“Global Data Center Cooling Market to reach a market value of USD 71.23 Billion by 2032 growing at a CAGR of 16%”
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.
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.
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.
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.
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.
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.
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.
Free Valuable Insights: Global Data Center Cooling Market size to reach USD 71.23 Billion by 2032
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.
| Report Attribute | Details |
|---|---|
| Market size value in 2024 | USD 22.06 Billion |
| Market size forecast in 2032 | USD 71.23 Billion |
| Base Year | 2024 |
| Historical Period | 2021 to 2023 |
| Forecast Period | 2025 to 2032 |
| Revenue Growth Rate | CAGR of 16.0% from 2025 to 2032 |
| Number of Pages | 469 |
| Number of Tables | 730 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Type, Component, Structure, Containment, Application, Region |
| Country scope |
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| Companies Included | Dell Technologies, Inc., Fujitsu Limited, Hitachi, Ltd., Johnson Controls International PLC, Mitsubishi Electric Corporation, NTT Data Corporation, Schneider Electric SE, 3M Company, Intel Corporation, and IBM Corporation |
By Type
By Component
By Structure
By Containment
By Application
By Geography
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