Global Data Center Cooling Market Size, Share & Trends Analysis Report By Type (Non-Raised Floors and Raised Floors), By Component, By Structure, By Containment, By Application, By Regional Outlook and Forecast, 2025 - 2032

The Global Data Center Cooling Market size is expected to reach $71.23 billion by 2032, rising at a market growth of 16.0% CAGR during the forecast period.

The North America segment witnessed 37% revenue share in the market in 2023. The North America segment is driven by the region's advanced digital infrastructure, with a high concentration of hyperscale data centers operated by leading technology and cloud service providers. The escalating utilization of cloud computing, the Internet of Things, and big data analytics has heightened the necessity for energy-efficient cooling solutions to effectively manage increasing thermal burdens.

Data centers constitute a substantial share of global electricity consumption, a figure anticipated to increase further due to the escalating adoption of artificial intelligence, cloud computing, and the Internet of Things. Data centers account for 1-2% of global electricity usage, projected to rise to 3-4% by the end of the decade as digital services expand. Thus, these factors will aid in the expansion of the market.

Additionally, Edge computing involves processing data closer to its source, such as IoT devices, rather than relying solely on centralized data centers. This approach reduces latency, enhances real-time data processing, and improves overall network performance. The need for localized data centers has surged as industries like healthcare, automotive, retail, and telecommunications increasingly deploy edge computing to support applications such as autonomous vehicles, telemedicine, and smart cities. Therefore, as the adoption of edge computing accelerates, the demand for innovative and effective cooling solutions will continue to grow, supporting the expansion of the market.

However, While highly efficient, technologies like liquid and immersion cooling systems demand substantial upfront capital. These systems often necessitate specialized infrastructure, including custom-built enclosures, advanced pumps, and piping systems, to support the technology. The costs associated with installing these advanced systems can be prohibitive for businesses operating on limited budgets, particularly small and medium-sized enterprises (SMEs). Hence, as a result, adopting advanced cooling solutions is often restricted to large-scale data centers with ample financial resources, leaving smaller operators reliant on less efficient but more affordable conventional cooling methods.

Type Outlook

Based on type, the market is segmented into raised floors and non-raised floors. The raised floors segment acquired 45% revenue share in the market in 2023. Raised floors facilitate the integration of underfloor cooling systems, which are widely used for their efficiency in directing cool air to specific server racks. This design is especially advantageous for data centers that manage high-density operations, where meticulous airflow management is essential.

Component Outlook

Based on component, the market is bifurcated into solution and services. The air conditioners segment acquired 31% revenue share in the market in 2023. These systems provide reliable temperature and humidity control with little complexity and are easy to install and use. The demand for air conditioners is further fueled by the rapid expansion of SMEs, which require straightforward cooling solutions without the need for advanced infrastructure.

Structure Outlook

By structure, the market is divided into rack-based cooling, row-based cooling, and room-based cooling. The row-based cooling segment recorded 30% revenue share in the market in 2023. This structure places cooling units near server racks, ensuring efficient heat dissipation and reducing energy consumption by minimizing airflow distances. The segment has gained traction among hyperscale and modular data centers, prioritizing scalability and energy efficiency.

Containment Outlook

On the basis of containment, the market is bifurcated into raised floor with containment and raised floor without containment. The raised floor without containment segment witnessed 44% revenue share in the market in 2023. This design remains popular for data centers with moderate cooling needs or those operating on tighter budgets, as it eliminates the need for additional containment structures. Raised floors without containment still provide efficient underfloor cable and airflow management, making them a practical solution for many traditional data center setups.

Application Outlook

Based on application, the market is segmented into telecommunications, IT, retail, healthcare, BFSI, energy, and others. The IT segment garnered a substantial 21% revenue share in the market in 2023. Information technology companies are progressively dependent on high-performance data centers to facilitate their operations, thereby necessitating the implementation of efficient cooling systems to regulate the heat produced by sophisticated servers and processors.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe segment garnered 28% revenue share in the market in 2023. The Europe segment benefits from the region's strong focus on energy efficiency and sustainability. Environmental regulations and initiatives like the EU Green Deal have encouraged data center operators to adopt eco-friendly cooling solutions.

The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.

Recent Strategies Deployed in the Market

• Jan-2025: Dell Technologies came into partnership with CoreWeave, supplying AI-driven data centers with liquid-cooled PowerEdge XE9712 server racks featuring NVIDIA’s GB200 Grace Blackwell Superchip. This collaboration enhances performance and scalability for AI workloads, advancing data center cooling technology.
• Nov-2024: NTT Data Corporation expands its cooling solutions portfolio in Japan with a new trial facility in Chiba and two-phase direct-to-chip cooling tests in Tokyo, focusing on innovative, energy-efficient technologies to enhance sustainability and modernize existing data center infrastructure.
• Oct-2024: Fujitsu Limited and Supermicro have partnered to develop green AI computing solutions, including liquid-cooled systems for HPC and AI workloads. They aim to enhance energy efficiency and reduce environmental impact in data centers, focusing on advanced cooling technologies and sustainable infrastructure.
• Oct-2024: Dell Technologies introduces the Integrated Rack 7000 with liquid cooling, designed for high-density compute and AI workloads. The advanced cooling system supports AI deployments, offering scalable power management and enhanced cooling for efficient and sustainable data center operations.
• Aug-2024: Hitachi, Ltd. and Singtel have partnered to develop next-gen, sustainable data centers in Japan and Asia Pacific, combining Singtel's data center expertise with Hitachi's green power, cooling systems, and AI technologies. Their collaboration aims to accelerate AI adoption and digital transformation.

List of Key Companies Profiled

• Dell Technologies, Inc.
• Fujitsu Limited
• Hitachi, Ltd.
• Johnson Controls International PLC
• Mitsubishi Electric Corporation
• NTT Data Corporation
• Schneider Electric SE
• 3M Company
• Intel Corporation
• IBM Corporation

Global Data Center Cooling Market Report Segmentation

By Type

• Non-Raised Floors
• Raised Floors

By Component

• Solution

Air Conditioners

Precision Air Conditioners

Chillers

Air Handling Units & Other

• Services

Installation & Deployment

Support & Consulting

Maintenance Services

By Structure

• Row-Based Cooling
• Room-Based Cooling
• Rack-Based Cooling

By Containment

• Raised Floor with Containment
• Raised Floor without Containment

By Application

• Telecommunications
• IT
• Retail
• BFSI
• Healthcare
• Energy
• Other Application

By Geography

• North America

US

Canada

Mexico

Rest of North America

• Europe

Germany

UK

France

Russia

Spain

Italy

Rest of Europe

• Asia Pacific

China

Japan

India

South Korea

Singapore

Malaysia

Rest of Asia Pacific

• LAMEA

Brazil

Argentina

UAE

Saudi Arabia

South Africa

Nigeria

Rest of LAMEA