Data Center Cooling Market Size, Share, and Trends 2024 to 2034

Data Center Cooling Market Size and Companies

The global data center cooling market size was USD 17.19 billion in 2023, accounted for USD 19.67 billion in 2024, and is expected to reach around USD 75.52 billion by 2034, expanding at a CAGR of 14.4% from 2024 to 2034. The North America data center cooling market size reached USD 8.77 billion in 2023.

Data Center Cooling Market Key Takeaways

• North America led the global market with the highest market share of 51% in 2023.
• By product, the air conditioners segment has captured around 31% of the overall revenue in 2023.
• The precision air conditioners segment is growing at a CAGR of 18.2% over the forecast period.
• By containment, the containment segment has captured a sizeable revenue share of around 51% in 2023.
• The retail segment is poised to grow at a CAGR of 15.3% from 2024 to 2034.
• The telecom segment is projected to reach at a CAGR of 18.7% from 2024 to 2034.

U.S. Data Center Cooling Market Size and Growth 2024 to 2034

The U.S. data center cooling market size was estimated at USD 6.15 billion in 2023 and is predicted to be worth around USD 27.59 billion by 2034, at a CAGR of 14.6% from 2024 to 2034.

North America led the global data center cooling market in 2023 and predicted to retain the same trend over the years to come owing to the largest market dedicated for the technology oriented solutions. Further, the region has also witnessed a healthy growth in the global economy, particularly for the development and implementation of new and upcoming technologies. Moreover, with presence of significant companies for example Amazon Inc., Facebook, and Google Inc.contribute positively towards the growth of the region.

On the other hand, the Asia Pacific anticipated to gain prominence during the upcoming period because of significant growth opportunity for the application of telecom sector. This is mainly due to the significant rise in the number of service providers that offer external IT infrastructure services as well as manage and operate critical business applications and information.

Data Center Cooling Market Growth Factors

Rising need for energy-efficient data centers, significant spending by colocation service and managed service providers, and rising construction of hyperscale data centers are the prime factors expected to propel the market growth. In addition, emergence of big data, cloud technology, and Internet of Things (IoT) has permitted organizations to spend in new data centers to maintain the business continuity. This is the other important factor likely to boost the market size over the upcoming years.

Additionally, increasing demand for security, operational efficiency, improved mobility, and bandwidth anticipated to prosper the industry development. Software-based data centers contribute to the market growth by offering improved automation level. Advent of IoT and connected technology has propelled various businesses to shift towards digital transformation that has again surged the necessity for an advanced data center ecosystem that ensures scalability, quick deployment, security, flexibility, and availability. This shift in business trend is paving way for the advancement and development of innovative solutions that is highly agile, cost-effective, and software-defined. The above mentioned factors projected to impel the market growth over the forthcoming years.

Market Scope

Product Insights

Air conditioners segment dominated the global data center cooling market and accounted for more than 30% of the market share in 2023 as well as projected to exhibit prominent growth over the upcoming years. Densely packed racks tend to generate huge amounts of heat while storing and analyzing data for effective decision-making. Because of this reason, air conditioners help organizations to maintain a required temperature level along with ensuring the proper functioning of systems.

Additionally, air conditioner is a type of heat exchanger that maintains an adequate level of room temperature in a sensitive IT environment. In the meantime, the precision air conditioners register the fastest growth rate during the analysis period. Technological advancements along with the introduction of energy-efficient units estimated to uplift the demand for precision air conditioners. Moreover, they provide numerous benefits that include a demonstration of better air distribution, precise humidity control, continuous operation, along with automatic control of different AC loads for effective cooling.

Application Insights

Based on application, retail segment is estimated to exhibit a CAGR of more than 13% over the analysis period. The significant growth of the segment is attributed to the extensive application of social media, smartphones, Image Processing Verification Tools (IPVT), and tablet computers that in turn spur the volume of data.

Moreover, the telecom segment occupied the largest value share in 2023 and is anticipated to witness the fastest growth rate over the upcoming years. Rapid expansion of IT & telecom industry across the world is expected to propel the growth of the data center cooling market. Additionally, significant development in the telecommunication infrastructures fuels the need for equivalent storage facilities that are projected to impel the demand for data center cooling solutions.

Data Center Cooling Market Companies

• Asetek
• Air Enterprises
• Climaveneta Climate Technologies (P) Ltd.
• Fujitsu Limited
• Coolcentric
• Hitachi Ltd.
• Rittal GmbH & Co. KG
• Netmagic Solutions
• STULZ GMBH
• Telx Holdings, Inc. (Digital Realty Trust, Inc.)
• Schneider Electric
• Vertiv Co.

Segments Covered in the Report

By Containment

• Raised Floor without Containment
• Raised Floor with Containment
  • Cold Aisle Containment (CAC)
  • Hot Aisle Containment (HAC)

By Structure

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

By Product

• Precision Air Conditioners
• Air Conditioners
• Air Handling Units
• Chillers
• Others

By Application

• IT
• Telecom
• Healthcare
• Retail
• Energy
• BFSI
• Others

By Regional Outlook

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
• Rest of the World