Thermal Energy Storage For Artificial Intelligence (AI) Data Centers Market Global Report 2026

The thermal energy storage for artificial intelligence (AI) data centers market size has grown rapidly in recent years. It will grow from $1.88 billion in 2025 to $2.24 billion in 2026 at a compound annual growth rate (CAGR) of 19.5%. The growth in the historic period can be attributed to increasing demand for efficient data center cooling, rising energy consumption from AI workloads, growing adoption of chilled water and ice storage systems, expansion of hyperscale data centers, and increasing focus on reducing operational cooling costs.

The thermal energy storage for artificial intelligence (AI) data centers market size is expected to see rapid growth in the next few years. It will grow to $4.54 billion in 2030 at a compound annual growth rate (CAGR) of 19.3%. The growth in the forecast period can be attributed to growing deployment of phase change materials and thermal batteries, rising demand for sustainable and carbon-neutral cooling solutions, increasing investments in AI-powered energy management platforms, expansion of edge and colocation data centers globally, and growing pressure to shift cooling demand to off-peak energy hours. Major trends in the forecast period include advancements in smart thermal storage optimization software, innovations in high-density liquid and immersion cooling integration, development of modular and distributed thermal storage units for edge sites, research and development of next-generation storage media including composite PCM, and technological advancements in automated load balancing between thermal storage and HVAC systems.

The rising adoption of AI workloads is expected to propel the growth of the thermal energy storage for thermal energy storage for artificial intelligence (AI) data centers market in the coming years. AI workloads refer to compute-intensive tasks such as training, inference, and data processing performed by high-performance servers optimized for artificial intelligence and machine learning. The adoption of AI workloads is increasing as organizations, cloud providers, and hyperscalers rapidly expand AI-optimized infrastructure to support generative AI, large-model training, and other intensive computing services. Thermal energy storage for artificial intelligence (AI) data centers supports the adoption of AI workloads by providing efficient cooling, reducing energy costs, and enabling high-performance computing. It ensures reliable operation, supports intensive AI processing, and improves overall data center sustainability. For instance, in April 2025, according to the International Energy Agency (IEA), a Paris-based intergovernmental organisation, global data centre electricity consumption is projected to more than double from about 415 TWh in 2024 to around 945 TWh by 2030, driven largely by AI-optimised workloads. Therefore, the rising adoption of AI workloads is driving the growth of the thermal energy storage for artificial intelligence (AI) data centers market.

The increasing adoption of cloud computing is expected to propel the growth of the thermal energy storage for artificial intelligence (AI) data centers market in the coming years. Cloud computing refers to the delivery of computing resources such as servers, storage, databases, networking, software, and analytics over the internet, providing faster innovation, flexible resources, and economies of scale. The adoption of cloud computing is driven by scalability, as it enables businesses to adjust computing resources based on demand while reducing infrastructure costs. Thermal energy storage for artificial intelligence (AI) data centers supports cloud computing by ensuring efficient cooling, reducing energy consumption, and maintaining optimal operating conditions for servers. It enhances the reliability, performance, and scalability of cloud-based services. For instance, in December 2023, according to Eurostat, a Luxembourg-based government organization, 45.2% of enterprises across the European Union purchased cloud computing services, with 77.6% of large enterprises, 59% of medium-sized enterprises, and 41.7% of small businesses adopting cloud services. Therefore, the increasing adoption of cloud computing is driving the growth of the thermal energy storage for artificial intelligence (AI) data centers market.

Major companies operating in the thermal energy storage for artificial intelligence (AI) data centers market are focusing on developing advanced products, such as non-flammable cold thermal energy storage (CTES) systems, to accelerate grid connection, increase computing capacity, and reduce deployment time and risks. Non-flammable CTES systems are energy storage solutions that use water as a medium to store and discharge cooling energy, providing a safer alternative to chemical batteries. For instance, in November 2025, Nostromo Energy, a US-based energy storage company, launched IceBrick360, a patented CTES system specifically engineered for high-demand data centers. The system is designed to shift a significant portion of cooling energy demand, representing 10-30% of a data center's peak electrical load, to off-peak hours by charging when electricity is inexpensive and discharging stored cooling energy during peak demand, enabling immediate load curtailment for the grid. It provides a large 360TRh capacity per unit for major cooling requirements, a 10-year warranty, more than 20 years of daily operation with virtually zero degradation, and automated integration with utility signals for demand-response markets.

Major companies operating in the thermal energy storage for artificial intelligence (AI) data centers market are Siemens Energy AG, Johnson Controls International plc, Carrier Global Corporation, Trane Technologies plc, Energy Vault Holdings Inc., Antora Energy Inc., PLUSS Advanced Technologies Pvt Ltd., Steffes Corporation, MGA Thermal Pty Ltd., Electrified Thermal Solutions Inc., Sunamp Ltd., Exowatt Inc., Rondo Energy Inc., Malta Inc., Knode Pty Ltd., Nostromo Energy Ltd., EnergyNest AS, Advanced Cooling Technologies Inc., Kraftblock GmbH, Fourth Power Inc.

North America was the largest region in the thermal energy storage for AI data centers market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the thermal energy storage for artificial intelligence (AI) data centers market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the thermal energy storage for artificial intelligence (AI) data centers market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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