Data Center Cooling Market Size to Reach USD 49.53 Billion in 2032

(MENAFN- Navistrat Analytics) July 02, 2025 - The global data center cooling market is witnessing robust revenue growth, largely propelled by the rising adoption of high-density rack configurations in data centers. This shift directly responds to the increasing demand for compute-intensive workloads such as Artificial Intelligence (AI), High-Performance Computing (HPC), and big data analytics, all of which require enhanced processing capabilities within limited physical footprints.

Global data center capacity is projected to expand rapidly, with annual demand expected to grow by 19% to 22% between 2023 and 2030, potentially reaching between 171 and 219 gigawatts (GW) by the end of the decade. To accommodate this surge, data center operators are turning to high-density infrastructure, which in turn is driving the need for advanced, energy-efficient cooling solutions. It is contributing significantly to the revenue growth of the market.

However, Supply chain disruptions and extended equipment lead times are posing a significant challenge to the revenue growth of the data center cooling market. Furthermore, global logistics uncertainties and escalating material costs are compelling vendors to defer or reduce planned infrastructure investments. Recent earnings reports from leading U.S. data center developers and hyperscalers highlight the adverse impact of supply chain constraints on revenue performance. These disruptions also threaten to impede progress in critical areas such as artificial intelligence development, due to shortages in semiconductors, power infrastructure, and suitable land for expansion.

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Segments Market Overview and Growth Insights:
Based on the cooling type, the data center cooling market is segmented into air cooling and liquid cooling. Air cooling is further sub-segmented into air conditioner, air handling unit, chiller, cooling tower, economizer system, and others. Liquid cooling is further sub-segmented into direct-to-chip liquid cooling, immersion cooling, and rear-door heat exchanger.

The liquid cooling segment is expected to experience rapid revenue growth over the forecast period, driven by the increasing demand for High-Performance Computing (HPC), Artificial Intelligence (AI) workloads, and the expansion of hyperscale data centers. These applications produce high heat densities that conventional air-based cooling systems often struggle to manage effectively.

Liquid cooling solutions, such as direct-to-chip and immersion cooling, provide significantly improved thermal management, lower energy consumption, and enhanced cooling efficiency. These technologies are reported to be up to 3,000 times more effective than traditional air cooling methods, positioning them as a critical enabler of next-generation data center performance.

Regional Market Overview and Growth Insights:
North America held the largest revenue share in 2024, driven by a high concentration of hyperscale data centers and the rapid adoption of cloud computing, artificial intelligence, and big data workloads, particularly in the U.S. and Canada. Data centers are expected to contribute approximately 44% of the growth in U.S. electricity demand through 2028 and could consume up to 9% of the country’s total power supply by 2030. This growing energy footprint has raised concerns over grid capacity and rising energy costs. In response, data center operators are under increasing pressure to implement energy-efficient and sustainable cooling strategies to manage power usage and operational expenses.

As a result, there has been a marked increase in investments in advanced cooling technologies in the region, including liquid cooling, AI-driven thermal management systems, economizers, and high-efficiency Computer Room Air Handlers (CRAH) and Computer Room Air Conditioners (CRAC).

Competitive Landscape and Key Competitors
The Data Center Cooling market is characterized by a fragmented structure, with many competitors holding a significant share of the market. List of major players included in the market report are:

o Asetek Inc.
o Vertiv Holdings Co.
o Iceotope
o Schneider Electric
o Green Revolution Cooling
o STULZ GMBH
o LiquidStack
o ABB Ltd
o Huawei Technologies
o Munters
o Usystems
o Asperitas
o Submer
o Nortek Air Solutions
o Lennox

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Major Strategic Developments by Leading Competitors:
LG Electronics: On April 15, 2025, LG Electronics (LG) made its debut at the Data Center World (DCW) 2025 conference in Washington, D.C. The company is unveiling an extensive portfolio of cutting-edge cooling solutions for data centers. The company showcased a range of advanced technologies, including high-efficiency chillers, both air- and liquid-based server cooling systems, and its intelligent LG Building Energy Control (BECON) platform.

Lennox: On April 14, 2025, Lennox launched its new CRAH ApX series—a line of advanced data center cooling solutions designed for large-scale facilities. The Computer Room Air Handler (CRAH) ApX units offer a wide cooling capacity range, from 20 to 500 kW, and are optimized for operations using high-temperature process water.

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Navistrat Analytics has segmented global data center cooling market on the basis of cooling type, cooling technique, data center type, containment, industry vertical and region:

• Cooling Type Outlook (Revenue, USD Billion; 2022-2032)
o Air Cooling
o Liquid Cooling

• Cooling Technique Outlook (Revenue, USD Billion; 2022-2032)
o Room-Based Cooling
o Row-Based Cooling
o Rack-Based Cooling

• Data Center Type Outlook (Revenue, USD Billion; 2022-2032)
o Centralized Data Center
o Edge Data Centers

• Containment Outlook (Revenue, USD Billion; 2022-2032)
o Raised Floor with Containment
o Raised Floor without Containment

• Industry Vertical Outlook (Revenue, USD Billion; 2022-2032)
o IT and Telecom
o Retail
o Healthcare
o Media and Entertainment
o BFSI
o Energy
o Others

• Regional Outlook (Revenue, USD Billion; 2022-2032)
o North America
a. U.S.
b. Canada
c. Mexico

o Europe
a. Germany
b. France
c. U.K.
d. Italy
e. Spain
f. Benelux
g. Nordic Countries
h. Rest of Europe

o Asia Pacific
a. China
b. India
c. Japan
d. South Korea
e. Oceania
f. ASEAN Countries
g. Rest of APAC

o Latin America
a. Brazil
b. Rest of LATAM

o Middle East & Africa
a. GCC Countries
b. South Africa
c. Israel
d. Turkey
e. Rest of MEA

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