United States Data Center Cooling Market is Segmented by Data Center Type (Hyperscalers (owned and Leased), Enterprise and Edge, Colocation), Tier Type (Tier 1 and 2, Tier 3, Tier 4), Cooling Technology (Air Based Cooling, Liquid Based Cooling), Component (Service, Equipment). The Market Forecasts are Provided in Terms of Value (USD).

The global combined cooling heat and power (CCHP) plant market is valued at USD 2.4 billion in 2025 and is projected to reach USD 4.3 billion by 2035, reflecting a CAGR of 5.8%.

Analyzing Top Countries Manufacturing and Distributing Combined Cooling Heat and Power Plants

The global data center cooling market size reached USD 17.3 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 48.8 Billion by 2033, exhibiting a growth rate (CAGR) of 13.86% during 2025-2033. The growing demand for efficient data centers, rising focus on maintaining energy efficiency and sustainability, and increasing proliferation of cloud computing to delegate routine tasks and store massive amounts of data are some of the major factors propelling the market.

The global data center cooling market size was valued at USD 16.32 billion in 2024 and is expected to reach USD 40.72 billion by 2030, growing at a CAGR of 16.46% during the forecast period.

According to Cognitive Market Research, the global district cooling market size will be USD 921 million in 2024 and will expand at a compound annual growth rate (CAGR) of 3.2% from 2024 to 2031. Market Dynamics of District Cooling Market

Key Drivers for District Cooling Market

Increasing demand for effective cooling in hotter climates - People who live in tropical and hot climates require cooling, especially in the summer, to make them more comfortable. In these areas, the International Energy Agency (IEA) reports a rise in air conditioner ownership. One of the most developed regions for district cooling is the Middle East. Summertime temperatures in the Middle East have been rising and are now above 50 degrees Celsius. One of the main problems the nation in this region has is cooling.
Growing need for sustainable and energy-efficient cooling technology.

Key Restraints for District Cooling Market

Expensive initial outlay and extended return time.
Challenges encountered with putting district cooling systems into place..

Introduction of the District Cooling Market

A centralized method for distributing cooling energy is called district cooling (DC). It is mostly used for space cooling in homes, workplaces, apartments, and other locations. The interiors of buildings in a region are cooled via the distribution of chilled water through insulated pipes. The district cooling industry is expanding due to many factors, such as manufacturers' shifting preferences from traditional to energy-efficient refrigeration technology and growing environmental awareness.

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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, driven by the digital transformation and the surge in data generation. This trend is particularly noticeable in industries such as finance, healthcare, and technology, which rely heavily on data processing and storage. Additionally, the growing adoption of High Performance Computing (HPC) applications, including artificial intelligence and machine learning, necessitates advanced cooling solutions to maintain optimal operating temperatures. However, the market faces challenges related to environmental concerns and energy efficiency. The carbon footprint of data centers is a significant concern, and there is increasing pressure on organizations to reduce their environmental impact.
As a result, there is a growing demand for energy-efficient cooling solutions that minimize both energy consumption and carbon emissions. Furthermore, the complexities of cooling large data centers, particularly those with high density computing environments, pose significant challenges. Effective cooling solutions must balance the need for energy efficiency with the requirement for reliability and scalability. Companies seeking to capitalize on market opportunities and navigate these challenges effectively must focus on developing innovative cooling technologies that address both the growing demand for data centers and the need for environmental sustainability.

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

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market continues to evolve, driven by the ever-increasing demand for energy efficiency, sustainability, and high-performance computing. LEED certification, a recognized standard for green buildings, is increasingly being adopted to reduce carbon footprint and optimize energy usage. Waste heat recovery and direct-to-chip cooling are gaining traction as innovative cooling solutions, while heat exchangers and evaporative cooling remain popular choices. Data center design plays a crucial role in thermal management, with airside economizers and water management systems being essential components. IoT sensors and monitoring systems enable real-time capacity planning and environmental monitoring, enhancing cooling efficiency. Immersion cooling and liquid cooling are emerging trends, offering advantages in high-density computing environments.

Modular data centers and CRAC units cater to the growing demand for flexible and scalable cooling solutions. Edge data centers and remote monitoring systems expand cooling capabilities beyond traditional data center locations. Energy optimization and efficiency remain key priorities, with AI and ML playing a significant role in predictive analytics and energy management. Cooling towers and adiabatic cooling systems provide additional cooling capacity during peak demand. Capacity planning and control systems ensure optimal cooling performance and reduce operational costs through lifecycle cost analysis. The data center cooling market is characterized by continuous innovation, with ongoing developments in thermal management, free cooling, and advanced control systems shaping the future landscape.

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.

Application

  Air conditioning
  Economizers
  Cooling towers
  Chillers
  Others


Technique

  Air-based cooling
  Liquid-based cooling


Data Center Type

  Tier 1
  Tier 2
  Tier 3
  Tier 4


Cooling Technique

  Rack/Row Based
  Room Based


Component

  Solutions
  Services


End-User

  IT and Telecom
  Banking, Financial Services, and Insurance (BFSI)
  Healthcare
  Retail
  Manufacturing


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan
    South Korea


  South America

    Brazil
    Argentina


  Middle East and Africa

    UAE


  Rest of World (ROW)

By Application Insights

The air conditioning segment is estimated to witness significant growth during the forecast period.

Data centers require stringent temperature and humidity control to ensure optimal performance and reliability of IT equipment. Traditional air conditioning (AC) units, utilizing DX refrigeration cycles and compressors, regulate

The global Data Center Liquid Cooling market size reached USD 1.74 Billion in 2021 and is expected to reach USD 10.92 Billion in 2030 registering a CAGR of 22.6%. Liquid Cooling for Data Center industry report classifies global market by share, trend, growth and based on component, data center type,...

Data Center Liquid Cooling Market size was valued at USD 3.01 billion in 2024 and it is estimated to grow at a CAGR of around 21.70% during the forecast period 2024-30, 5G Coverage expansion across the globe is the possible growth opportunity driving the Data Center Liquid Cooling industry thorough 2030.

The solid-state cooling market is anticipated to be valued at USD 592.15 million in 2025. It is expected to grow at a CAGR of 6.5% during the forecast period and reach a value of USD 1111.55 million in 2035. In 2024, the solid-state cooling market experienced steady growth, driven by increasing adoption in electronics and medical applications.

Closed Loop Cooling Towers Market Outlook

The global closed loop cooling towers market size was valued at approximately USD 3.2 billion in 2023 and is projected to reach USD 5.1 billion by 2032, growing at a compound annual growth rate (CAGR) of 5.6% during the forecast period. The significant growth of this market can be attributed to the increasing demand for energy-efficient cooling solutions across several industrial and commercial applications.

One of the primary growth factors driving the closed loop cooling towers market is the increasing emphasis on energy efficiency and sustainability within various industries. As regulations around environmental impact and energy consumption become stricter globally, industries are turning to advanced cooling solutions to reduce their carbon footprint. Closed loop cooling towers, known for their efficient water usage and reduced environmental impact, are becoming a preferred choice. This transition is further bolstered by the rising awareness and adoption of green building standards, which emphasize energy-efficient HVAC systems.

Technological advancements in cooling tower designs are also propelling the market forward. Manufacturers are increasingly focusing on innovations that enhance the efficiency and performance of closed loop cooling towers. Developments such as the integration of IoT for real-time monitoring and control, materials that reduce corrosion and extend the lifespan of the equipment, and hybrid designs that offer flexibility in operation under varying climatic conditions are driving market growth. These innovations not only improve operational efficiency but also help in minimizing maintenance costs, thereby attracting a broader customer base.

The burgeoning industrial sector, particularly in emerging economies, is another significant driver for the closed loop cooling towers market. Rapid industrialization in countries such as China, India, and Brazil is leading to an increased demand for cooling solutions to maintain optimal operating temperatures for machinery and processes. Industries such as power generation, chemical processing, and food and beverage are expanding their operations and capacities, necessitating the deployment of efficient cooling systems. Additionally, the commercial sector, including data centers and office complexes, is witnessing a rise in demand for closed loop cooling towers to ensure energy-efficient climate control.

From a regional perspective, Asia Pacific is expected to dominate the closed loop cooling towers market over the forecast period. The region's strong industrial base, coupled with its rapid urbanization and infrastructure development, is driving the demand for advanced cooling solutions. North America and Europe are also significant markets, driven by stringent environmental regulations and a high focus on energy efficiency. However, the Middle East & Africa and Latin America are witnessing increasing investments in industrial and commercial projects, which are likely to provide new growth avenues for market players.

Type Analysis

The closed loop cooling towers market is segmented into three main types: evaporative closed loop cooling towers, dry closed loop cooling towers, and hybrid closed loop cooling towers. Each type serves different operational needs and comes with its unique set of advantages and drawbacks, catering to diverse industrial and commercial applications.

Evaporative closed loop cooling towers are widely used due to their high efficiency in heat rejection and relatively lower operational costs. These systems utilize the latent heat of vaporization to dissipate heat effectively, making them ideal for applications where cooling needs are substantial. Their ability to maintain lower fluid temperatures compared to air-cooled systems makes them preferred in industries like power generation and chemical processing. However, they require a consistent supply of water, which can be a constraint in regions with water scarcity. Manufacturers are focusing on improving the water efficiency of these systems to overcome this limitation and enhance their market appeal.

Dry closed loop cooling towers, on the other hand, are chosen for applications where water usage needs to be minimized. These systems use air to cool the working fluid and are typically employed in areas where water availability is a concern or where there are restrictions on water discharge. While they may have higher initial costs and lower cooling efficiencies compared to their evaporative counterparts, their operational viability in water-sens

The global revenue in the 'Heating & Cooling' segment of the diy & hardware store market was forecast to continuously increase between 2025 and 2029 by in total **** billion U.S. dollars (+***** percent). After the seventh consecutive increasing year, the revenue is estimated to reach ****** billion U.S. dollars and therefore a new peak in 2029. Find further information concerning the average revenue per capita in the diy & hardware store market in Sweden and the revenue in the diy & hardware store market in Nicaragua.The Statista Market Insights cover a broad range of additional markets.

Data Center Cooling Market size is expected to touch USD 24.6 billion in 2030 from USD 11.3 billion in 2022, with a CAGR of 10.3%

The U.S. data center cooling market size to cross USD 4 billion, growing at a CAGR of over 3% during the forecast period. The data center investors are increasingly investing in liquid immersion and direct-to-chip cooling solutions.

The worldwide data center cooling market by investment was valued at USD 8.73 billion in 2022 and is expected to reach USD 12.64 billion by 2028, growing at a CAGR of 6.36%.

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 global data center cooling market is set to reach USD 49.2B by 2035, driven by AI, IoT, cloud demand, and a 14.3% CAGR from 2025 to 2035.

Direct To Chip Liquid Cooling Market Outlook

The global direct to chip liquid cooling market size is projected to grow from USD 1.2 billion in 2023 to USD 4.5 billion by 2032, reflecting a robust compound annual growth rate (CAGR) of 15.8% during the forecast period. This impressive growth is driven by the increasing demand for efficient cooling solutions in data centers and high-performance computing environments, where traditional air cooling methods are becoming insufficient due to the rising density of electronic components.

One of the primary growth factors for the direct to chip liquid cooling market is the ever-increasing need for energy efficiency. As data centers and computing needs expand globally, the energy required to cool these systems has become a significant concern. Direct to chip liquid cooling offers a more efficient cooling solution, reducing the energy consumption associated with traditional air cooling methods. This efficiency not only lowers operational costs but also supports sustainability goals, which are becoming increasingly important for organizations worldwide.

Another significant growth driver is the growing adoption of high-performance computing (HPC) and artificial intelligence (AI) applications. These technologies require substantial computational power, which generates a significant amount of heat. Traditional air cooling systems are often inadequate for these high-density environments. Direct to chip liquid cooling systems provide a more effective and reliable cooling solution, enabling HPC and AI systems to operate at optimal performance levels without overheating.

The proliferation of data centers across the globe also plays a crucial role in the market's growth. The surge in cloud services, big data analytics, and the Internet of Things (IoT) has led to a tremendous increase in the number of data centers. These data centers require efficient cooling solutions to maintain the performance and longevity of their equipment. Direct to chip liquid cooling systems are increasingly being adopted in data centers to meet these cooling demands, further propelling market growth.

Regionally, North America holds a significant share of the direct to chip liquid cooling market, driven by the presence of major technology companies and data centers. However, the Asia Pacific region is expected to witness the highest growth rate during the forecast period. This growth is attributed to the rapid digital transformation in countries like China and India, increasing investments in data center infrastructure, and the rising adoption of advanced technologies such as AI and machine learning.

In the realm of advanced cooling technologies, the Liquid Cooled Cold Plate stands out as a pivotal innovation. These cold plates are specifically engineered to enhance the efficiency of liquid cooling systems by providing a direct interface with heat-generating components. The design of a liquid cooled cold plate allows it to effectively dissipate heat by circulating coolant through a network of channels, ensuring that high-performance computing systems remain within optimal temperature ranges. This capability is particularly crucial in environments where traditional cooling methods fall short, such as in data centers and HPC applications. By integrating liquid cooled cold plates, organizations can achieve significant improvements in thermal management, leading to enhanced system reliability and performance.

Component Analysis

The component segment of the direct to chip liquid cooling market can be broken down into cold plates, coolant distribution units, heat exchangers, pumps, and others. Cold plates are essential components, acting as the primary interface between the liquid cooling system and the heat-generating chips. They are designed to efficiently transfer heat from the chip to the coolant, ensuring optimal performance and preventing overheating. The demand for cold plates is expected to grow significantly as more organizations adopt liquid cooling solutions for their high-performance computing needs.

Coolant distribution units (CDUs) play a critical role in managing and distributing the coolant throughout the liquid cooling system. These units ensure that the coolant is evenly distributed and maintains the required temperature for efficient cooling. The increasing complexity and size of data centers and HPC environments drive the demand for advanced CDUs that can manage larger volumes o

The United States data center cooling market is projected to grow from $3.20 million in 2025 to $17.13 million by 2033, at a CAGR of 18.90%. The growth of the market is attributed to the increasing demand for data center services due to the rising adoption of cloud computing and big data analytics. Additionally, the growing number of hyperscale data centers and the need for energy-efficient cooling solutions are expected to drive the market growth. The market is segmented based on cooling technology, type, end-user industry, and company. By cooling technology, the market is divided into air-based cooling and liquid-based cooling. Air-based cooling is expected to hold the largest market share during the forecast period due to its lower cost and ease of installation. By type, the market is categorized into hyperscalers, enterprise, colocation, and others. Hyperscalers are expected to dominate the market due to the increasing demand for cloud services and the need for efficient cooling solutions for large-scale data centers. By end-user industry, the market is segmented into IT and telecom, retail and consumer goods, healthcare, media and entertainment, federal and institutional agencies, and others. The IT and telecom segment is expected to hold the largest market share due to the increasing adoption of cloud computing and big data analytics. Recent developments include: March 2024: German heat exchanger manufacturer Kelvion and US immersion cooling company Rosseau announced a partnership to deliver enhanced immersion cooling solutions for the high-performance computing (HPC) market., January 2024: Data center firm Aligned launched a new liquid cooling system called DeltaFlow. The liquid cooling technology is designed to support high-density computing requirements and supercomputers and can cool densities up to 300 kW per rack. The new DeltaFlow system works simultaneously with Aligned's air-cooled Delta technology, enabling no change in power delivery or existing data hall temperatures.. Key drivers for this market are: Increasing Trend of High-Performance Computing across Europe, Growing Rack Power Density. Potential restraints include: Cost, Adaptability Requirement and Power Outages. Notable trends are: The IT & Telecommunication Segment Holds the Majority Share.

Data Center Liquid Cooling Market size was valued at USD 3,489.77 Million in 2023 and is projected to grow to USD 13, 231.67 Million by 2031 with a CAGR of 20.97 % between 2024-2031.

Data Center Liquid Cooling Market Outlook

Data Center Liquid Cooling Market are critical components in semiconductor production processes, allowing for precise material etching and patterning. Advanced Data Center Liquid Cooling Market solutions are now required to achieve lower feature sizes, higher densities, and improved device performance as the semiconductor industry's chip design and production techniques progress at a rapid pace. Furthermore, the extensive use of photolithography techniques in industries other than semiconductors has expanded the variety of applications for Data Center Liquid Cooling Market, including optics, photovoltaics, biotechnology, and microfluidics. Data Center Liquid Cooling Market technologies are used in various areas to pattern and control materials at the micro and nanoscale, allowing the construction of complex optical components, high-efficiency solar cells, medical devices, and microfluidic systems.

The expansion of the worldwide Data Center Liquid Cooling Market is primarily driven by the growth of the semiconductor industry. As demand for electronic devices grows in a variety of industries, including consumer electronics, automotive, healthcare, and telecommunications, semiconductor makers are under pressure to deliver chips with higher performance, increased functionality, and tiny form factors. This trend toward shrinking and increased capabilities needs advances in semiconductor production methods, particularly the use of Data Center Liquid Cooling Market materials. The electronics sector is expanding due to rising demand from emerging market nations. As a result, many countries are producing more electronics, and foreign electronics production has seen enormous investment.

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Data Center Liquid Immersion Cooling Market Size 2024-2028

The data center liquid immersion cooling market size is forecast to increase by USD 1.05 billion, at a CAGR of 31.06% between 2023 and 2028.

The market is experiencing significant growth, driven by the increasing construction of data centers worldwide. This trend is fueled by the ever-expanding digital economy and the resulting demand for more data processing capacity. A key factor propelling market expansion is the growing need to reduce carbon footprint. Traditional air cooling methods contribute significantly to greenhouse gas emissions, making liquid immersion cooling an attractive alternative. This technology submerges servers in non-conductive liquid, allowing for more efficient cooling and increased power density. However, challenges remain. Implementing liquid immersion cooling requires substantial upfront investment and specialized expertise. Additionally, potential issues such as contamination risks and the need for regular maintenance must be addressed. Despite these obstacles, the availability of alternative cooling methods offers potential solutions, including the use of biocides and advanced filtration systems. Companies seeking to capitalize on this market's opportunities must navigate these challenges effectively, ensuring they have the necessary resources and expertise to deploy and maintain liquid immersion cooling systems. By doing so, they can reap the rewards of increased energy efficiency, reduced carbon emissions, and enhanced data center performance.

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

Explore in-depth regional segment analysis with market size data - historical 2018-2022 and forecasts 2024-2028 - in the full report.
Request Free SampleThe market continues to evolve, driven by the increasing demand for more efficient and sustainable cooling solutions. Modular design and edge computing are key trends shaping the market, enabling better thermal management and reducing water consumption. Leak detection and pumping systems ensure safety and reliability, while dielectric fluids offer superior heat transfer capabilities. Liquid immersion cooling's integration with data center infrastructure, including server cooling, heat exchangers, and network infrastructure, enhances data center efficiency and reduces energy consumption. The application of machine learning and artificial intelligence (AI) in cooling system design further optimizes cooling performance and lowers operational costs. However, the market's dynamics are not without challenges. Carbon footprint and environmental impact remain critical concerns, necessitating the use of eco-friendly immersion cooling fluids. The ongoing research and development in two-phase cooling, direct-to-chip cooling, and single-phase immersion cooling aim to address these concerns while maintaining high-performance computing (HPC) capabilities. The market's evolution is also influenced by IT infrastructure demands in various sectors, including big data, cloud computing, and high-performance computing. As the market unfolds, the focus on thermal management and capital expenditure (capex) vs. Operating expenditure (opex) continues to shape the competitive landscape. The integration of liquid immersion cooling into data center infrastructure is an ongoing process, with continuous innovation and advancements in fluid dynamics, heat transfer, and safety systems shaping the future of this dynamic market.

How is this Data Center Liquid Immersion Cooling Industry segmented?

The data center liquid immersion cooling industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments. TypeLarge data centersSmall and mid-sized data centersComponentSolutionServicesGeographyNorth AmericaUSEuropeGermanyUKAPACChinaJapanRest of World (ROW)

By Type Insights

The large data centers segment is estimated to witness significant growth during the forecast period.In the realm of data center cooling, liquid immersion cooling has emerged as an innovative solution for large-scale facilities and hyperscale data centers. This approach involves submerging servers and other IT components in dielectric fluids for cooling, offering advantages such as increased data center efficiency and reduced water consumption. Liquid immersion cooling systems utilize pumping systems and heat exchangers for heat transfer, ensuring optimal thermal management. Modular designs enable easy implementation and maintenance of these systems, while edge computing enhances their efficiency by bringing processing closer to the data source. Leak detection systems ensure safety, and artificial intelligence and machine learning optimize fluid dynamics for ma