Cooling Tower for Data Center Market Expands at 10.9% CAGR Amid Growing Demand for Reliable Thermal Management | Valuates Reports

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Dec 16, 2025, 11:00 ET

Cooling Tower for Data Center Market Size

BANGALORE, India, Dec. 16, 2025 /PRNewswire/ -- The Global Cooling Tower for Data Center Market was valued at USD 3471 Million in the year 2024 and is projected to reach a revised size of USD 6775 Million by 2031, growing at a CAGR of 10.9% during the forecast period.

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Major Factors:

Cooling Tower for Data Center Market is shaped by the growing dependence of digital infrastructure on stable thermal management practices that protect critical computing assets. Data centers operate continuously and generate persistent heat loads that must be dissipated reliably to maintain uptime and operational integrity. Cooling towers act as a backbone for heat rejection systems by supporting chillers, condensers, and hybrid cooling arrangements. Their relevance increases as operators prioritize energy balance, water stewardship, and operational continuity. Demand is also influenced by the expansion of cloud services, enterprise data storage, and edge computing facilities across diverse climates. Cooling towers provide adaptable solutions that align with varied site conditions and regulatory expectations. Their role extends beyond temperature control to enabling scalability, lifecycle efficiency, and predictable maintenance planning within complex data center ecosystems.

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TRENDS INFLUENCING THE GROWTH OF THE COOLING TOWER FOR DATA CENTER MARKET:

Open Cooling Tower contributes to market growth by offering effective heat rejection through direct contact between air and circulating water, making it suitable for data centers seeking efficient thermal exchange. This design supports high heat loads while maintaining relatively simple system architecture, which appeals to operators focused on reliability and serviceability. Open cooling towers integrate smoothly with chilled water systems commonly used in large data facilities. Their adaptability to different ambient conditions allows consistent performance across varied geographic locations. Operators value the operational transparency and ease of inspection associated with open systems. The ability to pair these towers with water treatment strategies enhances longevity and operational stability. As data centers expand capacity and seek dependable cooling infrastructure, open cooling towers remain a preferred choice.

Closed Cooling Tower drives market growth by isolating process fluid from external air exposure, which helps maintain cleaner circulation loops in data center cooling systems. This separation reduces contamination risks and supports consistent thermal performance over extended operating periods. Data center operators favor closed systems for their ability to protect sensitive heat exchangers and downstream equipment. These towers align well with facilities emphasizing reliability, reduced maintenance intervention, and controlled operating environments. Closed cooling towers also support flexible integration with various cooling configurations, including dry and hybrid modes. Their predictable performance under fluctuating environmental conditions enhances confidence for mission critical operations. As data centers prioritize operational resilience and system cleanliness, closed cooling towers gain increasing adoption.

Immersion Liquid Cooling System influences cooling tower demand by introducing high density heat removal methods that still require efficient heat rejection at the facility level. While servers are immersed in dielectric fluids, the extracted heat must be transferred away through secondary cooling loops supported by cooling towers. This approach enables data centers to manage concentrated thermal loads while maintaining stable ambient conditions. Cooling towers complement immersion systems by providing scalable and dependable heat dissipation outside the server environment. Operators adopting immersion solutions often seek cooling towers capable of handling continuous and concentrated thermal transfer. This synergy strengthens the relevance of cooling towers as immersion cooling adoption grows across advanced data center deployments.

Operational reliability requirements strongly drive market growth as data centers demand uninterrupted cooling performance to avoid downtime and equipment stress. Cooling towers are selected based on their ability to deliver stable heat rejection under continuous operation. Reliability considerations influence material selection, structural design, and component redundancy within cooling tower systems. Data center operators prioritize solutions that minimize failure risks and support predictable maintenance cycles. Cooling towers that demonstrate consistent performance during load variations gain preference. This focus on reliability reinforces long term investment in proven cooling tower designs. As service level commitments tighten, dependable cooling infrastructure becomes essential, supporting sustained demand for robust cooling tower systems.

Energy efficiency expectations influence adoption by encouraging data centers to select cooling towers that support optimized thermal management with lower power consumption. Cooling towers assist in reducing chiller load by enabling effective heat exchange with ambient air. This contributes to overall facility efficiency goals and operational cost control. Data center operators increasingly evaluate cooling infrastructure based on lifecycle efficiency rather than initial installation considerations. Cooling towers that support adaptive operation and integrate with energy management strategies align with these expectations. Their ability to enhance system level efficiency strengthens their position within modern data center designs focused on sustainable performance.

Water management considerations play a significant role in market growth as data centers balance cooling effectiveness with responsible resource use. Cooling towers are designed to support controlled water circulation, treatment compatibility, and reduced wastage. Operators seek systems that align with local water regulations and corporate sustainability commitments. Advances in monitoring and treatment practices enhance confidence in cooling tower water use. This focus encourages adoption of designs that optimize evaporation control and reuse strategies. Cooling towers that support responsible water stewardship gain wider acceptance, reinforcing their importance within environmentally conscious data center operations.

Scalability and expansion needs drive demand for cooling towers that can support incremental data center growth without disrupting operations. Cooling towers offer modular and adaptable configurations that align with phased facility expansion. Operators value systems that can be upgraded or supplemented as computing capacity increases. This flexibility reduces long term infrastructure risk and supports strategic planning. Cooling towers that accommodate evolving thermal loads enhance investment confidence. As data centers expand to meet digital demand, scalable cooling solutions remain central to infrastructure planning decisions.

Climate adaptability influences market growth by emphasizing cooling tower designs capable of performing across diverse environmental conditions. Data centers operate in regions with varying temperatures and humidity levels, requiring cooling systems that maintain stability. Cooling towers offer adaptable operation that responds to seasonal and climatic changes. This adaptability supports consistent data center performance regardless of location. Operators prefer solutions that reduce climate related performance uncertainty. Cooling towers meeting these adaptability requirements become essential components in geographically diverse data center portfolios.

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COOLING TOWER FOR DATA CENTER MARKET SEGMENTATION

By Type

Open Cooling Tower
Closed Cooling Tower

By Application

Cold Plate Liquid Cooling System
Immersion Liquid Cooling System

Key Companies

SPX Cooling Technologies, EVAPCO, KUKEN, Seagull Cooling Technologies, Hamon, Paharpur Cooling Towers, Kelvion, ENEXIO, BRAPU, EBARA, Kobelco Eco-Solutions, China Chemical Engineering Cangzhou Cooling Technologies, Longhua Technology, Yantai Moon Heat Exchange Technology, Shanghai Baofeng Machinery Manufacturing, Wei Hai Creditfan Ventilator

COOLING TOWER FOR DATA CENTER MARKET SHARE

In North America, demand is driven by large scale cloud facilities that prioritize reliable cooling infrastructure and operational continuity.

Asia Pacific experiences strong demand due to rapid digitalization, hyperscale expansion, and increasing colocation facilities across emerging and developed economies. Middle East regions focus on high performance cooling towers capable of operating under extreme ambient conditions. Latin America and Africa show gradual adoption, supported by growing digital infrastructure investments and improving data center ecosystems.

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SIMILAR REPORTS

- Dry Cooler for Data Center Market was valued at USD 1771 Million in the year 2024 and is projected to reach a revised size of USD 3072 Million by 2031, growing at a CAGR of 8.9% during the forecast period.

- Industrial Cooling System Market was valued at USD 12290 Million in the year 2024 and is projected to reach a revised size of USD 16980 Million by 2031, growing at a CAGR of 4.8% during the forecast period.

- Data Center Immersion Cooling System Market was valued at USD 261 Million in the year 2024 and is projected to reach a revised size of USD 556 Million by 2031, growing at a CAGR of 11.6% during the forecast period.

- Data Center Liquid Cooling Connectors market was valued at USD 193 Million in 2023 and is anticipated to reach USD 356 Million by 2030, witnessing a CAGR of 9.8% during the forecast period 2024-2030.

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- Edge Data Center Market was valued at USD 1399 Million in the year 2024 and is projected to reach a revised size of USD 2832 Million by 2031, growing at a CAGR of 10.8% during the forecast period.

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- AI Data Center market was valued at USD 22615.04 Million in 2023 and is anticipated to reach USD 68317.57 Million by 2030, witnessing a CAGR of 17.11%during the forecast period 2024-2030.

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