The data center cooling market is projected to expand at a compound annual growth rate (CAGR) of 9.21% to reach a total market size of US$21.270 billion by 2030, from US$13.769 billion in 2025.
Data centers are critical components for many organizations, providing centralized storage, networking, and backups. Big data generation is the main factor driving the growing need for computer networks to have greater processing capacity. The amount of energy used by data centers has increased as a result.
Additionally, there are now financial and environmental concerns because of the data centers' increased energy consumption. The need for optimized adjustments to data center cooling strategies is being driven by these concerns. The terms "data center cooling" and "data center resource monitoring, measurement, and control" also apply to the energy usage of IT-related equipment, including servers, network switches, storage, and infrastructure parts.
Power distribution units and air conditioners for computer rooms are some of these parts. Data center operators must deploy their IT hardware infrastructures, which include servers, Power Distribution Units (PDUs), and other components appropriately to support the accelerated growth in data storage and provided services, such as data backup & archiving, managing authentication, and authorization. These elements are anticipated to accelerate the data center cooling market growth.
The need for more storage to house the massive volumes of regularly generated data has led to a notable rise in the number of data center deployments. Growing numbers of data centers add to the world's rising energy consumption and surplus heat output. In the near future, this is expected to create a significant demand for energy-efficient cooling techniques. Technology breakthroughs like Industry 4.0 and the Internet of Things (loT) are causing a dramatic shift in infrastructure spending. Thus, optimizing power consumption through the use of advanced data center cooling services is likely to help data centers operate more energy-efficiently and at a lower cost of operation
The expansion of data centers globally, further influencing the need for data storage capabilities, propels the data center cooling market.
The data center industry in the United States has grown rapidly due to several factors. Major growth drivers of the U.S. data center cooling market are due to the presence of a large number of small and big players, increasing adoption of cloud computing solutions, and rising demand from service providers. Additionally, the other factor augmenting the demand for data center cooling solutions in the country is differential electricity pricing across different states. Improving economic conditions, the presence of the world’s biggest firms in Silicon Valley, and new upcoming data center centers in several states like Arizona, and Oregon among others will further provide the necessary impetus to the data center cooling solutions market.
Furthermore, enterprises operating in the entertainment and media, healthcare, communication, and government sectors are increasingly outsourcing their IT infrastructure needs as well as opting for efficient cooling solutions to reduce their IT costs, while focusing on their core business processes. Moreover, the positive intervention by the government is anticipated to boost the data center cooling technology till the forecast period.
For instance- in September 2022, The US Department of Energy (DOE) announced an investment of US$42 million to develop high-performance energy efficient cooling solutions for data centers. A prime agency of DOE, Advanced Research Projects Agency-Energy (ARPA-E) managed the program titled Cooling Operations Optimized for Leaps in Energy, Reliable and Carbon Hyperefficiency for Information Processing Systems (COOLERCHIPS).
The main focus on the development of reliable cooling systems enables more efficient computational systems, data centers, and modular systems as well. As per AWS, the investment in data center solutions has grown multifold in the past few years, impacting the growth of local businesses and states GDP as well. For instance- in 2023, Virginia accounted for most of the investment by the company at US$21.3 billion, followed by eastern Oregon and Ohio among others. This highlights that the proliferation of data centers in the country will lead to an increase in demand for data center cooling needs in the upcoming years.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Data Center Cooling Market Size in 2025 | US$13.769 billion |
| Data Center Cooling Market Size in 2030 | US$21.270 billion |
| Growth Rate | CAGR of 9.21% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in Data Center Cooling Market |
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| Customization Scope | Free report customization with purchase |
Data Center Cooling Market is analyzed into the following segments: