Data Center Cooling Market Research 2025-2035: Asia-Pacific Leads Surge Amid Digital Economy Expansion, Retrofitting Gaining Momentum - ResearchAndMarkets.com

The "Data Center Cooling Market - A Global and Regional Analysis: Focus on Product, Application, and Country-Level Analysis - Analysis and Forecast, 2025-2035" report has been added to ResearchAndMarkets.com's offering.

The data center cooling market is projected to reach $100.12 billion by 2035 from $25.77 billion in 2024, growing at a CAGR of 12.55% during the forecast period 2025-2035.

The data center cooling market is witnessing substantial growth, fueled by the increasing demand for data storage, processing, and cloud computing services. As data generation accelerates globally, efficient cooling solutions have become essential to ensure the optimal performance and longevity of data centers.

The market has been heavily influenced by the rising need for energy-efficient and sustainable technologies, driven by both environmental concerns and stringent regulations aimed at reducing carbon footprints. Despite its rapid expansion, the industry faces challenges, including high upfront costs and operational complexities associated with maintaining these systems. However, ongoing advancements in cooling technology, coupled with rising demand for energy-efficient solutions, are expected to mitigate these hurdles.

The data center cooling market has a significant impact on various industries, particularly those reliant on large-scale data storage and processing, such as cloud computing, e-commerce, and telecommunications. Efficient cooling systems are essential to prevent hardware malfunctions and downtime, thereby enhancing operational reliability and minimizing costs. With increasing data consumption, cooling solutions that reduce energy consumption and carbon emissions are increasingly valued for their sustainability.

Industries are adopting cutting-edge cooling technologies such as liquid cooling and AI-driven systems to address growing power demands while complying with stringent environmental regulations. Additionally, the rising emphasis on green building certifications and eco-friendly operations is driving the demand for energy-efficient cooling solutions across industries. As data centers become more integral to the global economy, the evolution of cooling technologies is not only expected to improve operational efficiency but also shape the future of sustainable business practices.

Asia-Pacific is one of the largest data center markets in the world due to enormous industrial and commercial enterprises that have significantly impacted the demand for data centers in the region. Asia-Pacific is followed by North America and Europe in terms of market size. Moreover, Asia-Pacific is expected to have a massive demand for data center cooling technologies due to numerous data centers and the growing demand for innovative technologies and spending in the region.

IT and Telecom to Lead the Market by End-Use Industry

Based on the end-use industry, the IT and telecom segment dominates the market. With the introduction of new technologies such as 5G, IoT, virtual and augmented reality, and artificial intelligence, the telecommunications industry has been evolving to cater to huge data processing. As a result, telecom data centers have also been transforming to handle high data volume and low latency needs. The banking, financial services, and insurance (BFSI) segment is expected to anticipate the highest growth rate due to being digitized, which involves utilizing the most cutting-edge technology, which will boost the data center usage, thereby augmenting the data center cooling solutions.

Centralized Data Center to Lead the Market by Data Center Type

Based on data center type, the centralized data center segment includes sub-segments such as hyperscale, colocation, and enterprise. The centralized data center segment dominates the market due to the demand for hyperscale data centers being driven by the need for more data and processing power. Hyperscale data centers are needed to deliver additional capacity virtually on demand because of cloud adoption.

Hyperscale data centers, which are enormous, mission-critical buildings built to support robust, scalable applications effectively, are frequently connected to big data-generating firms such as Google, Amazon, Facebook, IBM, and Microsoft. The edge data centers, which are situated physically closer to end-user devices that are both generating and utilizing data, are therefore being driven by 5G. Due to this factor, edge data centers are expected to have the highest growth rate because the cloud interface and core compute closer to the edge are required to reduce transport latency.

Others to Lead the Market by Application Area

Others category, encompassing industries such as aerospace and defense, blockchain, agriculture, and healthcare, is set to lead the data center cooling market, based on application area, due to their increasing reliance on data-intensive operations and real-time processing. As sectors such as cryptocurrency mining, smart grids, and AI-driven agriculture expand, they require advanced cooling technologies to manage growing data volumes and maintain operational efficiency. Additionally, industries such as financial services and government demand high reliability and compliance, further driving the need for innovative, scalable, and energy-efficient cooling solutions to ensure system stability and performance.

Air Cooling to Lead the Market by Solution

Based on solution, the air cooling market segment is expected to dominate the global data center cooling market because the majority of data centers are old currently and still continue to use air conditioners and other air cooling systems. Additionally, the retrofit data centers also adopt air cooling technologies. However, liquid cooling is expected to witness the highest growth rate from 2025 to 2035 as it efficiently cools the data center area, which results in less usage of fans, leading to better acoustics.

The new data centers are gradually moving from conventional data centers or conventional cooling systems to new-age cooling systems, which helps them to improve their efficiency, decrease carbon emissions, and become green and carbon-neutral data centers. This is one of the major factors for the higher growth rate of liquid cooling. Furthermore, liquid cooling is a quieter technique compared to air cooling systems. According to an industry expert, the hyperscale segment is growing, which has been leading to a higher cooling capacity being required. Hence, immersion cooling is expected to be one of the market-leading solutions for data center cooling over the next five years.

Medium Rack Density (5-9 kW) to Lead the Market by Rack Density

The medium rack density (5-9 kW) captures the significant market size of the global data center cooling market based on the rack density. This is because most of the data centers have adopted medium rack density. However, the high rack density segment is booming as it achieves better space utilization, and the response time of system failure is reduced significantly. A high rack density data center usually consumes more than 9 kW of power; hence, it needs better airflow management to ensure efficient cooling, driving the overall data center cooling market.

Key Attributes:

Market Dynamics Overview

Market Drivers

• High-Efficient Cooling Systems
• Emerging Technologies Promote Cost-Effectiveness
• AI-Assisted Automatic Cooling Control
• Power Usage Effectiveness (PUE) Optimization with Economic Cooling Solutions
• Increasing Number of Data Centers and Spendings
• Thermal Energy Recovery Conversion from Data Centers
• Water Usage Effectiveness Driving Adoption of Alternate Cooling Solutions
• Retrofitting to a Free Cooling Data Center

Trends: Current and Future Impact Assessment

• Trends Shaping Data Center Cooling Market
• Increase in Data Requirements
• Increasing Rack Power Density - New Data Center Reality
• 5G Services to Drive Exponential Growth in Data Centers
• Growth in Demand for Environment-Friendly Cooling Systems
• Carbon Neutrality
• Utilization of Renewable Energies
• Green Initiatives by Government Body
• New Data Center Trends toward Adoption of Liquid Cooling, 2024-2034

Market Restraints

• High Investment Costs for Non-Conventional Cooling Systems
• Technical Challenges to Cooling Systems
• Air and Free Cooling Systems Adaption Complexities
• Reliability Limitations with Immersion Liquid Cooling

Business Opportunities

• Growing Emphasis for Retrofit Data Center
• Data Center Infrastructure Management for Power Management
• Increasing Number of Distributed or Edge Data Centers

Case Studies

• Immersion Cooling Technology
• Revolutionizing Data Center Efficiency: Two-Phase Liquid Immersion Cooling at Quincy, Washington
• Advancing Data Center Cooling Efficiency: The University of Leeds' Adoption of Fully Immersed Liquid-Cooled Servers
• PeaSoup Cloud: Pioneering Eco-Friendly Cloud Services with Immersion Cooling Technology
• HYDRA Immersion Cooling: Revolutionizing Data Centre Efficiency and Sustainability
• Advancing Thermal Efficiency: The Role of Liquid Immersion Cooling in Future Data Centers
• Other Liquid Cooling Technology
• Capital Expense Comparison-Facility and IT Load for Both Air-Cooled and Liquid-Cooled Data Center
• Colovore Implements Liquid Cooling Solution, Offering Rack Capacities of up to 50 kW

Evaporative Cooling Market for Data Center Overview

• Global Market Size for Evaporative Cooling
• Global Market Size for Evaporative Media
• Current and Future Market Scenario for Evaporative Cooling
• Replacement Rates for Evaporative Media
• Regional Overview of Evaporative Cooling Market for Data Center
• North America
• Europe
• Asia-Pacific
• Rest-of-the-World
• Historical Analysis of Evaporative Cooling Deployment across Global Data Centers (2018-2022)
• New Data Center Trends toward Adoption of Evaporative Cooling (2023-2027)

Adoption of Cooling by Data Center Age

• Retrofitting and Brownfield Projects
• Green Field Projects and New Installation
• Historical Analysis of Liquid Cooling Deployment across Global Data Centers, 2018-2023
• New Data Center Trends toward Adoption of Cooling Technology Type (2023-2027)

Ecosystem and Ongoing Programs

Some of the prominent names in this market are:

• Vertiv Group Corp.
• Schneider Electric
• Asetek, Inc.
• Submer
• Munters
• ZutaCore, Inc.
• Coolcentric (Heico Companies LLC)
• Midas Immersion Cooling
• PEZY Computing K.K.
• ALFA LAVAL
• Condair Group
• Fujitsu
• Danfoss
• Modine Manufacturing Company
• Boyd
• Johnson Controls International plc
• Carrier
• STLUZ GMBH
• LiquidStack Holding B.V.
• JETCOOL Technologies Inc (Flex Ltd.)
• Chilldyne, Inc.
• Accelsius LLC
• CoolIT Systems
• DCX Liquid Cooling Systems
• nVent
• Rittal GmbH & Co. KG 

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