"Smart Strategies, Giving Speed to your Growth Trajectory"

Data Center Cooling Market Size, Share & COVID-19 Impact Analysis, By Product (Air Conditioners, Precision Air Conditioners, Liquid Cooling, Air Handling Unit, and Others), By Data Center Type (Large Scale, Medium Scale, and Small Scale), By Cooling Technique (Room-based Cooling, Rack-based Cooling, and Row-based Cooling), By Industry (BFSI, IT and Telecom, Manufacturing, Retail, Healthcare, Energy and Utilities, and Others), and Regional Forecast, 2023-2030

Last Updated: July 01, 2024 | Format: PDF | Report ID: FBI101959


Data Center Cooling Market Analysis- 2026

Play Audio Listen to Audio Version

The data center cooling market size was valued at USD 13.51 billion in 2022 and is projected to grow from USD 14.85 billion in 2023 to USD 30.31 billion by 2030, exhibiting a CAGR of 10.7% during the forecast period. North America dominated the global market with a share of 38.19% in 2022.

Data centers are strategic blocks for many organizations providing capabilities of centralized storage, networking, and backups. Increasing demand for higher computing capacity of the computer networks is primarily driven by the large amount of data being generated. This has led to a growth in data center energy consumption. 

Furthermore, this growth in energy consumption of data centers has led to financial and environmental concerns. These concerns are driving the need for optimized changes in data center cooling strategies.

Data center cooling refers to monitoring, measuring, and controlling data center resources as well as energy consumption in IT-related equipment, such as servers, network switches, storage, and infrastructure components. These components include computer room air conditioners and power distribution units.

To facilitate the rapid increase in data storage and offered services, such as data backup & archiving, managing authentication, and authorization, data center operators are required to deploy their IT hardware infrastructures including servers, Power Distribution Units (PDUs), and other components suitably. Such factors are expected to boost the data center cooling market growth.


Request a Free sample to learn more about this report.

Changing Landscape of Sustainable Technologies to Propel Market Growth

Energy efficiency and environmental sustainability are now a top priority for data center managers. Some of the effective ways to achieve cost-efficient growth with respect to data centers are through optimum utilization of space, enhanced cooling capacities, and optimized electric power usage. The commercialization of data center services is a growing market trend. As organizations are more inclined toward outsourcing, business activities make the market more price-driven.

One of the emerging data center cooling market trends is the development of next-generation sustainability technologies. Tech companies can deliver much more substantial energy and carbon savings through the use of advanced technologies such as Artificial Intelligence (AI). To prevent costly breakdowns, AI can easily detect problems with cooling systems in advance. Moreover, increased data center workload and integration of IT equipment are likely to raise the power density; which will drive the demand for higher rack power densities. An excessive amount of heat is generated due to increased rack densities, as a result of which, the demand for data center cooling solutions is increasing.


Growing Need for Optimizing Infrastructure Budgets to Achieve Business Growth will Ensure Market Expansion

There is a notable surge in the number of data center deployments owing to the increasing demand for additional storage to store large volumes of data that are generated regularly. Increasing establishment of data centers leads to a rise in overall energy consumption and also contributes to excessive heat generation. This is anticipated to create significant demand for low-power-consuming cooling techniques.

Owing to advancements in technologies, such as Industry 4.0 and IoT, there has been a notable increase in infrastructure spending. Thus, leveraging advanced data center cooling solutions is likely to help optimize the power consumption, which will make data centers more energy efficient and lower their operational cost at the same time.


Laws and Regulations Associated with Protection of Data to Hamper Market Growth

Data centers should provide an enhanced level of safety for equipment that is kept within them. It also includes protecting against physical and cyber threats such as theft or vandalism. To ensure the protection of information, customers place their confidence in data centers. The major restraining factor which data center providers are experiencing is complying with the rules associated with individual data protection.

Nevertheless, growth of the market might get impeded by the need for specialized infrastructure and high investment costs associated with the design and maintenance of these solutions. In addition, this market is anticipated to face challenges over the forecast period due to cooling problems during power interruptions and increased carbon emissions.


By Product Analysis

Due to Effectiveness of Liquid Cooling Technique, Market is Projected to Witness High Demand

Based on product, the market is segmented into air conditioners, precision air conditioners, liquid cooling, air handling unit, and others. Liquid cooling segment is expected to grow at a higher CAGR during the forecast period. Liquid cooling provides specific advantages. For instance, a liquid cooling solution protects servers in edge data centers and a high cooling capacity is ideal for using blockchain, AI, Internet of Things(IoT), and other technologies. Higher capacity, lower cost, and less impact on the environment are major benefits of using liquid cooling. A liquid cooling device is capable of controlling the rising heat and high AC loads per unit. Various units of liquid cooling equipment can be combined for a large data center for efficient operation of individual AC loads. Various organizations are also adopting liquid cooling techniques. For instance,

  • In April 2023, Meta planned a change to the liquid cooling technique used in its AI-centric data center design. To better support Artificial Intelligence, the strategic shift in Meta's data center design focuses on making optimal use of new facilities.

In terms of market share, the air conditioners segment held the majority of the market in 2022. Air conditioners are deployed on a large scale in data center infrastructures. The air conditioning systems are a convenient way of air cooling. Air conditioners are affordable as they are quite inexpensive, however, they are quite insufficient in terms of energy usage.

These aspects are likely to fuel the demand for liquid cooling data centers in the coming years.

By Data Center Type Analysis

Rising Demand for Cloud Servers in Large Scale Data Center is Projected to Have a Lucrative Growth

By data center type, the market is categorized into large scale, medium scale, and small scale. The large scale segment is anticipated to hold a dominant data center cooling market share during the forecast period. The increasing adoption of cloud-based services is generating a large amount of data. To store this data, there is a rising demand for more servers and storage space. These factors are likely to fuel the demand for large scale data centers.

By Cooling Technique Analysis

Faster Implementation and Flexible Environment of Rack-based Cooling is Likely to Fuel the Demand in the Market

Based on cooling technique, the data center cooling market has been classified into room-based cooling, row-based cooling, and rack-based cooling.

The rack-based cooling segment is projected to witness exponential growth in the coming years. Compared to room-based and row-based cooling techniques, the airflow paths of rack-based method are precisely defined. Rack-based cooling is fast to implement and gains extreme density, but comes with additional expenses. However, owing to the additional advantages of rack-based cooling techniques, organizations are likely to make long term investments in them.

Row-based cooling provides flexibility, speed, and some of the density advantages of the rack-based approach with optimized cost. However, this type of cooling is slightly more costly than room-based cooling. As per a white paper published by Schneider Electric, there is a general preference among small-sized data centers and high-density zones toward row-based cooling, whereas larger data centers are likely to be more inclined toward room-based cooling.

A room-based cooling unit monitors the total heat load of the room. This cooling technique can have one or more air conditioners that supply cool air. The room-based design is often affected by particular constraints of the room, such as its shape, ceiling height, and rack layout. Therefore, the adoption of room-based cooling is expected to decrease during the forecast period.

By Industry Analysis

To know how our report can help streamline your business, Speak to Analyst

Rising Demand for Effective Cooling Services within IT & Telecom Industry Projected to Dominate Market Growth

Based on industry, the market is segmented into BFSI, IT and telecom, manufacturing, retail, healthcare, energy and utilities, and others. The IT and telecom segment is expected to be a significant revenue contributor in the global market. This industry consists of companies offering hosting services and Web 2.0. Hosting services include cloud services, web hosting, and others. Whereas, Web 2.0 includes Yahoo, Google, Facebook, and others. The demand for data center services among these companies is high.

Globally, there is a growing trend of outsourcing business operations to third-party colocation service providers. The colocation service providers are more focused on providing high efficiencies at specific load conditions. These factors are likely to drive the adoption of advanced cooling techniques in the IT & telecom industry.

The retail segment is expected to showcase a higher CAGR over the forecast period. This is due to the widespread use of image verification tools, such as IPVT, social media, smartphones, and tablets, which have increased data volumes, thereby boosting the demand for data center cooling solutions.

Research and developments in health information technology and the growing adoption of Electronic Healthcare Record (EHR) system are expected to supplement the market growth during the forecast period. North America and Europe are anticipated to witness considerable growth in the establishment of data center cooling units in the healthcare segment.


North America Data Center Cooling Market Size, 2022 (USD Billion)

To get more information on the regional analysis of this market, Request a Free sample

Geographically, the data center cooling market for data center cooling is fragmented into five major regions such as North America, South America, Europe, the Middle East & Africa, and Asia Pacific. They are further categorized into countries.

North America captured the largest market share in 2022 and is expected to remain dominant during the forecast period. The U.S. has the highest number of data center facilities, making it a significant adopter of data systems in North America. There is substantial spending and investment in data centers by companies in the U.S. For instance,

  • In May 2022, Intel launched a new Data Center Sustainability Initiative with a USD 700 million investment to set up a new research center dedicated to liquid and immersion cooling. It also introduced the first reference design of immersion cooling technology in the market to encourage its use in data centers.

These factors are expected to drive the market in North America.

Data center operators in Asia Pacific are trying to improve the consumer experience in terms of enhanced internet speed and reduced latency. In a broad view, this will positively influence the market, and the region is expected to record a higher CAGR.

Similarly, Cisco Systems Inc. expects that Asia Pacific may use twice as much mobile data in a month than North America and Western Europe. The regional market also benefits from the rising setup of data centers by reputed companies. For instance, in 2022, PhonePe launched its first green data center in India by partnering with NTT Telecommunications and Dell Technologies. With efficient data protection, power efficiency, ease of operation, and cloud solutions, the green data center is intended to create new opportunities for PhonePe's data management.

The number of data centers in Europe has also grown significantly. In addition, active initiatives are being taken by data center service providers in Europe to exploit heat produced from green waste. However, by the end of the forecast period, South American countries are expected to have lucrative market opportunities for data center cooling services. The Middle East & Africa is projected to exhibit steady data center cooling market growth during the forecast period.

Furthermore, the growing adoption of internet-enabled devices is expected to increase the demand for data centers across the region and supplement the growth of the regional market.


Key Industry Players to Focus on Strategic Partnerships and Expansion of Product Portfolio

The market players are trying to expand their customer base by using several growth strategies such as partnerships, mergers, acquisitions, and others. These players are also planning to develop new products by expanding their technological investments in research and development. For instance,

March 2023 – LiquidStack received funding from Trane Technologies PLC to enhance the implementation of its solutions and reduce electronic waste, water usage, carbon footprint, and other environmental impacts by providing fluid immersion cooling for data centers.

October 2022 – U.S.-based Aligned Data Centers acquired two new sites to build 2 million square feet of high-tech campuses with more than 400 megawatts of IT load. Aligned's patented Delta cooling technology, which uses arrays to absorb, eliminate heat, and decrease water flow requirements, would be used in the new data centers. A heat rejection system, which uses approximately 80% less water and can operate without water as needed, was also installed in the facility.

List of Key Companies Profiled in Data Center Cooling Market:


  • March 2023 – Castrol, a leading lubricant brand, joined GRC's ElectroSafe Fluid Partner Program, a platform for strategic partnerships to help customers reduce water and energy consumption, for its data center operations by offering advanced immersion cooling fluids. GRC (Green Revolution Cooling) is one of the leaders in data center immersion cooling.

  • August 2022 – One Asian Network Limited announced that its data center in Hong Kong was being equipped with a solution that can absorb cold water. The new solution is claimed to be efficient at reducing the energy consumption of data centers and delivering a high degree of reliability. This solution is an innovative change in how high energy consuming companies shift toward a green future through the adoption of sustainability technologies, innovation, and best practices.

  • May 2022 – Alibaba Cloud, a Chinese digital technology & innovation company, launched its third data center in Germany. The company offers a wide range of cloud services, from storage and networking to databases. In addition, with more than 6,500 hours of complete free cooling in a year, the new data center has an air conditioning system using dry dryers that utilize low ambient temperatures instead of mechanical refrigeration.


An Infographic Representation of Data Center Cooling Market

To get information on various segments, share your queries with us

The data center cooling market research report includes an analysis of leading regions, market dynamics, and market segmentation to understand the market better. Furthermore, the report provides insights into the latest industry trends and analyzes technologies that are deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.




Study Period


Base Year


Estimated Year


Forecast Period


Historical Period


Growth Rate

CAGR of 10.7% from 2023 to 2030


Value (USD Billion)


By Product, Data Center Type, Cooling Technique, Industry, and Region

By Product

  • Air Conditioners

  • Precision Air Conditioners

  • Liquid Cooling

  • Air Handling Unit

  • Others (Air Economizers, Heat Rejection, Chillers)

By Data Center Type

  • Large Scale

  • Medium Scale

  • Small Scale

By Cooling Technique

  • Room-based Cooling

  • Rack-based Cooling

  • Row-based Cooling

By Industry

  • BFSI

  • IT and Telecom

  • Manufacturing

  • Retail

  • Healthcare

  • Energy and Utilities

  • Others (Government & Defense, Education)

By Region

  • North America (By Product, By Data Center Type, By Cooling Technique, By Industry, and By Country)

    • U.S.

    • Canada

    • Mexico

  • Europe (By Product, By Data Center Type, By Cooling Technique, By Industry, and By Country)

    • U.K.

    • France

    • Germany

    • Nordics

    • Rest of Europe

  • Asia Pacific (By Product, By Data Center Type, By Cooling Technique, By Industry, and By Country)

    • China

    • Japan

    • India

    • Southeast Asia

    • Rest of Asia Pacific

  • Middle East & Africa (By Product, By Data Center Type, By Cooling Technique, By Industry, and By Country)

    • GCC

    • South Africa

    • Rest of Middle East & Africa

  • South America (By Product, By Data Center Type, By Cooling Technique, By Industry, and By Country)

    • Brazil

    • Argentina

    • Rest of South America

Frequently Asked Questions

The market is projected to reach USD 30.31 billion by 2030.

In 2022, the market size stood at USD 13.51 billion.

The market is projected to record a CAGR of 10.7% during the forecast period of 2023-2030.

By type, the rack-based cooling segment is likely to lead the market.

Growing need for optimizing infrastructure budgets to achieve business developments is expected to drive the market growth.

Asetek, Inc., Rittal GmbH & Co. KG, Schneider Electric, Coolcentric, Vertiv Group Corp, and STULZ GMBH, among others are the top players in the market.

North America is expected to hold the largest market share.

Asia Pacific is expected to record a remarkable CAGR over the forecast period.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
  • 2019-2030
  • 2022
  • 2019-2021
  • 160

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Information & Technology Clients


Client Testimonials

“We are quite happy with the methodology you outlined. We really appreciate the time your team has spent on this project, and the efforts of your team to answer our questions.”

- One of the largest & renowned medical research centers based in the U.S. on a report on the U.S. NIPT Market.

“Thanks a million. The report looks great!”

- Feedback from a consultant on a report on the U.S. Beef Market.

“Thanks for the excellent report and the insights regarding the lactose market.”

- Brazil based company specializing in production of protein ingredients.

“I liked the report; would it be possible to send me the PPT version as I want to use a few slides in an internal presentation that I am preparing.”

- Global Digital Services Agency on a report on the Global Luxury Goods Market.

“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”

- U.S.-based biotechnology company focussing on treatment of chronic pain.

“Kudos to your team. Thank you very much for your support and agility to answer our questions.”

- Europe-based provider of solutions to automate data centre operations.

“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”

- India-based manufacturer of industrial and specialty intermediates with a strong global presence.

“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”

- One of the largest cosmetics company in the world.

“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”

- U.S. based startup operating in the cultivated meat market.

“We received the below report on the U.S. market from you. We were very satisfied with the report.”

- Global hearing aids manufacturer.

“I just finished my first pass-through of the report. Great work! Thank you!”

- U.S. based solar racking solutions provider.

“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”

- World’s leading advisory firm.

“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”

- Germany based machine construction company.

“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”

- Japanese manufacturing company of stationery products.

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.