Data Centre Cooling Market Report and Forecast 2024-2032

According to the report, the global data centre cooling market size reached a value of USD 3.46 billion in 2023. Aided by the increasing data traffic and higher computational power of data centres, the market is projected to further grow at a CAGR of 22.30% between 2024 and 2032 to reach a value of USD 21.25 billion by 2032.

Data centre cooling refers to the systems and technologies used to maintain optimal operating conditions within server rooms and IT facilities. These solutions control the temperature and humidity levels to ensure the performance and longevity of the equipment. The market includes a variety of cooling techniques such as air conditioning, chillers, cooling towers, economisers, and liquid cooling systems, each suited for different data centre sizes and architectural complexities.

The exponential growth in data consumption, driven by the proliferation of Internet of Things (IoT) devices, big data analytics, and the widespread adoption of cloud services, has been a significant driver for the data centre cooling market growth. As data centres scale their operations to handle larger volumes of data, efficient cooling systems become crucial to prevent overheating and reduce the risk of downtime.

There is a growing emphasis on energy efficiency within data centres, given that cooling systems can account for up to 40% of total energy consumption in these facilities. This focus has spurred innovation in eco-friendly cooling technologies that not only reduce operational costs but also minimise environmental impact. As per the data centre cooling market analysis, solutions such as free cooling, which utilises ambient air conditions, and advanced liquid cooling systems, are gaining popularity for their energy-efficient performance.

Free cooling, which utilises external environmental conditions to cool facilities, is gaining traction, especially in regions with colder climates or cooler seasons. By using ambient air or water sources to reduce internal temperatures, data centres can dramatically decrease their reliance on mechanical cooling systems, leading to substantial energy and cost savings.

As per the data centre cooling market outlook, technological advancements are revolutionising data centre cooling solutions. Developments in phase change materials, artificial intelligence (AI) for system management, and modular cooling units are enhancing the efficiency and scalability of cooling systems. These technologies allow for smarter cooling infrastructure that can adapt to changing heat loads and environmental conditions.

Government regulations and industrial standards pertaining to energy consumption and greenhouse gas emissions are influencing the data centre cooling market expansion. Regulations such as the Energy Star certification for data centres are pushing the market towards more sustainable practices. Compliance with these regulations is now a priority for data centre operators, influencing the types of cooling technologies they invest in.

North America currently leads the global market, attributed to its advanced IT infrastructure and the presence of major tech companies. However, the Asia-Pacific region is expected to witness the fastest growth in the data centre cooling market due to increasing digitalisation, the expansion of cloud services, and robust IT development, particularly in countries like China and India.

Looking ahead, the market is poised for sustained growth, driven by ongoing advances in technology and increasing global demand for data processing and storage. Innovations in cooling technology that offer greater energy efficiency and reduced environmental impact are expected to dominate future developments. Additionally, as edge computing gains traction, there will be new opportunities for deploying localised cooling solutions that can support smaller, distributed data centres, further boosting the data centre cooling market share.

Market Segmentation

The market can be divided based on component, data centre size, type of cooling, application, and region.

Market Breakup by Component

• Solution
• Air Conditioning
• Liquid Cooling Systems
• Chilling Units
• Cooling Towers
• Control System
• Economizer Systems
• Others
• Services
• Installation and Deployment
• Consulting, Support, and Maintenance Services

Market Breakup by Data Centre Size

• Large Data Centre
• Medium Data Centre
• Small Data Centre

Market Breakup by Type of Cooling

• Room-based Cooling
• Row/Rack-based Cooling

Market Breakup by Application

• Government
• BFSI
• IT and Telecom
• Healthcare
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Competitive Landscape

The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the global data centre cooling market. Some of the major players explored in the report are as follows:

• Schneider Electric SE.
• Johnson Controls International plc.
• Mitsubishi Electric Corporation.
• Daikin Industries Ltd.
• Fujitsu Limited.
• RITTAL GmbH & Co. KG.
• Asetek, Inc. A/S
• STULZ GmbH.
• Nortek Air Solutions, LLC.
• Vertiv Group Corp.
• Green Revolution Cooling Inc.
• LiquidStack B.V.
• Munters Group.
• Wakefield Thermal, Inc.
• Others