Data Center Cooling Market Outlook 2025–2033 Driven by High-Density Computing and Advanced Thermal Solutions

Market Overview

The global Data Center Cooling Market size reached USD 17.3 Billion in 2024 and is expected to reach USD 48.8 Billion by 2033, growing at a CAGR of 13.86% during 2025-2033. The market growth is driven by the rising demand for efficient data centers, emphasis on energy efficiency and sustainability, and the increasing adoption of cloud computing for extensive data storage and task delegation. These trends support the need for advanced cooling solutions to manage data center heat effectively. For more information visit the Data Center Cooling Market

Study Assumption Years

• Base Year: 2024
• Historical Years: 2019-2024
• Forecast Period: 2025-2033

Data Center Cooling Market Key Takeaways

• The global data center cooling market size was USD 17.3 Billion in 2024.
• The market is projected to exhibit a CAGR of 13.86% during 2025-2033.
• The forecast period for the market growth is 2025-2033.
• Increasing demand for solutions that reduce data centers' carbon footprint and operational costs is fueling market growth.
• Rising focus on maintaining optimal temperature and humidity levels to ensure peak performance of servers and networking equipment.
• Growing proliferation of cloud computing and transition to edge computing support market expansion.
• Asia Pacific dominates the market due to rapid digital infrastructure development and adoption of cloud computing.

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Market Growth Factors

The increasing demand for data center cooling solutions is a major driver for market growth. These solutions help reduce the carbon footprint and lower operational costs, making data centers environmentally and financially sustainable. Maintaining correct temperature and humidity levels is crucial for ensuring servers and networking equipment operate at peak performance, which enhances processing speeds and response times. This factor substantially contributes to the growing market.

The expanding use of cloud computing significantly propels the data center cooling market. Cloud stores 60% of the world's corporate data, consuming 3% of global energy. Additionally, 90% of large organizations employ multi-cloud infrastructures. As cloud service providers expand, there is a need for larger data centers with sophisticated cooling systems to manage heat produced by dense server workloads, positively impacting the market forecast.

The proliferation of Internet of Things (IoT) devices and big data growth are key drivers. The IoT device count is expected to nearly double from 15 billion in 2023 to more than 32 billion by 2030, with China having over 8 billion consumer gadgets in 2033. The massive increase in data volume requires greater computational and storage capacities, generating more heat and increasing demand for efficient cooling solutions, thus boosting market share.

Market Segmentation

Breakup by Solution:

• Air Conditioning: This segment dominates the market. Air conditioning is critical for maintaining proper operating conditions for servers, storage, and networking equipment, preventing equipment failure and lowering energy costs. Data centers use redundant cooling systems and advanced environmental monitoring to optimize cooling efficiency.
• Chilling Units
• Cooling Towers
• Economizer Systems
• Liquid Cooling Systems
• Control Systems
• Others

Breakup by Services:

• Consulting
• Installation and Deployment: This service holds the largest market share, involving setup of cooling system components, monitoring controls, documentation, and staff training to maintain optimal operating environments.
• Maintenance and Support

Breakup by Type of Cooling:

• Room-Based Cooling: This method, accounting for the largest market share, cools specific spaces through window air conditioners, ductless mini-split systems, portable air conditioners, and swap coolers, improving energy efficiency by targeting only needed areas.
• Row-Based Cooling
• Rack-Based Cooling

Breakup by Cooling Technology:

• Liquid-Based Cooling: Holding the largest market share, liquid cooling uses fluid circuits directly contacting heat-producing components for efficient heat dissipation and precise temperature control.
• Air-Based Cooling

Breakup by Type of Data Center:

• Mid-Sized Data Centers
• Enterprise Data Centers: This segment dominates the market. Enterprise data centers centrally house IT infrastructure vital for business operations, storing and managing vast digital information and running critical applications.
• Large Data Centers

Breakup by Vertical:

• BFSI
• IT and Telecom: The largest vertical, relying heavily on data centers for data storage and high-performance computing, where efficient cooling is essential to prevent equipment overheating.
• Research and Educational Institutes
• Government and Defense
• Retail
• Energy
• Healthcare
• Others

Regional Insights

Asia Pacific dominates the global data center cooling market due to rapid digital infrastructure development supporting increasing data storage and processing needs. The region also benefits from the rising adoption of cloud computing and IoT proliferation. In April 2024, a collaboration between GDS and Gaw Capital Partners to build a 40-megawatt data center campus in Tokyo exemplifies regional growth initiatives.

Recent Developments & News

• September 2024: Gates launched the Data Master Data Center Cooling Hose, a highly engineered power transmission and fluid power solution.
• August 2024: Airedale introduced its intelligent Data Center Cooling System Optimizer in the United States, enhancing control between chiller and CRAH products and building management systems.
• June 2024: Petronas Lubricants International collaborated with Iceotope to launch a novel data center cooling fluid.

Key Players

• Airedale International Air Conditioning
• Asetek
• Black Box Corporation
• Climaveneta Climate Technologies
• Coolcentric
• Emerson Electric
• Fujitsu
• Hitachi
• Netmagic
• Nortek Air Solutions, LLC
• Rittal
• Schneider Electric
• STULZ GmbH
• Vertiv

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