The Data Center Cooling Market report segments the industry into By Cooling Technology (Air-Based Cooling, Liquid-Based Cooling), By Type (Hyperscalers (Owned And Leased), Enterprise (On-Premise), Colocation), By End-User Vertical (IT And Telecom, Retail And Consumer Goods, Healthcare, Media And Entertainment, and more), and By Region (North America, Europe, Asia-Pacific, and more).

Data Center Cooling Market Size is growing with a CAGR of 6.3% in the prediction period and it crosses US$ 37.69 Bn by 2032 from US$ Bn in 2025

The North America Data Center Cooling Market report segments the industry into Cooling Technology (Air-based Cooling, Liquid-based Cooling), End-user Vertical (IT & Telecom, Retail & Consumer Goods, Healthcare, Media & Entertainment, Federal & Institutional Agencies, Other End-users), and Country (United States, Canada). Get five years of historical data and five-year forecasts.

The global data center liquid cooling market size was over USD 1.1 billion in 2024 and is set to experience a CAGR of over 40.3%, reaching USD 89.77 billion by 2037. The solution segment is expected to attain a 58.23% share, fueled by rising demand for efficient data center cooling systems.

The U.S. data center cooling market size will witness investments of USD 8.34 billion by 2029, growing at a CAGR of 11.65% during the forecast period.

The statistic shows the revenue from the data center cooling market in Europe from 2012 to 2023. In 2014, the European data center cooling market for midsized enterprises reached 202 million U.S. dollars.

Data Center Cooling Market size was valued at USD 13.5 Billion in 2024 and is projected to reach USD 30.2 Billion by 2032, growing at a CAGR of 13.8% during the forecast period 2026-2032.

Global Data Center Cooling Market DriversThe growth and development of the Data Center Cooling Market is attributed to certain main market drivers. These factors have a big impact on how integrated gas systems are demanded and adopted in different sectors. Several of the major market forces are as follows:Growing Data Center Density: Data center operators are constantly growing the density of servers and other equipment due to the rise of data-intensive applications like cloud computing, big data analytics, and artificial intelligence. Because of the increased heat generated by this higher density, more effective cooling methods are required.Regulations pertaining to Energy Efficiency: Stricter guidelines and standards are being enforced globally by governments and regulatory agencies concerning energy efficiency and environmental impact. Thus, in order to lower power usage and carbon emissions, data center operators are forced to implement more energy-efficient cooling technologies.

The data center liquid cooling market size is estimated to be US$4.15 billion in 2024 and is projected to reach US$24.1 billion by 2032, with a CAGR of 24.6%

United States data center liquid cooling market size reached USD 759.4 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 3,153.7 Million by 2033, exhibiting a growth rate (CAGR) of 17.1% during 2025-2033​. The increasing demand for data processing and storage, a growing emphasis on energy efficiency and sustainability, the rise of high-performance computing applications, the expansion of edge computing, escalating data traffic, and the need for 24/7 data service availability are some of the major factors stimulating the market growth.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for ​2025-2033​. Our report has categorized the market based on component, data center type, end use, and application.

The Asia Pacific Data Center Cooling Market report segments the industry into Cooling Technology (Air-based Cooling, Liquid-based Cooling), End-user Vertical (IT & Telecom, Retail & Consumer Goods, Healthcare, Media & Entertainment, Federal & Institutional Agencies, Other End-users) and Country (China, India, Japan, Australia, New Zealand, Singapore, South Korea, Malaysia, and more).

The data center cooling market is projected to reach $100.12 billion by 2035 from $25.77 billion in 2024, growing at a CAGR of 12.55% during the forecast period 2025-2035.

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Data Center Cooling Solutions Market Size 2025-2029

The data center cooling solutions market size is forecast to increase by USD 81.42 billion at a CAGR of 36.9% between 2024 and 2029.

The market is experiencing significant growth due to the increasing demand for data centers to support digital transformation and the adoption of high-performance computing (HPC) applications. With the wave in data generation and the subsequent need for efficient data processing and storage, the market is poised for substantial expansion. However, this growth is not without challenges. Environmental concerns, particularly around energy efficiency and carbon emissions, are becoming increasingly important. Data centers consume vast amounts of electricity, and cooling systems account for a significant portion of this energy usage. As a result, there is a growing emphasis on developing more energy-efficient cooling solutions, such as liquid cooling and indirect evaporative cooling.
Companies seeking to capitalize on this market opportunity must stay abreast of the latest trends and technologies while also navigating the challenges of regulatory compliance and sustainability requirements. By focusing on innovation, energy efficiency, and environmental sustainability, players in the market can effectively meet the demands of their customers and remain competitive in this dynamic and evolving landscape.

What will be the Size of the Data Center Cooling Solutions Market during the forecast period?

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The market is experiencing significant growth due to the increasing demand for data-intensive applications, cloud computing, and digital services. IT infrastructure requirements continue to evolve, driving the need for advanced cooling technologies to address the heat dissipation challenges posed by high-density servers, AI-driven applications, and network switches. Pre-engineered cooling modules and centralized storage systems are gaining popularity for their energy efficiency and ability to handle increasing data traffic. Cooling technologies, such as air conditioning, liquid cooling, immersion cooling, and precision cooling, are being adopted to reduce power consumption and improve server performance. Energy-efficient data centers are a priority for colocation service providers, web hosting companies, and web 2.0 firms, as they address load conditions and sustainability concerns.
Data generation from IoT platforms and OTT platforms further increases the demand for cooling solutions. The market is expected to continue growing as businesses prioritize energy efficiency, server performance, and environmental impact in their IT infrastructure.

How is this Data Center Cooling Solutions Industry segmented?

The data center cooling solutions industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. ApplicationAir conditioningEconomizersCooling towersChillersOthersTechniqueAir-based coolingLiquid-based coolingData Center TypeTier 1Tier 2Tier 3Tier 4Cooling TechniqueRack/Row BasedRoom BasedComponentSolutionsServicesEnd-UserIT and TelecomBanking, Financial Services, and Insurance (BFSI)HealthcareRetailManufacturingGeographyAPACChinaIndiaJapanSouth KoreaNorth AmericaUSCanadaEuropeFranceGermanyItalyUKMiddle East and AfricaSouth America

By Application Insights

The air conditioning segment is estimated to witness significant growth during the forecast period. Data center cooling solutions are essential for maintaining optimal temperature and humidity levels in IT infrastructure setups. Air conditioning (AC) units, utilizing DX refrigeration cycles and compressors, regulate airflow and reduce hot spots. In the cooling process, air is circulated through a cooling coil filled with a refrigerant, which transmits cold air to IT equipment. The hot air emitted is then transferred to another AC unit. Modern data centers employ precision cooling techniques, which carry exhaust air from enclosure-emitting equipment to minimize bypass air. Cooling technologies, including pre-engineered modules, liquid cooling, and air handling units, cater to varying data traffic and power consumption requirements.

As digital services, cloud computing, and IT infrastructure expand, future-proof cooling solutions are crucial for energy efficiency, environmental sustainability, and data protection. Data center cooling, Air conditioning, Precision cooling, IT infrastructure, Digital services, Cloud computing, Power consumption, Cooling technologies, Pre-engineered modules, Liquid cooling, Air handling units, Energy efficiency, Environmental sustainability, Data protection. Data center cooling expenses are influenced by factors such as IT and telecom, energy and utilities, and colocation service providers. Cooling issues, inclu

The global data center cooling market size exceeded USD 21.2 billion in 2024 and is set to expand at a CAGR of over 15.4%, surpassing USD 136.46 billion revenue by 2037. IT & Telecom segment is poised to capture 30% share by 2037, driven by need for hyperscale data centers and the increasing use of cloud storage, driven by rise in SaaS providers and growing demand for on-premise data storage solutions.

Global Data Center Cooling Market size was valued at USD 12.35 billion in 2023 and is estimated to grow at a CAGR of around 13.8% during the forecast period 2024-30, high-performance computing applications is one of the growth opportunities driving the market through 2030.

The global data center liquid cooling market was valued at USD 1.81 billion in 2021 and is expected to grow at a CAGR of 24.0% during the forecast period.

Japan data center cooling market size reached USD 2.5 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 6.9 Billion by 2033, exhibiting a growth rate (CAGR) of 11.6% during 2025-2033. The market is being driven by several significant factors, including the increasing need for high-performing data centers, a heightened emphasis on energy efficiency and eco-friendliness, and the expanding adoption of cloud computing to offload routine operations and manage extensive data volumes.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on solution, services, type of cooling, cooling technology, type of data center, and vertical.

Data center liquid cooling market, valued at $5,654.8 million in 2024, is expected to reach $48,427.0 million by 2034, exhibiting a robust CAGR of 23.96%.

The size of the Data Center Cooling Market was valued at USD 16.90 billion in 2024 and is projected to reach USD 34.00 billion by 2033, with an expected CAGR of 10.50% during the forecast period. The global Data Center Cooling Market has been experiencing significant growth due to the increasing demand for efficient data storage and processing solutions. As data generation accelerates across industries, the need to manage the heat produced by data centers is becoming a top priority. Cooling solutions are essential for maintaining optimal performance, minimizing downtime, and ensuring energy efficiency in these facilities. The market is driven by innovations in cooling technologies, such as liquid cooling, direct-to-chip cooling, and free cooling, which offer enhanced cooling capabilities while reducing energy consumption. Furthermore, the rise in cloud computing, big data analytics, and IoT applications is pushing data centers to scale up, thus increasing the need for advanced cooling systems. Governments and businesses are also focusing on sustainability, leading to the adoption of eco-friendly cooling methods. North America and Europe dominate the market, with significant investments in data center infrastructure. However, the Asia Pacific region is expected to witness the highest growth rate, driven by rapid urbanization and the expansion of IT infrastructure in countries like China and India. Recent developments include: ExxonMobil, an oil and gas firm, is supplying data centers with a portion of its fossil fuel in 2023 in the form of a new line of immersion cooling fluids. Few information about the products—which are being unveiled this week at the Open Compute Project (OCP) Global Summit in San Jose—have not yet been released. They are referred to as a “portfolio of synthetic and non-synthetic fluids." It was long assumed that data centers will eventually switch to liquid cooling as they struggled to meet the increasing demand and increased computing densities. Air cooling is less effective in removing heat from data center equipment than immersion cooling tanks, which submerge the equipment in a huge amount of dielectric fluid., 2024: TMG Core, a leader in single- and two-phase liquid immersion cooling technology for data centers with high-density computing requirements, announced today that it has acquired the intellectual property and other specific assets of Modine, a diversified global leader in innovative thermal management solutions., 2024 saw the development of the Rear Door Cooling Device by Boreas Technology, a leader in data center cooling solutions. Designed for high-density situations, this innovation provides precise cooling with a 50kW capability. With the rear door cooling device, benefit from economy, sustainability, and industry-leading standards. With Boreas Technology's novel rear door cooling device, heat management is made possible for cabinets that are intended to function at high capacity and density in data centers..

As per Cognitive Market Research's latest published report, the Global Data Center Cooling market size was $10.25 Billion in 2022 and it is forecasted to reach $23.89 Billion by 2030. Data Center Cooling Industry's Compound Annual Growth Rate will be 11.63% from 2023 to 2030. Factors Affecting Data Center Cooling market growth

Rise in the number of data centers

Data center facilities are widely used for networked computer servers that store large amounts of data. The number of data centers across the world is growing due to the massive amount of digital information stored and streamed. As demand for digital services across the globe has increased exponentially due to high number of internet users, the requirement for data centers has also increased. It has been studied that, almost 2% of global electricity is been used by data centers. The use of electricity for data centers is rising globally. For instance, data centre electricity use in Ireland has more than tripled since 2015, accounting for 14% of total electricity consumption in 2021.

Data centers are associated with the storage and share of several applications and data. It centralized the organization's shared IT operations and equipment for the purposes of storing, processing, and distributing data and applications. As data centres are associated with storage management, backup and recovery of critical data etc., it is considered to be one of the vital areas. Hence protection of components in data centre becomes the prime responsibility of organization.

Thus, one of the crucial tasks for any data center is to monitor and manage the environment. Excessive use of electricity stimulates high temperatures which can damage IT equipment, causing them to fail. Hence, data center cooling ensures enough cooling, ventilation and humidity to keep all the facilities with ideal temperature. Hence, rise in the number of data center facilities drives the growth of data center cooling market around the globe.

Growing demand for cost-effective and efficient data center cooling solutions to fuel market growth

Restraining Factor of Data Center Cooling Market:

High cost associated with the installation of data centers facilities

The excessive high cost in setting and installing data center facilities may hinder the growth of market. The cost of installing data center facility reaches somewhere upto $1000-4000 per rack. However, manufacturers are coming up with innovative solutions which can reduce the cost of installation as the demand for data center is growing exponentially. This will increase the further growth of market in coming years.

Current Trends in Data Center Cooling:

Rising sustainability in data center cooling facility

Rising environmental concern stimulates the concern for sustainability in the data center industry. Thus, methods like utilizing eco-friendly cooling solutions have been rising to get rid of high energy consumption. Thus, some of the big players have removed mechanical cooling in their facilities to opt for more sustainable ways of cooling. For instance, in year 2015, Digital Realty has built a 6MW data center in London without mechanical cooling. The cooling system has also started using AI for data center cooling. Google's AI for cooling uses sensors to collect data every five minutes. Then, the algorithm predicts how the cooling systems’ current performance will bring benefits and disadvantages in energy consumption. Further, data centers are aiming to remove wasted energy in cooling or eradicate it if possible.

Impact of COVID-19 pandemic on Data Center Cooling Market:

Demand for data centers during the out-break of COVID-19 have seen rapid growth due to the inclination towards remote working. This has further driven the demand for cloud services in order to provide secure and robust IT culture. This drives the market for data center cooling during COVID-19. Moreover, high usage of data centers by pharmaceutical companies and research institutions during the COVID-19 pandemic positively impacted the growth of data center cooling market during the lockdown period. Definition of Data Center Cooling:

Data center cooling collectively known as tools, equipment, systems, and techniques that ensures required temperature and humidity levels within any data center facility. It works by removing excess heat from a facility and ensures server uptime by prov...

The Europe Data Center Cooling Market report segments the industry into By Cooling Technology (Air-based Cooling, Liquid-based Cooling), By End-user Vertical (IT & Telecom, Retail & Consumer Goods, Healthcare, Media & Entertainment, Federal & Institutional Agencies, Other End Users), and By Country (United Kingdom, Germany, Russia, Denmark, Norway, Netherlands, Spain, Poland, Switzerland, Austria, Belgium, France, Italy, and more).