Rising demand for cloud services, AI workloads, and hyperscale data centers is driving the adoption of advanced cooling technologies, including liquid immersion, direct-to-chip, and energy-efficient air systems. Tier 2 and mid-density facilities are leveraging adaptive solutions such as adiabatic cabinets and real-time monitoring to ensure reliability, while North America leads the market due to robust technology infrastructure and hyperscale growth.
Chicago, Jan. 28, 2026 (GLOBE NEWSWIRE) — The global data center cooling market was valued at 10.17 billion in 2024 and is expected to reach US$ 32.61 billion by 2033, growing at a CAGR of 13.82% from 2025 to 2033.
The expansion of global data center space has grown greatly in 2023 and now stands at almost 700 million square feet, which includes both conventional and hyperscale facilities. Data on energy use indicates that these facilities have surpassed more than 300 terawatt-hours, with cooling being a key factor. Moreover, analysts from the industry claim that the global expenditure on data center cooling reached around US$ 40 billion as of 2023. Some providers report that new liquid cooling technologies have started to cut the cooling cost of a rack by US$ 10,000. At the same time, a large colocation center is able to spend more than US$ 40 million in a year on cooling. The average on PUE is around 1.55 for new builds, which aim to achieve better power usage.
Request Sample Pages: https://www.astuteanalytica.com/request-sample/data-center-cooling-market
Government Green Initiatives Drive Adoption of Advanced Cooling Solutions
Higher requirements for cooling solutions in the data center cooling market are attributed to a number of factors. The increased consumption of cloud services, the growing AI-based workload, and the progression of digital transition projects are the factors that are pushing the upgrade and expansion of data center resources. Availability of technologies that are more energy efficient and improved government programs for green infrastructure are also growing the adoption.
There is great focus on operators’ sustainability for operational cost reduction and regulatory demands, prompting innovations such as chilled water loops and evaporative cooling. The shift of workloads to off-site locations by companies increases the demand for colocation and cloud facilities, creating the data center cooling market as an attractive target for investment, research, and design innovation.
Immersion and Direct-to-Chip Cooling Set to Transform Data Center Thermal Management
The control of temperature is becoming the top priority in almost all data centers around the world. It is because the latest Artificial Intelligence and High-Performance Computing (HPC) servers being deployed have very high cooling capacity requirements. Ranging from 25kW and up to 50 kW per rack, many data centers are pushing the limits of cooling systems. This sudden growth in heat output explains the worldwide data center cooling market growth of US$ 10.18 billion in 2024. Many industry perspectives estimate that the forthcoming immersion-based deployments would reach rack densities of more than 100 kW by 2024.
It’s necessary to implement inventive strategies that improve the to the appropriate frameworks for how large the future growth will be for providing thermal management for the high-density data centers cooling market. Liquid immersion, for example, requires sufficient heat removal strategies to be able to cater for the greatest server densities. This means that with ultra-dense data center environments, the data center cooling market can exceed US$46.6 billion by 2032.
The second most direct approach to thermally manage liquid immersion cooled systems implicates direct-to-chip cooling which has already been utilized in a range of initial projects and is proving effective on a similar basis Moreover, with the demand for HPC appliances going up there has been a greater volume in the demand for bespoke, high-end cooling installations from data center suppliers with the average exceeding US$ 2 million for HPC facilities alone.
Tier 2 Cooling Solutions Enable Reliable Operations Across Diverse Workloads
The Tier 2 accounts for 36.5% controlling share of the data center cooling market due to the amalgamation of increasing server densities and the growing demand for dependable digital infrastructure. In 2023, there were more than 4,700 tier two data center, delivering a total of about 260 million square feet of functional floor space. These locations also have advanced airflow management systems to mitigate the high restriction on shocks and thermal for some expansions, with a single project delivering an additional 15 megawatts of power.
Also, otherwise normal operators invest almost twelve billion dollars yearly on equipment such as chilled-water loops and modular air handlers, which decrease heat-induced downtime on critical servers to a reasonable amount. The average density of racks in select areas have reached 9kw per rack, indicating an increase in the planning of larger data loads in the mid-level.
A significant driver behind the dominance of tier 2 data center cooling demand is the certain role of tier 2 offerings in the data center cooling ecosystem. These facilities typically cater to a wide range of customers from government institutions to cloud businesses and thus need horizontal and vertical solutions for maximum uptime. In addition, self-adaptive solutions that meet pace region requirements encourage more energy-efficient designs, which in turn have led to the adoption of adiabatic cooling cabinets and advanced real-time temperature monitoring systems in data centers.
The mid-range work load specific cooling systems’ features, along with reasonably priced redundancy approaches, have turned tier 2 sites into places where organizations whose performance requirements have become increasingly more stringent are willing to spend money.
Rising Power Requirements Propel Growth in North American Cooling Solutions
North America remains the largest host in the data center cooling market, with the most recent market share pegged at 39.41%. This can be attributed to the well-developed technology and communications infrastructure, as well as the presence of numerous technological firms in this region. The United States is the largest single market due to the given capacity of hyperscale and co-location data center providers that are expanding across areas like Virginia, Texas, and California.
In 2023, the data centers situated in North America are anticipated to use up to 7.4 gigawatts, almost a 2.5 gigawatt increase from 2022, many of which are used to cool the systems. These figures are quite large in comparison to those of CoreSite, as they only own 28 data centers with a combined 253.1 megawatts of electrical capacity and 38,134 cross-connects. However, they still do get about 3.6 million net rentable sqft of space. Looking at the data from a different angle, the North American homes electricity that these structures consume could serve around 6,482,400 houses.
Data Center Cooling Market Major Players:
- Asetek Inc.
- Coolcentric
- Daikin Industries Ltd
- Green Revolution Cooling
- Iceotope
- Johnson Controls International PLC
- Liquid Cool Solutions Inc.
- LiquidStack
- Mitsubishi Electric Corporation
- Munters Group AB.
- Nortek Air Solutions
- Parker Hannifin
- Rittal GmbH & Co. KG
- Schneider Electric SE
- SPX Cooling Technologies, Inc
- STULZ GMBH
- Telx Holdings, Inc. (Digital Realty Trust, Inc.)
- Vertiv Co.
- Other Prominent Players
Key Market Segmentation:
By Component
- Solution
-
- Air Conditioning
- Chilling Units
- Cooling Towers
- Economizer Systems
- Liquid Cooling Systems
- Control Systems
- Others
- Services
-
- Consulting
- Installation & Deployment
- Maintenance & Support
By Data Centre Type
- Tier 1
- Tier 2
- Tier 3
- Tier 4
By Type of Cooling
- Room-based Cooling
- Row/Rack-based Cooling
By Industry
- BFSI
- IT & Telecom
- Research & Academic
- Government & Defense
- Retails
- Energy
- Manufacturing
- Healthcare
- Others
By Region
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- South America
For more information about this report visit: https://www.astuteanalytica.com/industry-report/data-center-cooling-market
About Astute Analytica
Astute Analytica is a global market research and advisory firm providing data-driven insights across industries such as technology, healthcare, chemicals, semiconductors, FMCG, and more. We publish multiple reports daily, equipping businesses with the intelligence they need to navigate market trends, emerging opportunities, competitive landscapes, and technological advancements.
With a team of experienced business analysts, economists, and industry experts, we deliver accurate, in-depth, and actionable research tailored to meet the strategic needs of our clients. At Astute Analytica, our clients come first, and we are committed to delivering cost-effective, high-value research solutions that drive success in an evolving marketplace.
Contact Us:
Astute Analytica
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
For Sales Enquiries: sales@astuteanalytica.com
Website: https://www.astuteanalytica.com/
Follow us on: LinkedIn | Twitter | YouTube
CONTACT: Contact Us: Astute Analytica Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World) For Sales Enquiries: sales@astuteanalytica.com Website: https://www.astuteanalytica.com/