Europe Data Center Cooling Market is Set to Grow at $20.55 billion by 2035 – BIS Research

What is Data Center Cooling? 

Data center cooling involves the use of air-based, liquid, and free cooling solutions to manage heat generated by IT equipment. Effective cooling is critical to ensure uptime, equipment reliability, and compliance with energy regulations. Technologies include chillers, economizers, air handling units, direct-to-chip cooling, and rear-door heat exchangers (RDHX). With growing rack densities, particularly in AI and HPC environments, operators are shifting toward liquid and immersion cooling to support performance and reduce environmental impact. 

What is the Current Market Outlook for Europe Data Center Cooling? 

Europe’s data center cooling outlook is shaped by both digital growth and sustainability mandates. Germany, the Netherlands, Ireland, and the Nordics are leading in innovation, with colder climates in northern Europe enabling wider adoption of free cooling. In contrast, southern regions require more resilient cooling systems to maintain efficiency in warmer conditions. While high capital costs and water consumption challenges persist, the move toward green data centers, modular cooling, and renewable energy-powered operations is set to accelerate growth. The Europe data center cooling market is projected to reach $20.55 billion by 2035, growing from $6.76 billion in 2024 at a CAGR of 10.18% as per BIS research. 

What is the key Innovation & Trends in Europe Data Center Cooling Market? 

• Shift toward liquid and immersion cooling for AI/HPC workloads 
• Focus on energy-efficient, sustainable cooling systems to meet ESG targets 
• Expansion of free cooling and economizers in colder regions like Scandinavia 
• Use of AI-driven automation for real-time thermal management and predictive maintenance 
• Integration of modular/prefabricated cooling solutions for scalability and speed 
• Rise of green data centers powered by renewables and eco-friendly cooling technologies 

How Does This Report Help Organizations Drive Strategic Growth? 

• Benchmark solutions – Compare air, liquid, and free cooling systems. 
• Evaluate innovation pipelines – Track adoption of immersion cooling, AI-driven automation, and modular systems. 
• Identify regional opportunities – Assess growth in Germany, UK, France, Nordics, and Rest-of-Europe. 
• Monitor strategic initiatives – Review investments, regulatory compliance, and partnerships for sustainable cooling. 
• Navigate challenges – Address high upfront costs, water usage limits, and labor skill gaps. 

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What Are the Key Trends, Demand Driver and Challenges in Europe Data Center Cooling Market? 

Drivers 

• Surge in AI, cloud, and HPC workloads boosting data center expansion 
• Strict EU regulations on energy efficiency (EN50600, EU Taxonomy) 
• Government sustainability mandates and incentives for low-carbon infrastructure 
• Rising need to cut energy costs tied to cooling (~40% of total energy use) 
• Expansion of edge and colocation facilities requiring compact, efficient solutions 

Challenges 

• High capital costs for advanced liquid immersion and adiabatic systems 
• Regulatory variations across countries complicating compliance 
• Water usage concerns in drought-prone regions limiting liquid-based solutions 
• Legacy infrastructure slowing transition to next-gen systems 
• Shortage of skilled labor for advanced cooling integration and maintenance 

Trends  

• Shift toward liquid and immersion cooling to support AI and HPC workloads 
• Rising demand for energy-efficient, low-carbon cooling aligned with ESG and EU climate goals 
• Expansion of free cooling and economizer adoption in colder climates (Nordics, Ireland) 
• Use of AI, sensors, and automation for predictive maintenance and real-time thermal optimization 

What is the Market Segmentation in the Europe Data Center Cooling Market? 

By End-Use Industry 

•    IT and Telecom 

•    Healthcare 

•    Retail 

•    Banking, Financial Services, and Insurance 

•    Government and Public Sector 

•    Manufacturing 

•    Others 

By Data Center Type 

•    Centralized Data Center 

•    Edge Data Center 

By Application Area 

•    Artificial Intelligence (AI) 

•    High-Performance Computing (HPC) 

•    Cloud Computing 

•    Edge Computing 

•    Others 

By Solution 

•    Air Cooling 

•    Liquid Cooling 

•    Free Cooling 

By Rack Density 

•    Low Rack Density (1-4 kW) 

•    Medium Rack Density (5-9 kW) 

•    High Rack Density (Above 9 kW) 

By Country 

•    Germany 

•    France 

•    U.K. 

•    Italy 

•    Netherlands 

•    Spain 

•    Rest-of-Europe 

What Is the Competitive Landscape in the Europe Data Center Cooling Market? 

Key Players 

•    Schneider Electric 

•    Asetek, Inc. 

•    Submer 

•    Munters 

•    ALFA LAVAL 

•    Condair Group 

•    Danfoss 

•    Johnson Controls International plc 

•    STLUZ GMBH 

•    DCX Liquid Cooling Systems  

•    Rittal GmbH & Co. KG 

Strategic Initiatives 

Leading players are investing in sustainable and high-density cooling. Equinix rolled out liquid cooling across its European sites, while Digital Realty integrated renewable-powered free cooling in the Netherlands. Partnerships such as Atos with Schneider Electric are advancing immersion cooling for HPC in Germany and France. In parallel, governments in Germany and the Nordics are incentivizing low-energy cooling projects through tax benefits and grants, accelerating the transition to greener infrastructure. 

Here Are Some Case Studies and Success Stories in Europe Data Center Cooling Market 

Practical deployments highlight Europe’s leadership in innovation. Lefdal Mine Data Center in Norway uses seawater cooling to achieve a PUE of 1.15 and cut costs by 30%. Ireland’s colocation hubs adopted economizer systems with AI airflow optimization to lower energy use by 20%. OVHcloud in France deployed liquid cooling at scale to improve rack density while saving water, while BMW in Germany integrated direct-to-chip cooling into its HPC cluster to boost efficiency and reduce carbon impact. 

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Related Reports from BIS Research 

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Asia-Pacific Data Center Cooling Market             

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About BIS Research 

BIS Research is a global B2B market intelligence and advisory firm focusing on deep technology and related emerging trends, which can disrupt the market dynamics in the near future. We publish over 200 market intelligence studies annually, focusing on several deep technology verticals.   

Our strategic market analysis emphasizes market estimations, technology analysis, emerging high-growth applications, deeply segmented granular country-level market data, and other important market parameters useful in the strategic decision-making for senior management.    

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