Data Center Chillers Market Size & Share 2026-2035

Data Center Chillers Market Size

The global data center chillers market was valued at USD 2.6 billion in 2025. The market is expected to grow from USD 2.8 billion in 2026 to USD 6.4 billion in 2035 at a CAGR of 9.6%, according to latest report published by Global Market Insights Inc.

The world is shifting to its digital era with digital infrastructures, increasing the need for data center cooling solutions to cater to the heavy computing loads in hyperscale, colocation, and enterprise data centers. Cooling needs grow directly with IT loads, and according to engineering standards, each megawatt of power consumed by data centers demands about 285 tons of cooling, equivalent to a commercial building spanning 115,000 square feet. An investment of about USD 225,000-250,000 is needed for installing a 285 ton chiller unit.

The increased density of rack powers, particularly AI and GPUs, is having an enormous effect on the way that chillers must be designed. According to several studies on energy and data center guidelines, it is necessary that a higher-density environment require more precise cooling. In March 2026, the Heating & Ventilation A/C company, owned by Panasonic Corporation, started accepting orders for coolant distribution units (400 kW and 800 kW) as well as free-cooling chillers (1,200 kW) from Europe. Following the data center need and targeting the emerging demand, Panasonic has stepped up with this strategy.

According to the International Energy Agency, energy efficiency still forms an integral part of their operations as data centers have some of the most extensive energy-consuming cooling systems. Many are implementing state-of-the-art chillers with built-in free-cooling capabilities and variable-speed control to improve efficiency. In 2025, Schneider Electric inked a deal worth USD 1.9 billion for its supply capacity and released Uniflair chillers that use oil-free centrifugal compressors.

In addition, technology in chiller innovations is working to overcome the limitations of space and operation in contemporary buildings. Data centers that occupy a large number of floors and high density need to be equipped with efficient and compact systems. The YORK YDAM air-cooled magnetic bearing centrifugal chiller was released by Johnson Controls in February 2026, which can provide robust cooling capabilities in space-limited settings without using water.

Geographically, the need for data center chillers is dictated by the uneven nature of the digital infrastructure. At present, the US has over 5,400 data centers and India has over 153 data centers, showing the enormous potential in developing economies. As per PIB India press release, India is expected to have a total capacity of 8 GW of data centers by 2030 from 1.4 GW in Q2 of 2025. While India produces almost 20% of all data in the world, it houses merely 3% of the total number of data centers globally, which are 150 out of 11,000. Hence, resolving issues such as energy deficiencies would be crucial for India’s establishment as an international AI data center hub.

Data Center Chillers Market Trends

Availability of water has now turned out to be a key consideration in the installation of chillers in data centers, especially those located in areas which face water stress. Environmental studies carried out by the European Environment Agency show that there is increased monitoring of water consumption in industries located in areas where there is a threat of drought, and this consideration plays a key role in the location of data centers. Water chillers are used less often in areas which experience water stress, and air chillers are preferred.

The increasing use of artificial intelligence (AI) and generative AI has generated thermal stresses for data centers. This has been attributed to the significant rack density created by such loads, compelling companies to develop cooling systems. The development of more efficient cooling equipment for data center air conditioning includes chillers with greater cooling capability and liquid cooling capacity.

Government policies have been instrumental in developing data center infrastructure, and thus, there has been an indirect increase in demand for new-age chiller technology. The digitalization trend, cloud technology adoption, and data localization have spurred investments. In this regard, the Indian government’s policy on data centers provides certain incentives, such as infrastructure status and financial incentives, to encourage investments.

Overall, data centers directly influence the demand for chillers. As recent years have been observed, data centers have attracted a significant portion of foreign investment. As per UNCTAD, data centers made up over one-fifth of all greenfield investments across the world in 2025, with total investments exceeding USD 270 billion. The surge in AI computing requirements and other data-driven digital applications has fuelled global competition for attracting these facilities.

Data Center Chillers Market Analysis

Based on product, the market is divided into air-cooled chillers, water-cooled chillers and glycol-cooled chillers. The water-cooled chillers segment dominated the market with market share of around 61.8% and generating revenue of around USD 1.6 billion in 2025.

• The data center chillers market by product type is led by water‑cooled systems, expanding at 10% CAGR between 2026 and 2035 as hyperscale campuses and large colo sites prioritize best‑available efficiency at multi‑MW scale. The primary reason behind this trend is the higher heat transfer efficiency, energy-saving potential, and scalability offered by water-cooled chillers over other types.
• On the other hand, air‑cooled units hold 32.9% share in 2025 and grow on the back of rapid deployments, simpler installs, and advantages in water‑constrained geographies. Glycol‑cooled systems serve temperature‑critical or freeze‑exposed applications. Regulatory pull strengthens the water‑cooled case in the EU as PUE and ERF targets tighten, while Western U.S. and northern China tilt toward air‑cooled to conserve water.
• AI blocks that accept 60–65°F liquid supply typically pair with warm‑water loops and chiller plants optimized for part‑load efficiency, where magnetic‑bearing compressors cut power draw markedly at the loads that matter most. Meanwhile, standard enterprise and many colo halls keep air‑distribution with CRAC/CRAH units tied to central plants, pushing air‑cooled adoption where speed‑to‑capacity and water policy outweigh marginal kWh savings.

Based on data center size, the data center chillers market is divided into small-scale data centers, medium data centers and large data centers. The large data centers segment accounts for 60% in 2025, valued around USD 1.6 billion.

• The prevalence of large data centers within the market for data center chillers can be attributed mainly to the inherent design of hyperscale and colocation data centers, wherein the amount of cooling needed increases non-linearly based on the computing loads. The large-scale data centers have multimegawatt loads, and the amount of cooling per megawatt is estimated to be about 285 tons of refrigeration. This is why chiller units are essential for them, while small-scale data centers are less dependent on them.
• Greater thermal density and constant loads in large data centers demand larger industrial chillers to provide their cooling needs as opposed to small data centers where localized and less aggressive cooling solutions might be employed. Economies of scale dictate that larger data centers benefit more from the installation of chillers due to lower unit cost for each unit of cooling provided. Installation of more sophisticated cooling technologies like free-cooling is easier to achieve in large data centers because of the greater resources available.
• On top of that, the medium category is gaining traction and is expected to grow at a CAGR of 10.3% during the period from 2026 to 2035. Such an increase is attributed to enterprise digitalization and data regionalization needs, resulting in distributed deployment of infrastructures. Medium-scale data centers are implementing a modular cooling system that can provide better efficiency and scalability.

Based on technology, the market is divided into scroll chillers, screw chillers, centrifugal chillers, absorption chillers and magnetic bearing chillers. The screw chillers segment is dominant with a market share of around 48.2% in 2025.

• Screw chillers remain the workhorse in the data center chillers market with the largest 2025 share, priced for reliability and cost across 50–1,500 ton ranges. Centrifugal platforms gain where capacities exceed ~500 tons and premium efficiency is priced in.
• Magnetic‑bearing centrifugal units are the fast‑riser, supported by DOE‑validated ~49% compressor power savings and superior part‑load curves that align with economizer‑heavy duty cycles. Procurement teams increasingly specify oil‑free options for large halls and AI zones, while screw systems anchor medium‑scale deployments and edge builds.
• Oil‑free centrifugal prices carry a premium but close the gap via energy and maintenance savings in 24/7 plants; software and remote diagnostics tip lifecycle value toward vendors with robust controls. In parallel, refrigerant transitions to low‑GWP blends are now embedded in shortlists, and water‑free rejection options (dry/adiabatic) rise where WUE drives siting decisions. Expect magnetic‑bearing and integrated‑economizer packages to keep gaining share in greenfield hyperscale while mixed fleets persist in retrofit markets.

Based on data center, the data center chillers market is divided into hyperscale data centers, colocation data centers, enterprise data centers and edge data centers. The hyperscale data centers segment is expected to grow at the fastest CAGR of around 10.8% between 2026 and 2035.

• The dominant position and fastest growth rate for hyperscale data centers within the market for data center chillers is the result of advanced technologies adoption across the world that directly poses pressure and load on hyperscale data centers, which necessitates complex and powerful cooling equipment. Hyperscalers are facilities run by leading cloud service and digital platform companies that enable massive computing capabilities, such as AI, cloud computing, and big data analytics.
• The data centers operate on a multi-megawatt scale, where there is an exponential rise in cooling requirements, thus making powerful chillers an essential component of their infrastructure. Consequently, the hyperscale segment is anticipated to record the highest CAGR from 2026 to 2035.
• For instance, in September 2025, Vantage Data Centers, a leading global provider of hyperscale data centers, announced its second London data center campus (LHR2). The 194,000-square-foot (18,000 square meters) facility will deliver 20MW of IT capacity, representing a £250 million investment into the local economy. Overall, lots of instances like this were observed that concentrate on hyperscale data center expansion.

The U.S. data center chillers market reached USD 1.2 billion in 2025 and growing at a CAGR of 9.3% between 2026-2035.

• The country offers one of the most advanced and infrastructure-based market for chillers on account of the growth in hyperscale capacity as well as AI-based computing needs. According to the U.S. Department of Energy as well as related research organizations, data centers can end up using about 9% of total electricity consumption in the United States by 2030. The use of AI technology is expected to accelerate servers' energy consumption levels, thus promoting the use of chiller technology.
• Also, the rise in energy and cooling needs because of AI operations continuously supporting the chillers market in the country. According to the IEA, electricity usage by data centers is increasing sharply because of AI, with an increasing number of faster servers significantly responsible for the increase. This trend is driving adoption of new chillers with liquid cooling capabilities.

The North America region is valued at USD 1.3 billion in 2025. The market for data center chillers is expected to grow at the CAGR of 9.4% from 2026 to 2035.

• The North America region is witnessing massive investments as well. In November 2025, Anthropic made an announcement to make an investment worth USD 50 billion in the U.S. computing infrastructure with the help of Fluidstack to create data centers in Texas and New York with more locations to come soon. These data centers will be built specifically for increasing efficiency while working on AI research projects and will be based on the guidelines of the U.S. AI Action Plan.
• Such an orientation is being further amplified by the government’s assistance and the direction of its policies. The federal government’s initiatives stress the need for leadership in AI, development of digital infrastructure, and the robustness of the energy systems, which in turn encourages investments in energy-efficient data centers. Such an approach indirectly increases the demand for high-tech cooling solutions.

The Europe region holds 13% of the data center chillers market in 2025 and is expected to grow at a CAGR of 7.8% between 2026 and 2035.

• There has been an upsurge of policies driving AI and digital infrastructure development that affect the market for data center chillers in Europe. To this effect, there has been an introduction of the AI Continent Action Plan by the European Commission, based on the initiative of InvestAI, which aims to develop computing infrastructure in Europe. Among the initiatives are the building of 19 AI factories using the continent’s supercomputing capacity and five AI gigafactories, which will involve large amounts of computing power.
• In line with this, the suggested Cloud and AI Development Act seeks to expand at least three times the capacity of data centers in the EU within five to seven years from now, with sustainability being prioritized. This massive infrastructure development, which would mobilize up to Euro 20 billion under InvestAI, will lead to a huge increase in the need for efficient cooling equipment.

Germany's data center chillers market is growing quickly in Europe, with a CAGR of 7% between 2026 and 2035.

• The German chillers market in data centers is heavily impacted by the strategy adopted by the government to boost development in the digital and artificial intelligence (AI) space. The government has set targets to double data center capacity and fourfold AI processing capability in Germany by 2030. The growth in capacity would have implications on the requirements of high-efficiency and high-capacity chillers in order to support high-density processing.
• With the increase in computing power, the need for cooling becomes more and more unbalanced, thus necessitating more efficient chiller systems that maintain accurate temperatures. Furthermore, as Germany emphasizes digitalizing its industries, there will be an even greater need for such facilities, thus driving the adoption of chiller cooling infrastructure.
• For instance, Deutsche Telekom launched the new Industrial AI Cloud in April 2026. It took six months for the company to develop the AI factory, along with NVIDIA and Polarise, its data center partner. With this, Deutsche Telekom is able to offer firms, research facilities, and government agencies in Germany and across Europe powerful computing capabilities specifically for AI applications.
• The creation of the AI factory in the Tucherpark of Munich has resulted in a brand new AI hub in Germany. Several firms have started to use the AI computing capabilities. For instance, Agile Robots, a firm based in Munich, which combines AI with robotics, has brought its AI platform into the Industrial AI Cloud.

The Asia Pacific region is expected to grow at the fastest CAGR of 10.8% between 2026 and 2035 in the data center chillers market.

• There are significant developments in terms of digital infrastructure, cloud computing, and AI usage in key economies like China, India, Japan, and South-East Asia. As per the International Energy Agency, the region is an important player in the increase in global energy consumption, with increased digitization causing an uptick in electricity consumption.
• Support from policies has emerged as an essential factor in driving growth, especially for India. Through the Union Budget of India 2026-27, the Government of India provided a tax incentive scheme to enhance its status as a global leader in digital infrastructure. As part of the tax incentive scheme, foreign cloud service providers will be eligible for a tax holiday up to 2047 if they use India’s data centers for conducting their businesses.

China is estimated to grow with a CAGR of 10.5% in the projected period between 2026 and 2035, in the Asia Pacific data center chillers market.

• The growth of data centers in China is strongly associated with government-supported efforts to build out digital infrastructure and improve AI technology. MIIT has been aggressively pushing forward the development of "new infrastructure" such as hyperscale data centers as one of the main means of economic modernization. Such development leads to a growing demand for high-performance chillers to ensure stable temperatures inside multi-MW data centers.
• In addition, the national government has been stressing energy efficiency and green data center deployment, considering its 2060 commitment to carbon neutrality. Policy mandates the use of energy-efficient technology, such as efficient chillers, free cooling systems, and low GWP coolants. Such regulatory interventions, alongside increased demand for AI training and hyperscale computing, have facilitated the adoption of cutting-edge cooling systems in both east and west provinces.

Mexico is estimated to grow with a CAGR of 4.2% between 2026 and 2035, in the Latin America data center chillers market.

• More enterprises in the country are adopting cloud technologies, becoming digitized, and being closer to the United States’ hyperscale data centers. The CFE has pointed out that there is a requirement for stable energy supply and energy efficiency in the operation of data center infrastructure. Increasing demand from enterprises for colocation services and digital services in the region is encouraging the installation of mechanical cooling systems such as air and water-cooled chillers.
• Major factors include the trend towards near-shoring and data localization, with companies investing in the development of their own data centers within Mexico to minimize latency and increase reliability. Such developments have increased the demand for efficient cooling systems capable of supporting small-scale enterprise-level data centers, as well as large-scale or hyperscale data centers.

UAE to experience substantial growth in the Middle East and Africa data center chillers market in 2025.

• There is an increasing growth in the data center environment in the UAE because of the digital transformation driven by the UAE government, use of AI, and building of smart cities. Moit and Smart Dubai in Dubai have shown significant interest in digital infrastructure development, thus creating huge demand for chillers that can function efficiently in very high temperatures.
• As a part of the USD 15.2 billion investment of Microsoft in the UAE, Microsoft and G42 have announced an extension of the strategic partnership aimed at boosting the digital transformation in the country. Microsoft and G42 have decided to expand the total amount of their data center capabilities by adding 200 MW of additional capacity supplied by Khazna Data Centers, a company owned by G42. The extension of the capacity is expected to go live during 2026.
• Likewise, in January 2026, Zoho announced the opening of two data centers in Abu Dhabi and Dubai. By means of this measure, the company will be able to provide a number of cloud services of Zoho and ManageEngine in the UAE region.

Data Center Chillers Market Share

The top 7 companies in the data center chillers industry are Carrier Global, Daikin, Johnson Controls, Mitsubishi Electric, Schneider Electric, Trane Technologies and Vertiv contributing 82.6% of the market in 2025.

• Carrier Global designs air- and water-cooled chillers for data centers, offering high-capacity cooling, stable temperature control, and integration with building management systems.
• Daikin produces air- and water-cooled chillers for data centers, featuring inverter-driven compressors, advanced refrigerant technologies, and energy-efficient cooling for various conditions.
• Johnson Controls provides YORK-branded centrifugal and screw chillers for data centers, supporting large-scale cooling and integration with digital monitoring platforms.
• Mitsubishi Electric offers chiller and hydronic cooling systems for data centers, ensuring reliable heat rejection, precise control, and compatibility with different facility sizes.
• Schneider Electric delivers chillers as part of its thermal management portfolio, supporting efficient heat removal, scalable deployment, and integration with monitoring platforms.
• Trane Technologies develops air- and water-cooled chillers for data centers, focusing on high-efficiency centrifugal models that handle continuous thermal loads.
• Vertiv provides modular chiller-based cooling systems for data centers, supporting chilled water distribution and integration with precision cooling and digital controls.

Data Center Chillers Market Companies

Major players operating in the data center chillers industry are:

• Carrier Global
• Daikin
• Johnson Controls
• LG Electronics
• Mitsubishi Electric
• Rittal
• Schneider Electric
• STULZ
• Trane Technologies
• Vertiv

• Carrier Global uses its years of HVAC experience to provide energy-efficient chiller solutions. These solutions are supported by global service networks, lifecycle optimization, and building management systems.
• Daikin is a global HVAC leader offering advanced air- and water-cooled chillers. The company focuses on energy efficiency, refrigerant innovation, and scalable solutions for sustainable data center cooling worldwide.
• Johnson Controls provides data center cooling through YORK chillers and the OpenBlue platform. These solutions improve energy use, enable predictive maintenance, and manage infrastructure for critical facilities globally.
• Mitsubishi Electric offers reliable and energy-efficient chillers for critical data center operations. Their precision cooling systems are backed by strong engineering expertise and work in various environments worldwide.
• Schneider Electric combines power, cooling, and digital solutions to improve data center efficiency and sustainability. Their grid-to-chip approach includes advanced monitoring and control systems for better operations.
• Trane Technologies delivers sustainable chiller systems and invests in liquid and hybrid cooling technologies. Their solutions meet the growing density and thermal needs of modern data centers.
• Vertiv focuses on thermal management with integrated cooling, power, and service solutions. They specialize in AI-ready and liquid cooling systems and have strong global deployment capabilities.

Data Center Chillers Industry News

• In March 2026, Panasonic's Heating & Ventilation A/C Company started taking orders in Europe for two Coolant Distribution Units (CDUs) designed for generative AI data centers (400kW and 800kW). They also launched two free-cooling chillers (800kW and 1,200kW). Panasonic is also working on CDUs with capacities over 1,200kW and plans to start taking orders for them soon.

• In February 2026, Johnson Controls introduced the YORK YDAM air-cooled magnetic bearing centrifugal chiller. This chiller is designed to address space limitations in high-density, multistory data centers. Based on YORK's YVAM technology, the YDAM provides strong cooling performance in a compact design and does not use water.

• In January 2026, Airedale by Modine launched the TurboChill 3+MW, an upgraded version of its TurboChill chiller platform. This air-cooled chiller is designed to meet the cooling needs of modern GPU-powered data centers. It offers excellent heat rejection and an expanded range for free cooling.
• In November 2025, Schneider Electric signed a two-phase supply capacity agreement (SCA) worth USD 1.9 billion. This deal includes prefabricated power modules and introduces Uniflair chillers in North America. These chillers use oil-free, variable-speed centrifugal compressors and integrated free cooling to match cooling capacity with IT load, reducing overcooling and operating hours.
• In October 2025, OVHcloud announced a new cooling system for its data centers. The OVHcloud Smart Datacenter combines new designs with AI features to reduce power and water use. This system helps lower water consumption by up to 30% and cooling electricity use by up to 50%.

The data center chillers market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and volume (units) from 2022 to 2035, for the following segments:

Click here to Buy Section of this Report

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 Cooling Capacity

• 500 kW
• 500-1,000 kW
• 1,000-2,000 kW
• >2,000 kW 

Market, By Data Center

• Hyperscale data centers
• Colocation data centers
• Enterprise data centers
• Edge data centers

Market, By Data Center Size

• Small-scale data centers
• Medium data centers
• Large data centers

Market, By Deployment

• New Installations
• Replacements

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

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Sweden
  • Switzerland
  • Netherlands
  • Poland
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • New Zealand
  • Singapore
  • Indonesia
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Chile
• MEA
  • South Africa
  • Saudi Arabia
  • UAE