Data Center Cooling Market Report 2025

The data center cooling market size has grown rapidly in recent years. It will grow from $16.97 billion in 2024 to $19.74 billion in 2025 at a compound annual growth rate (CAGR) of 16.3%. The growth in the historic period can be attributed to rapid growth in data centers, high-density computing, energy efficiency concerns, regulatory compliance, globalization of data storage, increased heat load per rack.

The data center cooling market size is expected to see rapid growth in the next few years. It will grow to $37.51 billion in 2029 at a compound annual growth rate (CAGR) of 17.4%. The growth in the forecast period can be attributed to renewable energy integration, focus on water conservation, heat recovery systems, modular data center solutions, integration of immersive cooling. Major trends in the forecast period include liquid cooling solutions, free cooling techniques, AI-driven cooling management, high-density cooling systems, edge data center cooling solutions, and cooling-as-a-service models.

Rising global temperatures are anticipated to significantly drive the growth of the data center cooling market during the forecast period. This increase in global temperatures is primarily attributed to factors such as heightened greenhouse gas emissions from human activities, deforestation, industrial processes, and the combustion of fossil fuels, which intensify the greenhouse effect and trap heat in the Earth’s atmosphere. Data center cooling systems are becoming increasingly vital in addressing the challenges posed by rising temperatures, as they help maintain optimal operating conditions for servers and prevent overheating in facilities that demand high energy consumption. For instance, a report from the National Oceanic and Atmospheric Administration (NOAA) National Centers for Environmental Information published in June 2023 indicated that global surface temperatures recorded by NOAA reached 1.0 °C (1.8 °F) above the average, making it the fourth-warmest April in their 174-year record. This represents a notable increase compared to the 0.85 °C (1.53 °F) observed in April 2022. Therefore, the rise in global temperatures is expected to fuel the demand for data center cooling solutions in the future.

The increasing adoption of cloud computing is projected to drive the growth of the data center cooling market in the coming years. Cloud adoption refers to the process in which individuals, organizations, or businesses integrate cloud computing services and resources into their existing IT infrastructure and operations. Effective data center cooling is crucial for the smooth functioning of cloud services, contributing to improved performance, reliability, cost efficiency, and sustainability objectives. For example, a report from Eurostat in December 2023 indicated that 45.2% of EU businesses had acquired cloud computing services for accessing software, processing power, storage capacity, and other resources. Thus, the rising adoption of cloud computing is a significant factor propelling the growth of the data center cooling market.

Prominent players in the data center cooling sector are introducing novel products such as immersion cooling fluids to bolster their market competitiveness and profitability. These specialized fluids are utilized in immersion cooling systems within data centers to absorb and disperse heat produced by electronic hardware, such as servers. In October 2023, ExxonMobil Corporation, a leading US-based natural gas company, unveiled its range of data center immersion cooling fluids. Engineered for optimal energy efficiency and performance, ExxonMobil's fluids offer a diverse selection of synthetic and non-synthetic options with varying thermal capacities. These fluids are tailored to lower viscosity for effective heat dissipation while ensuring compatibility with a wide range of materials, thereby supporting extended equipment lifespan. The utilization of immersion cooling fluids is pivotal for liquid cooling in data centers, aiming to augment energy efficiency, curtail water usage, and boost rack density, consequently claiming to reduce the total cost of ownership for IT equipment by up to 40%.

Prominent entities within the data center cooling sector are introducing innovative solutions such as immersion cooling technology to drive their market profitability. This technology involves submerging crucial IT hardware, including servers and electronic components, in a non-conductive liquid coolant to effectively disperse heat generated during their operation. As an example, in September 2022, Dow Inc., a US-based material science company, unveiled its DOWSIL Immersion Cooling Technology. This data center cooling innovation prioritizes sustainability and efficiency, focusing on straightforward and cost-effective single-phase cooling systems.

In December 2023, Vertiv, a US-based company specializing in critical infrastructure for data centers and communication networks, acquired CoolTera Ltd. for an undisclosed amount. This acquisition aims to bolster Vertiv's expertise in high-density cooling solutions by integrating CoolTera's advanced liquid cooling technology and infrastructure into its existing thermal management portfolio. CoolTera Ltd. is an Israel-based company that specializes in innovative cooling solutions for data centers and IT environments, while also being involved in mission-critical custom air handlers and modular data center design, engineering, and manufacturing.

Major companies operating in the data center cooling market include Hitachi Ltd., Mitsubishi Electric Corporation, Schneider Electric SE, Fujitsu Limited, ABB Group, Hewlett Packard Enterprise Company, Daikin Industries Ltd., Johnson Controls International plc, Eaton Corporation, Emerson Electric Co., Trane Technologies plc, Climaveneta Climate Technologies S.p.A., Vertiv Group Corporation, Alfa Laval AB, Rittal GmbH & Co. KG, Ebullient Inc., Munters Group AB, Nortek Air Solutions LLC, Coolcentric Inc., Airedale International Air Conditioning Limited, Asetek Inc., Usystems Inc., Midas Green Technologies Inc., Liquid Cool Solutions LLC, Green Revolution Cooling Inc., Submer Technologies Inc., Delta Power Solutions, Adaptivcool Ltd.

Asia-Pacific was the largest region in the data center cooling market in 2024. North America was the second-largest market in the data center cooling market share. The regions covered in the data center cooling market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the data center cooling market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Data center cooling separates hot and cold air in data centers to prevent equipment overheating, aiming to enhance cooling efficiency and reduce the need for extensive cooling.

Data center cooling comprises various types based on the scale, including large data centers, enterprise data centers, and mid-sized data centers. Large data centers, operating at a massive scale, consume power akin to that of a small town. Cooling technologies employed within these data centers include rack/row-based and room-based solutions, encompassing both solution and service components. These cooling technologies cater to a wide array of industries such as banking, financial services and insurance (BFSI), information technology (IT) and telecommunications, research and academia, government and defense, retail, energy, manufacturing, healthcare, and various other sectors requiring robust data center cooling solutions.

The data center cooling market research report is one of a series of new reports that provides data center cooling market statistics, including data center cooling industry global market size, regional shares, competitors with a data center cooling market share, detailed data center cooling market segments, market trends and opportunities, and any further data you may need to thrive in the data center cooling industry. This data center cooling market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The data center cooling market includes revenues earned by entities by providing computer room air handler (CRAH), computer room air conditioner (CRAC), calibrated vector unit, cold aisle and hot aisle design. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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