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Data Center Cooling Market Size

Report ID: GMI423
Published Date: Apr 2024
Report Format: PDF

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Data Center Cooling Market Size

Data Center Cooling market was valued at USD 15.9 billion in 2023 and is estimated to register a CAGR of over 13.5% between 2024 & 2032, driven by the rise of cloud computing services and ongoing innovations in cooling technologies. Cloud computing's growth increases demand for efficient cooling in large-scale data centers.

Data Center Cooling market

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Additionally, advancements such as liquid cooling and AI-driven optimization address the need for more effective and sustainable cooling solutions. These trends align with the market's evolution, contributing to the increasing size and demand for data center cooling solutions. To illustrate, in October 2023, ThermalWorks introduced an innovative waterless cooling system for the evolving data center industry. This ultra-efficient, modular design aims to transform traditional data center operations by reducing energy consumption and eliminating water use in cooling processes.

Data Center Cooling Market Report Attributes
Report Attribute	Details
Base Year:	2023
Data Center Cooling Market Size in 2023:	USD 15.9 Billion
Forecast Period:	2024 - 2032
Forecast Period 2024 - 2032 CAGR:	13.5%
2032 Value Projection:	USD 51.7 Billion
Historical Data for:	2021-2023
No. of Pages:	270
Tables, Charts & Figures:	320
Segments covered:	Component, Cooling Technique, Data Center Size, End Use
Growth Drivers:	Demand for innovative technologies across various industries Increase in the demand for energy-efficient and cost-effective data centers in North America Increasing establishment of hyperscale data centers in Europe Growing trend for high-performance computing across Europe and Asia Pacific Rising construction of green data centers in Asia Pacific Growing investments in the IT & telecom sector in South America and the MEA
Pitfalls & Challenges:	Underestimating or overestimating cooling requirements Need for specialized infrastructure Phantom leakage

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The rise in High-Performance Computing (HPC) applications, such as AI and machine learning, is fueling the demand for efficient cooling solutions in data centers. Liquid cooling technology, with its ability to manage the heat generated by intensive workloads efficiently, is becoming increasingly popular. As data centers strive for higher computing power and performance, the convergence of HPC growth and liquid cooling innovation drives the data center cooling industry growth. For instance, in December 2023, Sunon introduced a line of liquid cooling solutions for high-capacity data center GPU and CPU computing, specifically designed for edge, AI, and cloud servers to enhance performance and efficiency.

Though the data center cooling market shows promising growth, it faces challenges such as higher operational costs and environmental concerns. By developing energy-efficient cooling solutions, operators can reduce expenses and contribute to sustainability goals. This shift towards eco-friendly practices aligns with market demands for greener technologies. By embracing these challenges as avenues for innovation, the industry can create a more efficient and environmentally conscious future for data centers.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

Data center cooling industry size was USD 15.9 billion in 2023 and is expected to register over 13.5% CAGR from 2024-2032 owing to the rise of cloud computing services and ongoing innovations in cooling technologies worldwide.

The solutions segment recorded USD 10.6 billion in 2023 and is expected to register an appreciable CAGR from 2024-2032 due to its comprehensive approach, and offering a range of technologies like air conditioning, liquid cooling, and containment systems.

North America data center cooling industry held over 35% share in 2023 and is expected to register a commendable CAGR from 2024-2032 due to presence of a robust infrastructure and early adoption of advanced technologies in the region.

ABB Group, EVAPCO Inc., GEA Group Aktiengesellschaft, Hamon Group, Johnson Controls Inc., Nortek Air Solutions, LLC, Rittal GmbH & Co., KgSchneider Electric SE, Stulz GmbH, and Vertiv Co., are some of the major data center cooling companies worldwide.