Data Center Cooling Market

Data Center Cooling Market Summary

The global data center cooling market size was valued at USD 26.31 billion in 2025 and is anticipated to reach USD 128.31 billion by 2033, growing at a CAGR of 22.3% from 2026 to 2033. The growth is attributed to the rapid expansion of hyperscale and colocation data centers worldwide.

Cloud service providers, social media platforms, and digital service enterprises continue to invest heavily in large-scale data center infrastructure to support growing data traffic and storage requirements. These facilities operate at high utilization levels and require advanced, reliable cooling systems to maintain uptime, improve energy efficiency, and comply with stringent service-level agreements.

The increasing adoption of high-density computing driven by artificial intelligence (AI), machine learning (ML), high-performance computing (HPC), and advanced analytics workloads significantly contributes to the growth of the data center cooling industry. These applications generate significantly higher heat loads compared to traditional IT workloads, often exceeding the cooling capacity of conventional air-based systems. As a result, data center operators are increasingly investing in advanced cooling technologies such as liquid cooling, direct-to-chip cooling, rear-door heat exchangers, and immersion cooling systems to manage higher rack densities and ensure thermal stability.

A data center comprises networked computers and storage equipment for organizing, storing, processing, and disseminating data that is crucial for the functioning of a business organization. Improved network connectivity and the proliferation of smart devices are leading to an exponential increase in the volume of data generated daily. The global installed base of connected IoT devices continues to expand steadily, despite short-term macroeconomic headwinds. Total active IoT connections reached approximately 18.5 billion in 2024, representing a year-over-year increase of around 12% compared to 2023. Based on connection trends observed in the first half of 2025, the number of connected IoT devices is projected to rise by roughly 14% during the year, reaching an estimated 21.1 billion by the end of 2025.

Energy efficiency and sustainability requirements are also major contributors to market growth. Data centers are among the most energy-intensive facilities, and cooling systems account for a substantial share of total power consumption. Operators are under increasing pressure from regulators, investors, and customers to reduce carbon emissions, improve power usage effectiveness (PUE), and meet environmental, social, and governance (ESG) targets. This is accelerating the adoption of energy-efficient cooling solutions, including free cooling, evaporative cooling, adiabatic systems, and AI-driven thermal management software that optimizes cooling performance while lowering operating costs.

Global Data Center Cooling Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the global data center cooling market report based on component, solution, services, type, containment, structure, application, and region.

• Component Outlook (Revenue, USD Billion, 2021 - 2033)
• Solution
• Services
• Solution Outlook (Revenue, USD Billion, 2021 - 2033)
• Air Conditioners
• Precision Air Conditioners
• Chillers
• Air Handling Units
• Others
• Services Outlook (Revenue, USD Billion, 2021 - 2033)
• Installation & Deployment
• Support & Consulting
• Maintenance Services
• Type Outlook (Revenue, USD Billion, 2021 - 2033)
• Raised Floors
• Non-Raised Floors
• Containment Outlook (Revenue, USD Billion, 2021 - 2033)
• Raised Floor with Containment
• Hot Aisle Containment (HAC)
• Cold Aisle Containment (CAC)
• Raised Floor without Containment
• Structure Outlook (Revenue, USD Billion, 2021 - 2033)
• Rack-Based Cooling
• Row-Based Cooling
• Room-Based Cooling
• Application Outlook (Revenue, USD Billion, 2021 - 2033)
• Telecom
• IT
• Retail
• Healthcare
• BFSI
• Energy
• Others
• Regional Outlook (Revenue, USD Billion, 2021 - 2033)
• North America
• U.S.
• Canada
• Mexico
• Europe
• UK
• Germany
• France
• Asia Pacific
• China
• India
• Japan
• South Korea
• Australia
• Latin America
• Brazil
• Middle East & Africa
• UAE
• Saudi Arabia
• South Africa

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