North America Data Center Cooling Market Outlook, 2030

The data center cooling market in North America represents an important segment of the IT infrastructure industry, driven primarily by the rapid growth in cloud computing, big data analytics, artificial intelligence (AI), and the Internet of Things (IoT). As businesses and industries increasingly rely on digital platforms, the amount of data generated and processed continues to surge, which in turn raises the demand for higher computing power and, consequently, greater heat production within data centers. This makes advanced cooling solutions essential to maintain the optimal performance of servers and other IT equipment while preventing overheating and downtime.

Data center cooling technologies are extensively utilized across various sectors, including telecommunications, healthcare, financial services, and e-commerce, to ensure the reliability and efficiency of critical systems. The market expansion is closely tied to innovations in cooling technologies that optimize energy usage and manage high-density workloads. North America, as a global leader in technological advancements, has been at the forefront of adopting cutting-edge cooling solutions, such as liquid cooling, free cooling, and AI-powered cooling management systems. These technologies are designed to address the increasing cooling demands of hyperscale data centers, which are becoming the backbone of modern computing infrastructure. The region’s strong IT infrastructure and rising electricity costs have driven the need for more energy-efficient cooling systems to lower operational expenses and enhance sustainability. The market for data center cooling has evolved from traditional air cooling methods to more sophisticated, scalable solutions capable of supporting the massive data processing demands of modern data centers. The growing adoption of cloud services, coupled with the need for continuous uptime and data security, has made the development and deployment of reliable cooling systems more critical than ever.

According to the research report 'North America Data Centre Cooling Market Overview, 2030,', the North America Data Centre Cooling Market is anticipated to grow at more than 12.06% CAGR from 2025 to 2030. The data centre cooling market has witnessed significant growth in recent years due to the increasing demand for high-performance computing and cloud services. With data centres expanding to meet the growing digital infrastructure needs, the demand for effective and efficient cooling solutions has risen. As businesses prioritize sustainability and energy efficiency, technologies like liquid cooling, free cooling, and AI-powered management systems are gaining traction.

These advancements are crucial in controlling the rising energy costs and ensuring optimal performance in a rapidly growing market. The market's growth is also fueled by the increasing volume of data being generated and the adoption of digital technologies across various sectors. Major companies operating in the North American data centre cooling market include industry leaders such as Vertiv, Schneider Electric, Rittal, and STULZ, which provide a range of cooling solutions designed to optimize energy use and maintain the integrity of critical data centre operations. In addition, new entrants focusing on innovations in cooling technology, such as hybrid and liquid cooling systems, have contributed to the market's expansion. Industry news from 2021 to 2024 highlights a strong push toward energy-efficient and environmentally friendly cooling solutions, driven by both technological advancements and government regulations encouraging sustainability. The production and trade of cooling equipment have seen significant shifts in response to this demand, with increasing investments in manufacturing and distribution to cater to growing market needs. The COVID-19 pandemic has had a profound impact on the market, as the surge in remote work and digital services heightened the reliance on cloud-based solutions, leading to an increased demand for data centre infrastructure and cooling systems. Looking ahead, the market is forecasted to continue its upward trajectory, with a strong focus on innovative, scalable, and energy-efficient cooling solutions in the coming decade.

Market Drivers

Rising Data Traffic and Cloud Expansion: The rapid growth of cloud services, big data, AI applications, and IoT is one of the primary drivers for the data centre cooling market in North America. The surge in data traffic and storage requirements forces data centres to expand their capacities, which in turn increases the need for robust and efficient cooling systems. As servers process more data at higher speeds, the heat generated within these facilities increases, necessitating advanced cooling technologies to maintain operational efficiency and prevent downtime caused by overheating.

Focus on Sustainability and Energy Efficiency: With increasing environmental awareness and stringent regulations, data centres in North America are under pressure to adopt energy-efficient cooling solutions. The drive for sustainability has led many operators to invest in energy-saving technologies such as liquid cooling, free cooling, and AI-driven cooling systems. These innovations not only help reduce the carbon footprint but also lower operational costs, making energy-efficient cooling a critical factor for growth in the data centre cooling market. The push for greener operations aligns with global energy conservation initiatives and government mandates.

Market Challenges

High Energy Consumption and Operational Costs: Cooling systems in data centres are notoriously energy-intensive, often consuming a significant portion of the facility’s total energy usage. As data centres scale up to meet the growing demand for digital services, the cooling systems must be increasingly sophisticated to handle higher computing loads. This results in higher operational costs, which is a challenge for operators seeking to balance performance and energy efficiency. Addressing these high energy consumption rates without compromising system performance is a key obstacle that the industry faces today.

Space Constraints for Cooling Infrastructure: As data centre demands rise, available space within these facilities becomes more limited. Traditional air-based cooling systems require large, open spaces, which can be difficult to accommodate in high-density data centres. The challenge of efficiently using available space for both servers and cooling infrastructure is further compounded by the push for smaller, more compact systems. Operators must find innovative solutions, such as modular or integrated cooling systems, to make the best use of space while ensuring effective cooling performance.

Market Trends

Growth of AI-Driven Cooling Solutions: Artificial Intelligence (AI) is transforming data centre cooling by enabling adaptive and intelligent systems that adjust cooling requirements in real-time. AI-powered systems analyze data centre conditions and make automatic adjustments to cooling equipment, optimizing energy use and ensuring consistent temperatures. This trend not only improves the overall energy efficiency of the facility but also reduces operational costs and minimizes the risk of overheating, making it a key development for modern data centres focused on optimizing their cooling systems.

Shift Toward Liquid and Immersion Cooling Technologies: Traditional air cooling methods are becoming less efficient as data centres adopt high-density computing systems. To tackle the limitations of air cooling, liquid and immersion cooling technologies are emerging as more effective alternatives. Liquid cooling, in particular, allows for better heat dissipation by directly cooling the components, and immersion cooling involves submerging the hardware in a thermally conductive liquid. These methods are gaining popularity due to their ability to cool more efficiently, consume less energy, and provide a more sustainable solution for high-performance data centres, driving the evolution of the market.

Air Conditioning Solutions is a leader in North America's data center cooling industry due to its innovative, energy-efficient, and highly scalable cooling technologies that ensure optimal performance and sustainability for modern data centers.

Air Conditioning Solutions has established itself as a dominant player in the North American data center cooling industry by pioneering cutting-edge technologies that address the growing demand for energy-efficient and reliable cooling systems. Data centers, which house critical infrastructure for cloud computing, enterprise applications, and more, require advanced cooling solutions to prevent overheating and ensure continuous operation. Air Conditioning Solutions stands out by offering tailored, high-performance systems that effectively balance energy efficiency with cooling capacity. Their systems are designed to handle the immense heat load generated by increasingly powerful servers, without compromising environmental sustainability.

By focusing on energy efficiency, they help reduce operational costs for clients while contributing to global efforts to lower carbon footprints. Additionally, their adaptability to various data center sizes, from small to hyper-scale, coupled with their ability to scale up as needed, makes them a go-to choice for data center operators looking for future-proof solutions. Their track record of reliability and exceptional customer service further reinforces their standing as a leader in the industry.

Room-based cooling is the leading segment in North America's data center cooling industry due to its cost-effectiveness, scalability, and ability to address the high cooling demands of large-scale data centers.

Room-based cooling, often referred to as precision air conditioning (PAC) or computer room air conditioning (CRAC), is the dominant method for cooling in North America’s data centers, primarily because it efficiently manages the large cooling loads associated with dense IT environments. This approach involves the cooling of entire server rooms or data halls, ensuring a consistent temperature throughout the facility. Data centers house numerous servers, storage devices, and networking equipment that produce significant heat, and room-based cooling systems are designed to address this challenge by circulating cold air to maintain optimal operating conditions for this equipment. One of the key advantages of room-based cooling is its scalability.

As data centers grow in size to accommodate expanding IT infrastructure, room-based cooling can easily be adjusted to handle the increasing cooling demands. Additional cooling units or modifications can be added to existing systems without the need for extensive overhauls, making it a cost-effective option. This scalability is especially important in North America, where data centers are growing rapidly due to increased reliance on cloud computing, big data, and digital services. In addition to scalability, room-based cooling provides flexibility, which is critical for data centers that need to optimize their cooling strategies. For example, systems can be integrated with other cooling technologies, such as in-row or in-rack cooling, to provide targeted cooling where necessary. This combination of room-level cooling and localized cooling techniques ensures that the temperature distribution is balanced and efficient throughout the facility. Energy efficiency has also played a crucial role in the widespread adoption of room-based cooling. Modern systems are designed with advanced features such as variable-speed fans, humidity control, and intelligent monitoring systems that optimize energy consumption. This makes room-based cooling not only a reliable solution but also one that helps mitigate the rising costs of energy, which are a significant concern for data center operators.

The IT and telecom sectors are leading and largest segment in North America's data center cooling industry due to their exponential demand for efficient, scalable, and energy-efficient infrastructure to support increasing data traffic and digital transformation.

The IT and telecom industries are the primary drivers of growth in North America's data center cooling sector, and the reason for this lies in the enormous rise in data consumption, processing, and communication demands over the past decade. These industries, which encompass cloud services, telecommunications, content delivery networks, and Internet of Things (IoT) technologies, require cutting-edge infrastructure to handle vast amounts of data. As digital transformation continues to expand, there is a significant surge in the need for data storage and processing capacity, which is primarily housed in data centers. In turn, this drives the need for advanced cooling solutions to maintain optimal operating conditions in these centers.

The cooling requirements of data centers are essential to the uninterrupted performance of hardware, preventing overheating, and ensuring the safety and longevity of equipment. As data centers become denser, with more powerful processors, greater storage, and higher-speed networking, the heat generated by this equipment also escalates. Without sufficient cooling, data center components such as servers and networking equipment can overheat, leading to equipment failure, data loss, or even catastrophic downtime. Therefore, the IT and telecom industries must invest heavily in sophisticated cooling solutions that efficiently manage heat dissipation while minimizing energy consumption. This need for innovative cooling solutions is evident as the demand for high-performance computing, artificial intelligence (AI), machine learning (ML), big data analytics, and cloud storage increases. The sheer scale of the IT and telecom sectors amplify the need for robust cooling systems. For instance, the growth of cloud computing services like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud has resulted in the construction of large-scale data centers around North America, which are designed to handle massive amounts of data from millions of users worldwide. These cloud giants depend on highly efficient cooling systems to ensure their data centers are operational 24/7, as downtime could cost them millions of dollars in revenue and damage their reputations. Similarly, telecom operators require reliable data center cooling to support the growing use of mobile internet services, 5G deployments, and the enormous data traffic generated by streaming platforms, online gaming, and social media platforms. Another factor contributing to the dominance of IT and telecom in the data center cooling industry is the increasing push for sustainability and energy efficiency. As data centers consume enormous amounts of energy, there has been a growing emphasis on developing cooling technologies that not only prevent overheating but also reduce energy consumption and lower operational costs. This is particularly critical for telecom operators and IT companies under pressure to meet stringent environmental standards and reduce their carbon footprints. Cooling systems such as liquid cooling, free cooling (using ambient air), and advanced air conditioning technologies are in demand as they help improve energy efficiency and reduce the environmental impact of data centers. Moreover, the rise of edge computing, a subset of IT infrastructure where data is processed closer to the source rather than in a centralized data center, also requires efficient and adaptive cooling systems to handle the localized, on-demand processing of data. With the growing expansion of 5G networks, edge data centers are rapidly becoming essential, further driving innovation and demand for cooling solutions tailored to smaller, distributed data storage units.

The United States leads the North America in data center cooling industry due to its technological innovations, high concentration of data centers, and significant demand for advanced cooling solutions driven by the growth of cloud services and edge computing.

The United States is the undisputed leader in the North American data center cooling market, largely due to its cutting-edge technological innovations and the massive demand for data processing services. The country is home to the world’s largest and most advanced data center operators, including industry giants like Amazon Web Services (AWS), Google, Microsoft, and Facebook. These companies not only drive a substantial portion of the global data center industry but also invest heavily in optimizing the cooling technologies essential for their vast server infrastructures. The sheer volume of data centers in the U.S. is a primary factor contributing to its leadership.

The country houses a significant percentage of the world's data centers, particularly in tech-centric cities like Northern Virginia, Silicon Valley, and Dallas. These areas are densely packed with both hyperscale data centers, which serve large-scale cloud services, and colocation facilities that accommodate businesses outsourcing their IT infrastructure. These centers generate a tremendous amount of heat, creating an urgent need for efficient and reliable cooling systems. U.S.-based companies are at the forefront of developing and adopting state-of-the-art cooling technologies. From traditional air-based cooling systems to more advanced solutions like liquid cooling, immersion cooling, and free-air cooling, American data centers are embracing a diverse array of methods to maintain optimal temperatures and minimize energy consumption. For example, Google has made strides in using AI to optimize the cooling of its data centers, while Microsoft has explored underwater cooling solutions to boost energy efficiency. These innovations significantly reduce the operational costs associated with cooling, addressing both economic and environmental concerns. Furthermore, the increasing demand for cloud services, big data analytics, and edge computing is driving the need for smaller, more localized data centers, or 'edge' data centers. These new facilities often face unique cooling challenges due to their size and geographical dispersion. The U.S. leads in the development of cooling technologies that can be effectively deployed in such environments, ensuring continued dominance in the market.

• In January 2024: Dr. Reddy’s plans to invest Rs 700 crore (USD 84.7 Mn) into capacity expansion of biosimilars and Active Pharmaceutical Ingredients.
• In October 2023: Eli Lilly and Company made a contract with the Swiss contract manufacturer, CordenPharma, to produce tirzepatide, the API of the company's diabetes medication, Mounjaro.
• June 2023 - Vertex Pharmaceuticals Incorporated collaborated with Lonza to support the manufacture of Vertex’s portfolio of investigational stem cell-derived, fully differentiated insulin-producing islet cell therapies for people with type 1 diabetes.
• March 2023 - AGC Pharma Chemicals partnered with CatSci Ltd for the development and manufacturing of new therapeutics.
• March 2021 - Amgen confirmed the acquisition of Rodeo Therapeutics, a biopharmaceutical firm that focuses on developing small molecule therapies. The acquisition will enable Amgen to expand its inflammation APIs portfolio.
• February 2021 - Wavelength Pharmaceuticals completed the acquisition of a majority stake in Vanamali Organics Pvt. Ltd. based in Telangana, India to strengthen its global supply chain.

Considered in this report

• Geography: Global
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report

• Global Active Pharmaceutical Ingredients Market with its value and forecast along with its segments
• Region & country wise Active Pharmaceutical Ingredients market analysis
• Application wise Active Pharmaceutical Ingredients distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Application

• Anti-infective
• Cardiovascular
• Neurological
• Metabolic Disorder
• Oncology
• Others

By Synthesis Type

• Synthetic API
• Biotech API

By Type of Manufacture

• Captive
• Merchant

By API Type

• Branded /Innovative API
• Generic API

By Drug Type

• Prescription Drugs
• Over-the-counter Drugs

The approach of the report

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analysing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to pharmaceutical industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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