Market Summary

The global Data Center Cooling market size was valued at USD 13.90 billion in 2025 and is projected to reach USD 36.90 billion by 2033, growing at a CAGR of 12.60% from 2026 to 2033. Global Data Center Cooling Market: The Global Data Center Cooling Market is exhibiting a strong CAGR growth rate owing to an escalating demand for high density computing infrastructure and hyperscale data centers, which in turn have been urged by cloud computing, AI, and Big data analytics. The escalating demands for energy efficiency have correspondingly enhanced the use of sophisticated data center cooling solutions, which include economizers and liquid cooling solutions. Additionally, an ever-growing digitalization trend, specifically in sectors like BFSI, Healthcare, and IT & Telecom, has correspondingly added to the workloads of data centers.

Market Size & Forecast

• 2025 Market Size: USD 13.90 Billion
• 2033 Projected Market Size: USD 36.90 Billion
• CAGR (2026-2033): 12.60%
• North America: Largest Market in 2026
• Asia Pacific: Fastest Growing Market

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Key Market Trends Analysis

• In North America people are using cooling systems more and more in big data centers in the United States. This is happening because Artificial Intelligence workloads and high-density servers, in these data centers get very hot. They need a way to keep cool. Liquid cooling systems are a solution. They help cut down on energy costs and make the data centers run smoothly. The main reason people are using cooling systems is that Artificial Intelligence workloads and high-density servers need a good way to manage heat. Artificial Intelligence workloads and high-density servers will not work properly if they get too hot.
• Hyperscale data centers in North America are really taking the lead when it comes to growth. This is because big companies and colocation facilities are using designs to deal with the huge demand for cloud computing, Artificial Intelligence processing and data storage. This demand is happening over the United States and Hyperscale data centers are, at the center of it all helping to meet the needs of Hyperscale data centers and other businesses.
• The IT and telecommunications industries in North America are really taking off. This is happening because lots of people are now using cloud services and companies are starting to use Artificial Intelligence. People are also sending data over the internet. The IT and telecommunications industries need to keep their computers and servers cool, so they do not overheat. If they do not do this the computers and servers will break down. So, the IT and telecommunications companies must invest in cooling systems. This will help keep everything running smoothly. It will also help them save energy.
• The IT and telecommunications industries must do this to keep up with the growth and to keep everything working. This is important for IT and telecommunications companies in North America. They need to keep their systems working all the time. IT and telecommunications companies in North America must make sure everything runs smoothly.
• In the Asia Pacific region people are really going for cooling systems in a way especially in countries like China, Japan and India. These countries are building data centers to support things like Artificial Intelligence, cloud computing and high-performance computing. The cooling systems and the liquid cooling systems are really good at helping these data centers use energy in an efficient way, which is very important for Artificial Intelligence, cloud computing and high-performance computing applications.
• The liquid cooling systems are doing a job of keeping these data centers cool and using energy efficiently, which is crucial, for the Asia Pacific regions data centers. Liquid cooling systems are becoming very popular in the Asia Pacific region in China, Japan and India where these huge data centers are using them to support Artificial Intelligence, cloud computing and high-performance computing.
• The data centers in Asia Pacific in China and India are really helping the market to grow. The Asia Pacific data centers are very big. They use a lot of cloud systems and artificial intelligence systems. Asia Pacific data centers are trying to find ways to keep their equipment cool and they want to be able to add new cooling designs as needed. They are also looking for ways to manage the energy that the Asia Pacific data centers use. The Asia Pacific data centers are making a difference, with these new cloud systems and artificial intelligence systems.
• IT & telecommunications verticals in Asia Pacific are investing heavily in data center expansion across Japan, China, and India, with a strong focus on efficient cooling systems to accommodate growing mobile, cloud, and digital service traffic.

The Global Data Center Cooling Market is an important part of the data center infrastructure. It includes things that help control the temperature in computer rooms. As more data centers are built around the world because of things like cloud computing, Artificial Intelligence, big data analytics and Internet of Things it is important to have cooling systems. This is because the Global Data Center Cooling Market needs to keep the computers running smoothly, use energy wisely and make sure everything keeps working all the time. The Global Data Center Cooling Market is crucial, for all these things. People use things like air conditioning systems and chillers and cooling towers and economizers and liquid cooling systems in computer places, like enterprise data centers and colocation data centers and hyperscale data centers. These air conditioning systems and chillers and cooling towers and economizers, and liquid cooling systems help with the growing demands of these data centers.

The market for things is getting bigger because more people are building huge data centers in places like North America, the United States and Asia Pacific. This is happening because companies in these places are trying to do things with computers and they need to keep their equipment cool. Market growth is also happening because of rules that say companies must use energy and be more friendly to the environment. So companies are starting to use ways to cool their equipment like using liquid to cool things down and using outside air to cool things down when it is cool outside. These new ways of cooling things down use power and cost less money to operate which is why companies like them. Market growth and the use of these cooling systems, like liquid cooling systems are going to keep happening because companies need to use less energy.

Industry verticals including IT & telecommunications, BFSI, healthcare, and government are significant contributors to market expansion, as they require continuous uptime and rapid processing of large data volumes. The market is also witnessing increased investment in modern cooling infrastructure to support the transition toward AI-driven workloads, modular and scalable designs, and reduced carbon footprints, making data center cooling a strategic priority for organizations worldwide.

Data Center Cooling Market Segmentation

By Solution Type

• Air Conditioning Systems

Air-conditioning systems have continued to be used in enterprise and colo data centers, particularly because they have existing infrastructure and relatively moderate capital expenditure costs. These systems can effectively manage temperatures for general workloads until organizations can adopt more efficient cooling solutions.

• Chillers

Chillers are generally employed at a macro level for the regulation of heat generated by servers of higher density. They are capable of delivering accurate cooling for mechanical applications, supporting not only enterprises but also hyperscale data facilities, and are also being implemented in more power-efficient configurations.

• Cooling Towers

Cooling towers find effective utilization in hyperscale and large colocation data centers in order to support chilled water cooling solutions. The cooling towers help in effective heat removal, energy efficiency, and easier adherence to sustainable development programs, mainly in regions with a desirable climate.

• Economizers

Economizers, including airside and waterside variants, leverage ambient conditions for free cooling, lowering operational costs. They are gaining adoption in hyperscale and colocation data centers, especially in North America and Europe, to meet energy efficiency regulations and sustainability targets.

• Liquid Cooling Systems

Liquid cooling provides the fastest rate of growth, particularly in the hyperscale and HPC markets. Liquid cooling can effectively manage the heat generated by artificial intelligence, cloud computing, and big data servers, which helps reduce power consumption and increase server densities.

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By Data Center Type

• Enterprise Data Centers

Enterprise data centers focus on upgrading legacy infrastructure with efficient cooling solutions to maintain up time, reduce energy costs, and support growing internal IT workloads. Air conditioning and chillers dominate, while advanced solutions are gradually adopted.

• Colocation Data Centers

To handle various clients' setups, colocation centers focus on cooling systems that can easily grow and change. They're using more liquid cooling and economizers to save energy, cool powerful servers, and stick to their service promises.

• Hyperscale Data Centers

Hyperscale data centers are making the market bigger because cloud services, AI, and big data need a lot of computing ability. To keep things energy-efficient, dense, and working well, they use things like liquid cooling, economizers, and better air systems.

By Industry Vertical

• IT & Telecommunications

To keep IT and telecom systems running without interruption and process data quickly, more companies are using liquid cooling and energy-saving air systems. This is especially true in North America and Asia Pacific, where traffic, cloud services, and AI tasks are expanding..

• BFSI

Banking, financial services, and insurance companies are updating their data centers with better cooling systems to deal with lots of transactions and online work. Saving energy and following the rules are big reasons to use liquid cooling and modular air systems.

• Healthcare

Healthcare data centers must have dependable cooling to protect sensitive patient info and research data. They often use liquid cooling and updated air systems to keep things running smoothly, cut power use, and meet rules.

• Government

Government data centers focus on security, keeping systems online, and using energy wisely. They use cooling tech like AC, chillers, and economizers to keep things running smoothly, which is super important for large-scale and vital operations.

• Others

Other industries, including retail, education, and energy, are investing in cooling solutions to support digital transformation. Adoption is focused on cost-efficient air-based systems, with gradual integration of liquid cooling for high-density workloads.

Regional Insights

North America is big in the data center cooling market. The United States is the part of this market. This is because there are a lot of data centers in the United States. Canada and Mexico are also part of this market. North America has infrastructure and the government is focused on saving energy. This is why a lot of data centers in North America use cooling and other special solutions to stay cool. These solutions are used in data centers and in places where many companies store their data. North America data center cooling market is doing well because of these things.

Europe has a part of the market, and this is because of countries like Germany, the United Kingdom, France, Spain and Italy. The rest of Europe is also doing its part to help this market grow. People want to use energy in a way and there are rules to protect the environment, so this is making the market grow. Also more people are using cloud services. Big companies and facilities are using ways to keep their equipment cool like using liquids, special cooling machines and systems that use outside air to cool things down. They are doing this to save money and make less of an impact on the environment. Europe and these countries like Germany, the United Kingdom, France, Spain and Italy are seeing a lot of growth in this area because of the need, for energy- infrastructure and the growth of cloud services.

The Asia Pacific region is growing fast. This is because of countries like China, Japan, Australia, New Zealand, South Korea and India. The rest of the Asia Pacific region is also starting to use these things more. The main reason for this growth is that Asia Pacific is becoming more digital quickly. People are using cloud services and artificial intelligence a lot. They are also building data centers.

In South America countries, like Brazil, Argentina and the rest of South America are starting to use these things. Not as fast. Mostly big companies and special facilities that help keep computers safe are using them in South America. The Asia Pacific region is still the one that is growing the fastest. Middle East & Africa, comprising Saudi Arabia, UAE, South Africa, and Rest of MEA, shows steady growth due to increasing hyperscale investments, government initiatives, and focus on sustainable energy-efficient cooling solutions.

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Recent Development News

• February 2025, Vertiv announced the global rollout of its Vertiv™ Liquid Cooling Services portfolio to support advanced liquid cooling systems for AI and high‑density compute applications in data centers worldwide. The offering enhances system availability, efficiency, and lifecycle support including design, installation, and maintenance — addressing rising thermal demands from high‑density racks.

(Source:https://www.vertiv.com/en-emea/about/news-and-insights/news-releases/vertiv-announces-global-launch-of-liquid-cooling-services-portfolio--to-support-systems-for-ai-and-high-density-compute-applications/)

• September 2025, Schneider Electric unveiled its end‑to‑end liquid cooling solutions portfolio (Motivair by Schneider Electric) for hyperscale, colocation, and high‑density data center environments. The portfolio includes coolant distribution units, dynamic cold plates, and other advanced thermal management technologies designed to meet increasing AI and HPC workload demands.

(Source:https://www.se.com/ww/en/about-us/newsroom/news/press-releases/schneider-electric-unveils-liquid-cooling-portfolio-with-motivair-featuring-dedicated-solutions-and-services-for-hpc-and-ai-workloads-68d69e595c9dbb622505caf3)

Key Data Center Cooling Company Insights

Schneider Electric is a name when it comes to keeping data centers cool. They have all sorts of solutions like air conditioning, liquid cooling and economizer systems for companies and facilities. Schneider Electric uses technology and internet connected devices to make sure their systems use less energy cost less to run and work really well. They just added liquid cooling options, which is great for things like artificial intelligence and super powerful computers. This means Schneider Electric is, in a good spot to do well in areas that are growing fast. Schneider Electric’s strong global presence, innovative product range, and sustainability focus allow it to capture increasing market demand across North America, Europe, and Asia Pacific, maintaining a competitive edge.

Key Data Center Cooling Companies:

• Schneider Electric SE
• Vertiv Group Corp.
• Johnson Controls Inc.
• Mitsubishi Electric Corporation
• STULZ GmbH
• Rittal GmbH & Co. KG
• Asetek A/S
• CoolIT Systems Inc.
• Fujitsu Ltd.
• Carrier Global Corporation
• Daikin Industries, Ltd.
• Delta Electronics, Inc.
• Munters Group AB
• Green Revolution Cooling (GRC)
• Submer

Global Data Center Cooling Market Report Segmentation

By Solution Type

• Air Conditioning Systems
• Chillers
• Cooling Towers
• Economizers
• Liquid Cooling Systems

By Data Center Type

• Enterprise Data Centers
• Colocation Data Centers
• Hyperscale Data Centers

By Industry Vertical

• IT & Telecommunications
• BFSI
• Healthcare
• Government
• Others

Regional Outlook

• North America
  • United States
  • Canada
  • Mexico
• Europe
  • Germany
  • United Kingdom
  • France
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • Australia & New Zealand
  • South Korea
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • United Arab Emirates
  • South Africa
  • Rest of the Middle East & Africa