Data Center Chillers Market - By Product (Air-Cooled Chillers, Water-Cooled Chillers, Glycol-Cooled Chillers), By Technology, By Power (Electric-Powered, Thermal-Powered, Hybrid), By Data Center Size & Forecast, 2024 – 2032

Data Center Chillers Market Size

Data Center Chillers Market was valued at USD 1.4 billion in 2023 and is estimated to register a CAGR of over 9% between 2024 and 2032. The increasing demand for data centers due to the rise of IoT and big data technologies has intensified the need for advanced cooling solutions.
 

As data centers expand to accommodate the growing volumes of data, effective cooling becomes crucial to prevent overheating and ensure operational efficiency. Modern data centers require high-performance cooling systems to manage the substantial heat generated by densely packed servers and high-performance computing equipment. To meet the growing demand for data center chillers industry players are focusing on business expansion. For instance, in March 2024, Schneider Electric opened a new cooling factory in India, with a USD 12 million investment. This facility focuses on producing advanced cooling solutions, including high-efficiency chillers, to support data center needs. The factory aims to enhance data center infrastructure through innovative chillers and air handling units.
 

Additionally, energy efficiency regulations are increasingly shaping the data center industry, driving the adoption of advanced cooling technologies. Regulatory frameworks and standards aimed at reducing energy consumption and minimizing environmental impact are becoming more stringent. These regulations mandate that data centers implement energy-efficient practices and technologies to lower their Power Usage Effectiveness (PUE) and overall energy footprint. For instance, in December 2023, the National Renewable Energy Laboratory (NREL) joined an initiative led by the U.S. Department of Energy's Advanced Research Projects Agency-Energy initiative aimed at improving data center cooling efficiency. The COOLERCHIPS program focuses on developing advanced cooling technologies to reduce energy consumption and carbon emissions.
 

Despite the advancements in data center chiller technologies, there are notable challenges that affect their adoption and implementation. One significant issue is the high initial costs associated with state-of-the-art chiller systems. The substantial investment required for advanced cooling solutions can be a barrier for many organizations, particularly those operating on tighter budgets or in economically constrained environments.
 

Furthermore, the complexity of installation and maintenance for these sophisticated chiller systems presents considerable challenges. The intricate nature of modern cooling solutions demands specialized expertise for proper installation and ongoing maintenance. Additionally, maintaining high-efficiency performance over time requires rigorous adherence to maintenance protocols, which can be resource-intensive and require advanced technical skills.
 

Data Center Chillers Market Trends

A key trend in the data center chillers industry is the growth of hyperscale data centers, driving the demand for high-capacity, efficient cooling solutions. These expansive facilities, operated by major tech companies and cloud service providers, require robust chiller systems capable of managing substantial heat loads generated by their high-density computing environments. For instance, the latest advancements in chiller technology include modular systems that can be expanded as needed, providing the flexibility to meet the growing demands of hyperscale data centers. For instance, in January 2024, Danfoss announced a partnership with Google to enhance the sustainability and efficiency of Google’s hyperscale data centers by providing advanced cooling and heat reuse systems. Danfoss will deploy its oil-free Turbocor compressors, suitable for various cooling applications, and design heat reuse solutions to supply renewable energy for on-site and nearby community heating.
 

Another significant trend is the increasing adoption of green technologies across the world. Companies are prioritizing sustainability by shifting toward eco-friendly chillers that use natural refrigerants, such as ammonia, carbon dioxide, and hydrocarbons, which have lower global warming potential compared to traditional refrigerants. This shift is driven by both regulatory requirements and a commitment to reducing carbon footprints. For instance, recent developments include the implementation of advanced heat recovery systems and chillers designed to meet green building standards, such as LEED.
 

Data Center Chillers Market Analysis

Based on product, the market is segmented into air-cooled chillers, water-cooled chillers, and glycol-cooled chillers. The water-cooled chillers segment holds around USD 600 million market revenue in 2023. These chillers lead the market primarily due to their superior efficiency and performance in large-scale cooling applications. Positioned as a key solution in managing high heat loads in data centers and industrial processes, water-cooled chillers offer enhanced cooling capacity and energy efficiency compared to other types. Their ability to provide consistent and reliable cooling makes them essential for handling the significant heat output of extensive equipment and server arrays. This efficiency aligns with the growing demand for effective cooling solutions in large data centers and commercial applications, reinforcing the dominance of water-cooled chillers in the market.
 

Based on data center size, the data center chillers market is categorized into small data center, medium data center, large data center, and hyperscale data center. The large data center segment led the market with around USD 450 million market revenue in 2023. The market growth is driven by the substantial demand for robust cooling solutions driven by the growing data needs of enterprises. Large data centers require high-capacity cooling systems to manage the significant heat loads generated by extensive server arrays. This need for efficient and scalable cooling solutions is a key factor behind the dominance of these data centers.
 

Additionally, as businesses increasingly prioritize data processing and storage efficiency, large data centers become pivotal in meeting these demands, further strengthening their leading position in the market. For instance, in May 2024, LG Electronics announced to supply a cooling system to a large-scale U.S. data center currently under construction. This contract includes more than 100 chillers with a total capacity of up to 50,000 tons of refrigeration. LG’s entry into the U.S. data center market coincides with the surge in demand driven by AI advancements, emphasizing the need for high-performance cooling systems.
 

North America dominated the global market with a major share of around 35% in 2023. The data center chillers market growth is driven by well-established technology infrastructure and significant investments in data center expansions in the region. Countries such as U.S. dominance is driven by its early adoption of advanced cooling technologies and a high concentration of hyperscale data centers requiring robust and efficient chiller systems. Additionally, key players focus on market expansion and a favorable regulatory environment for technology advancements further bolster the region’s position.

For instance, in November 2023, Microsoft announced a USD 500 million investment to expand its hyperscale cloud computing and AI infrastructure in Quebec. This expansion increases Microsoft's local cloud infrastructure footprint by 750% across Canada over the next two years and boosts Quebec’s computing capacity by 240% over the next three years. This investment in data centers is further expected to support the demand for chillers in the country.
 

Moreover, Asia is rapidly growing in the data center chiller market due to the booming digital infrastructure and increasing data demands in countries such as China and India. The expansion of hyperscale and colocation data centers, coupled with regional investments in advanced cooling solutions, drives market growth. Additionally, Europe data center chiller market is driven by its commitment to sustainability and energy efficiency. Strict environmental regulations and a focus on green technologies fuel the demand for eco-friendly chillers across major data center hubs.
 

Data Center Chillers Market Share

Schneider and Vertiv dominate the market with around 10% market share in 2023. Schneider Electric focuses on offering a wide range of cooling solutions, including data center chillers, in its EcoStruxure™ platform. The company integrates its cooling systems with its broader suite of data center infrastructure management solutions, including power management, IT management, and environmental monitoring. Schneider further invests significantly in research and development to advance its cooling technologies. The company continually innovates to improve chiller performance, efficiency, and adaptability to changing data center needs.

Vertiv focuses on providing modular and scalable cooling solutions that can adapt to the dynamic needs of modern data centers. Their modular chiller systems are designed for flexibility and scalability, allowing data centers to expand or reconfigure their cooling infrastructure as needed. Vertiv emphasizes the reliability and efficiency of its cooling systems, incorporating features such as advanced control systems and high-performance components. The company focuses on ensuring that its chillers deliver consistent cooling performance and minimize downtime.
 

Data Center Chillers Market Companies

Major players operating in the market are:

• Airedale
• Carrier Global
• Daikin
• Johnson Controls
• Mitsubishi
• Rittal
• Schneider
• Stulz GmbH
• Trane
• Vertiv
   

Data Center Chillers Industry News

• In July 2024, Munters announced the acquisition of Geoclima, an Italian chiller manufacturer, enhancing its data center cooling solutions. Geoclima, known for its advanced cooling technologies, will integrate into Munters' Data Center Technologies portfolio, strengthening its global cooling solutions.
   
• In October 2023, ThermalWorks, a subsidiary of Endeavour Energy, launched its cutting-edge, waterless cooling system designed to revolutionize data center operations. This modular system dramatically reduces energy consumption and eliminates the need for water in cooling, addressing the dual challenges of high-density computing and water scarcity.
   

The data center chillers market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) and shipment (Units) from 2021 to 2032, for the following segments:

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Market, By Product

• Air-cooled chillers
• Water-cooled chillers
• Glycol-cooled chillers

Market, By Technology

• Scroll chillers
• Screw chillers
• Centrifugal chillers
• Absorption chillers
• Magnetic bearing chillers

Market, By Power

• Electric-powered
• Thermal-powered (absorption)
• Hybrid

Market, By Data Center Size

• Small data center
  • By product
    • Air-cooled chillers
    • Water-cooled chillers
    • Glycol-cooled chillers
  • By technology
    • Scroll chillers
    • Screw chillers
    • Centrifugal chillers
    • Absorption chillers
    • Magnetic bearing chillers
  • By Power
    • Electric-powered
    • Thermal-powered (absorption)
    • Hybrid
• Medium data center
  • By Product
    • Air-cooled chillers
    • Water-cooled chillers
    • Glycol-cooled chillers
  • By technology
    • Scroll chillers
    • Screw chillers
    • Centrifugal chillers
    • Absorption chillers
    • Magnetic bearing chillers
  • By power
    • Electric-powered
    • Thermal-powered (absorption)
    • Hybrid
• Large data center
  • By product
    • Air-cooled chillers
    • Water-cooled chillers
    • Glycol-cooled chillers
  • By technology
    • Scroll chillers
    • Screw chillers
    • Centrifugal chillers
    • Absorption chillers
    • Magnetic bearing chillers
  • By power
    • Electric-powered
    • Thermal-powered (absorption)
    • Hybrid
• Hyperscale data center
  • By product
    • Air-cooled chillers
    • Water-cooled chillers
    • Glycol-cooled chillers
  • By technology
    • Scroll chillers
    • Screw chillers
    • Centrifugal chillers
    • Absorption chillers
    • Magnetic bearing chillers
  • By power
    • Electric-powered
    • Thermal-powered (absorption)
    • Hybrid

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • Saudi Arabia
  • UAE
  • South Africa
  • Rest of MEA