Data canter Cooling Market Size Was Valued at USD 16.48 Billion in 2024 and is Projected to Reach USD 36.9 Billion by 2032, Growing at a CAGR of 10.6% From 2025-2032.

Quick Insights

·         2024 market size: USD 22.13 billion

·         Projected 2030 market size: USD 56.15 billion

·         Forecast CAGR (2025–2030): ~16.4%

·         Dominant regions: North America (largest share in 2024), Asia-Pacific (fastest growth trajectory)

·         Leading segment: Non-raised-floor / room-based cooling architectures in 2024 contributed over 57% of revenue by structure segment.

·         Fastest-growing cooling technologies: Liquid cooling systems (especially immersion / direct-to-chip) emerging rapidly due to AI and high-density workloads.

·         Top industry players (global): Schneider Electric, Vertiv, STULZ GmbH, Rittal GmbH & Co. KG, Mitsubishi Electric among others.

Why the Growth? Key Market Drivers

The data-center cooling market is thriving primarily due to:

·         Explosion of hyperscale & cloud data centers Global players continue to expand capacity aggressively to meet demand from AI, streaming, big data analytics, and remote work.

·         High-density server racks & AI workloads These generate significant heat, making traditional air-cooling inadequate. Advanced liquid-based cooling solutions are becoming essential.

·         Sustainability & energy efficiency pressures Data centers consume massive power; efficient cooling is vital to reduce energy usage, operational costs, and carbon footprint.

·         Edge computing & colocation growth as edge data centers proliferate and colocation services expand globally, demand for modular, scalable cooling systems surges.

What’s Fueling the Shift to New Cooling Paradigms?

 Liquid & Immersion Cooling + AI-enabled Thermal Management

Liquid cooling especially immersion cooling and direct-to-chip cooling is rapidly gaining share. These technologies can handle high heat flux from AI-heavy workloads far more efficiently than traditional air-based cooling.

At the same time, operators are embracing “smart cooling” platforms that leverage sensors, real-time monitoring, and AI-driven thermal management to optimize energy consumption, maintain consistent temperatures, reduce risk of overheating, and support sustainable operations.

Cooling-as-a-Service & Modular / Edge-Ready Cooling Systems

Smaller data centers, colocation facilities, and micro/edge-sites which often lack the capacity for large-scale infrastructure  are increasingly opting for modular, self-contained cooling units or cooling-as-a-service (CaaS) models. This helps reduce upfront CAPEX, allows scalable deployment, and ensures efficient cooling tailored to variable workloads.

Regional & Segmentation Analysis

North America remains the largest regional market in 2024, supported by extensive cloud infrastructure, early adoption of advanced cooling technologies, and a large number of hyperscale data centers.

Asia-Pacific, however, is projected to post the fastest growth rate through 2030 driven by rapid cloud adoption, data center buildout across India, China, Southeast Asia, and increasing investments in edge computing and 5G-driven infrastructure.

By structure, non-raised floor / room-based cooling dominated in 2024 (accounting for ~57% of the market), highlighting a trend toward simpler, modular designs, especially in retrofit and colocation settings.

In terms of technology, liquid cooling / immersion cooling is emerging as the fastest growing sub-segment reflecting the shift toward high-density and AI-heavy workloads that demand superior heat removal performance.

What Lies Ahead Opportunities & Key Questions

What if AI workloads double rack heat loads?
Operators will likely accelerate adoption of liquid / immersion cooling paired with AI-based thermal management making high-efficiency, high-reliability cooling systems non-optional rather than optional upgrades.

Can modular cooling-as-a-service models disrupt traditional HVAC sales?
As edge data centers and colocation facilities grow, modular and service-based cooling models can lower barriers to entry and democratize access to advanced cooling especially in emerging markets with limited CAPEX budgets.

Will sustainability and carbon neutrality targets reshape cooling design?
Yes with increasing energy costs and regulator pressure, expect stronger focus on energy-efficient, low-carbon cooling solutions, integration with renewable energy, and waste-heat recovery in next-gen data centers.

Industry Voice

“As AI workloads push beyond conventional computing thresholds, traditional air-cooling simply can no longer keep pace. The next wave of data-center growth depends not just on compute but on cooling that is smarter, greener, and built for density. Leading operators worldwide are already pre-building for that future.”

Challenges & Cost Pressures

·         High implementation cost of advanced cooling solutions: Liquid and immersion systems, sensor-integrated smart cooling platforms, and modular cooling units require significant CAPEX upfront compared to legacy air-conditioning.

·         Complexity in integration and retrofitting: Upgrading existing data centers to liquid cooling or modular containment architectures can face space, compatibility, and downtime challenges.

·         Skill & maintenance gaps: Operating advanced cooling systems (especially liquid cooling) demands specialized expertise; lack of in-house skills can hinder adoption.

·         Energy / resource constraints & environmental regulations: Data centers increasingly face pressure to reduce water and energy usage especially in water-scarce regions which may constrain traditional cooling approaches.

Case in Point

A leading hyperscale cloud operator facing rising rack densities due to AI and HPC workloads recently replaced traditional air-cooling with a liquid immersion-based cooling system, complemented by AI-enabled thermal management. The result: 40% reduction in cooling energy consumption, 30% lower PUE (Power Usage Effectiveness), and a 25% drop in overall operating costs within 12 months of deployment.

This demonstrates how advanced cooling can translate into tangible operational and sustainability gains especially in high-density, large-scale environments.

Why This Matters to Data Center Investors & Operators?

With the data center ecosystem rapidly scaling to meet surging demand from cloud, edge, AI, 5G, and big data applications — cooling is no longer a “supporting utility,” but a strategic enabler. Investing in the right cooling technologies can unlock improved performance, cost-efficiency, sustainability, and long-term scalability.

Companies that adopt cutting-edge cooling including liquid cooling, immersion systems, modular and service-based cooling, and AI-driven cooling management are better positioned to stay ahead in a hyper-competitive, resource-constrained landscape.

About Introspective Market Research

Introspective Market Research is a global market-intelligence provider delivering deep, data-driven reports, forecasts, and strategic insights across technology, infrastructure, healthcare, and sustainability sectors. Our mission is to empower stakeholders with actionable intelligence for confident, future-ready decisions.

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