Data Center Cooling Market to Reach USD 37.62 Billion by 2033, at a CAGR of 16.1% — MarketsandMarkets™
Delray Beach, FL, Aug. 24, 2026 (GLOBE NEWSWIRE) -- The global Data Center Cooling Market is projected to grow from USD 13.23 billion in 2026 to USD 37.62 billion by 2033, at a CAGR of 16.1% during the forecast period. Growth is driven by the rapid expansion of AI, cloud computing, hyperscale data centers, high-performance computing (HPC), and digital infrastructure, which are increasing rack power densities and thermal loads. The growing adoption of GPUs and AI accelerators is further accelerating demand for advanced cooling technologies, particularly liquid cooling solutions.
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Key Market Highlights
- Market Size (2026): USD 13.23 Billion
- Projected Market Value (2033): USD 37.62 Billion
- CAGR (2026–2033): 16.1%
- Largest Region: North America
- Fastest-Growing Region: Asia Pacific
- Largest Solution: Air Conditioning
- Fastest-Growing Solution: Liquid Cooling System
- Largest Data Center Type: Hyperscale Data Centers
- Fastest-Growing Data Center Type: Hyperscale Data Centers
- Largest End-use Industry: IT & Telecom
- Key Players: Vertiv Group Corp., Green Revolution Cooling, Submer, Asperitas, CoolIT Systems, DCX Liquid Cooling Systems, Iceotope Precision Liquid Cooling, Schneider Electric, Johnson Controls, Carrier, Daikin Industries, Mitsubishi Electric, Rittal, Trane Technologies, Munters, LiquidStack, Chilldyne, DUG Technology, LiquidCool Solutions, STULZ, Delta Power Solutions, Modine Manufacturing, Boyd, Super Micro Computer, Flex, Black Box, and Alfa Laval.
Why This Market Matters
Data center cooling has become a mission-critical component of digital infrastructure as modern servers, GPUs, and AI accelerators generate substantially more heat than conventional computing equipment. Efficient thermal management is essential for maintaining equipment reliability, maximizing computing performance, improving energy efficiency, and controlling operating costs.
The market is increasingly shifting toward liquid cooling, direct-to-chip cooling, immersion cooling, rear-door heat exchangers, and other high-density thermal management technologies capable of supporting AI- and HPC-driven workloads.
Market Overview
The market encompasses air conditioning, chilling units, cooling towers, economizer systems, liquid cooling systems, and control systems, along with associated services. Conventional air-based systems continue to serve a substantial installed base, while rising rack densities are creating strong demand for liquid-based solutions.
AI infrastructure is particularly important to the market's evolution. As data centers deploy increasingly powerful GPUs and accelerators, operators are moving beyond traditional room-level air cooling toward targeted liquid-based heat removal that can manage higher thermal loads more efficiently.
Analyst Perspective
The expansion of AI data centers, hyperscale cloud infrastructure, edge computing, and HPC facilities presents significant opportunities for cooling technology providers. Liquid cooling is emerging as a key technology for next-generation facilities because of its ability to support higher rack densities while improving thermal efficiency.
The broader liquid cooling ecosystem is also expanding rapidly. For example, the global data center liquid cooling market is projected to grow at a 31.5% CAGR from 2026 to 2031, reflecting the accelerating transition toward advanced thermal management for AI workloads.
At the same time, high capital expenditure, infrastructure retrofit complexity, water availability, maintenance requirements, and integration challenges remain important considerations for data center operators.
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Segment Analysis
- By Solution: Air conditioning remains a major segment because CRACs, CRAHs, precision air-conditioning systems, and other air-based technologies continue to be widely deployed across existing data center facilities. However, liquid cooling is expected to register the strongest growth as high-density AI and HPC workloads become more prevalent.
- By Type of Cooling: Air cooling continues to dominate the installed cooling infrastructure, while liquid cooling is gaining momentum because it can remove significantly higher heat loads from densely packed computing equipment.
- By Data Center Type: Hyperscale data centers represent a major growth segment as cloud service providers and technology companies expand large-scale facilities to accommodate AI, cloud, and data-intensive workloads.
- By End-use Industry: IT & Telecom represents a major demand center due to the industry's extensive reliance on data centers for cloud services, connectivity, digital platforms, and computational workloads.
Regional Analysis
North America remains a leading market for data center cooling, supported by the region's large installed base of hyperscale and colocation facilities and strong investments in AI, cloud computing, and digital infrastructure. The US, in particular, is experiencing rapid growth in advanced cooling adoption as AI infrastructure expands.
Asia Pacific is emerging as a high-growth region, supported by hyperscale data center investments, cloud infrastructure expansion, digitalization, and increasing power-density requirements. The region's data center liquid cooling market is projected to grow from USD 906.2 million in 2026 to USD 6.61 billion by 2031, at a CAGR of 32.8%.
India is also becoming an important opportunity market, with its data center liquid cooling market projected to expand from USD 113.0 million in 2026 to USD 789.9 million by 2031, representing a CAGR of 32.0%.
Key Industry Trends
- Rapid expansion of AI and GPU-intensive data centers
- Increasing shift from air cooling to liquid cooling
- Growing adoption of direct-to-chip cooling
- Increasing deployment of single-phase and two-phase immersion cooling
- Rising demand for coolant distribution units (CDUs)
- Growing use of rear-door heat exchangers
- Increasing need for high-density rack cooling
- Development of AI-ready and modular cooling infrastructure
- Growing focus on energy efficiency and PUE reduction
- Increasing emphasis on water conservation and sustainable cooling
- Growing demand for retrofit solutions for existing data centers
- Increasing integration of intelligent thermal monitoring and controls
Competitive Landscape
Vertiv Group Corp., Green Revolution Cooling, Submer, Asperitas, CoolIT Systems, and Schneider Electric are among the key players in the data center cooling market, supported by broad cooling portfolios, technology expertise, and strong positions across data center infrastructure.
Other significant participants include Johnson Controls, Carrier, Daikin Industries, Mitsubishi Electric, Rittal, Trane Technologies, Munters, LiquidStack, Chilldyne, DUG Technology, LiquidCool Solutions, STULZ, Delta Power Solutions, Modine Manufacturing, Boyd, Super Micro Computer, Flex, Black Box, and Alfa Laval.
Companies are focusing on liquid cooling innovation, strategic partnerships, product development, acquisitions, capacity expansion, and AI-ready cooling solutions to address the rapidly increasing thermal requirements of next-generation data centers. The competitive landscape is increasingly centered on technologies capable of supporting high-density AI clusters while reducing energy and water consumption.
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