The global data center cooling market, valued at USD 18.65 billion in 2023, is expected to experience robust growth, with a compound annual growth rate (CAGR) of 16.8% from 2024 to 2030. This growth is driven by the rising demand for energy-efficient data centers, the increasing volume of data generation, and the ever-expanding need for data storage and processing capacity. Data centers are critical infrastructure for modern businesses, and they consume significant amounts of energy, which in turn generates substantial heat. This heat needs to be efficiently managed to ensure optimal performance and prevent system failures. As data centers grow in size and complexity, the need for advanced and efficient cooling solutions is becoming increasingly important.

 

A major driver of the data center cooling market's growth is the increasing emphasis on energy-efficient solutions. Data centers are known for their high power consumption, and as businesses generate more data, the demand for data center infrastructure has skyrocketed. To support this demand, the industry has focused on innovative cooling solutions that not only reduce energy consumption but also lower operational costs. For instance, advanced cooling technologies such as liquid cooling, immersion cooling, and AI-powered systems are gaining traction for their ability to manage the heat generated in data centers while improving energy efficiency.

 

Another significant factor driving market growth is the rapid increase in data generation, particularly as industries like cloud computing, e-commerce, and artificial intelligence (AI) scale their operations. The rise in internet traffic, data storage requirements, and cloud services has led to an exponential growth in the number of data centers, especially in regions with high-tech industries. As the size and complexity of data centers increase, operators face growing challenges in managing energy consumption and cooling. To address these issues, many data center operators are adopting intelligent power distribution and monitoring systems, which optimize cooling distribution and energy management, ensuring that cooling systems are applied efficiently and only where needed.

 

Gather more insights about the market drivers, restrains and growth of the Data Center Cooling Market 

 

Regional Insights

 

North America:

North America holds the largest share of the global data center cooling market, with the region continuing to lead in demand for advanced cooling solutions. The U.S. and Canada are home to a significant number of large data centers, fueled by the presence of major technology companies such as Amazon, Google, and Facebook. These companies are at the forefront of deploying advanced cooling technologies in their data centers. The region is also expected to see continued growth, with a projected CAGR of more than 12.0% from 2024 to 2030.

 

Asia Pacific:

Asia Pacific is anticipated to be a major growth driver for the data center cooling market between 2024 and 2030. The region is experiencing an increase in the number of telecom service providers and IT infrastructure firms, particularly in countries like China, Japan, and India. This growth is expected to push the demand for advanced data center cooling systems, particularly as telecom companies and cloud service providers expand their infrastructure.

 

China:

China, in particular, is expected to see one of the highest growth rates in the market, with a CAGR of 21.9% from 2024 to 2030. Chinese data center operators are increasingly adopting intelligent power distribution and monitoring systems to ensure effective cooling in large-scale data centers. The development of advanced cooling technologies by domestic companies further propels this growth.

 

Japan:

Japan’s data center cooling market is projected to grow at a CAGR of 18.7% from 2024 to 2030. The country’s highly developed internet infrastructure, reliable power supply, and strong focus on technological innovation make it an ideal location for data center development. Japanese businesses, including global tech giants like Google and Digital Edge, have already set up operations in the country, driving demand for efficient data center cooling solutions.

 

India:

India's data center cooling market is expected to grow at an impressive CAGR of 20.2% from 2024 to 2030. This growth is largely attributed to the country's increasing adoption of green cooling technologies and the expansion of its digital infrastructure. India has become a major hub for data center development due to its rapid urbanization, digitalization, and increasing reliance on cloud services.

 

Middle East & Africa:

The Middle East and Africa are expected to see significant growth in the data center cooling market, with a projected CAGR of 17.4% from 2024 to 2030. The region is witnessing increasing investments in digital infrastructure, particularly in countries like Saudi Arabia and the UAE.

 

Europe:

Europe is expected to grow at a CAGR of 15.1% from 2024 to 2030, driven by a focus on green data center initiatives and increasing demand for energy-efficient cooling solutions. In particular, countries like Denmark, Germany, and the UK are at the forefront of adopting sustainable data center technologies.


Saudi Arabia:

Saudi Arabia is expected to experience significant growth in its data center cooling market, driven by the increasing demand for hyperscale data centers. These facilities require advanced cooling systems to manage the massive amount of heat generated by high-density IT infrastructure. As data volumes continue to rise, Saudi Arabia's data center operators are investing heavily in cooling technologies to support the growing number of hyperscale data centers.


UK:

The data center cooling market in the UK is expanding rapidly and is projected to register a compound annual growth rate (CAGR) of 13.2% from 2024 to 2030. This growth is primarily driven by the increasing number of data center cooling initiatives within the country, as well as the rising adoption of cutting-edge cooling technologies like immersion cooling.

 

Germany:

The data center cooling market in Germany is projected to grow at a CAGR of 14.3% from 2024 to 2030, with a significant contribution from the establishment of green data centers. Germany has long been a leader in environmental sustainability and energy efficiency, and this ethos is reflected in its approach to data center cooling. The German government, along with private enterprises, has been investing heavily in the development of green data centers that adhere to stringent environmental regulations.

 

France:

France is also expected to see significant growth in its data center cooling market from 2024 to 2030, driven by the rising number of energy-efficient data centers. Like its European counterparts, France has been increasingly focused on implementing sustainable practices in the construction and operation of data centers.

 

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Key Companies & Market Share Insights

Some of the key players operating in the market include Vertiv Group Corp. and Schneider Electric.

  • Schneider Electric offers automation management electricity distribution solutions. The company also manufactures components for energy management systems. It operates through two primary business segments, namely Energy Management and Industrial Automation.The Energy Management segment is further divided into medium voltage, low voltage, and secure power subsegments. The secure power subsegment offers products and solutions for hospitals, data centers, and homes & buildings. The data center cooling market belongs to the secure power subsegment
  • Vertiv Group Corp. provides critical infrastructure that caters to vital applications for three primary end markets, namely communication networks, data centers, and commercial and industrial facilities. These end markets are operated through various brands, namely Liebert, NetSure, Geist, and Avocent. The data center market has been further categorized into cloud/hyper-scale, Colocation, Enterprise, and Edge. Vertiv has three principal offerings, namely critical infrastructure and solutions, IT and edge infrastructure, and service and solution

 

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