The data center cooling market size is expected to reach US$ 45.70 billion by 2031 from US$ 13.29 billion in 2023. The market is estimated to record a CAGR of 16.7% during 2023–2031. AI-optimized cooling and quieter cooling solutions are likely to bring new trends to the market.
Increased demand for compute-intensive workloads and high investments in data centers drive the data center cooling market. The market is also witnessing a greater use of high-performance computing (HPC), which is contributing to the demand for data center cooling solutions. Moreover, the rising strategic initiatives taken by major companies, such as the collaboration between Intel Corporation and Submer to develop a solution for cooling chips with high Thermal Design Power (TDP), contribute to the growth of the market. Furthermore, the escalating need for energy-efficient and robust data center cooling solutions, coupled with the increasing penetration of the Internet; cloud computing; and technologies such as AI, IoT, and big data, are projected to fuel the adoption of data center liquid cooling. The market is expected to grow in the forecasted period owing to advancements in liquid cooling technologies and a rise in data center cooling robots.
Data center cooling refers to the systems and technologies used to maintain an optimal temperature within the data center to ensure the proper functioning of the IT equipment. IT equipment produces heat during operation, and extreme heat can lead to equipment malfunction and failure. To overcome such challenges, the demand for data center cooling has rapidly increased. Cooling systems are essential for maintaining the reliability and performance of the data center infrastructure. Data center cooling plays a vital role in creating and sustaining the optimal operational conditions for all the equipment housed within a data center. Data centers collectively consume approximately 3% of the world's electricity; as a result, a substantial amount of heat is generated. Without the implementation of an efficient cooling system, the risk of IT equipment malfunction, costly damages, and operational downtime significantly increases.
Various industries are incorporating AI and machine learning to enhance customer experience, bolster cybersecurity measures, and revolutionize their business processes. The deployment of these technologies and the optimization of their value necessitate robust infrastructure capable of handling increasingly complex workloads. The compute-intensive nature of AI model training has driven the evolution of hardware to meet the escalating demands of AI and other advanced applications. For instance, in April 2024, Lenovo announced a comprehensive new suite of purpose-built AI-centric infrastructure systems and solutions to advance Hybrid AI Innovation from edge to cloud. Lenovo is delivering GPU-rich and thermally efficient solutions intended for compute-intensive workloads across multiple environments and industries. In the financial services and healthcare industries, customers are managing massive data sets that require extreme I/O bandwidth, and Lenovo is providing the IT infrastructure solutions vital to the management of critical data.
As enterprises continue to harness the potential of AI and machine learning, the ongoing evolution of computing hardware plays a pivotal role in enabling the efficient processing and utilization of vast amounts of data, thereby empowering organizations to make informed decisions and analyze data assets. The heightened computing capacity and demands for hardware have resulted in increased power consumption and heat generation. As a result, rising data center temperatures, attributed to the use of higher-density hardware, have highlighted the significance of liquid cooling as a crucial technology for mitigating these thermal challenges. Thus, the increasing demand for compute-intensive workloads drives the data center cooling market.
Liquid cooling has emerged as an optimal solution to meet the requirements of the high-performance computing (HPC) and data center industries. By negating the necessity for continuous air circulation, liquid cooling markedly diminishes utility consumption, thereby enhancing the energy efficiency of the facility. Liquid cooling technologies have emerged as a popular solution, with ~40% of data centers utilizing it. Companies are forming strategic partnerships to participate in the advancements of liquid cooling technologies. For instance, Mitsubishi Heavy Industries, Ltd. (MHI) and ZutaCore, Inc. formed a strategic partnership in September 2023 to advance sustainable liquid cooling solutions for the data industry to achieve energy efficiency and zero emissions. This collaboration involves MHI's investment in ZutaCore and a white-label sales agreement, combining ZutaCore's HyperCool dielectric direct-liquid-cooling technology with MHI's extensive product line and technological expertise at a global scale. ZutaCore's HyperCool technology is a waterless, direct-on-chip liquid cooling solution that aims to bridge the gap between data industry sustainability and ever-increasing computing power. It delivers 10x more computing, a 50% total cost of ownership (TCO) reduction, and 100% heat reuse, as well as reduces CO2 emissions. This technology is designed to move large amounts of heat off the chip effectively and safely, with no practical limit to heat dissipation. It also aims to reduce the consumption of scarce resources, including energy, water, and land, while reducing capital and operating expenses. This partnership aims to expedite the growth of sustainable liquid cooling solutions crucial for energy efficiency. The comprehensive solution provided by this collaboration offers unprecedented benefits to high-performance computing workloads, server densification, and data center sustainability.
Key segments that contributed to the derivation of the data center cooling market analysis are component, cooling type, data center type, and industry vertical.
The data center cooling market is segmented into five major regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America dominated the market in 2023, followed by Europe and APAC.
The North America data center cooling market is growing significantly owing to the rise in the data center industry and the growing adoption of cost-effective and environmentally friendly data center cooling solutions. The market players are introducing innovative and advanced solutions to cater to the demand for technologically advanced computing solutions, further fueling the market growth. For example, in November 2023, Vertiv introduced the Vertiv SmartMod Max CW, a prefabricated modular data center built to address the increasing demand for rapid deployment of computing in North America.
The regional trends and factors influencing the Data Center Cooling Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Data Center Cooling Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 13.29 Billion |
| Market Size by 2031 | US$ 45.70 Billion |
| Global CAGR (2023 - 2031) | 16.7% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Component
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Data Center Cooling Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Data Center Cooling Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The data center cooling market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the data center cooling market are listed below:
(Source: Mitsubishi Heavy Industries, Ltd, Press Release, October 2023)
(Source: STULZ, Press Release, March 2024)
The "Data Center Cooling Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:
The List of Companies - Data Center Cooling Market
Increasing demand for compute-intensive workloads and rising investments in data centers are the driving factors impacting the data center cooling market.
AI-optimized cooling and quieter cooling solutions is the future trends of the data center cooling market.
The key players, holding majority shares, in data center cooling market includes Vertiv Group Corp, Schneider Electric, Mitsubishi Electric Corporation, FUJITSU, and STULZ Air Technology Systems, Inc.
Asia Pacific is anticipated to grow with the highest CAGR over the forecast period 2024-2031.
The North America held the largest market share in 2023, followed by Europe.
The data center cooling market was valued at US$ 13.29 billion in 2023 and is projected to reach US$ 45.70 billion by 2031; it is expected to grow at a CAGR of 16.7% during 2023–2031.