SkyQuest Technology Consulting projects that the global data center cooling market will grow at a compound annual growth rate (CAGR) of 16.21% between 2025 and 2032. According to its latest report, the market is expected to rise from USD 19.57 billion in 2024 to USD 64.38 billion by the end of the forecast period, driven by the increasing demand for efficient cooling technologies amid expanding AI, IoT, and cloud computing applications.
The rising focus on sustainability and energy efficiency is prompting operators to adopt advanced solutions that reduce energy consumption and minimize environmental impact. Technologies such as liquid cooling, immersion cooling, and AI-integrated systems are gaining traction due to their higher efficiency and real-time adaptive control capabilities.
Recent developments include Schneider Electric’s October 2024 acquisition of a controlling stake in Motivair Corporation, enhancing its offerings in liquid cooling for high-performance computing. In the same month, Vertiv introduced two high-capacity Coolant Distribution Units (CDUs) and announced a collaboration with Compass Datacenters to develop a hybrid liquid and air-cooling system for AI workloads.
Despite the growth, the sector faces challenges including high initial investments, complex integration with existing infrastructure, and the need for compliance with environmental regulations related to refrigerant use.
The market is segmented by component (solutions and services), data center type (mid-sized, enterprise, large), cooling type (room-based, row/rack-based), and end-use industry (including IT & telecom, BFSI, manufacturing, and healthcare). Solutions, large data centers, and row/rack-based cooling lead their respective segments, while the IT & telecom sector remains the dominant end-user.
North America leads the market, supported by large-scale data center infrastructure in the U.S. and Canada. The Asia Pacific region is experiencing the fastest growth, driven by digital expansion in China, India, Japan, and South Korea. Europe’s growth is supported by strict environmental regulations and green initiatives, while the LAMEA region is emerging through increased digitization and government support.
In May 2025, Samsung Electronics further expanded its footprint in the sector with the acquisition of Germany’s FlaktGroup, a specialist in air conditioning and heating systems, for €1.5 billion (USD 1.68 billion).
Key players in the market include Schneider Electric, Vertiv Holdings, Asetek, Delta Electronics, STULZ, CoolIT Systems, Huawei Technologies, Johnson Controls, Hanley Energy, GridFree AI, and Hewlett Packard Enterprise (HPE).
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