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28 January 2025

Data Center Precision Air Conditioning Strategic Research Report 2023-2024 & 2030

The global data center precision air conditioning (AC) market is projected to grow from $2.3 billion in 2023 to $3.8 billion by 2030, reflecting a compound annual growth rate (CAGR) of 7.4%. This expansion is fueled by the increasing need for efficient cooling systems to support data-intensive applications, particularly in colocation facilities and hyperscale data centers.

Key Growth Drivers

Precision AC systems are essential in maintaining optimal temperature and humidity levels in data centers, ensuring operational reliability and preventing downtime caused by overheating. The growth of cloud computing, artificial intelligence (AI), and Internet of Things (IoT) applications is driving the demand for high-density computing environments, which require advanced cooling solutions.

Additionally, the demand for energy-efficient cooling technologies is rising as data center operators seek to reduce costs and meet sustainability goals. Innovative systems like liquid cooling and free cooling are being increasingly adopted to enhance energy efficiency and meet regulatory standards targeting reduced carbon emissions.

Regional Insights

The U.S. market, valued at $625.2 million in 2023, remains a key player, while China is forecasted to grow at an 11.8% CAGR to reach $842.1 million by 2030. Other notable regions showing significant growth include Japan, Canada, and Europe, alongside emerging markets in the Asia-Pacific.

Technological Advancements

Emerging technologies such as IoT sensors and AI-driven cooling management are transforming the precision AC market. These systems enable real-time monitoring of environmental factors, optimizing cooling performance based on fluctuating workloads. Liquid cooling, a prominent innovation, offers an efficient alternative to traditional air-based systems, particularly in hyperscale data centers.

Market Segmentation

  • In-Row Cooling: Projected to reach $1.9 billion by 2030, growing at a CAGR of 8.1%.
  • In-Rack Cooling: Anticipated to grow at a CAGR of 6.7% during the same period.

Industry Outlook

Key players in the market include AAON, Inc., Aermec SpA, Airedale International Air Conditioning Ltd., BASX Solutions, and Black Box Corporation. Their contributions are shaping the landscape of precision air conditioning by integrating energy-efficient technologies and meeting increasing regulatory demands.

With its robust growth trajectory, the precision AC market is poised to play a pivotal role in supporting the sustainability and scalability of data infrastructure worldwide.



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