Data Center Cooling Market Outlook:
Data Center Cooling Market size was over USD 17.73 billion in 2025 and is anticipated to cross USD 62.9 billion by 2035, witnessing more than 13.5% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of data center cooling is assessed at USD 19.88 billion.
The growth of the market can be attributed to the growth in a number of data centers. In the entire world, there are about 7,999 data centers. Approximately 30% of the data centers among them are situated in the US. Hence, the demand for data center cooling is estimated to increase.
Moreover, there has been growth in data generated all across the world. Global data production is predicted to reach about 462 exabytes per day by 2025. Additionally, the higher data volumes brought on by the increased use of OTT and video streaming have fuelled market growth. Further, the demand for efficient cooling systems for data centers would rise as a result of the rising amount of data produced by online streaming services such as Disney+ Hotstar, Hulu, and Netflix.
Key Data Center Cooling Market Insights Summary:
Regional Highlights:
- Asia Pacific data center cooling market will dominate more than 33% share by 2035, attributed to 5G introduction and digital transformation.
Segment Insights:
- The it & telecom segment in the data center cooling market is forecasted to secure a 30% share by 2035, driven by the rising use of cloud storage by SaaS providers and data-intensive IT operations.
- The large-scale dc segment in the data center cooling market is projected to exhibit significant growth over 2026-2035, fueled by increasing demand for scalable data infrastructure and high electricity use for cooling.
Key Growth Trends:
- Growing Energy Consumption in Data Centers
- Rise in Use of Internet
Major Challenges:
- Inefficiency of Traditional Air-Cooling Method
- High Cost of Data Center Cooling
Key Players: Airedale International Air Conditioning Ltd., Asetek, Inc., Black Box Limited, Nortek Air Solution LLC, Vertiv Group Corporation, Rittal GmBh & Co.KG, Stulz Gmbh, Johnson Controls International plc, Intel Corporation, ST Engineering Ltd.
Global Data Center Cooling Market Forecast and Regional Outlook:
Market Size & Growth Projections:
- 2025 Market Size: USD 17.73 billion
- 2026 Market Size: USD 19.88 billion
- Projected Market Size: USD 62.9 billion by 2035
- Growth Forecasts: 13.5% CAGR (2026-2035)
Key Regional Dynamics:
- Largest Region: Asia Pacific (33% Share by 2035)
- Fastest Growing Region: Asia Pacific
- Dominating Countries: United States, China, Japan, Germany, Singapore
- Emerging Countries: China, India, Brazil, Mexico, Singapore
Last updated on : 10 September, 2025
Data Center Cooling Market Growth Drivers and Challenges:
Growth Drivers
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Growing Energy Consumption in Data Centers - Several of the largest data centers in the world could store tens of thousands of IT devices apiece and need more than 99 megawatts (MW) of power capacity, which is equivalent to powering about 79,999 U.S. homes. Hence, with the use of data center cooling the consumption of energy is estimated to be reduced.
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Rise in Use of Internet - About 4 billion people used the Internet as of January 2023, representing approximately 63 percent of the world’s population. Increasing internet penetration is giving rise to data production as a result driving the growth of the data center cooling market in the projected time period.
- Surge in Storage Capacity of Data - Only about 3% of the data generated and consumed in 2020 was preserved across the globe and held until 2021, indicating that just a small portion of this freshly created data is kept. The installed base of storage capacity is anticipated to grow, expanding at a yearly average rate of approximately 18% over the projected period from 2020 to 2025, following the significant expansion of the data volume.
Challenges
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Inefficiency of Traditional Air-Cooling Method - Given their enormous power usage, data centers confront a significant challenge in reducing carbon emissions. The cooling technologies employed in data centers are one of the main causes of carbon emissions. For instance, the traditional air-cooling approach utilized in data centers produces a sizable quantity of carbon emissions. Therefore, one of the main difficulties for companies that provide cooling systems for data centers is to develop technologies or coolants that could improve cooling impact while also lowering carbon emissions and PUES. Manufacturers of data center cooling face difficulties as a result of these elements, and it is anticipated to hamper the market's growth.
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High Cost of Data Center Cooling
- High Initial Investment Required
Data Center Cooling Market Size and Forecast:
| Report Attribute | Details |
|---|---|
|
Base Year |
2025 |
|
Forecast Period |
2026-2035 |
|
CAGR |
13.5% |
|
Base Year Market Size (2025) |
USD 17.73 billion |
|
Forecast Year Market Size (2035) |
USD 62.9 billion |
|
Regional Scope |
|
Data Center Cooling Market Segmentation:
End-User Segment Analysis
The IT & telecom segment in the data center cooling market is anticipated to garner the highest revenue of 30% by the end of 2035. Depending on the size of the business, the IT industry requires hyperscale data centers and on-premise private data storage for its operations. Also, since SaaS providers have multiplied over time, cloud storage has become more widely used. For instance, currently, there are about 29,999 or so forecast estimates, and many SaaS businesses operating worldwide.
Data Center Type Segment Analysis
Data center cooling market from the large-scale DC segment is anticipated to have significant growth over the projection period. A large-scale data center, also known as a hyperscale data center, is a crucial infrastructure that enables powerful and scalable applications. Large businesses with significant data processing and storage needs are frequently linked to hyperscale data centers. Moreover, large amounts of electricity are used to tunnel servers and cool systems in large-scale data centers. Hence, this factor is estimated to boost the demand for data center cooling.
Our in-depth analysis of the global market includes the following segments:
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Product |
|
|
Data Center Type |
|
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Cooling Technique |
|
|
End-User |
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Vishnu Nair
Head - Global Business DevelopmentCustomize this report to your requirements — connect with our consultant for personalized insights and options.
Data Center Cooling Market Regional Analysis:
APAC Market Insights
The data center cooling market in the Asia Pacific region is predicted to witness the largest revenue share of 33% during the forecast period. The introduction of 5G technologies as well as cutting-edge technologies such as the big data, AL & ML, and digitalization are the factors that are driving the Asia Pacific data centers cooling market. In 2030, 5G will boost the APAC economy by more than USD 133 billion. By 2030, 5G will mostly benefit the services (42%) and manufacturing (34%) sectors of the economy thanks to use cases in smart factories, smart cities, and the smart grid.
North America Market Insights
In the North American region, the data center cooling market is estimated to hold a noteworthy revenue share during the projection period. Given the presence of tech behemoths like Facebook, Amazon Inc., and Google Inc. in the area, new technology-based solutions are expected to be adopted more maturely. The area is home to a sizable number of data centers that are distinguished by the existence of several IT businesses, opening doors for the data center cooling solutions market in the upcoming times.
Data Center Cooling Market Players:
- Airedale International Air Conditioning Ltd.
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Asetek, Inc.
- Black Box Limited
- Nortek Air Solution LLC
- Vertiv Group Corporation
- Rittal GmBh & Co.KG
- Stulz Gmbh
- Johnson Controls International plc
- Intel Corporation
- ST Engineering Ltd.
Recent Developments
- With the introduction of cooling technology in July 2022, the defense and engineering group ST Engineering entered the market for data center cooling. This cooling technology is said to help operators in tropical climates save 20% on energy, which equates to about SGD 104 per kilowatt-hour of heat load annually.
- With a USD 700 million expenditure into a new research center specializing in liquid and immersion cooling, Intel unveiled a new effort in May 2022 to address data center sustainability. Additionally, in order to encourage the adoption of the method in data centers throughout the world, it introduced the initial immersion cooling standard layout on the market.
- Report ID: 4756
- Published Date: Sep 10, 2025
- Report Format: PDF, PPT
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