Data Center Cooling Market is expected to generate a revenue of USD 30.2 Billion by 2032, Globally, at 13.8% CAGR: Verified Market Research®

News provided by

Aug 14, 2025, 10:01 ET

The Data Center Cooling Market is expanding rapidly due to cloud computing growth, AI-driven workloads, and sustainability mandates. Advanced cooling technologies are in high demand to handle rising thermal loads. However, high capital investments, complex maintenance, and strict environmental regulations remain key challenges influencing adoption.

LEWES, Del., Aug. 14, 2025 /PRNewswire/ -- The Global Data Center Cooling Market Size is projected to grow at a CAGR of 13.8% from 2026 to 2032, according to a new report published by Verified Market Research®. The report reveals that the market was valued at USD 13.5 Billion in 2024 and is expected to reach USD 30.2 Billion by the end of the forecast period.

The global Data Center Cooling Market is experiencing rapid growth as hyperscale and colocation facilities expand. Increasing demand for high-efficiency cooling systems, driven by digital transformation, is reshaping the industry. Sustainability goals and technological innovations are unlocking new growth opportunities worldwide.

For more information or to purchase the report, please contact us at: https://www.verifiedmarketresearch.com/download-sample/?rid=34062

Browse in-depth TOC on "Global Data Center Cooling Market Size"

202 - Pages
126 – Tables
37 – Figures

Global Data Center Cooling Market Overview

Market Driver

1. Surge in Cloud Computing and AI Workloads
The rapid adoption of cloud computing, artificial intelligence, and big data analytics is transforming the global Data Center Cooling Market.

Hyperscale data centers are now running at high computing densities, generating significant heat loads.
Efficient thermal management has become mission-critical to maintain uptime, optimize performance, and prevent hardware damage.
Advanced cooling technologies such as liquid cooling, in-row cooling, and immersion cooling are gaining strong traction.
The rise of edge computing is also creating demand for localized, high-efficiency cooling systems in smaller, distributed facilities.
As workloads grow more complex, operators are investing heavily in innovative cooling methods to ensure energy efficiency, performance reliability, and scalability.

2. Rising Energy Efficiency and Sustainability Demands
Energy efficiency and sustainable operations are now top priorities for data center operators.

Governments and regulatory agencies worldwide are enforcing stringent energy usage and carbon emission norms.
This is driving the adoption of eco-friendly cooling technologies that reduce power consumption and carbon footprint.
Growing investment in green data centers powered by renewable energy sources is reshaping cooling strategies.
Solutions like free cooling, advanced airflow management, and liquid-based cooling help achieve both operational cost savings and environmental compliance.
The shift toward sustainability is pushing manufacturers to innovate, creating next-generation, low-carbon cooling systems for hyperscale and colocation facilities.

3. Expansion of Hyperscale and Colocation Data Centers
The continuous global expansion of hyperscale and colocation facilities is a major growth catalyst.

Cloud service providers and enterprises are building massive-scale data centers to handle surging digital workloads.
This expansion requires highly reliable, scalable, and cost-efficient cooling infrastructures.
Data centers are now being built in diverse climates – from hot tropical zones to extremely cold regions – making customized cooling designs essential.
Cooling solution providers are increasingly delivering region-specific, tailored systems to meet varying environmental conditions.
This market shift opens lucrative opportunities for manufacturers, integrators, and service providers across the cooling value chain.

To Purchase a Comprehensive Report Analysis: https://www.verifiedmarketresearch.com/select-licence/?rid=34062

Market Restraint

1. High Initial Capital Investment
The high capital expenditure for modern cooling systems is a key barrier to adoption.

Advanced solutions like liquid immersion cooling and precision air conditioning require substantial upfront investment.
Smaller and mid-sized operators often find these costs prohibitive, especially in emerging economies.
Retrofitting older facilities to integrate advanced cooling systems can involve extensive infrastructure upgrades.
This increases both installation time and overall project costs, impacting short-term ROI.
As a result, many operators delay modernization, slowing market penetration in certain regions.

2. Maintenance Complexity and Skilled Workforce Shortage
Modern cooling technologies require specialized expertise for smooth operation.

Advanced systems, particularly liquid cooling, need skilled technicians for maintenance and performance optimization.
The global shortage of trained professionals creates operational inefficiencies and increases the risk of system downtime.
Cooling systems also require continuous monitoring and automated performance controls to operate at peak efficiency.
Many operators, especially in developing markets, struggle to access such specialized skill sets.
This lack of technical expertise can lead to higher maintenance costs and reduced system lifespan.

3. Environmental and Regulatory Challenges
Sustainability goals present both opportunities and constraints for the market.

Regulatory bodies are imposing strict rules on water consumption and refrigerant use in cooling systems.
Refrigerants with a high global warming potential (GWP) are increasingly restricted or banned.
Compliance often demands costly upgrades or complete system overhauls to meet environmental standards.
Operators must balance cooling efficiency with carbon footprint reduction, creating a strategic challenge.
Navigating these evolving regulations while maintaining performance adds complexity and cost to operations.

Geographical Dominance: North America dominates the Data Center Cooling Market, driven by the rapid expansion of hyperscale facilities, strong adoption of cloud computing, and stringent energy efficiency regulations. The U.S. leads with major investments in sustainable cooling technologies, while Canada benefits from its colder climate for free cooling adoption. The region's robust IT infrastructure, presence of global cloud providers, and ongoing upgrades to meet AI and high-density computing demands make it a key growth hub.

Key Players

The "Global Data Center Cooling Market" study report will provide a valuable insight with an emphasis on the global market. The major players in the market are Schneider Electric SE, Vertiv Group Corp., Airedale International Air Conditioning Ltd., Rittal GmbH & Co. KG, STULZ GmbH, Climaveneta (Mitsubishi Electric Corporation), Asetek, Inc.

Data Center Cooling Market Segment Analysis

Based on the research, Verified Market Research has segmented the global market into Cooling Solutions, Cooling Systems, End-User and Geography.

Data Center Cooling Market, by Cooling Solutions
- Precision Air Conditioning (PAC)
- Chilled Water Systems
- Direct Expansion (DX) Cooling
- Evaporative Cooling
- Free Cooling

Data Center Cooling Market, by Cooling Systems
- Room-Based Cooling Systems
- Rack-Based Cooling Systems
- Row-Based Cooling Systems

Data Center Cooling Market, by End-User
- Enterprise Data Centers
- Colocation Data Centers
- Hyperscale Data Centers

Data Center Cooling Market, by Geography
- North America
  - U.S
  - Canada
  - Mexico
- Europe
  - Germany
  - France
  - U.K
  - Rest of Europe
- Asia Pacific
  - China
  - Japan
  - India
  - Rest of Asia Pacific
- ROW
  - Middle East & Africa
  - Latin America

Key Highlights of the Report:

Market Size & Forecast: In-depth analysis of current value and future projections
Segment Analysis: Breaks down the market by Cooling Solutions, Cooling Systems, and End-User for focused strategy development.
Regional Insights: Comprehensive coverage of North America, Europe, Asia-Pacific, and more
Competitive Landscape: Profiles key players, their strategic initiatives, and innovation-driven growth approaches.
Growth Drivers & Challenges: Analyzes the forces accelerating growth and the restraints hindering large-scale adoption.
Challenges and Risk Assessment: Evaluates ethical debates, off-target effects, and regulatory complexities.

Why This Report Matters:

This report delivers actionable intelligence on the Data Center Cooling Market, offering a complete view of market drivers, challenges, technological advancements, and regional opportunities. It enables stakeholders to make data-backed decisions, adopt sustainable cooling systems, and secure a competitive edge in the evolving global digital infrastructure industry.

Who Should Read This Report:

Data center operators and facility managers
Cloud service providers and IT infrastructure leaders
Technology developers and equipment manufacturers
Investors and private equity firms
Sustainability and energy management consultants
Market research analysts and industry strategists

Browse Related Reports:

Global Data Center Life Cycle Services Market Size By Type (Enterprise Data Centers, Colocation Data Centers, Hyperscale Data Centers), By Service Type (Consulting, Design and Integration, Installation and Deployment, Managed Services, Maintenance and Support), By End-User (IT and Telecommunications, Government and Public Sector, BFSI, Healthcare, Retail, Energy), By Geography, And Forecast

Global Data Center Immersion Cooling Services Market Size By Cooling Type (Single-phase immersion cooling, Two-phase immersion cooling), By Deployment Mode (On-premise, Cloud-based), By Geography, And Forecast

Global Density Optimized Server Market Size By Component (Hardware, Software, Services), By Form Factor (Rack Servers, Blade Servers, Multi-node Servers), By Processor Type (X86 Servers, Non-X86 Servers), By Enterprise Size (Small and Medium Enterprises (SMEs), Large Enterprises), By Application (High Performance Computing (HPC), Data Centers, Cloud Computing, Web Hosting, Enterprise Applications), By Industry Vertical (IT & Telecom, BFSI, Government, Healthcare, Retail), By Geography, And Forecast

Global Data Center And Network Third-Party Hardware Maintenance Service Market Size By Type (Server Maintenance, Storage Maintenance), By Application (Large Enterprises, Small And Medium Size Enterprises), By Geography, And Forecast

Top 7 Modular Data Center Companies pioneering scalable and efficient solutions

Visualize Data Center Cooling Market using Verified Market Intelligence -:

Verified Market Intelligence is our BI Enabled Platform for narrative storytelling in this market. VMI offers in-depth forecasted trends and accurate Insights on over 20,000+ emerging & niche markets, helping you make critical revenue-impacting decisions for a brilliant future.

VMI provides a holistic overview and global competitive landscape with respect to Region, Country, Segment, and Key players of your market. Present your Market Report & findings with an inbuilt presentation feature saving over 70% of your time and resources for Investor, Sales & Marketing, R&D, and Product Development pitches. VMI enables data delivery In Excel and Interactive PDF formats with over 15+ Key Market Indicators for your market.

About Us

Verified Market Research® stands at the forefront as a global leader in Research and Consulting, offering unparalleled analytical research solutions that empower organizations with the insights needed for critical business decisions. Celebrating 10+ years of service, VMR has been instrumental in providing founders and companies with precise, up-to-date research data.

With a team of 500+ Analysts and subject matter experts, VMR leverages internationally recognized research methodologies for data collection and analyses, covering over 15,000 high impact and niche markets. This robust team ensures data integrity and offers insights that are both informative and actionable, tailored to the strategic needs of businesses across various industries.

VMR's domain expertise is recognized across 14 key industries, including Semiconductor & Electronics, Healthcare & Pharmaceuticals, Energy, Technology, Automobiles, Defense, Mining, Manufacturing, Retail, and Agriculture & Food. In-depth market analysis cover over 52 countries, with advanced data collection methods and sophisticated research techniques being utilized. This approach allows for actionable insights to be furnished by seasoned analysts, equipping clients with the essential knowledge necessary for critical revenue decisions across these varied and vital industries.

Verified Market Research® is also a member of ESOMAR, an organization renowned for setting the benchmark in ethical and professional standards in market research. This affiliation highlights VMR's dedication to conducting research with integrity and reliability, ensuring that the insights offered are not only valuable but also ethically sourced and respected worldwide.

Contact Us

Mr. Edwyne Fernandes
Verified Market Research®
US: +1 (650)-781-4080
US Toll Free: +1 (800)-782-1768
Email: [email protected]
Web: https://www.verifiedmarketresearch.com/

Logo: https://mma.prnewswire.com/media/2015407/VMR_Logo.jpg

SOURCE Verified Market Research