Data Center Cooling Market Set for 15.7% CAGR Growth, Reaching $80.1 Billion by 2033

Rising demand for renewable energy, urbanization, and IT adoption are set to create lucrative opportunities for global market growth.

WILMINGTON, DE, UNITED STATES, June 30, 2025 /EINPresswire.com/ -- The integration of cooling into data center management continues to make way for a completely automated, robot-driven data center environment. As contact with virtually unlimited computing resources continues to grow, enterprises and consumers are able to do things that could not be dreamt of until a few years ago.

In addition, social, mobility, and analytics trends are powered by cooling and cloud technologies. Moreover, enterprises wanted to introduce Robotic Process Automation “RPA” to their own data centers to derive the benefit of agility, elasticity, and self-service. Cooling and automation augment many human participations. According to the research, it is clear that cooling will never replace the need for unique human communication within the data center cooling industry.

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According to the report, the data center cooling market was valued at $18.7 billion in 2023, and is estimated to reach $80.1 billion by 2033, growing at a CAGR of 15.7% from 2023 to 2033.

Rise in data center demand, rise in high-performance computing, including AI, machine learning, and big data analytics, and rise in adoption of hyperscale and edge data centers are the factors expected to propel the growth of the global data center cooling market. However, the high initial cost is anticipated to hamper the growth of the global market.

By component, the solution segment held the highest market share in 2023, accounting for more than three-fifths of the data center cooling market revenue and is estimated to maintain its leadership status during the forecast period, owing to increase in the adoption of data center cooling as it offers, energy-efficient, environment-friendly, and cost-effective cooling solutions that drive the segment growth. In addition, stringent environmental safety rules imposed by various governments are further expected to propel the overall market growth.

However, the services segment is expected to attain the largest CAGR of 16.9% from 2024 to 2032 and is projected to maintain its lead position during the forecast period, as data centers are required to be maintained by trained professionals to keep efficiency intact. Moreover, the rapid growth in data centers, service providers for services such as installation & deployment, support & maintenance, and consulting for data center cooling drives the segment growth in the data center cooling market.

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By cooling type, the room-based cooling segment accounted for the largest share in 2023, contributing more than two-fifths of the data center cooling market revenue, owing to less use of pipes and ducts compared to other cooling types. Air-conditioners and other air-based cooling circulate air in data centers to maintain temperature within permissible limits. Room-based cooling is gaining popularity due to its energy-efficient cooling, which is further expected to propel the overall market growth.

However, the rack-based cooling segment is expected to attain the largest CAGR of 17% from 2024 to 2032 and is projected to maintain its lead position during the forecast period, owing to the increasing demand for more efficient cooling solutions in high-density environments. As data centers evolve and handle more advanced IT workloads such as cloud computing and artificial intelligence, there is a need for more targeted and efficient cooling, which is driving the growth of this segment in the global data center cooling market.

By industry vertical, the BFSI segment accounted for the largest share in 2023, contributing nearly one-fifth of the data center cooling market revenue, owing to financial institutions and insurance companies relying heavily on data centers to handle large volumes of sensitive financial transactions and customer data. These activities produce a lot of heat, and to maintain compliance with stringent regulations and ensure smooth operations, these organizations need highly dependable and effective cooling solutions to preserve data integrity and maintain uptime. This is also anticipated to drive the growth of the market.

However, the IT and telecom segment is expected to attain the largest CAGR of 14.9% from 2024 to 2032 and is projected to maintain its lead position during the forecast period, owing to rapid expansion of cloud computing, 5G networks, edge computing, and other data-intensive technologies. These industries are growing quickly as companies and service providers expand their digital infrastructure, and with this growth comes an increased demand for cooling solutions to manage the higher power consumption and heat generated by advanced technologies like artificial intelligence, machine learning, and large-scale data storage, thereby, driving the growth of this segment in the global data center cooling market.

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By region, North America held the highest market share in terms of revenue in 2022, accounting for more than two-fifths of the data center cooling market revenue, owing to technological advancements and recent developments in the market. Moreover, companies in this region are focusing more on the implementation of cost-effective and environment-friendly cooling solutions. This is anticipated to propel the growth of the market in this region.

However, Asia-Pacific is projected to attain the highest CAGR of 32.7% from 2023 to 2032, owing to increasing demand for cloud computing, data processing, and the rise of emerging technologies such as AI, big data, and IoT, which are driving the construction of new data centers across the region. Furthermore, the Asia-Pacific region has a growing number of hyperscale data centers, which is expected to contribute to the growth of the market in this region.

Leading Market Players: -

Schneider Electric Se
Black Box Corporation
Nortek Air Solutions, LLC
Airedale International Air Conditioning Ltd
Hitachi, Ltd.
Rittal GmbH & Co. Kg
Fujitsu Ltd.
Stulz GmbH
Vertiv
Asetek

The report provides a detailed analysis of these key players in the data center cooling market. These players have adopted different strategies such as new product launches, collaborations, expansion, joint ventures, agreements, and others to increase their market share and maintain dominant shares in different countries. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario.

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