Data Center Cooling Market to Grow at a CAGR of 12.4% During Forecast Period; Growing Need for Hyperscale Data Centers to Propel Market Growth

The global data center cooling market size was valued at USD 16.84 billion in 2024. The market is projected to grow from USD 18.78 billion in 2025 to USD 42.48 billion by 2032, exhibiting a CAGR of 12.4% during the forecast period.

Fortune Business Insights™ presents this information in its report titled, “Data Center Cooling Market Size, Share & Industry Analysis, By Product (Air Conditioners, Precision Air Conditioners, Liquid Cooling, Air Handling Unit, Chillers, 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, 2025-2032”

The systems and solutions used in data centers to maintain optimal temperature, humidity, and airflow levels in order to ensure the steady operation of servers, storage, and network equipment are referred to as data center cooling. The market is expanding quickly due to the increasing need for hyperscale data centers, cloud services, edge computing, and sophisticated thermal management required for high-performance workloads and AI deployments.

Key Player Direct toward Making Significant Investments through Acquisitions to Bolster Market Development

• August 2025: Brookfield Asset Management acquired a USD 10 billion data centre campus joint venture in Sweden and made a significant investments in liquid cooling and GPU-oriented “in-the-box” equipment as a part of their transition toward AI infrastructure.

Requirement for Advanced and Effective Cooling Systems to Drive Market Growth

The expanding use of cloud computing services and hyperscale data centres globally is the primary factor propelling the data centre cooling market growth. The need for more advanced and effective cooling systems is being driven by the growing demand for digital transformation, artificial intelligence, big data analysis, and streaming services. In order to minimize downtime, maximize performance, and meet strict sustainability goals, energy-efficient cooling systems are essential.  

However, high initial investment cost along with operating costs linked with these systems, restrict market growth.

Notable Players to Focus on Developing Energy-Efficient Systems to Boost Market Growth

With several well-known international corporations and a growing number of specialized technology retailers, the global data center is relatively consolidated. Leading companies are focusing on developing green and energy-efficient cooling systems, working with hyperscale operations, and improving customer service competencies in key areas. STULZ GmbH, Vertiv Holdings Co., and Schneider Electric are a few of the market’s leading companies. Leading market shares have been attained by these industry leaders attributable to their extensive product offerings.

Notable Industry Development

In July 2025, Baker Hughes announced plans to acquire Chart Industries for USD 13.6 billion, providing it with essential cryogenic and heat-transfer technology for cooling AI data centers.

List of the Companies Profiled in the Report:

• Daikin Industries, Ltd. (Japan)
• Johnson Controls (U.S.)
• Schneider Electric (France)
• Asetek Inc. (Denmark)
• Thermal Care (U.S.)
• Vertiv Group Corp. (U.S.)
• Mitsubishi Electric Corporation (Japan)
• Danfoss (Denmark)
• Airedale International Air Conditioning Ltd. (U.K.)
• STULZ Air Technology Systems, Inc. (U.S.)

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/industry-reports/data-center-cooling-market-101959

Further Report Findings

• North America dominated the data center cooling market share in 2024. The hyperscale presence of companies including Microsoft, Google, and Amazon Web Services, as well as the early use of liquid and immersion cooling methods, support North America.  
• Asia Pacific is expected to achieve the highest CAGR during the projected period, making it the most dynamic region in the global environment. Growth drivers include expanding digital economies, massive adoption of cloud services, and government-sponsored 5G and smart city projects in China, India, and Southeast Asia.
• Based on product, the market share for data center cooling in 2024 was dominated by the air handling unit (AHU) segment. These systems are widely used in medium-to large-scale data centers, owing to their capacity to control humidity, temperature, and airflow in server rooms.
• In terms of data center type, the biggest market share for data center cooling in 2024 was accounted for by the small-scale data center segment. To address their loclaized data processing needs, regional businesses, SMEs, and edge computing operators mostly use these data centers.

Table of Segmentation