Data Center Cooling Market

Data Center Cooling Market size was valued at USD 15.75 Bn. in 2025 and the total revenue is expected to grow at a CAGR of 10.9% through 2026 to 2032, reaching nearly USD 32.5 Bn.

Data Center Cooling Market Overview:

Free cooling can also aid in the energy efficiency of data centres. Thermal reservoirs, low-temperature ambient air, and evaporating water are only a few examples of free cooling. The sole objective of data centre cooling is to keep the environment suitable for the operation of information technology equipment (ITE). To achieve this purpose, the heat generated by the ITE must be removed and transferred to a heat sink.

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Data Center Cooling Market Segment Analysis:

The data center cooling market is segmented by cooling type, component, data center type, and end-user industry, with each segment contributing significantly to market expansion. By cooling type, liquid-based cooling systems are rapidly gaining dominance, accounting for approximately 45–47% market share in 2025, driven by the rising heat density of AI and high-performance computing workloads. Traditional air-based cooling systems continue to hold a significant share due to their widespread deployment in legacy infrastructure; however, their efficiency limitations are accelerating the shift toward liquid cooling technologies such as direct-to-chip and immersion cooling.

In terms of data center type, hyperscale data centers dominate the market with over 35% share, owing to increasing investments by cloud service providers and tech giants. Meanwhile, edge data centers are expected to witness the fastest growth during the forecast period due to 5G deployment and decentralized computing needs.

Based on end-user industry, the IT & telecommunications segment leads with around 29% share, supported by increasing data traffic, cloud computing adoption, and AI-driven applications. Additionally, the healthcare and BFSI sectors are emerging as high-growth segments due to rising digital transformation and data security requirements.

Overall, the market is transitioning toward energy-efficient, high-density, and sustainable cooling solutions, with liquid cooling emerging as the key growth driver through 2032.

Regional Insights:

North America dominates the global data center cooling market, accounting for approximately 38–40% market share in 2025, driven by the presence of leading hyperscale data center operators and strong investments in AI infrastructure. The United States leads the region due to rapid deployment of high-density data centers and increasing adoption of advanced cooling technologies such as liquid and hybrid cooling systems.

Asia-Pacific is the fastest-growing region, supported by rapid digitalization, expanding cloud ecosystems, and increasing data center construction in countries such as China, India, Japan, and Singapore. Government initiatives, rising internet penetration, and cost advantages further contribute to regional growth.

Europe is emerging as a key innovation hub, driven by stringent environmental regulations and a strong focus on sustainable and energy-efficient cooling solutions. Countries such as Germany, the UK, and the Nordic region are leading in adopting green data center technologies.

Recent Industry Developments (2025–2026)

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Data Center Cooling Market, by Region

North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
South America (Brazil, Argentina Rest of South America)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)

Key Players:

Allied Control
Schneider Electric
Vertiv Group Corp.
STULZ GmbH
Eaton Corporation
Johnson Controls
Rittal GmbH & Co. KG
Fujitsu Ltd.
Asetek
CoolIT Systems
LiquidStack
Green Revolution Cooling (GRC)
Nortek Air Solutions
Delta Electronics
Mitsubishi Electric
Hitachi Ltd.
Huawei Technologies
IBM Corporation
Dell Technologies
Hewlett Packard Enterprise (HPE)
Airedale International
Climaveneta (Mitsubishi Group)
ST Engineering
Iceotope Technologies
Submer Technologies
Envicool