Market Overview
The global data center cooling market was valued at USD 17.3 Billion in 2024 and is projected to reach USD 48.8 Billion by 2033, exhibiting a CAGR of 13.86% during the forecast period from 2025 to 2033. Market growth is driven by the increasing demand for efficient data centers, focus on energy efficiency and sustainability, and the rising proliferation of cloud computing, which demands advanced cooling solutions to manage heat from densely packed servers. The report for this market can be found at Data Center Cooling Market.
Study Assumption Years
- Base Year: 2024
- Historical Years: 2019-2024
- Forecast Period: 2025-2033
Data Center Cooling Market Key Takeaways
- Current Market Size: USD 17.3 Billion in 2024
- CAGR: 13.86% during 2025-2033
- Forecast Period: 2025-2033
- The growing demand for data center cooling solutions helps reduce carbon footprint and lowers operational costs, enhancing sustainability.
- Maintaining correct temperature and humidity ensures optimal server and networking equipment performance with faster response times.
- Expansion of cloud computing necessitates larger data centers with advanced cooling to handle increased heat from dense server configurations.
- Asia Pacific dominates the market due to rapid digital infrastructure development and cloud adoption.
- Challenges include high energy consumption and upfront costs; however, energy-efficient technologies like free cooling and advanced liquid cooling offer growth opportunities.
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Market Growth Factors
The increasing demand for data center cooling solutions is primarily driven by the need to reduce the carbon footprint of data centers and lower operational costs, making them environmentally and financially sustainable. Proper cooling ensures that servers and networking equipment maintain optimal temperature and humidity levels, supporting peak performance and faster response times.
The proliferation of cloud computing has significantly contributed to market growth. As cloud services expand, data centers must be scalable and efficient to handle dynamic workloads. With cloud data centers consuming 3% of the world's energy and managing 60% of corporate data globally, advanced cooling solutions become integral to managing the increased heat generated by densely packed servers.
The rapid increase in IoT devices worldwide—from nearly 15 billion in 2023 to over 32 billion by 2030—is boosting data volume in data centers. This surge drives higher computational and storage needs, resulting in increased heat generation and boosting demand for advanced cooling technologies. For example, China is expected to have over 8 billion IoT devices by 2033, influencing the regional market expansion.
Market Segmentation
By Solution:
- Air Conditioning: Dominates the market; crucial for maintaining proper operating conditions by managing heat generated from servers and networking equipment. Redundant systems and advanced monitoring optimize efficiency.
- Chilling Units
- Cooling Towers
- Economizer Systems
- Liquid Cooling Systems
- Control Systems
- Others
By Services:
- Consulting
- Installation and Deployment: Holds the largest share; critical for efficient and reliable operation, involving setup, monitoring, maintenance documentation, and staff training.
- Maintenance and Support
By Type of Cooling:
- Room-Based Cooling: Largest share; method targets cooling specific spaces within buildings using window ACs, ductless mini-splits, portable units, and evaporative swap coolers to increase efficiency.
- Row-Based Cooling
- Rack-Based Cooling
By Cooling Technology:
- Liquid-Based Cooling: Accounts for the largest market share; uses fluid to absorb and dissipate heat effectively with precise temperature control.
- Air-Based Cooling
By Type of Data Center:
- Mid-Sized Data Centers
- Enterprise Data Centers: Largest share; centralized IT infrastructure hosting vast digital information and computing resources critical for enterprise operations.
- Large Data Centers
By Vertical:
- BFSI
- IT and Telecom: Largest market share; relies heavily on data centers with high-performance computing equipment requiring effective cooling for heat management and stable operation.
- Research and Educational Institutes
- Government and Defense
- Retail
- Energy
- Healthcare
- Others
Regional Insights
Asia Pacific dominates the data center cooling market, accounting for the largest market share. This dominance is attributed to rapid digitalization, increasing cloud computing adoption, and maintenance of optimum operating conditions for servers and IT equipment. Notably, a 40-megawatt data center campus collaboration in Tokyo exemplifies significant investment and growth in the region.
Recent Developments & News
- September 2024: Gates launched the Data Master Data Center Cooling Hose.
- August 2024: Airedale introduced the data center Cooling System Optimizer in the U.S., an intelligent control layer between chiller/CRAH controls and BMS.
- 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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