Data Center Cooling Market Report 2026

The data center cooling market size has grown rapidly in recent years. It will grow from $19.5 billion in 2025 to $22.81 billion in 2026 at a compound annual growth rate (CAGR) of 17%. The growth in the historic period can be attributed to expansion of hyperscale data centers, rising demand for high-density server racks, growth of cloud computing infrastructure, increasing electricity consumption in IT facilities, adoption of aisle containment systems.

The data center cooling market size is expected to see rapid growth in the next few years. It will grow to $42.81 billion in 2030 at a compound annual growth rate (CAGR) of 17%. The growth in the forecast period can be attributed to increasing deployment of AI-driven data centers, rising focus on carbon-neutral data center operations, expansion of edge data centers, growing investments in advanced cooling technologies, increasing regulatory pressure on energy efficiency. Major trends in the forecast period include adoption of liquid and immersion cooling technologies, expansion of directed and containment cooling systems, integration of real-time thermal monitoring, increased focus on energy-efficient cooling designs, growth of modular cooling infrastructure.

Rising global temperatures are expected to drive the growth of the data center cooling market during the forecast period. These temperature increases are caused by factors such as higher greenhouse gas emissions from human activities, deforestation, industrial processes, and fossil fuel combustion, which intensify the greenhouse effect and trap heat in the Earth’s atmosphere. Data center cooling systems play a critical role in mitigating the impact of rising temperatures by maintaining optimal operating conditions for servers and preventing overheating in energy-intensive facilities. For example, in January 2025, the World Meteorological Organization (WMO), a Switzerland-based organization, reported that 2024 was the hottest year ever recorded, with average temperatures approximately 1.55°C above pre-industrial levels. Therefore, rising global temperatures are expected to boost demand for data center cooling solutions.

Prominent players in the data center cooling sector are introducing novel products such as immersion cooling fluids to bolster their market competitiveness and profitability. These specialized fluids are utilized in immersion cooling systems within data centers to absorb and disperse heat produced by electronic hardware, such as servers. In October 2023, ExxonMobil Corporation, a leading US-based natural gas company, unveiled its range of data center immersion cooling fluids. Engineered for optimal energy efficiency and performance, ExxonMobil's fluids offer a diverse selection of synthetic and non-synthetic options with varying thermal capacities. These fluids are tailored to lower viscosity for effective heat dissipation while ensuring compatibility with a wide range of materials, thereby supporting extended equipment lifespan. The utilization of immersion cooling fluids is pivotal for liquid cooling in data centers, aiming to augment energy efficiency, curtail water usage, and boost rack density, consequently claiming to reduce the total cost of ownership for IT equipment by up to 40%.

In December 2023, Vertiv, a US-based company specializing in critical infrastructure for data centers and communication networks, acquired CoolTera Ltd. for an undisclosed amount. This acquisition aims to bolster Vertiv's expertise in high-density cooling solutions by integrating CoolTera's advanced liquid cooling technology and infrastructure into its existing thermal management portfolio. CoolTera Ltd. is an Israel-based company that specializes in innovative cooling solutions for data centers and IT environments, while also being involved in mission-critical custom air handlers and modular data center design, engineering, and manufacturing.

Major companies operating in the data center cooling market are Hitachi Ltd., Mitsubishi Electric Corporation, Schneider Electric SE, Fujitsu Limited, ABB Group, Hewlett Packard Enterprise Company, Daikin Industries Ltd., Johnson Controls International plc, Eaton Corporation, Emerson Electric Co., Trane Technologies plc, Climaveneta Climate Technologies S.p.A., Vertiv Group Corporation, Alfa Laval AB, Rittal GmbH & Co. KG, Ebullient Inc., Munters Group AB, Nortek Air Solutions LLC, Coolcentric Inc., Airedale International Air Conditioning Limited, Asetek Inc., Usystems Inc., Midas Green Technologies Inc., Liquid Cool Solutions LLC, Green Revolution Cooling Inc., Submer Technologies Inc., Delta Power Solutions, Adaptivcool Ltd.

Asia-Pacific was the largest region in the data center cooling market in 2025. North America was the second-largest market in the data center cooling market share. The regions covered in the data center cooling market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the data center cooling market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The data center cooling market includes revenues earned by entities by providing computer room air handler (CRAH), computer room air conditioner (CRAC), calibrated vector unit, cold aisle and hot aisle design. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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