(MENAFN- GlobeNewsWire - Nasdaq) Data center cooling market is accelerating as organizations scale capacity, adopt high-density computing, and prioritize energy efficiency. Modern solutions, including room-based systems, liquid cooling, and advanced airflow management, are reshaping infrastructure strategies, driving sustained innovation and growth across industries.New Delhi, Dec. 26, 2024 (GLOBE NEWSWIRE) -- The global data center cooling market is projected to attain a valuation of US$ 32.61 billion by 2033 from US$ 10.17 billion in 2024 and at a CAGR of 13.82% from 2025-2033.
Today, data center cooling has advanced significantly, driven by the escalating demands of high-performance computing (HPC) and AI workloads. Liquid cooling methods, including direct-to-chip and immersion, now address far heavier densities, with some setups managing up to 140 kW per rack. These improvements enable data centers to surpass the global average Power Usage Effectiveness (PUE) through measures like free cooling, refined airflow management, and AI-enabled temperature adjustments. Research indicates that such strategies can cut energy consumption by as much as 40% thereby boosting both efficiency and sustainability. Consequently, facilities can sustain higher performance levels while reducing operating costs and curbing carbon footprints.
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Recent analyses suggest data center represent 1-1.8% of global energy usage, with almost 40% of that dedicated to cooling In 2022, the International Energy Agency placed data center electricity demand at 1-1.3% worldwide, emphasizing the necessity of more eco-friendly solutions in the data center cooling market. Innovations illustrate what's possible: Microsoft attained a PUE of 1.07 by submerging a data center in the ocean, highlighting the untapped potential of liquid cooling. Meanwhile, Google's water-based cooling systems reportedly lower carbon emissions by about 10% compared to air-cooled setups. Forecasts also project strong expansion for liquid cooling, since it can accommodate escalating workloads and align effectively with sustainability objectives significant, AI-driven cooling can reduce energy usage by up to 30% through real-time, automated temperature controls.
Cross-seasonal soil cold storage is likewise gaining traction, providing year-round free cooling in colder regions with minimal energy input. Additionally, partnerships between operators and technology providers are fueling breakthroughs in the data center cooling market by refining immersion frameworks and advanced software controls Altogether, these evolving strategies reflect a unified drive to handle surging data demands while minimizing ecological repercussions. As workloads intensify, advanced cooling solutions remain critical for helping data centers balance performance goals against responsible resource use. From immersion methods to direct liquid cooling, the industry's pursuit of innovation underscores a shared commitment to sustainability. Consequently, data centers appear poised to meet worldwide demand without linking future growth to an ever-expanding carbon footprint.
Key Findings in Data Center Cooling Market
| Market Forecast (2033) | US$ 32.61 billion |
| CAGR | 13.82% |
| Largest Region (2024) | North America (39.41%) |
| By Solution | Solutions (61.04%) |
| By Data Center Type | Tier 2 (36.45%) |
| By Industry | IT & Telecom (24.9%) |
| By Cooling Type | Room Based Cooling (62.6%) |
| Top Drivers | Increasing server densities demand more robust and efficient cooling infrastructures Rising energy costs emphasize sustainable cooling to reduce overhead expenses Data center expansions globally require scalable climate-control methods and systems |
| Top Trends | Implementation of liquid immersion techniques to enhance cooling performance substantially Automation and AI-driven solutions optimize airflow, humidity, and power consumption Modular cooling designs enable faster deployments for quick market adaptation |
| Top Challenges | Balancing power density and estate limitations complicates thermal management strategies Stringent environmental regulations demand greener cooling technologies with reduced footprints High capital expenditures deter smaller operations from adopting advanced solutions |
Escalating Cooling Needs as Tier 2 Data Centers Drive Market Growth Worldwide and Accounts for 36.5% Market Share
Tier 2 data centers have emerged as the largest consumers of cooling solutions in the data center cooling market due to their rapidly expanding footprint and operational requirements. Recent market observations indicate there are over 9 thousand Tier 2 facilities worldwide, collectively housing around 200 million square feet of server space. Many of these sites have an average rack density reaching 6 kilowatts, which escalates the need for robust cooling mechanisms. Some operators report that annual utility bills for cooling alone surpass 5 million dollars per facility, reflecting the intensive energy draw. Capacity expansions among Tier 2 players are rising fast, with some projects adding over 2 thousand new racks each year. Utility data reveals that Tier 2 centers cumulatively account for nearly 30 gigawatts of power consumption, reflecting their growing scale.
The appeal of Tier 2 sites lies in their balanced specifications, delivering dependable infrastructure without the hefty cost structures found in hyperscale environments. Many community-based enterprises, regional cloud providers, and medium-sized government bodies rely on Tier 2 facilities for mission-critical tasks due to their reliable uptime rating. Data indicates that certain Tier 2 centers maintain a power usage effectiveness near 1.65, highlighting moderate efficiency levels in the data center cooling market. These facilities often deploy chilled water systems capable of removing over 300 thousand BTUs per hour, ensuring stable temperatures. An average Tier 2 data center invests around 4 million dollars in cooling infrastructure upgrades every two years, keeping pace with evolving IT loads. Furthermore, industry announcements highlight more than 1 thousand new Tier 2 builds in the pipeline for completion by the end of 2023. Growth in industrial automation and edge computing further underscores the rising demand for Tier 2 capacity, as these sectors require facilities that combine strong performance with manageable capital expenses while supporting innovative cooling technologies tailored to mid-size operations.
Dominant Room-Based Cooling is Powering Efficient, Sustainable, Modern Data Center Operations Worldwide, Set to Control over 62.6% Market Share
Room-based cooling has solidified its position as the most widely adopted solution in data center cooling market, appealing to data centers of varying sizes and tiers. Analysis indicates that more than 6 thousand data center expansions in the past year alone have chosen room-based setups due to their simplicity and cost-effectiveness. Operators report that initial deployment costs can be around 20 thousand dollars for each computer room air conditioning unit, offering a relatively accessible entry point. In many facilities, these systems achieve stable inlet temperatures for over 500 racks, illustrating their scalability. Some hyperscale operators have confirmed using room-based designs to handle IT loads nearing 50 kilowatts per rack, thanks to improved airflow management. Industry feedback suggests that dedicated air distribution channels can reduce server-related overheating incidents by up to 500 events annually.
Data center professionals value the simplicity of installation and maintenance that room-based cooling systems bring to the data center cooling market, as they often integrate seamlessly with existing HVAC infrastructure. Some large colocation sites wield more than 100 computer room air handlers, ensuring thorough circulation across multiple server halls. Engineers note that these setups can move upwards of 50 thousand cubic feet of air per minute to sustain constant temperatures. Reports indicate that each unit can manage approximately 5 thousand BTUs per minute, enabling stable performance in high-density spaces. Manufacturers are creating compact versions of these units that fit edge locations under 2 thousand square feet, reflecting the demand for flexible configurations. Power usage effectiveness in room-cooled environments typically hovers near 1.7, reflecting moderate efficiency gains. As colocation and enterprise data centers seek reliability, the straightforward design of room-based cooling remains an essential choice worldwide.
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IT & Telecom is Largest Powerhouse for Global Data Center Cooling Market and Holds Nearly 24.9% Market Share
The IT and telecom sector commands a formidable share of global data center capacity, driven by relentless connectivity needs and expansion. Some estimates place the collective footprint of IT & telecom-operated facilities at over 400 million square feet, housing diverse workloads from core networking to cloud infrastructure. Recent data suggests these centers consume more than 150 terawatt-hours of electricity annually, with cooling representing a substantial operational expenditure. One large telecom-owned campus has claimed a capacity of over 6 million square feet, making it one of the biggest single-industry sites worldwide. Several telecommunications giants report single-site expansions exceeding 3 thousand racks each year to accommodate 5G and fiber-optic services. Major providers invest upwards of 30 million dollars to adopt advanced cooling technologies that keep mission-critical operations stable. Continuous hardware refresh cycles in telecom environments drive higher power densities reaching 40 kilowatts per rack, underscoring the importance of robust thermal management.
One of the key drivers behind this massive cooling demand in the data center cooling market is the surge in bandwidth-heavy applications, from mobile broadband to streaming services. Operators often maintain mechanical cooling systems capable of removing over 200 thousand BTUs per hour from hyperscale exchange points. Industry surveys reveal more than 2 thousand new telecom data center builds are underway in 2023, highlighting the sector's relentless expansion. Many telecom hubs deploy redundant chillers paired with backup generators drawing over 10 megawatts, ensuring uninterrupted functionality. Engineers acknowledge that these sites frequently incorporate water-based cooling loops to control heat generated by high-speed networking gear. As the IT and telecom domain continues to evolve, it remains the principal end user of data center cooling investments, demanding extensive fan, chiller, and airflow innovations.
Global Data Center Cooling Market Major Players:
Asetek Inc. Coolcentric Daikin Industries Ltd Green Revolution Cooling Iceotope Johnson Controls International PLC Liquid Cool Solutions Inc. LiquidStack Mitsubishi Electric Corporation Munters Group AB. Nortek Air Solutions Parker Hannifin Rittal GmbH & Co. KG Schneider Electric SE SPX Cooling Technologies, Inc STULZ GMBH Telx Holdings, Inc. (Digital Realty Trust, Inc.) Vertiv Co. Other Prominent Players
Data Center Colling Market Segmentation:
By Component
Solution Air Conditioning Chilling Units Cooling Towers Economizer Systems Liquid Cooling Systems Control Systems Others
Services Consulting Installation & Deployment Maintenance & Support
By Data Centre Type
Tier 1 Tier 2 Tier 3 Tier 4
By Type of Cooling
Room-based Cooling Row/Rack-based Cooling
By Industry
BFSI IT & Telecom Research & Academic Government & Defense Retails Energy Manufacturing Healthcare Others
By Region
North America Europe Asia Pacific South America Middle East & Africa (MEA)
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