Data Center Cooling Market: Liquid Cooling Adoption and Infrastructure Modernization Trends, 2025–2033

Market Overview

The global data center cooling market reached USD 17.3 Billion in 2024 and is projected to reach USD 48.8 Billion by 2033. It is expected to grow at a CAGR of 13.86% during the forecast period from 2025 to 2033. The market growth is driven by the demand for efficient data centers, a rising focus on energy efficiency and sustainability, and the increasing use of cloud computing to manage and store vast amounts of data. For further details, visit the Data Center Cooling Market

Study Assumption Years

• Base Year: 2024
• Historical Years: 2019-2024
• Forecast Period: 2025-2033

Data Center Cooling Market Key Takeaways

• The global data center cooling market size was valued at USD 17.3 Billion in 2024.
• The market is expected to exhibit a CAGR of 13.86% during 2025-2033.
• The forecast period spans from 2025 to 2033.
• Increasing demand for data center cooling solutions is driven by their ability to reduce carbon footprint and operational costs, enhancing sustainability.
• The correct maintenance of temperature and humidity levels ensures optimal server and networking equipment performance.
• Proliferation of cloud computing and the transition to edge computing positively influence market growth.
• Asia Pacific dominates the market due to rapid digital infrastructure development and growing adoption of cloud computing and IoT.

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Market Growth Factors

The global data center cooling market is propelled by the increasing demand for cooling solutions that help reduce the carbon footprint of data centers and lower operational costs. These solutions enable data centers to be more environmentally and financially sustainable. Maintaining the correct temperature and humidity levels is critical for ensuring servers and networking equipment operate efficiently, providing optimal performance and faster response times.

The expansion of cloud computing plays a significant role in market growth. Cloud computing stores about 60% of the world's corporate data and consumes 3% of global energy. The requirement for scalable data centers to support dynamic workloads necessitates advanced cooling solutions. As cloud service providers expand, they invest in larger data centers with efficient cooling to manage the heat generated by dense server arrangements.

The proliferation of Internet of Things (IoT) devices also drives demand for data center cooling. The number of IoT devices is expected to nearly double from approximately 15 billion in 2023 to over 32 billion by 2030. This surge results in more data being generated, increasing computational needs, resulting in higher heat production and greater cooling requirements. Consequently, this growth supports the rising demand for advanced cooling systems in data centers.

Market Segmentation

• Solution: Air Conditioning, Chilling Units, Cooling Towers, Economizer Systems, Liquid Cooling Systems, Control Systems, Others
• Air conditioning dominates due to its crucial role in maintaining optimal operating conditions for data center equipment by removing excess heat and ensuring continuous operation.
• Services: Consulting, Installation and Deployment, Maintenance and Support
• Installation and deployment hold the largest market share, involving setting up cooling components, real-time environmental monitoring, detailed system documentation, and staff training.
• Type of Cooling: Room-Based Cooling, Row-Based Cooling, Rack-Based Cooling
• Room-based cooling leads the market, focusing on cooling specific spaces efficiently using window air conditioners, ductless mini-split systems, portable air conditioners, and swap coolers.
• Cooling Technology: Liquid-Based Cooling, Air-Based Cooling
• Liquid-based cooling holds the maximum market share for its efficiency in dissipating heat through direct contact with hot surfaces, enabling precise temperature control.
• Type of Data Center: Mid-Sized Data Centers, Enterprise Data Centers, Large Data Centers
• Enterprise data centers dominate, being centralized facilities managing critical IT infrastructure and hosting digital information vital for business operations.
• Vertical: BFSI, IT and Telecom, Research and Educational Institutes, Government and Defense, Retail, Energy, Healthcare, Others
• IT and Telecom sector leads, relying heavily on high-performance computing equipment that generates significant heat, necessitating efficient cooling systems.
• Region: North America, Asia Pacific, Europe, Latin America, Middle East and Africa
• Asia Pacific shows clear market dominance, driven by growing digitalization, cloud computing adoption, IoT proliferation, and infrastructure investments.

Regional Insights

Asia Pacific exhibits clear dominance in the data center cooling market thanks to rapid digital infrastructure development and widespread cloud computing adoption. It leads the market share by supporting increasing needs for data storage and processing. The region's focus on maintaining specific temperature ranges for optimal server functioning combined with increasing IoT proliferation further strengthens its market position.

Recent Developments & News

• September 2024: Gates launched the Data Master Data Center Cooling Hose, a specialized cooling solution.
• August 2024: Airedale introduced its data center Cooling System Optimizer in the United States, an intelligent control layer enhancing chiller and CRAH product controls integration with building management systems.
• June 2024: Petronas Lubricants International collaborated with Iceotope to launch a novel data center cooling fluid, expanding advanced thermal management options.

Key Players

• Airedale International Air Conditioning
• Asetek
• Black Box Corporation
• Climaveneta Climate Technologies
• Coolcentric
• Emerson Electric
• Fujitsu
• Hitachi
• Netmagic
• Nortek Air Solutions
• Rittal
• Schneider Electric
• STULZ GmbH
• Vertiv

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