Data Center Cooling Market to Grow at a CAGR of 12.6% from 2026 to 2034; Rapid Expansion of AI Infrastructure and Hyperscale Data Centers is Bolstering Market Growth

The global data center cooling market size was valued at USD 18.8 billion in 2025. The market is projected to grow from USD 21.0 billion in 2026 to USD 54.4 billion by 2034, exhibiting a CAGR of 12.6% 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 (Air Economizers, Heat Rejection)), By Data Center Type (Large Scale, Medium Scale, and Small Scale), By Cooling Technique (Room Based Cooling, Rack Based Cooling, and Row Based Cooling) and By Industry (BFSI, IT and Telecom, Manufacturing, Retail, Healthcare, Energy and Utilities, and Others (Government & Defense, Education)), and Regional Forecast, 2026 – 2034”.

Data center cooling encompasses advanced thermal management solutions that control heat, temperature, and humidity to ensure efficient operation of servers and high-performance computing infrastructure. These systems allow operators to decrease power consumption, attain energy savings, maintain uptime, and assist sustainability objectives across enterprise, colocation, hyperscale, and edge data centers. The expansion of AI-driven applications, hyperscale facilities, and edge computing environments is fueling the demand for advanced cooling systems. Liquid cooling, immersion cooling, and free cooling technologies enhance performance, sustainability, and operational reliability.

LiquidStack Launched GigaModular™ (CDU) to Strengthen Its Advanced Thermal Management Portfolio

In June 2025, LiquidStack introduced the GigaModular™ Coolant Distribution Unit (CDU), a breakthrough modular cooling platform designed for next-generation AI and hyperscale data centers. As the industry’s first modular CDU capable of delivering up to 10 MW of cooling capacity, the solution enables operators to scale liquid-cooling infrastructure efficiently while supporting the increasing thermal demands of high-density computing environments.

Escalating Thermal Loads from High-Density Servers Accelerate Market Growth

The rapid deployment of AI workloads, advanced GPUs, accelerators, and high-performance processors is significantly increasing rack power densities across modern data centers. As heat generation surpasses the capabilities of conventional air-cooling systems, operators are increasingly adopting advanced cooling technologies that provide superior thermal management, operational reliability and energy efficiency. The growing shift toward high-density racks exceeding 30-100 kW is accelerating investments in liquid cooling, rear-door heat exchangers, precision cooling, and hybrid thermal solutions. This trend is particularly evident across hyperscale, enterprise, and colocation facilities, where next-generation cooling infrastructure is becoming essential to support evolving computing demands and maximize data center performance.

Nevertheless, elevated deployment costs and infrastructure modernization challenges are hindering the data center cooling market growth.

Key Players Emphasize Advanced Cooling Technologies and Sustainable Infrastructure to Boost Market Revenue

The data center cooling market remains moderately fragmented, with competition increasingly centered on liquid cooling innovation, AI-ready thermal management, and energy-efficient cooling solutions. Leading players leverage advanced cooling portfolios, global service capabilities, and expertise in high-density computing environments, while continued investments in direct-to-chip cooling, immersion technologies, modular systems, and intelligent thermal analytics enhance operational efficiency and support expanding AI and hyperscale data center deployments.

List of Key Players Mentioned in the Report

• Vertiv Holdings Co. (U.S.)
• Schneider Electric SE (France)
• Johnson Controls International plc (Ireland)
• STULZ GmbH (Germany)
• Rittal GmbH & Co. KG (Germany)
• Daikin Industries, Ltd. (Japan)
• Mitsubishi Electric Corporation (Japan)
• Trane Technologies plc (Ireland)
• Munters Group AB (Sweden)
• CoolIT Systems Inc. (Canada)

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

Key Industry Development

• March 2025: Munters introduced the SyCool® Split indirect evaporative cooling solution for data centers, engineered to enhance cooling performance while lowering energy usage in high-density computing facilities.

Further Report Findings

• North America led the data center cooling market share with revenue exceeding USD 7.28 billion in 2025, driven by strong investments in hyperscale data centers, AI infrastructure, cloud platforms, and edge computing facilities. Rising deployment of AI workloads and high-performance computing (HPC) environments is accelerating demand for advanced cooling technologies.
• The market for data center cooling in Europe is projected to record substantial growth over the forecast period, supported by expanding hyperscale and AI-ready data center investments alongside stringent sustainability regulations. Increasing adoption of energy-efficient cooling systems and green data center initiatives is driving demand for advanced thermal management solutions across the region.
• By product, the air handling unit segment dominated the market in 2025 due to its vital role in maintaining temperature, humidity, airflow, and air quality across data center environments. Its compatibility with diverse cooling systems and suitability for both new and retrofit facilities continue to drive widespread adoption amid growing hyperscale and cloud infrastructure investments.

Table of Segmentation