requiring robust cooling mechanisms to safeguard critical financial data and minimize system downtimes. The Government and Public Sector and Healthcare sectors are increasingly focusing on data management and cybersecurity, emphasizing the need for sustainable and scalable cooling solutions that can handle growing volumes of sensitive information. Furthermore, with the Data Center Cooling Market regulation trends pushing for energy efficiency and environmental sustainability, the integration of innovative cooling technologies becomes essential to meet these operational and regulatory demands, ultimately fostering continued growth across these key end-user segments.

Data Center Cooling Market Regional Insights  

The Data Center Cooling Market revenue reflects significant activity across various regions, showcasing diverse growth patterns. In 2024, North America leads the market with a valuation of 3.4 USD Billion, accounting for a majority holding due to the region's advanced technological infrastructure and increasing data center establishments. Europe follows with a valuation of 2.5 USD Billion, benefiting from stringent regulations on energy efficiency and sustainability initiatives. Asia Pacific, valued at 1.8 USD Billion, is rapidly expanding as demand for cloud services grows, making it a significant market with future potential.

In South America, the market is valued at 0.7 USD Billion, showing steady growth driven by digital transformation trends. Meanwhile, the Middle East and Africa, at a valuation of 0.2 USD Billion, represent the least share but offer opportunities through increasing investments in data center environments. Overall, the Data Center Cooling Market statistics illustrate the critical importance of these regions, highlighting North America's dominance while noting the emerging potential in other areas. Market challenges include high energy costs and the need for innovative cooling solutions, presenting opportunities for growth within the industry.

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

Data Center Cooling Market Key Players and Competitive Insights

The Data Center Cooling Market represents a critical sector that ensures efficient thermal management in data centers globally, facilitating optimal performance and reliability of IT infrastructure. This market has been shaped by rapid growth in data generation and the subsequent demand for data processing and storage capabilities, pushing enterprises to seek innovative cooling solutions. Competition within this arena is characterized by advancements in technology, with companies striving to enhance energy efficiency and reduce operational costs while addressing environmental concerns. Key players employ strategic collaborations, mergers, and acquisitions to expand their market presence and develop new products that cater to evolving customer needs. With the increasing emphasis on sustainability and energy-efficient operations, understanding the competitive landscape of the Data Center Cooling Market is essential for stakeholders looking to navigate this dynamic environment.

Mitsubishi Electric stands out in the Data Center Cooling Market due to its strong reputation for technological innovation and commitment to energy-efficient solutions. The company leverages its extensive experience in climate control technology to provide a range of cooling systems that cater to the diverse requirements of data centers. Mitsubishi Electric has invested in research and development to introduce cutting-edge products that enhance performance while minimizing energy consumption, making it a preferred choice for many data center operators. With a global presence and robust distribution channels, Mitsubishi Electric is not just a player in the market but a leader capable of influencing industry standards through its sustainable practices and customer-centric approach.

Rittal is a notable competitor in the Data Center Cooling Market, recognized for its comprehensive solutions that address the cooling needs of data centers worldwide. The company offers a variety of key products and services, including cooling units, racks, and IT infrastructure solutions that are essential for maintaining optimal operating conditions in data facilities. Rittal's innovative cooling systems are designed to support high-density applications, ensuring reliability and efficiency. The company's strengths lie in its ability to integrate its cooling solutions seamlessly with existing IT infrastructures and its commitment to sustainability, which resonates with current market demands. Rittal has a strong market presence, bolstered by strategic mergers and acquisitions that have expanded its technological capabilities and product offerings, enabling a broader reach within the global data center landscape while solidifying its competitive edge.

Key Companies in the Data Center Cooling Market Include

• Mitsubishi Electric


• Rittal


• Liebert


• Green Revolution Cooling


• Schneider Electric


• Vertiv


• Honeywell


• CoolIt Systems


• Airedale


• Daikin


• Emerson Electric


• Siemens


• Nlyte Software


• Fujitsu


• Stulz

Data Center Cooling Market Industry Developments

The Data Center Cooling Market has seen significant developments recently, primarily driven by increasing data center capacities and the growing demand for energy-efficient cooling solutions. Mitsubishi Electric, Schneider Electric, and Vertiv have been actively introducing innovative cooling technologies aimed at reducing energy consumption and improving heat management.

Vertiv, a global provider of critical digital infrastructure and continuity solutions, announced in December 2023 that it had acquired CoolTera Ltd., a company that specializes in the distribution of refrigerant for liquid cooling technology in data centers. The objective of this acquisition is to enhance Vertiv's capacity to deploy AI solutions on a large scale and to enhance its capacity to satisfy the needs of global data center clients. CoolTera is a company that specializes in the development and production of manifolds, secondary fluid networks (SFN), and coolant distribution units (CDU) that are specifically designed for liquid cooling solutions in data centers.

Fujitsu and Microsoft announced a global partnership in May 2023 to streamline the process of "sustainability transformation" and aid enterprises in transitioning their duties to the cloud. Fujitsu will capitalize on its proficiency in data center infrastructure, which Microsoft's Azure cloud computing platform will enhance. This strategic partnership provides businesses with a comprehensive solution for the modernization of their IT infrastructure.

Schneider Electric and Compass Datacenters expanded their partnership in November 2023 by signing a multi-year agreement that was valued at USD 3 billion. The primary objective of this initiative is to manufacture and distribute prefabricated modular data center solutions that are prefabricated. The objective is to optimize their supply chains to guarantee the cost-effective, dependable, and expedited delivery of finished products.

Data Center Cooling Market Segmentation Insights

Data Center Cooling Market Cooling Technique Outlook

• Air-based Cooling


• Liquid-based Cooling


• Evaporative Cooling


• Hybrid Cooling

Data Center Cooling Market Data Center Type Outlook

• Enterprise Data Center


• Colocation Data Center


• Hyperscale Data Center

Data Center Cooling Market Component Outlook

• Chillers


• Cooling Towers


• Condensers


• Air Conditioners

Data Center Cooling Market End User Outlook

• IT and Telecom


• BFSI


• Government and Public Sector


• Healthcare

Data Center Cooling Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa

Report Attribute/Metric	Details
Market Size 2023	8.2(USD Billion)
Market Size 2024	8.6(USD Billion)
Market Size 2035	15.35 (USD Billion)
Compound Annual Growth Rate (CAGR)	5.41% (2025 - 2035)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Base Year	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	Mitsubishi Electric, Rittal, Liebert, Green Revolution Cooling, Schneider Electric, Vertiv, Honeywell, CoolIt Systems, Airedale, Daikin, Emerson Electric, Siemens, Nlyte Software, Fujitsu, Stulz
Segments Covered	Cooling Technique, Data Center Type, Component, End User, Regional
Key Market Opportunities	Increased demand for energy efficiency, Adoption of liquid cooling technologies, Growth in edge data centers, Development of renewable energy solutions, Expansion of cloud computing services
Key Market Dynamics	Rising energy efficiency demands, increasing server density, growing data traffic volume, Sustainability regulations and initiatives, Technological advancements in cooling solutions
Countries Covered	North America, Europe, APAC, South America, MEA