The global data center cooling market size was estimated at USD 22.13 billion in 2024 and is projected to reach USD 56.15 billion by 2030, growing at a CAGR of 16.4% from 2025 to 2030. The growing emphasis on developing energy-efficient data centers is creating substantial growth opportunities for the data center cooling industry, as organizations seek sustainable and cost-effective solutions to manage rising energy consumption.

In response to this increasing demand, several leading companies are planning strategic expansions and investments to strengthen their presence in the market. The overall positive growth outlook is further supported by the exponential increase in global data generation, which continues to drive the need for large-scale data centers. Since these facilities consume vast amounts of energy and produce significant heat, the need for advanced, efficient, and reliable cooling systems has become more critical than ever.

To expand their market reach and enhance technological capabilities, major players are actively acquiring specialized data center cooling companies, particularly in emerging and underserved regions. For example, in October 2024, Schneider Electric announced its agreement to acquire a majority stake in Motivair Corporation, a U.S.-based company renowned for its expertise in liquid cooling and advanced thermal management systems for high-performance computing applications.

Moreover, companies are increasingly focusing on technological advancements and innovation within the sector. The integration of artificial intelligence (AI) and automation into data center cooling systems enables real-time monitoring, predictive maintenance, and data-driven optimization of cooling efficiency. These developments are expected to further enhance performance, reduce energy costs, and contribute to the sustained growth of the data center cooling market during the forecast period.

Key Market Trends & Insights:

• In 2024, North America held a dominant position in the global data center cooling industry, accounting for a significant share of over 34.0%. The region’s leadership can be attributed to the high concentration of data centers, rapid technological advancements, and increasing adoption of cloud computing and big data analytics across various industries. The growing demand for energy-efficient and sustainable cooling solutions, coupled with the strong presence of major market players, further supports the region’s market dominance.

• Within North America, the U.S. data center cooling industry is projected to experience substantial growth, expanding at a CAGR of 10.8% from 2025 to 2030. This growth is primarily driven by the continuous rise in data traffic, increasing investment in hyperscale data centers, and the strong focus on reducing operational costs through energy-efficient technologies. Additionally, the widespread use of artificial intelligence and Internet of Things (IoT) applications is contributing to the growing need for advanced cooling infrastructure in the country.

• By type, the non-raised floor segment emerged as the leading category, capturing over 57.0% of the total market revenue in 2024. This dominance is largely due to the increasing adoption of modular and compact data center designs, which offer enhanced cooling efficiency and flexibility compared to traditional raised floor setups. Non-raised floor systems are also cost-effective and easier to install and maintain, making them a preferred choice among operators.

• By structure, the room-based cooling segment accounted for the largest revenue share of over 47.0% in 2024. This segment’s dominance is attributed to its wide application in large data centers and its ability to provide uniform cooling across entire server rooms. Room-based cooling systems are ideal for high-density data centers as they offer scalability, reliability, and efficient temperature management.

• By application, the telecom segment led the market in 2024, representing a revenue share of over 28.0%. The expansion of the telecom industry, driven by the increasing adoption of 5G networks and data-driven communication services, has resulted in a higher demand for advanced cooling systems. Efficient cooling solutions are essential for telecom data centers to maintain optimal equipment performance and minimize downtime, thereby fueling growth in this segment.

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Market Size & Forecast:

• 2024 Market Size: USD 22.13 Billion

• 2030 Projected Market Size: USD 56.15 Billion

• CAGR (2025-2030): 16.4%

• North America: Largest market in 2024

• Asia Pacific: Fastest growing market

Key Companies & Market Share Insights:

Key players operating in the global data center cooling industry include Vertiv Group Corp., Schneider Electric, Fujitsu, Mitsubishi Electric Corporation, and Asetek, Inc. These companies are actively pursuing a range of strategic initiatives such as new product launches, technological advancements, partnerships, collaborations, and business agreements to strengthen their market position and gain a competitive edge over their peers. Through these strategies, they aim to expand their global presence, enhance product efficiency, and cater to the evolving needs of modern data centers driven by the growing adoption of artificial intelligence and cloud technologies.

For instance, in March 2025, Vertiv Group Corp. announced a partnership with Tecogen Inc., a U.S.-based clean energy company recognized for its expertise in ultra-efficient, on-site power, heating, and cooling solutions. This collaboration enables Vertiv to integrate Tecogen’s advanced natural gas-powered chiller technology into its global data center solutions portfolio. The newly introduced system is designed to overcome power limitations in data centers while supporting the large-scale deployment of AI-driven applications. This partnership further strengthens Vertiv’s already extensive lineup of innovative and energy-efficient cooling solutions.

Similarly, in December 2024, Schneider Electric unveiled its next generation of AI-ready data center solutions to address the increasing energy efficiency and sustainability requirements associated with AI systems. In collaboration with NVIDIA, the company introduced a reference design for liquid-cooled AI clusters capable of supporting up to 132 kW per rack, offering exceptional cooling performance for high-density computing environments. Additionally, Schneider Electric launched the compact Galaxy VXL uninterruptible power supply (UPS), which provides 52% space savings along with high power density. This advanced UPS system is specifically engineered for AI and data center applications, delivering reliable and efficient power management within a reduced physical footprint.

Key Players

• Air Enterprises

• Asetek, Inc.

• Climaveneta Climate Technologies PVT. LTD.

• Coolcentric

• Dell Inc.

• Fujitsu

• Hitachi, Ltd.

• Johnson Controls

• Mitsubishi Electric Corporation

• Nortek Air Solutions, LLC

• NTT Ltd.

• Rittal GmBH & Co. KG

• Schneider Electric

• STULZ GMBH

• Vertiv Group Corp.

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Conclusion:

The data-center cooling sector is set for robust growth due to the rising demand for efficient cooling solutions driven by increasing data-generation, high-density computing environments, and energy-efficiency emphasis in data centers. Technological innovation, strategic collaborations and acquisitions by key players are accelerating market development, while regulatory and sustainability pressures further support the uptake of advanced cooling systems.