Data Center Cooling Market Report 2026

Data Center Cooling Market Overview

• Data Center Cooling market size has reached to $19.5 billion in 2025 • Expected to grow to $42.81 billion in 2030 at a compound annual growth rate (CAGR) of 17% • Growth Driver: Forecasting Data Center Cooling Needs In Response To Climate Change • Market Trend: Innovative Data Center Immersion Cooling Fluids For Enhanced Efficiency And Reduced Total Cost Of Ownership • Asia-Pacific was the largest region in 2025 and North America is the fastest growing region.

What Is Covered Under Data Center Cooling Market?

The data center cooling refers to a method of separating hot and cold air in data centers. In a data center, too much hot air can cause equipment to overheat and malfunction. A facility that can do this consistently, affordably, and with consistent monitoring is on the right track to improved cooling efficiency. Data center cooling efficiency is to reduce the amount of air that needs to be cooled by using directed cooling. Directed data center cooling necessitates that each rack or cabinet in the facility is confined within its system. The main types of data center cooling are large data centers, enterprise data centers, and mid-sized data centers. A large data center is a large-scale activity that consumes the same amount of power as a small town. The cooling technology used in data center cooling is rack/row-based and room-based that has solution and service components used in banking, financial services and insurance (BFSI), information technology (IT) and telecom, research and academic, government and defense, retail, energy, manufacturing, healthcare, and other industries.

What Is The Data Center Cooling Market Growth Forecast?

The data center cooling market size is expected to see rapid growth in the next few years. It will grow to $42.81 billion in 2030 at a compound annual growth rate (CAGR) of 17.0%. The growth in the forecast period can be attributed to increasing deployment of AI-driven data centers, rising focus on carbon-neutral data center operations, expansion of edge data centers, growing investments in advanced cooling technologies, increasing regulatory pressure on energy efficiency. Major trends in the forecast period include adoption of liquid and immersion cooling technologies, expansion of directed and containment cooling systems, integration of real-time thermal monitoring, increased focus on energy-efficient cooling designs, growth of modular cooling infrastructure.

Tariff Impact On Data Center Cooling Market

Tariffs are affecting the data center cooling market by raising the cost of imported cooling units, precision HVAC components, control electronics, sensors, and power management systems. Large data center operators in North America and Europe are most impacted due to dependence on globally sourced cooling technologies, while Asia-Pacific faces higher infrastructure deployment costs. These tariffs are increasing total cost of ownership and extending project timelines for new facilities. At the same time, they are accelerating local manufacturing of cooling solutions, regional sourcing strategies, and innovation in energy-efficient and software-driven cooling architectures.

Global Data Center Cooling Market Segmentation

1) By Data Centre Type: Large Data Centers, Enterprise Data Centers, Mid-Sized Data Centers 2) By Cooling Technology: Rack Or Row-Based, Room-Based 3) By Component: Solution, Service 4) By Industry: Banking, Financial Services And Insurance (BFSI), Information Technology (IT) And Telecom, Research And Academic, Government And Defense, Retail, Energy, Manufacturing, Healthcare, Other Industries Subsegments: 1) By Large Data Centers: Hyperscale Data Centers, Cloud Data Centers, Co-Location Data Centers 2) By Enterprise Data Centers: Private Enterprise Data Centers, In-House Data Centers 3) By Mid-Sized Data Centers: Edge Data Centers, Regional Data Centers

What Is The Driver Of The Data Center Cooling Market?

Rising global temperatures are expected to be a key driver of the growth of the data center cooling market in the forecast period. Rising global temperatures are driven by factors such as increased greenhouse gas emissions from human activities, deforestation, industrial processes, and the burning of fossil fuels, which enhance the greenhouse effect and trap heat in the Earth's atmosphere. Data center cooling systems are increasingly essential in combating rising global temperatures, as they help maintain optimal operating conditions for servers and prevent overheating in facilities that require high energy consumption. For instance, in January 2025, according to the World Meteorological Organization (WMO), a Switzerland-based organization, reported that the WMO has declared 2024 the hottest year ever recorded, with temperatures averaging about 1.55°C above pre-industrial levels. Therefore, rising global temperatures will drive demand for data center cooling going forward.

What Is The Driver Of The Data Center Cooling Market?

Rising global temperatures are expected to be a key driver of the growth of the data center cooling market in the forecast period. Rising global temperatures are driven by factors such as increased greenhouse gas emissions from human activities, deforestation, industrial processes, and the burning of fossil fuels, which enhance the greenhouse effect and trap heat in the Earth's atmosphere. Data center cooling systems are increasingly essential in combating rising global temperatures, as they help maintain optimal operating conditions for servers and prevent overheating in facilities that require high energy consumption. For instance, in January 2025, according to the World Meteorological Organization (WMO), a Switzerland-based organization, reported that the WMO has declared 2024 the hottest year ever recorded, with temperatures averaging about 1.55°C above pre-industrial levels. Therefore, rising global temperatures will drive demand for data center cooling going forward.

Global Data Center Cooling Market Trends and Insights

Major companies operating in the data center cooling market are launching new products such as immersion cooling fluids to increase their profitability in the market. Immersion cooling fluids, also known as coolants or dielectric fluids, in data center cooling refer to specialized liquids used in immersion cooling systems to absorb and dissipate heat generated by electronic components, such as servers and other IT hardware. For instance, in October 2023, ExxonMobil Corporation, a US-based natural gas company launched data center immersion cooling fluids. ExxonMobil's data center cooling fluids, designed for energy efficiency and performance, offer a diverse portfolio of synthetic and non-synthetic options with varying thermal capacities. Tailored to lower viscosity for efficient heat removal, these fluids ensure compatibility with diverse materials, supporting long equipment life. The immersion cooling fluids is essential for liquid cooling in data centers, aims to enhance energy efficiency, reduce water consumption, and increase rack density, contributing to a claimed up to 40% reduction in the total cost of ownership for IT equipment.

What Are Latest Mergers And Acquisitions In The Data Center Cooling Market?

In December 2023, Vertiv, a US-based company that focuses on critical infrastructure for data centers and communication networks, acquired CoolTera Ltd. for an undisclosed amount. Through this acquisition, Vertiv aims to enhance its expertise in high-density cooling solutions by integrating CoolTera's advanced liquid cooling technology and infrastructure into its existing thermal management portfolio. is a Canada-based company that specializes in mission-critical custom air handlers and modular data center design, engineering, and manufacture. CoolTera Ltd. is an Israel-based company specializing in advanced cooling solutions for data centers and IT environments.

Regional Outlook

Asia-Pacific was the largest region in the data center cooling market in 2025. North America was the second-largest market in the data center cooling market share. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Defines the Data Center Cooling Market?

The data center cooling market includes revenues earned by entities by providing computer room air handler (CRAH), computer room air conditioner (CRAC), calibrated vector unit, cold aisle and hot aisle design. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Data Center Cooling Market Report 2026?

The data center cooling market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the data center cooling industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.