Persistence Market Research says the global data center cooling market is expected to grow from US$13.6 billion in 2026 to US$46.3 billion by 2033, at a CAGR of 19.2%. The firm links the growth to expanding AI workloads, high-performance computing and hyperscale cloud infrastructure, as higher rack densities increase demand for advanced cooling systems.
According to the update, rack power densities are reaching 50–100 kW (approx. 170,600–341,200 BTU/h), exceeding the capabilities of traditional air-cooling systems. The report says this is driving adoption of direct-to-chip liquid cooling, immersion cooling, hybrid systems and AI-enabled thermal management. GPU-based AI servers can generate over 1,200 W per accelerator (approx. 4,094 BTU/h), requiring efficient heat dissipation.
Air cooling remains the leading technology segment with more than 53% share, supported by cost efficiency, ease of deployment and compatibility with legacy infrastructure. Liquid cooling is described as the fastest-growing segment, driven by AI, machine learning and HPC environments. Persistence Market Research projects the global data center liquid cooling market to rise from US$5.7 billion in 2026 to US$29.2 billion by 2033, with a CAGR of 26.4%.
The report says North America accounts for more than 36% of the data center cooling market in 2026, while Asia Pacific is projected to grow at a CAGR of 24.6% through 2033. It also cites Europe’s sustainability regulations and the use of free cooling and heat reuse systems in Germany, the UK and Scandinavia.
Persistence Market Research also highlighted a 2025 collaboration between Schneider Electric and NVIDIA to support AI factories at scale. The partnership focuses on ready-to-deploy data center solutions, including reference designs and infrastructure for high-performance AI workloads, integrating power, cooling and control systems.
