Market Overview
The global data center cooling market size was valued at USD 17.3 Billion in 2024 and is forecasted to reach USD 48.8 Billion by 2033. The market is expected to grow at a CAGR of 13.86% during the forecast period 2025-2033. Growth is driven by increasing demand for efficient data centers, emphasis on energy efficiency and sustainability, and the expanding use of cloud computing for data storage and task management. More details can be found here: Data Center Cooling Market
Study Assumption Years
- Base Year: 2024
- Historical Year/Period: 2019-2024
- Forecast Year/Period: 2025-2033
Data Center Cooling Market Key Takeaways
- The global data center cooling market size reached USD 17.3 Billion in 2024.
- The market is projected to grow at a CAGR of 13.86% from 2025 to 2033.
- The forecast period for the market analysis is 2025-2033.
- Increasing demand for data center cooling solutions helps reduce carbon footprints and operational costs, supporting market growth.
- The proliferation of cloud computing and edge computing drives the need for effective cooling solutions with low latency.
- Asia Pacific dominates the market owing to rapid digital infrastructure development and cloud adoption.
- Rising energy consumption and high upfront costs are challenges, yet energy-efficient technologies present opportunities.
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Market Growth Factors
The main driver for the increased demand for data center cooling solutions has been a focus to reduce carbon emissions and reduce operating expenses. Better cooled data centers can result in a smaller carbon footprint as well as a reduction in downtime from overheating. A data center with the right temperature and humidity enables servers and networking equipment to perform faster, at optimal efficiency, and with reduced response times.
Another factor driving the growth of the market is the increased adoption of cloud computing. Since cloud computing accounts for 3% of global energy consumption and 60% of data generated by companies, data centers require scalable and advanced cooling infrastructure as per the need. Increased server density at cloud service providers has led to more investment in larger data centers and more advanced cooling solutions used in those centers.
The number of Internet of Things (IoT) devices is expected to accelerate from 15 billion in 2023 to over 32 billion by 2030 which is expected to increase the amount of data to be processed. This results in an increase in computational and storage requirements, and therefore thermal management requirements. By 2033, the number of IoT devices is expected to exceed 8 billion units in China alone and will likely drive market growth due to the expanding volume and variety of data.
Market Segmentation
- Breakup by Solution: Air Conditioning, Chilling Units, Cooling Towers, Economizer Systems, Liquid Cooling Systems, Control Systems, Others
- Air conditioning dominates the market segment. It is crucial for maintaining proper operating conditions within data centers to avoid equipment failure and reduce energy costs. Advanced monitoring systems facilitate temperature and humidity control for optimal performance.
- Breakup by Services: Consulting, Installation and Deployment, Maintenance and Support
- Installation and deployment lead the market share. This service ensures efficient operation of servers and networking equipment by setting up monitoring, control, and cooling system components, along with staff training and documentation.
- Breakup by Type of Cooling: Room-Based Cooling, Row-Based Cooling, Rack-Based Cooling
- Room-based cooling holds the largest share. It targets specific rooms within buildings to increase energy efficiency using window air conditioners, ductless mini-splits, portable ACs, and swap coolers that use evaporative cooling.
- Breakup by Cooling Technology: Liquid-Based Cooling, Air-Based Cooling
- Liquid-based cooling accounts for the largest market share. It utilizes networks of tubes carrying cooling fluid in direct contact with hot surfaces via water blocks or heat exchangers, enabling precise and efficient temperature control.
- Breakup by Type of Data Center: Mid-Sized Data Centers, Enterprise Data Centers, Large Data Centers
- Enterprise data centers dominate the market. These centralized facilities manage an organization's IT infrastructure, handling vast digital information and hosting computing resources vital to business operations.
- Breakup by Vertical: BFSI, IT and Telecom, Research and Educational Institutes, Government and Defense, Retail, Energy, Healthcare, Others
- IT and telecom sectors hold the largest share. These sectors rely heavily on high-performance data centers requiring effective cooling to manage high heat densities and maintain equipment performance.
Regional Insights
Asia Pacific exhibits clear dominance in the data center cooling market, accounting for the largest share. This leadership is attributed to rapid development of digital infrastructure, increasing adoption of cloud computing, and a growing focus on maintaining optimal temperature conditions for servers. The region also benefits from the rising proliferation of IoT devices. Notably, in April 2024, a collaboration between GDS and Gaw Capital Partners to build a 40-megawatt data center campus in Tokyo underscores the region’s market activity.
Recent Developments & News
- September 2024: Gates launched the Data Master Data Center Cooling Hose, a specialized product for data center cooling.
- August 2024: UK-based Airedale introduced its Cooling System Optimizer in the US, an intelligent control layer situated between chiller and CRAH product controls and the site's building management system.
- 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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