Cooling Tower Rental Market Size, Share, Opportunities, And Trends By Type (Wet, Dry, Hybrid), By End User (Commercial, Industrial), By Design (Natural draft, Mechanical draft), And By Geography - Forecasts From 2025 To 2030

The cooling tower rental market is projected to rise from USD 1.007 billion in 2025 to USD 1.299 billion in 2030, at a CAGR of 5.22%.

Cooling Tower Rental Market Highlights

• Growing Demand: Rising need for temporary cooling solutions across industries.
• Energy Efficiency: Shift towards eco-friendly, energy-efficient rental cooling towers.
• Technological Advancements: Adoption of smart monitoring and digital controls.
• Regional Expansion: Strong market growth in Asia-Pacific due to industrialization.

Cooling Tower Rental Market Overview

A cooling tower is the most imperative piece of equipment in any industry that is targeting to eliminate unwanted heat with minimal use of water. It is a great resource and a great way to replace lost cooling capacity till the permanent cooling tower is repaired or replaced. With heat being just a by-product of the entire production process, many industries might not feel the need to install it in their plants. Instead, they hire an appropriate cooling tower only when required. Cooling tower rentals are available with completely pre-packaged systems that are fully equipped for immediate deployment in any situation. Cooling towers are common in food processing plants, petroleum refineries, natural gas plants, and petrochemical plants. According to the method adopted to circulate air, they are classified into natural draft and mechanical draft.

The rapidly expanding industrial and manufacturing sector and rising demand for services such as ventilation, air conditioning, etc., are considered the driving factors for market growth. Renting cooling towers rather than purchasing provides numerous economic benefits, which are expected to drive the growth of the market. Technological advancement in cooling towers is expected to further widen the growth opportunities in the market. But these cooling towers require large quantities of water, and there are limitations on their availability in certain regions, which can act as a restraint on market growth. Fluctuations in oil prices impact the oil-dependent industries, which in turn affect the cooling tower rental market.

The ongoing effort focused on operational continuity, especially with mission-critical facilities (e.g., power plants, refineries, and IT systems), has led organizations to rely on rental cooling towers to maintain their business operations efficiently and safely. Furthermore, the rapid pace of industrialization and infrastructure development in many emerging economies is presenting additional opportunities for rental providers, as many organizations in these areas prefer short-term, low-cost solutions for cooling rather than committing to the substantial expense of long-term capital projects. The third reason for growth is the increasing occurrence of onerous environmental and regulatory requirements, which are pushing rental service providers to innovate with modular, energy-efficient, and water-saving technologies that mitigate environmental impacts without compromising thermal performance.

The cooling tower rental industry is competitive with multiple large players that provide specific solutions across several industries. Major players include Carrier Rental Systems, Johnson Controls, Finning International, Aggreko, GOHL-KTK GmbH, United Rentals, SPX Corporation, Midwest Cooling Tower Services, ENGIE Refrigeration, and JACIR, all of whom deliver a myriad of temporary cooling technologies and services. These players compete on fleet offering size, technology development, and other equipment improvements, coverage offered, availability, and value-add options. The primary focus is on energy-efficient, modular, and environmentally friendly cooling tower rental options to meet the customer needs of highly fragmented end-users.

Cooling Tower Rental Market Introduction

The cooling tower rental market is growing steadily as developers and operators of core infrastructure adopt temporary cooling capability for both planned and unplanned cooling needs. The cooling tower rental market has gained traction over the last couple of years due to increased planned maintenance shutdowns of industrial operators, rising demand during seasonal fluctuations, and the growth of power-intensive industries, including data centres and manufacturing. Temporary cooling tower applications are being employed in various sectors, including petrochemicals, power generation, and food production, to ensure industry continuity and operational efficiency.

Growth is being driven by the ongoing rise of data centres globally, resulting in an increased demand for reliable and scalable cooling capacity. Rising workloads, particularly from artificial intelligence workloads and cloud services, necessitate the use of temporary cooling tower as a crucial strategy for managing interruptions during seasonal or maximum peak loads and emergency load requirements that exceed local cooling capacity. In addition, temporary cooling tower rental providers are refreshing their fleets and investing in modular systems utilising high-efficiency cooling technology that can be rapidly mobilised. Service providers also increasingly offer service packages as an integrated service, including supplemental water supply, water treatment management, and digital monitoring for compliance and sustainability, as value-added capabilities.

While energy and environmental policies continue to create incentives for further adoption of efficient, water-saving cooling practices, the scope of the market will continue to expand as government regulators enable treated wastewater reuse and district cooling, which are driving operational standards and growth of rental systems that create a sophistication in water management. The emergence of national guidelines, such as those established in India and around district cooling and water reuse, ultimately creates the case for temporary cooling solutions in urban and industrial developments, where similar organisations such as ASHRAE are developing international standards around the best management practices of water quality that ensure safe and sound rental systems with an emphasis on water efficiencies.

Recent market outcomes indicate the upward growth, with large rental companies increasing their cooling tower fleets and services to meet the demand of industrial and infrastructure uses. This process involves a shift between providing equipment for temporary cooling needs, to installing packaged cooling solutions that involve multiple elements, including equipment, installation, water treatments, and service, further combined with remote monitoring and compliance with the tightening regulations and increasing expected environmental sustainability. With the recognition and further support of resilience, flexibility, and sustainability in the sectors that define the present industrial landscape and market expectations, the rental of cooling towers will be an important component of the global cooling infrastructure.

The figure above highlights the dramatic increase in electricity consumption within U.S. data centres, reaching from 60 TWh in 2014 to 176 TWh in 2023, with projections of 325 -580TWh by 2028. This trend is important for the cooling tower rental industry, as the increase in electricity use corresponds directly with increased heat load (and thus cooling demand). Data centres require dependable and scalable cooling solutions for both planned capacity increases and unanticipated peak demands. The need for temporary cooling systems, such as rental cooling towers, will increase with this trend. Hence, US data centres could represent a significant driver for growth in the cooling industry.

Cooling Tower Rental Market Driver:

• Rise in construction activities

The rise in construction activities, both in developing and developed regions, which is leading to an increase in the demand for cooling, refrigeration equipment, and heating and ventilation, is expected to expand the market demand for the cooling tower rental market. The increasing transportation infrastructure, such as ports, airports, and bridge development, is further augmenting the market.  For instance, John F. Kennedy International Airport includes two international terminal complexes, which are expected to be completed by 2025. Also, the construction activities are expected to result in a high requirement for the HVAC system. The offering of advanced technology ensures energy is only consumed when required, leading to maximizing productivity. For instance, EWK installed eight cooling towers, which were equipped with ‘Smart Cooling Tower’ technology at Alicante Airport in Spain in October 2020. The technology offers automatic detection and provides information on the tower’s operation.

• Expansion of Data Centres

The global proliferation of data centres is one of the biggest factors driving the demand for cooling tower rentals. Over the past several years, there has been an unprecedented increase in computational workloads as those workloads have transitioned to artificial intelligence (AI), cloud services, and streaming services. This dynamic rise in workloads results in increased electricity consumption and corresponding cooling demands. According to the Lawrence Berkeley National Laboratory, U.S. data centre electricity usage more than tripled between 2014 and 2023, increasing from 58 terawatt-hours in 2014 to 176 terawatt-hours in 2023, with projections of electricity use between 325 and 580 terawatt-hours by 2028. This dramatic increase only hints at the infrastructure needs that needs be addressed to maintain the current digital economy.

Cooling systems are vital to maintain service uptime for the many different servers, and also potentially avoid expensive interruptions.   The rapid pace of data centre development can also often result in growth outpacing the ability to design, permit, and build permanent cooling infrastructure.  The flexibility of rental cooling towers helps bridge that gap by providing immediate, scalable capacity during construction, retrofits, or excessive demand.  The ability to maintain uptime allows operators to maintain resilience even in the face of unpredictable demand spikes.   

Publications and studies also point to AI developments being a major push toward higher densities in data centre infrastructure.  In an article by the US Energy Department regarding AI workloads, it noted that AI training workloads will push cooling demands into new heights, potentially necessitating supplemental systems.  Rental cooling towers can be quickly added during demand surges, reducing the risk of downtime as permanent infrastructure is developed or constructed. Another factor catalysing this growth driver is sustainability. Data centres are increasingly under scrutiny for water use and environmental impact. Temporary cooling systems rented from specialty vendors are regularly bundled with water treatment and digital monitoring systems. This allows data centre operators to meet environmental requirements while testing new efficiency initiatives before committing to permanent installations.

India is experiencing enormous increases in data centre capacity from 1.4 GW in 2023 to 9 GW by 2030. As the data centre footprint continues to expand, the cooling requirement scales to an even greater degree and is outpacing existing infrastructure. As a result, it opens the door for short-term cooling solutions, namely rental cooling systems, to enable continuous operations amid peak demand, outages, or infrastructure increases. These cooling systems are not just a response to demand challenges, but the projections have data centres using up to 3% of India's electricity by 2030. This only adds to the pressure on power producers and amplifies the case for using flexible rental cooling systems to manage heat loads credibly via rental cooling systems.

Moreover, the expanding geographic footprint of data centres further adds to the rental demand. Hyperscale projects in the U.S., Europe, and Asia are being ordered at a record pace; every time a new hyperscale project is finalised, there is a transition period when rented cooling systems can bridge the gap from design capacity to actual operational requirements. As electricity usage is set to potentially triple over the next decade, the reliance on temporary, flexible cooling systems will increase even further. Hence, accommodative data centre growth will remain a primary driver in the cooling tower rental business.

Cooling Tower Rental Market Segment Analysis:

The Cooling Tower Rental Market was segmented by type into wet, dry, and hybrid systems. Wet cooling towers take the larger share due to their efficient design, and hybrid systems are growing rapidly, as employees in the industry pursue sustainability and reduced water consumption targets. The cooling tower rental market segment is primarily dominated by mechanical draft towers, especially induced draft, due to their compact design and higher efficiency. In contrast, natural draft towers are less common in the rental market because of the numerous restrictions regarding their installation.

Regarding capacity, units from 500–1,000 tons are the most rented for industrial/mid-scale applications, but the demand for towers over 1,000 tons is increasing rapidly in heavy industries. By end-user industry, the leading adopters remain power generation and oil & gas, and although chemicals & petrochemicals and HVAC & comfort cooling are emerging segments, they are growing quickly due to the need for reliable, flexible, and temporary cooling solutions across many different applications.

• The above 1,000-ton segment is growing exponentially

The above 1,000-ton capacity segment in the cooling tower rental market is the largest and fastest-growing segment due to the increasing cooling demands of large, energy-intensive industrial operations. Examples of industries with massive and continuous heat rejection requirements, which are required to maintain product quality, process stability, or operational safety, are power generation, oil & gas, petrochemicals, steel, cement, mining, and data centers.

Sustainability and regulatory compliance are influencing the cooling tower rental market as industries face increasing obligations from environmental authorities and global frameworks to reduce their environmental footprint. Agencies such as the U.S. Environmental Protection Agency (EPA), the European Environment Agency (EEA), the Occupational Safety and Health Administration (OSHA), as well as global accords like the Paris Agreement on Climate Change, are deciding on or enforcing more stringent and actionable policies associated with water consumption, wastewater discharge, and greenhouse gas emissions.

STAR Cooling Towers’ commercial cooling tower rentals are designed with a forced draft and counterflow evaporative cooling configuration that is different from all others. Each module has several direct drive fans with heat removal rates ranging from 2 million to 1,000 million BTU/hr. Self-adjusting spray nozzles efficiently manage flows of water that vary according to the application. The company’s cooling towers have capacities ranging from 100 gallons per minute (GPM) to 10,000 GPM.

As operational resilience, cost containment, and sustainability become critical priorities for industries globally, the greater than 1,000-ton capacity rental cooling tower market is forecasted to have ongoing strength, making it the most active area of growth in the overall market.

• The power generation segment is expected to grow significantly

Among the primary or end-users in the Cooling Tower Rental Market is the power generation sector, which is one of the largest and most important, as there is a permanent demand for reliable, large-scale cooling to enable a seamless electricity output. All power generation plants (coal, gas, nuclear, and renewable-based hybrid plants) produce excess amounts of heat in the normal course of operations that must be dissipated to maintain the system’s stability and comply with safety standards. In 2022, Germany had the largest net electricity generation level among the EU Member States at 20.4% of the total EU generation, followed by France (16.8%), Spain (10.5%), and Italy (10.2%), which were the only other EU Countries that made up double-digit shares.

Aggreko Cooling Tower Services custom-designed temporary cooling installations. Aggreko has the largest fleet of modular cooling towers, piping, pumping, and rental power generation in the world. And because of the highly specialized personnel designing and deploying the cooling tower rental system, they can cool down circulating water while ensuring productivity and profitability.

The increasing integration of renewable energy projects is shifting the path associated with the Cooling Tower Rental Market, especially in the power generation sector, which is witnessing an increasing frequency of grid stability issues. As countries use more solar and wind to deliver their decarbonization targets, the intermittent nature of these energy sources will drive changes in electricity supply, leading to reliance on conventional thermal power plants as backup. For example, in Germany, where renewable energy constitutes a significant percentage of the grid, coal and natural gas plants typically respond to drops in solar and wind with sudden increases in cooling.

Cooling Tower Rental Market Regional Analysis

• North America, particularly the US, is predicted to lead the market growth

The cooling tower rental market has been segmented by region into North America, South America, Asia Pacific, the Middle East & Africa, and Europe. North America is anticipated to hold a significant share in the global market in 2019 and is expected to continue its dominance during its forecasted period on account of stringent government regulations regarding environmental emissions in the U.S. and Canada, rising infrastructure development, and water consumption. Further, the presence of the major manufacturers and the rapid adoption of advanced technology in this region are driving the market growth of cooling tower rentals. Market demand for wet cooling tower rentals is anticipated to grow faster than dry ones on account of increasing demand in the HVAC system, mining, construction, and power plants.  The United States leads the refinery capacity with almost similar contributions from the new build projects and the expansion of active refinery projects. Following North America, the Asia-Pacific is expected to grow significantly during the forecasted period on account of the presence of unauthorized and authorized local players operating under this business segment.  Furthermore, countries such as Japan, China, and India are witnessing the penetration of cooling towers due to rapid industrialization and infrastructure development.

The strong industrial presence in the United States is a major driver promoting the demand for cooling tower rental in the country. Industries such as power generation, oil & gas, construction, and petrochemical are increasing their operations in the country, which require a compatible cooling solution for maintenance of outages, management of seasonal spikes, or in any emergencies. These rental cooling towers offer an industrial with a cost-effective, flexible cooling solution, serving as an alternative to expensive permanent capital investments.

Additionally, the increasing refinery capacity in the country will also promote the requirement for rental cooling towers for refineries for diverse processes, such as oil-water separation. According to the data from the Energy Information Administration (EIA) released in June 2025, the production capacity of operable petroleum refineries, barrels per stream day in the country for alkylates was 1,368,437, aromatics was 349,509, and asphalt and road oil accounted for 641,104 as of January 2025. Further, isomers and lubricants were 767,468 and 262,895 barrels per stream day, respectively, whereas marketable petroleum coke was 876,696 barrels per stream day during the same timeframe.

Furthermore, the necessity for rapid replacement of the cooling tower in case of sudden and unexpected failures, or the requirement for maintenance of the cooling tower, also boosts the rental cooling tower in the country, especially in critical industries where downtime can be costly, such as refinery operations and power generation.

Moreover, the growing development and product innovation in the rental cooling tower market, offering energy optimization and decreased downtime, is also paving the way for the United States market expansion.  For instance, in February 2024, Aggreko announced that it was awarded Patent No. 11,844,541 B2 from the U.S. Patent and Trademark Office for a rental cooling tower, which is developed within an ISO-compliant shipping container framework. It provides about 80 percent of energy savings along with a decreased installation footprint by 22 percent. The features of the product indirectly support "Stringent Environmental Regulations" by offering decreased emissions and carbon footprint in the country.

Cooling Tower Rental Market Key Developments

• In 2025, Johnson Controls participated as the Building Technology Partner at ACREX India 2025, where it launched and showcased multiple next-generation cooling and smart building technologies. The product included YVAA0459XL Air-Cooled Screw Chiller, YORK VWF (Variable Water Flow) System, and YORK YVAM Magnetic Bearing Chiller (Air-Cooled).

SEGMENTATION

• By Type
  • Wet
  • Dry
  • Hybrid
• By Capacity
  • Up to 500 Tons
  • 500–1,000 Tons
  • Above 1,000 Tons
• By End-User
  • Power Generation
  • HVAC & Comfort Cooling
  • Chemicals & Petrochemicals
  • Food & Beverage
  • Construction
  • Oil & Gas
  • Others
• By Design
  • Natural draft
  •  Mechanical draft
  • Induced draft
  • Forced draft
• By Geography
  • • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • Spain
    • United Kingdom
    • France
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • South Africa
    • Others
  • Asia Pacific
    • China
    • Japan
    • Australia
    • India
    • Others

1. Executive Summary

2. Market Snapshot

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. Business Landscape

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities 

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations 

3.7. Strategic Recommendations 

4. Technological Outlook 

5. Cooling Tower Rental Market By Type (2020-2030)

5.1. Introduction 

5.2. Wet

5.3. Dry

5.4. Hybrid

6. Cooling Tower Rental Market By Design (2020-2030)

6.1. Introduction 

6.2. Mechanical Draft 

6.2.1. Induced Draft

6.2.2. Forced Draft, 

6.3. Natural Draft

7. Cooling Tower Rental Market By Capacity (2020-2030)

7.1. Introduction 

7.2. Up to 500 Tons

7.3. 500–1,000 Tons

7.4. Above 1,000 Tons

8. Cooling Tower Rental Market By End-User (2020-2030)

8.1. Introduction 

8.2. Power Generation

8.3. Oil & Gas

8.4. Chemicals & Petrochemicals

8.5. Food & Beverage

8.6. Construction

8.7. HVAC & Comfort Cooling

8.8. Others

9. Cooling Tower Rental Market By Geography (2020-2030)

9.1. Introduction

9.2. North America

9.2.1. By Type

9.2.2. By Design

9.2.3. By Capacity

9.2.4. By End User

9.2.5. By Country

9.2.5.1. USA

9.2.5.2. Canada

9.2.5.3. Mexico

9.3. South America

9.3.1. By Type

9.3.2. By Design

9.3.3. By Capacity

9.3.4. By End User

9.3.5. By Country

9.3.5.1. Brazil

9.3.5.2. Argentina

9.3.5.3. Others

9.4. Europe

9.4.1. By Type

9.4.2. By Design

9.4.3. By Capacity

9.4.4. By End User

9.4.5. By Country

9.4.5.1. Germany

9.4.5.2. France

9.4.5.3. United Kingdom

9.4.5.4. Spain

9.4.5.5. Others

9.5. Middle East and Africa

9.5.1. By Type

9.5.2. By Design

9.5.3. By Capacity

9.5.4. By End User

9.5.5. By Country

9.5.5.1. Saudi Arabia

9.5.5.2. UAE 

9.5.5.3. Others

9.6. Asia Pacific

9.6.1. By Type

9.6.2. By Design

9.6.3. By Capacity

9.6.4. By End User

9.6.5. By Country

9.6.5.1. China

9.6.5.2. Japan

9.6.5.3. India 

9.6.5.4. South Korea

9.6.5.5. Indonesia

9.6.5.6. Thailand 

9.6.5.7. Others

10. Competitive Environment and Analysis

10.1. Major Players and Strategy Analysis

10.2. Market Share Analysis

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Competitive Dashboard

11. Company Profiles

11.1. Carrier Rental Systems (Carrier Global Corporation)

11.2. Johnson Controls International plc 

11.3. Finning International Inc.

11.4. Aggreko

11.5. GOHL-KTK GmbH

11.6. United Rentals, Inc

11.7. SPX Corporation

11.8. Midwest Cooling Tower Services, LLC

11.9. ENGIE Refrigeration

11.10. JACIR 

12. Research Methodology

Carrier Rental Systems (Carrier Global Corporation)

Johnson Controls International plc 

Finning International Inc.

Aggreko

GOHL-KTK GmbH

United Rentals, Inc

SPX Corporation

Midwest Cooling Tower Services, LLC

ENGIE Refrigeration

JACIR