by Data center cooling systems help regulate the temperature inside data centers and ensure the smooth functioning of IT infrastructure and hardware. As data center operations become more complex with higher processing power needs, the demands on cooling systems have increased significantly. Contemporary data center cooling solutions leverage technologies such as artificial intelligence, predictive maintenance, and intelligent sensors to optimize cooling performance, reduce energy costs, and automate maintenance functions.
The global data center cooling market size is estimated to be valued at US$ 32.91 billion in 2024 and is expected to exhibit a CAGR of 12% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the data center cooling market are Air Enterprises, Asetek, Inc., Climaveneta, Coolcentric, Daikin Industries Ltd, Dell Technologies Inc., Fujitsu, Hitachi, Ltd., Johnson Controls, Liquid Cool Solutions Inc., Mitsubishi Electric Corp., Munters Group AB, Nortek Air Solutions, LLC, NTT Ltd., Rittal GmBH & Co. KG, Schneider Electric SE, STULZ GMBH, Telx Inc., and Vertiv Co. The growing adoption of cloud-based services and the increasing construction of hyperscale data centers are expected to drive the demand for data center cooling solutions over the forecast period. Leading cooling solution providers are also expanding their global footprint by establishing new production facilities and partnerships to cater to the growing international data center market.
The growing Data Center Cooling Market Size demand for data centers globally is fueling the adoption of efficient and intelligent cooling solutions that can optimize performance for varying workload conditions. Hyperscale cloud providers are making huge investments in expanding their capacity across regions. Additionally, the rising adoption of data-driven technologies like AI, IoT, and big data analytics is necessitating higher computing power and data storage needs.
Data center operators are increasingly focusing on the global expansion of their facilities to gain access to new customer markets. Cooling system vendors are also establishing new production facilities, partnering with local channel partners, and acquisitions to expand their global footprint. North America and Europe currently hold the largest share of the market. However, Asia-Pacific is emerging as a major market for data center cooling solutions with significant investments in new data center construction across countries like China and India.
Market Key Trends
One of the key trends gaining momentum in the data center cooling market is the adoption of liquid immersion cooling solutions. Compared to traditional air-based systems, liquid cooling methods offer up to 30% increase in cooling efficiency while consuming up to 50% lesser energy. They work by fully submerging servers, memory modules, and other hardware into a non-conductive coolant like dielectric fluid or mineral oil. This allows for uniform cooling from all sides with minimal temperature fluctuations. As data center density increases further, liquid cooling solutions are expected to become more mainstream.
Porter’s Analysis
Threat of new entrants: The data center cooling market requires large capital investments and has many established players, making entry difficult for new competitors.
Bargaining power of buyers: Large data center operators have significant bargaining power to negotiate prices lower due to bulk purchasing.
Bargaining power of suppliers: A few major players dominate the supply of data center cooling systems, giving them stronger bargaining power over buyers.
Threat of new substitutes: There are currently no viable alternatives to traditional cooling systems for large-scale data centers.
Competitive rivalry: The data center cooling market is highly competitive with major global players aggressively competing on product innovations, pricing, and service quality.
Geographical Regions
North America currently accounts for the largest share of the data center cooling market, valued at US$12 billion in 2024. This is attributed to strong investments from leading tech companies in the region to develop hyperscale data centers.
The Asia Pacific region is expected to be the fastest growing market during the forecast period, projected to expand at a CAGR of 15Growing digitalization, cloud adoption, and support from governments are driving massive data center infrastructure developments across China, India, Japan, and other countries in the region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.
