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 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 9.03 Billion; expected to reach USD 15.3 Billion by 2035.
• CAGR during 2025-2035: 4.92%; 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 9.03 Billion

2035 Market Size: USD 15.3 Billion

CAGR (2025-2035): 4.92%

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 Global Data Center Cooling Market is witnessing several notable trends driven by the rapid growth of digital infrastructure and the increasing demand for energy efficiency. A primary market driver is the need to manage the heat generated by densely packed servers and networking equipment. This has led to innovations in cooling technologies, such as liquid cooling and advanced airflow management systems, which are gaining traction among data center operators. Furthermore, the rising awareness of environmental concerns is pushing organizations to adopt sustainable cooling practices that not only lower energy consumption but also minimize environmental impact. 

Opportunities in the market are abundant, particularly in the adaptation of cooling solutions for edge computing and hyper-scale data centers. These facilities often have unique cooling requirements, urging cooling solution providers to tailor their services accordingly. Moreover, growth in cloud computing and big data is creating demand for more efficient cooling solutions, which enhances the overall performance and reliability of data centers. Recent trends include a shift towards modular and scalable cooling systems that can be deployed quickly as the need for more data processing power arises. The integration of artificial intelligence in cooling management systems is also becoming prevalent, optimizing performance while further reducing energy costs.

Countries across the globe are increasingly focusing on building energy-efficient data centers, supported by regulatory pressures and incentives aimed at promoting the use of green technologies. As a result, the landscape of the Global Data Center Cooling Market is evolving to prioritize efficiency, sustainability, and adaptability in response to the growing challenges of data management and climate change.

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

Data Center Cooling Market Drivers

Increasing Data Center Energy Consumption

The Global Data Center Cooling Market Industry is driven significantly by the increasing energy consumption related to data centers. According to the International Energy Agency, data centers globally consumed about 200 terawatt-hours (TWh) in 2018, which is nearly 1% of total global electricity use. This consumption is expected to rise due to the growing demand for cloud computing and big data analytics, which necessitates efficient cooling solutions.Companies like Google have been reported as utilizing advanced cooling technologies to reduce their energy consumption, showcasing the necessity of innovative cooling solutions amidst rising energy demands. As more organizations strive for sustainability and energy efficiency, the push for advanced cooling solutions in data centers will drive market growth in the coming years.

Expansion of Edge Computing

The growth of edge computing is influencing the Global Data Center Cooling Market Industry significantly. With edge data centers closer to end-users to reduce latency, there is an increasing need for effective cooling solutions for smaller facilities that face intense operational challenges. The Global Data Center Cooling Market is expected to benefit from the demand for efficient cooling that meets the spatial constraints of edge data centers. Organizations such as Amazon and Microsoft are investing heavily in edge computing infrastructure, which will drive the requirement for reliable and compact cooling systems, thereby positively impacting the cooling market.

Increasing Focus on Sustainability

The Global Data Center Cooling Market Industry is benefiting from the rising focus on sustainability and reducing carbon footprints across industries. Many governments are implementing stricter environmental regulations to limit energy consumption and greenhouse gas emissions. For instance, the European Union has set ambitious goals for carbon neutrality by 2050, pushing data centers to adopt more environmentally friendly cooling solutions. This includes the implementation of free air cooling and liquid cooling systems that utilize renewable energy sources.Organizations such as Facebook are already committed to running data centers entirely on renewable energy, highlighting the trend toward sustainable cooling practices. This government push and industry compliance will foster significant growth in the market.

Data Center Cooling Market Segment Insights

Data Center Cooling Market Cooling Technique Insights

The Cooling Technique segment of the Global Data Center Cooling Market is a crucial area contributing to the overall market's value, which stands at 9.03 USD Billion in 2024. This segment is primarily composed of four techniques: Air-based Cooling, Liquid-based Cooling, Evaporative Cooling, and Hybrid Cooling, each playing a distinctive role in data center operations. Air-based Cooling, valued at 3.2 USD Billion in 2024 and predicted to grow to 5.25 USD Billion in 2035, holds a significant position with its simplicity and cost-effectiveness, making it a popular choice among data center operators.Liquid-based Cooling follows closely, with a market valuation of 2.5 USD Billion in 2024, expected to reach 4.0 USD Billion by 2035, primarily due to its higher efficiency and effectiveness in managing heat compared to air-based methods. This technique is increasingly seen as a necessity in high-density data center environments, where thermal loads are substantially higher. 

Evaporative Cooling, with a valuation of 1.8 USD Billion in 2024 and a projected growth to 3.0 USD Billion by 2035, leverages the natural process of evaporation to reduce temperatures, making it a sustainable and energy-efficient choice, particularly in climates with low humidity.Lastly, Hybrid Cooling garners attention as it combines both air and liquid-based techniques, valued at 1.53 USD Billion in 2024 and extending to 2.05 USD Billion by 2035; this approach allows for versatility in cooling solutions, adapting to the varying climate needs of data centers. Overall, these insights reflect the innovations aimed at optimizing energy efficiency and operational effectiveness amidst growing demands for data processing capabilities globally. 

Major investments and technological developments in these cooling techniques are driven by the necessity to reduce operational costs and environmental impact, fortifying the segment's critical role in the Global Data Center Cooling Market revenue landscape.The segment's growth trajectory is significantly influenced by the increasing density of data centers, regulatory pressures for energy efficiency, and a surge in cloud computing and big data applications. The integration of advanced cooling techniques is not just about maintaining optimal temperature levels but also reflects broader trends toward sustainability and operational resilience in the IT sector.

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

Data Center Cooling Market Data Center Type Insights

This segment includes Enterprise Data Centers, Colocation Data Centers, and Hyperscale Data Centers, each contributing significantly to the overall market landscape. The Enterprise Data Centers often feature customized cooling solutions to optimize efficiency, reflecting the trend towards tailored infrastructure within organizations. Colocation Data Centers, on the other hand, offer shared space and cooling resources for multiple clients, which enables cost savings and flexible scalability.Hyperscale Data Centers are generally massive facilities that require advanced cooling technologies to manage the significant heat generated by extensive server farms. This segment is increasingly important as businesses require high-density computing solutions and operational efficiency. 

Overall, the Global Data Center Cooling Market data highlights that these types of data centers are aligned with the ongoing digital transformation, making them significant players in the ongoing growth of the Global Data Center Cooling Market industry. Innovations in cooling technologies also present growth opportunities, tackling challenges such as energy efficiency and environmental concerns alongside market growth.

Data Center Cooling Market Component Insights

The Global Data Center Cooling Market focuses significantly on the Component segment, which includes essential elements such as Chillers, Cooling Towers, Condensers, and Air Conditioners. Chillers, for instance, play a crucial role in maintaining optimal temperature levels, making them a vital component of the cooling infrastructure. Cooling Towers also significantly contribute to efficient thermal management, while Condensers help in effective heat dissipation processes.Air Conditioners are universally utilized, offering tailored cooling solutions across various data center sizes. 

With a projected overall market growth, there will be an increased focus on innovative cooling technologies addressing the rising energy demands and sustainability concerns in the data center sector. The need for cooling equipment is driven by the continuous expansion of data centers globally, resulting in higher operational efficiency and reduced risk of overheating. Thus, the Component segment is essential for the thriving Global Data Center Cooling Market.

Data Center Cooling Market End User Insights

The Global Data Center Cooling Market is projected to experience substantial growth across various user categories, reflecting diverse needs for efficient cooling systems. Within this context, the IT and Telecom sector plays a crucial role, driven by the rapid digitalization of services and the growing reliance on cloud-based solutions. The BFSI sector also demonstrates significant growth potential as financial institutions prioritize data security and operational efficiency.Moreover, the Government and Public Sector require robust cooling solutions to maintain critical data services and manage public information. 

The Healthcare segment demands reliable cooling systems to ensure compliance with regulatory standards and the protection of sensitive patient data. Each of these categories contributes to the dynamics of the Global Data Center Cooling Market sector, highlighting opportunities for innovation and market growth while addressing unique challenges, such as energy efficiency and sustainability.

Data Center Cooling Market Regional Insights

The Regional segmentation of the Global Data Center Cooling Market highlights the growing importance and demand for efficient cooling solutions across various geographies. In 2024, North America leads with a market valuation of 3.4 USD Billion, expected to grow to 5.8 USD Billion by 2035, showcasing its dominance in adopting advanced cooling technologies driven by a robust IT infrastructure and cloud computing demand. 

Europe follows, valued at 2.5 USD Billion in 2024, moving to 4.1 USD Billion in 2035, benefited by stringent regulations aimed at energy efficiency and sustainability in data center operations.The APAC region holds a valuation of 2.0 USD Billion for 2024 and moves to 3.5 USD Billion by 2035, reflecting rapid digitalization and urbanization, particularly in countries like China and India. South America is valued at 0.8 USD Billion in 2024 and is projected to reach 1.3 USD Billion by 2035, with growing investments in IT infrastructure driven by a rising demand for cloud services. 

The Middle East and Africa (MEA) exhibit the least valuation at 0.33 USD Billion in 2024, expanding to 0.6 USD Billion in 2035, influenced by an increasing focus on data localization and digital transformation initiatives.This segmentation illustrates the Global Data Center Cooling Market's evolving landscape, where North America and Europe majorly hold the market share, showcasing significant opportunities for growth driven by rising data consumption globally.

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

Data Center Cooling Market Key Players and Competitive Insights

The Global Data Center Cooling Market has been increasingly competitive, driven by the growth in data centers and the expanding need for efficient cooling solutions. As data centers consume substantial energy and generate significant heat, the importance of advanced cooling technologies has surged. In this context, various players in the market are striving to maintain a competitive edge through innovation, strategic partnerships, and technological advancements. The competition also encompasses a focus on sustainability and energy efficiency, which are critical factors in today's environmentally-conscious landscape. Companies are actively working to offer a portfolio of products designed to mitigate thermal challenges in data centers while enhancing operational efficiency.Airedale International Air Conditioning has established itself as a prominent player in the Global Data Center Cooling Market. The company is recognized for its specialized cooling solutions that cater to the diverse needs of data centers. 

Airedale's strengths lie in its innovative product lineup, which includes precision air conditioning units designed for high-density environments. The company's extensive experience and expertise in cooling technology provide it with a significant advantage in responding to market demands. Moreover, Airedale's commitment to energy-efficient solutions aligns with the growing focus on sustainability within the sector, making it a valuable choice for clients looking to improve operational performance while reducing their carbon footprint. The company continues to expand its global presence, reinforcing its status as a reliable partner for cooling solutions in the data center realm.

IBM has a solid foothold within the Global Data Center Cooling Market, integrating cooling solutions into their comprehensive hardware and cloud offerings. The company focuses on delivering advanced cooling technologies as part of its data center infrastructure, emphasizing energy efficiency and innovative cooling methods to manage critical operations effectively. IBM's strengths lie in its deep technical knowledge, extensive research and development capabilities, and a wide array of solutions that cater to the specific needs of modern data centers. Additionally, the company is known for its strategic mergers and acquisitions that enhance its cooling technology portfolio and market share. 

By leveraging its established reputation and resources, IBM is well-positioned to capitalize on emerging trends in the market, ensuring its continued relevance and leadership in the Global Data Center Cooling sector.

Key Companies in the Data Center Cooling Market Include:

• Airedale International Air Conditioning


• IBM


• STULZ


• Swegon


• Nlyte Software


• CoolIT Systems


• Emerson Electric


• Vertiv


• Schneider Electric


• Liebert


• Rittal


• Honeywell


• Delta Electronics


• Siemens


• Mitsubishi Electric

Data Center Cooling Market Industry Developments

The Global Data Center Cooling Market has recently witnessed significant developments, driven by the increasing demand for efficient cooling solutions amid rising data center complexities. Companies like Schneider Electric and Vertiv have reported substantial growth in market valuations attributed to advancements in energy-efficient cooling technologies. In May 2023, Emerson Electric announced the acquisition of a controlling interest in a cooling solutions provider to enhance its product offerings, reflecting the ongoing trend of consolidation in the market.

Similarly, Airedale International Air Conditioning expanded its portfolio with innovative cooling solutions tailored for hyperscale data centers, reinforcing its position in the industry. In recent years, the Global Data Center Cooling Market has also experienced heightened activity, with STULZ advancing its cooling systems integration in December 2022, emphasizing sustainability and reliability. 

The global shift towards green technologies is prompting companies like CoolIT Systems and Delta Electronics to enhance their cooling solutions' energy efficiency, impacting overall market dynamics. With ongoing developments, the market continues to adapt to the ever-evolving landscape of data management and environmental sustainability.

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 Source:	Details
MARKET SIZE 2023	8.6(USD Billion)
MARKET SIZE 2024	9.03(USD Billion)
MARKET SIZE 2035	15.3(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	4.92% (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	Airedale International Air Conditioning, IBM, STULZ, Swegon, Nlyte Software, CoolIT Systems, Emerson Electric, Vertiv, Schneider Electric, Liebert, Rittal, Honeywell, Delta Electronics, Siemens, Mitsubishi Electric
SEGMENTS COVERED	Cooling Technique, Data Center Type, Component, End User, Regional
KEY MARKET OPPORTUNITIES	Increased energy efficiency demand, Adoption of liquid cooling solutions, Growth in cloud computing infrastructure, Rising regulations on data center emissions, Expansion in emerging markets
KEY MARKET DYNAMICS	rising energy efficiency demand, increasing data center ubiquity, regulatory sustainability initiatives, technological advancements in cooling, cost management pressures
COUNTRIES COVERED	North America, Europe, APAC, South America, MEA