Data Center Cooling Market Size to Reach USD 49.53 Billion in 2032
The data center cooling market size reached USD 15.28 billion in 2024 and is expected to register a revenue CAGR of 16.2% during the forecast period
April 08, 2025 – The increasing adoption of high-density racks in data centers is significantly driving revenue growth of the global data center cooling market. The rising demand for compute-intensive applications, including artificial intelligence, high-performance computing, and big data analytics, drives this trend. It necessitates greater processing power within compact physical spaces. The global need for data center capacity is expected to grow rapidly, with annual demand expected to increase by 19% to 22% between 2023 and 2030. It is expected to reach 171 to 219 gigawatts (GW) by the end of the decade. To meet these growing capacity requirements, data centers are increasingly adopting high-density rack configurations. This shift is fueling demand for advanced and energy-efficient cooling technologies and driving revenue growth of the market.
The rising demand for high-density racks and AI-ready data centers prompted manufacturers to prioritize rapid deployment of new infrastructure. In July 2024, for instance, Vertiv, a global leader in critical digital infrastructure and continuity solutions, introduced the Vertiv MegaMod CoolChip. It is a liquid cooling-enabled Prefabricated Modular (PFM) data center solution designed specifically for high-efficiency, reliable AI computing. The MegaMod CoolChip is engineered to support the architectures of leading AI compute platforms and can be tailored to meet individual customer scalability requirements. This solution can accelerate the deployment timeline for AI data center infrastructure by up to 50%, offering a strategic advantage in today’s competitive and fast-evolving digital landscape.
However, the complexity of integrating advanced cooling technologies into existing infrastructure is restraining revenue growth of the market. Many legacy data centers were originally designed to support lower-density workloads and conventional air-based cooling systems. Upgrading them with modern liquid or hybrid cooling solutions is very challenging. Such integration requires substantial modifications to physical layouts, power distribution systems, and thermal management frameworks. It leads to increased capital expenditure and operational downtime. These technical and financial hurdles deter many operators from adopting next-generation cooling technologies, which restrains revenue growth of the market.
Key Highlights:
- Air cooling segment accounted for a significant revenue share in 2024 due to its cost-effectiveness, widespread compatibility, and ease of integration, particularly in existing facilities. Many legacy and retrofit data centers continue to rely on traditional air conditioning systems, which are well-suited for moderate-density workloads and require lower upfront investment compared to liquid cooling alternatives. Additionally, advancements in air cooling technologies, such as precision air conditioners and free air-cooling techniques, have enhanced energy efficiency and reduced operational costs. It makes them attractive options for operators aiming to optimize performance without significant infrastructure overhauls.
- Rack-based cooling segment is expected to register a fast revenue growth rate during the forecast period due to the increasing adoption of high-density computing environments. Data centers in recent years have increasingly deployed powerful servers to support artificial intelligence, machine learning, and other compute-intensive applications. The resultant heat generation from these powerful servers necessitates more efficient and targeted cooling solutions. Rack-based cooling addresses this need by delivering precise thermal management directly at the source, enhancing energy efficiency and reducing operational costs.
- Asia Pacific is expected to register a fast revenue growth rate during the forecast period due to the rapid digital transformation and rising demand for high-performance computing in the region, especially in China, India, Japan, and Singapore. In April 2025, Japanese IT services company Fujitsu entered into a collaboration with U.S.-based IT solutions provider Supermicro Inc. and Nidec, a leading Japanese manufacturer of electric motors. Under this partnership, the three companies will integrate their respective technologies—Fujitsu’s liquid-cooling monitoring and control software, Supermicro’s high-performance GPU servers, and Nidec’s energy-efficient liquid-cooling systems—to develop a unified solution aimed at enhancing Power Usage Effectiveness (PUE) in data centers.
- Some major companies in the global market report include Asetek Inc., Vertiv Holdings Co., Iceotope, Schneider Electric, Green Revolution Cooling, STULZ GMBH, LiquidStack, ABB Ltd, Huawei Technologies, Munters, Usystems, Asperitas, Submer, Lennox, and Nortek Air Solutions.
- On April 14, 2025, Lennox introduced a new line of data center cooling products known as the CRAH ApX series. The CRAH (Computer Room Air Handler) ApX solutions offer cooling capacities ranging from 20 to 500 kW. It is specifically engineered for large-scale data centers utilizing high-temperature process water. The series features versatile coil configurations and fan combinations, and is available in both single and back-to-back unit configurations to meet varying infrastructure requirements.
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Navistrat Analytics has segmented global data center cooling market on the basis of cooling type, cooling technique, data center type, containment, industry vertical and region:
- Cooling Type Outlook (Revenue, USD Billion; 2022-2032)
- Air Cooling
- Air Conditioner
- Air Handling Unit
- Chiller
- Cooling Tower
- Economizer System
- Others
- Liquid Cooling
- Direct-to-Chip Liquid Cooling
- Immersion Cooling
- Rear-door Heat Exchanger
- Air Cooling
- Cooling Technique Outlook (Revenue, USD Billion; 2022-2032)
- Room-Based Cooling
- Row-Based Cooling
- Rack-Based Cooling
- Data Center Type Outlook (Revenue, USD Billion; 2022-2032)
- Centralized Data Center
- Enterprise Data Centers
- Colocation Data Centers
- Hyperscale Data Centers
- Edge Data Centers
- Centralized Data Center
- Containment Outlook (Revenue, USD Billion; 2022-2032)
- Raised Floor with Containment
- Hot Aisle Containment (HAC)
- Cold Aisle Containment (CAC)
- Raised Floor without Containment
- Raised Floor with Containment
- Industry Vertical Outlook (Revenue, USD Billion; 2022-2032)
- IT and Telecom
- Retail
- Healthcare
- Media and Entertainment
- BFSI
- Energy
- Others
- Regional Outlook (Revenue, USD Billion; 2022-2032)
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- France
- U.K.
- Italy
- Spain
- Benelux
- Nordic Countries
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- South Korea
- Oceania
- ASEAN Countries
- Rest of APAC
- Latin America
- Brazil
- Rest of LATAM
- Middle East & Africa
- GCC Countries
- South Africa
- Israel
- Turkey
- Rest of MEA
- North America