Global Data Center Cooling Market Segmentation, By Type (Enterprise Data Center and Edge Data Center), Solutions (Air Conditioning, Chilling Units, Cooling Towers, Economizer System, Liquid Cooling System, Computer Room Air Conditioning (CRAC) and Computer Room Air Handler (CRAH), Control Units, and Others), Service (Consulting and Training, Installation and Deployment, and Maintenance and Support), Cooling Type (Room Based Cooling, Rack Based Cooling, and Row Based Cooling), Organization Size (Large Organization Size, and Small and Medium Organization), Industry (BFSI, IT and Telecom, Manufacturing, Retail, Healthcare, Energy and Utilities, and Others)– Industry Trends and Forecast to 2031
Data Center Cooling Market Analysis
The data center cooling market is experiencing rapid growth due to advancements in cooling technologies aimed at improving efficiency and sustainability. One of the latest methods is liquid immersion cooling, which submerges servers in a thermally conductive liquid, allowing for higher heat dissipation compared to traditional air-cooling methods. This technology reduces energy consumption and supports high-density data centers, which are increasingly prevalent with the rise of cloud computing and artificial intelligence.
Another advancement is the use of artificial intelligence (AI) in optimizing cooling systems. AI-powered cooling systems can adjust temperatures dynamically based on real-time data, enhancing energy efficiency and lowering operational costs. The adoption of direct-to-chip cooling, which targets specific heat sources such as processors, also boosts performance.
The usage of these advanced cooling methods has grown as businesses aim to minimize energy costs and meet environmental regulations. The shift towards modular data centers and edge computing is further propelling the demand for efficient cooling systems. These advancements contribute to the overall growth of the data center cooling market, expected to expand significantly in the coming years.
Data Center Cooling Market Size
The global data center cooling market size was valued at USD 18.43 billion in 2023 and is projected to reach USD 65.17 billion by 2031, with a CAGR of 17.1% during the forecast period of 2024 to 2031. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.
Data Center Cooling Market Trends
“Adoption of Liquid Cooling Systems”
One specific trend fueling the growth of the data center cooling market is the increasing adoption of data center liquid cooling system. As data centers handle more high-density computing workloads, traditional air-based cooling methods struggle to maintain optimal temperatures. Liquid cooling systems offer a more efficient and sustainable solution, particularly for hyperscale data centers. For instance, In November 2023, Schneider Electric partnered with Intel to develop a liquid cooling solution compatible with the cutting-edge Intel Gaudi3 AI accelerator. This innovative cooling system supports both air-cooled and liquid-cooled servers, utilizing Vertiv's pumped two-phase (P2P) cooling infrastructure to maintain optimal performance levels. The collaboration aims to address the increasing cooling demands of AI applications, ensuring efficient thermal management and improved reliability for advanced computing environments.
Report Scope and Data Center Cooling Market Segmentation
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Attributes
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Data Center Cooling Key Market Insights
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Segments Covered
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Countries Covered
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U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America
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Key Market Players
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Schneider Electric (France), Vertiv Group Corp. (U.S.), STULZ GMBH (Germany), Eaton (U.S.), FUJITSU (Japan), Rittal GmbH & Co. KG (Germany), Daikin Applied (U.S.), Black Box Corporation (U.S.), ALFA LAVAL (Sweden), Nortek Air Solutions, LLC (U.S.), Airedale Air Conditioning (UK), 3M (U.S.), Coolcentric (U.S.), Delta Power Solutions (India), EcoCooling (U.K.)
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Market Opportunities
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Value Added Data Infosets
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In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.
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Data Center Cooling Market Definition
Data center cooling refers to the process of maintaining optimal temperature and humidity levels within a data center to prevent overheating of IT equipment such as servers, storage systems, and networking devices. Effective cooling ensures continuous operation, improves energy efficiency, and prevents hardware failures. Common methods include air-based cooling using fans and HVAC systems, liquid cooling, and advanced techniques such as evaporative and free cooling. As data centers grow larger and handle more workloads, innovations in cooling technology, such as immersion cooling and AI-driven climate control, are becoming essential to manage power consumption and environmental impact.
Data Center Cooling Market Dynamics
Drivers
- Growing Cloud Computing Market
The growing adoption of cloud computing is a significant driver for the data center cooling market. As more companies migrate to cloud platforms to enhance scalability, efficiency, and cost-effectiveness, the demand for data centers rises. This shift increases the need for robust cooling solutions to prevent overheating, maintain optimal performance, and ensure continuous operation. For instance, leading cloud service providers such as Amazon Web Services (AWS) and Microsoft Azure are investing in advanced cooling technologies, such as liquid cooling and AI-based cooling optimization, to handle the increased heat generated by high-density server environments. This trend is propelling the growth of the data center cooling market globally.
- Rise in Colocation Data Centers
The rise in colocation data centers, where multiple businesses share infrastructure, is driving demand for advanced cooling solutions. These facilities house dense racks of servers, leading to significant heat output. Efficient and reliable cooling systems are crucial to maintaining optimal operating conditions and preventing hardware failures. For instance, In May 2023, Vertiv Group Corp. launched the Liebert PKDX, a single direct expansion thermal management unit specifically designed for data centers. This advanced unit incorporates rack sensors, intelligent controls, and a centralized optimization system for effective heat management. The Liebert PKDX, which is now available in India, features a plug-and-play design that allows for rapid installation. It operates without water and eliminates the need for additional space in the data hall, enhancing efficiency.
Opportunities
- AI and Machine Learning Adoption
The adoption of AI and machine learning (ML) technologies is significantly driving the data center cooling market. AI workloads, such as deep learning and large-scale data processing, require high-performance computing (HPC) infrastructure, which generates substantial heat. As a result, more efficient cooling technologies, such as liquid cooling and immersion cooling, are becoming essential to maintain optimal temperatures. For instance, in May 2024, STULZ Modular, a subsidiary of STULZ GmbH specializing in modular data center solutions, partnered with Asperitas to investigate the potential of liquid cooling technology. This collaboration focuses on integrating immersion cooling for high-density data center environments, aiming to deliver innovative solutions tailored to the industry's evolving demands. The partnership emphasizes a modular data center concept that can be deployed in both indoor and outdoor settings, enhancing cooling efficiency.
- 5G Network Expansion
The rollout of 5G networks significantly increases data traffic, necessitating the establishment of more data centers to manage this surge. This expansion creates a substantial opportunity for the data center cooling market, as these facilities require advanced cooling solutions to maintain optimal performance and uptime. For instance, in October 2023, Schneider Electric announced a USD 1.2 million investment in its Sustainable Tropical Data Center Testbed (STDCT) at the National University of Singapore (NUS), funded by the National Research Foundation of Singapore. This facility is designed to tackle the challenges of maintaining regulated systems in tropical regions, which often incur excessive energy costs. The investment aims to develop sustainable cooling solutions tailored for energy-intensive data centers in tropical climates.
Restraints/Challenges
- High Initial Costs
High initial costs present a significant challenge for the data center cooling market. Advanced cooling technologies, such as data center liquid cooling systems, require substantial upfront investments, which can be prohibitive for many businesses. This is particularly true for small to mid-sized enterprises, which may lack the financial resources to implement such systems. As a result, these organizations often opt for less efficient, traditional cooling methods, limiting their ability to compete in a market increasingly focused on energy efficiency and performance. Consequently, the reluctance to invest in advanced cooling solutions restricts overall market growth and innovation, creating a barrier for companies aiming to enhance their data center operations.
- Energy Consumption Concerns
Energy consumption concerns significantly hinder the data center cooling market. Cooling systems typically account for a substantial portion of a data center's energy use, leading to elevated operational costs. As companies increasingly prioritize sustainability and aim to reduce their carbon footprints, the reliance on energy-intensive cooling methods becomes problematic. The pressure to lower energy consumption conflicts with the necessity of maintaining optimal operating temperatures, resulting in a challenging balancing act. In addition, escalating energy prices and strict environmental regulations further complicate the situation, making it difficult for data center operators to justify investments in high-energy cooling solutions while striving to meet sustainability goals.
This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
Data Center Cooling Market Scope
The market is segmented on the basis of type, solutions, service, cooling type, industry, and organization size. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Type
- Enterprise Data Center
- Edge Data Center
Solutions
- Air Conditioning
- Chilling Units
- Cooling Towers
- Economizer System
- Liquid Cooling System
- Computer Room Air Conditioning (CRAC)
- Computer Room Air Handler (CRAH)
- Control Units
- Others
Service
- Consulting and Training
- Installation and Deployment
- Maintenance and Support
Cooling Type
- Room Based Cooling
- Rack Based Cooling
- Row Based Cooling
Organization Size
- Large Organization Size
- Small and Medium Organization
Industry
- BFSI
- IT and Telecom
- Manufacturing
- Retail
- Healthcare
- Energy and Utilities
- Others
Data Center Cooling Market Regional Analysis
The market is analyzed and market size insights and trends are provided by type, solutions, service, cooling type, industry, and organization size as referenced above.
The countries covered in the market report are U.S., Canada, Mexico in North America, Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, Netherland, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, New Zealand, Vietnam, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in Asia-Pacific (APAC), Brazil, Argentina, Rest of South America as a part of South America, U.A.E, Saudi Arabia, Oman, Qatar, Kuwait, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA).
North America is expected to dominate the data center cooling market because to numerous major characteristics, including the region’s robust and established data center infrastructure as well as high concentration of high concentration of large scale data centres and technology businesses.
Asia-Pacific is the fastest growing country in the data center cooling market as the region is seeing an expanding digital ecosystem, with fast digitalization, rising demand foe cloud services and strong startup culture, all of which are driving the demand for data centers cooling solutions.
The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Data Center Cooling Market Share
The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.
Data Center Cooling Market Leaders Operating in the Market Are:
- Schneider Electric (France)
- Vertiv Group Corp. (U.S.)
- STULZ GMBH (Germany)
- Eaton (U.S.)
- FUJITSU (Japan)
- Rittal GmbH & Co. KG (Germany)
- Daikin Applied (U.S.)
- Black Box Corporation (U.S.)
- ALFA LAVAL (Sweden)
- Nortek Air Solutions, LLC (U.S.)
- Airedale Air Conditioning (U.K.)
- 3M (U.S.)
- Coolcentric (U.S.)
- Delta Power Solutions (India)
- EcoCooling (U.K.)
Latest Developments in Data Center Cooling Market
- In May 2024, STULZ Modular, a subsidiary of STULZ GmbH specializing in modular data center solutions, partnered with Asperitas to investigate the potential of liquid cooling technology. This collaboration focuses on integrating immersion cooling for high-density data center environments, aiming to deliver innovative solutions tailored to the industry's evolving demands. The partnership emphasizes a modular data center concept that can be deployed in both indoor and outdoor settings, enhancing cooling efficiency
- In April 2024, Schneider Electric made a significant investment of USD 438.4 million to establish India as a manufacturing hub for data center cooling solutions. The inauguration of a state-of-the-art facility in Bengaluru, with an initial investment of USD 130 million, highlights the company’s commitment to addressing the rising demand for innovative cooling technologies. This hub will focus on developing customized solutions specifically designed for India's expanding data center ecosystem
- In April 2024, Mitsubishi Electric launched the MECH-iF range, featuring an air-cooled chiller that utilizes a proprietary single-screw compressor to enhance energy efficiency and reliability. This new product range provides capacities ranging from 345 kW to 921 kW, offering flexibility in refrigerant options with either R1234ze (G04) or R513A (G05). The patented screw variable-speed compressors ensure prolonged operational lifespan, making it suitable for various applications
- In March 2024, Daikin Applied introduced the Navigator WW water-cooled screw chiller, designed with low-global warming potential (GWP) refrigerant R-513A. This eco-friendly cooling solution is aimed at enhancing operational efficiency for customers. In addition, clients can further optimize performance by combining this chiller with the optional Templifier TW water heater, facilitating a cost-effective heat recovery solution. This innovation aligns with growing environmental sustainability efforts in cooling technology
- In November 2023, Schneider Electric partnered with Intel to develop a liquid cooling solution compatible with the cutting-edge Intel Gaudi3 AI accelerator. This innovative cooling system supports both air-cooled and liquid-cooled servers, utilizing Vertiv's pumped two-phase (P2P) cooling infrastructure to maintain optimal performance levels. The collaboration aims to address the increasing cooling demands of AI applications, ensuring efficient thermal management and improved reliability for advanced computing environments
- In October 2023, Schneider Electric announced a USD 1.2 million investment in its Sustainable Tropical Data Center Testbed (STDCT) at the National University of Singapore (NUS), funded by the National Research Foundation of Singapore. This facility is designed to tackle the challenges of maintaining regulated systems in tropical regions, which often incur excessive energy costs. The investment aims to develop sustainable cooling solutions tailored for energy-intensive data centers in tropical climates
- In May 2023, Vertiv Group Corp. launched the Liebert PKDX, a single direct expansion thermal management unit specifically designed for data centers. This advanced unit incorporates rack sensors, intelligent controls, and a centralized optimization system for effective heat management. The Liebert PKDX, which is now available in India, features a plug-and-play design that allows for rapid installation. It operates without water and eliminates the need for additional space in the data hall, enhancing efficiency
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