The global data center cooling market size was valued at USD 26.31 billion in 2025 and is projected to reach USD 128.31 billion by 2033, registering a compound annual growth rate (CAGR) of 22.3% from 2026 to 2033. This growth is primarily driven by the rapid expansion of hyperscale and colocation data centers across the globe.

Key Market Trends & Insights:

• Asia Pacific data center cooling dominated the global market in 2025, capturing the largest revenue share of 36.9%. The region's rapid digital transformation, large-scale data center development, and favorable government policies contribute to this leadership.
• The U.S. data center cooling industry is expected to see significant growth over the forecast period due to increased investment in hyperscale and colocation facilities, especially in regions with dense tech infrastructure.
• The solution component segment led the market with a 74.7% revenue share in 2025, reflecting the preference for comprehensive cooling solutions that integrate hardware, software, and monitoring systems for optimized thermal management.
• In terms of containment, raised floor without containment dominated in 2025, highlighting its continued use for flexibility in airflow management and cost efficiency in conventional data center layouts.
• The telecom application segment is expected to expand substantially due to the rising demand for mobile and fixed-line networks, 5G rollout, and increasing data traffic that requires efficient cooling for telecom data centers.

Market Size & Forecast:

• 2025 Market Size: USD 26.31 Billion
• 2033 Projected Market Size: USD 128.31 Billion
• CAGR (2026–2033): 22.3%
• Asia Pacific: Largest market in 2025

Cloud service providers, social media platforms, and other digital service enterprises continue to invest heavily in large-scale data center infrastructure to meet increasing data traffic and storage demands. These facilities operate at high utilization levels, necessitating advanced and reliable cooling systems to maintain uptime, improve energy efficiency, and comply with strict service-level agreements.

The adoption of high-density computing workloads such as artificial intelligence (AI), machine learning (ML), high-performance computing (HPC), and advanced analytics is contributing significantly to the market expansion. These applications generate higher heat loads compared to traditional IT workloads, often exceeding the capacity of conventional air-based systems. As a result, operators are increasingly implementing advanced cooling technologies, including liquid cooling, direct-to-chip cooling, rear-door heat exchangers, and immersion cooling systems, to maintain thermal stability and manage higher rack densities.

Data centers comprise networked computing and storage equipment that organize, store, process, and disseminate data critical to business operations. The growth of smart devices and improved network connectivity have resulted in a substantial increase in the volume of data generated daily. The global installed base of connected IoT devices continues to expand steadily despite macroeconomic challenges. Total active IoT connections reached approximately 18.5 billion in 2024, a year-over-year increase of around 12% compared to 2023. Based on trends observed in early 2025, the number of connected devices is projected to rise by roughly 14%, reaching an estimated 21.1 billion by the end of 2025.

Energy efficiency and sustainability regulations are also major growth drivers. Data centers are among the most energy-intensive facilities, with cooling systems accounting for a significant portion of power consumption. Operators face increasing pressure from regulators, investors, and customers to reduce carbon emissions, improve power usage effectiveness (PUE), and meet environmental, social, and governance (ESG) targets. This has accelerated the adoption of energy-efficient cooling solutions, including free cooling, evaporative cooling, adiabatic systems, and AI-driven thermal management software, which optimize performance while reducing operating costs.

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Key Data Center Cooling Company Insights:

Industry leaders such as Vertiv Group Corp., Schneider Electric, STULZ GmbH, and Rittal GmBH & Co. KG are focusing on strategic initiatives, including new product development, partnerships, collaborations, and acquisitions. Notable examples include:

• In December 2025, ABB partnered with OctaiPipe to accelerate AI-optimized cooling adoption, potentially reducing cooling energy consumption by up to 30% while ensuring regulatory compliance and operational efficiency.
• Vertiv Group Corp. completed the acquisition of PurgeRite Intermediate LLC in December 2025, enhancing its thermal management services portfolio and leadership in advanced liquid cooling solutions.
• Schneider Electric expanded its EcoStruxure Data Center Solutions portfolio in November 2025 with prefabricated modular pods, liquid cooling capabilities, and high-density racks to meet the rising demands of AI and HPC workloads.

Leading companies in the data center cooling market include: ABB, Air Enterprises, Asetek, Inc., Climaveneta Climate Technologies PVT. LTD., Coolcentric, Dell Inc., Fujitsu, Hitachi Ltd., Johnson Controls, Mitsubishi Electric Corporation, Nortek Air Solutions, LLC, NTT Ltd., Rittal GmBH & Co. KG, Schneider Electric, STULZ GMBH, and Vertiv Group Corp.

In conclusion, the global data center cooling market is poised for robust growth driven by rising demand for high-density computing, expansion of hyperscale and colocation facilities, sustainability mandates, and adoption of advanced cooling technologies. Companies that innovate in energy-efficient solutions and address AI and HPC thermal requirements are expected to maintain a competitive edge throughout the forecast period.