The global cooling tower market for data centers is projected to grow from USD 3.47 billion in 2024 to USD 6.78 billion by 2031, with a compound annual growth rate (CAGR) of 10.9%, according to a report by Valuates Reports.
This growth is driven by increasing demand for reliable thermal management as data centers expand to support cloud services, enterprise storage, and edge computing. Cooling towers play a central role in supporting chillers and condensers, helping maintain continuous operation and system integrity. Their adaptability to various site conditions and regulatory environments also supports market expansion.
Open cooling towers contribute to market growth by enabling direct heat rejection via air-water interaction. These systems integrate with chilled water infrastructure and are valued for their operational simplicity and ease of maintenance. Closed cooling towers, which isolate process fluids from ambient air, are favored for their ability to reduce contamination and maintain stable thermal performance in controlled environments.
The rise of immersion liquid cooling systems is also influencing demand. While servers are cooled using dielectric fluids, cooling towers remain essential for secondary heat rejection, enabling concentrated thermal transfer outside the IT environment.
Operational reliability and energy efficiency are key adoption drivers, with cooling towers selected for their stable performance, lifecycle efficiency, and ability to reduce chiller load. Water management strategies, including treatment compatibility and evaporation control, further enhance their value in sustainable data center operations.
Scalability remains critical as operators seek modular systems that support phased expansions. Climate adaptability is also essential, with cooling towers designed to maintain stable performance across diverse environmental conditions.
The report identifies leading manufacturers including SPX Cooling Technologies, EVAPCO, KUKEN, Seagull Cooling Technologies, Hamon, Paharpur Cooling Towers, Kelvion, ENEXIO, BRAPU, EBARA, Kobelco Eco-Solutions, and others.
North America leads in demand due to hyperscale cloud facilities. Asia Pacific shows strong growth amid digitalization and colocation expansion, while the Middle East emphasizes high-performance cooling under extreme temperatures. Latin America and Africa are seeing gradual adoption driven by infrastructure development.