Data Center Cooling Market Size Predicted to Hit USD 80.1 billion by 2033 at 15.7% CAGR, Says AMR

Rising demand for efficient, cost-effective, and eco-friendly data centers, along with increasing power density, fuels data center cooling market growth.

WILMINGTON, DE, UNITED STATES, February 22, 2025 /EINPresswire.com/ -- According to the report, the global data center cooling market was pegged at $10.54 billion in 2019 and is projected to reach $27.30 billion by 2027, registering a CAGR of 12.8% during the forecast period.

Growing demand for efficient and cost-effective data centers, green initiatives for eco-friendly data center solutions, and significant growth in data center and power density drive the growth of the global data center cooling market. However, need of specialized infrastructure and high investment cost and cooling challenges during power outage restrain the market. Moreover, advent of liquid-based cooling and portable cooling technology and growing need for modular data center cooling approach are anticipated to present lucrative opportunities for the market players in the near future.

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Data Center Cooling refers to the technologies and systems used to regulate temperature, humidity, and airflow in data centers to prevent overheating and ensure optimal performance of IT equipment. It includes methods like air conditioning, liquid cooling, free cooling, and evaporative cooling to enhance energy efficiency and maintain reliability.

The integration of cooling into data center management is paving the way for fully automated, robot-driven environments. With access to vast computing resources, enterprises and consumers can now achieve tasks that were unimaginable just a few years ago. Additionally, social, mobility, and analytics trends are driven by cooling and cloud technologies.

Enterprises are adopting Robotic Process Automation (RPA) in data centers to enhance agility, elasticity, and self-service. Cooling and automation augment many human roles, though human interaction remains essential in the data center cooling industry.

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The advancement of smart data centers through cooling automation and the increasing adoption of data center services are driving market growth. Additionally, growing cooling adoption across various industries fuels demand.

However, challenges such as a lack of technical expertise, low awareness, and rising security and privacy concerns may hinder market expansion. On the other hand, the increasing integration of AI, ML, and IoT presents lucrative opportunities for market growth and expansion.

Based on components, the solution segmented dominated the market in 2019, accounting for more than two-fifths of the global data center cooling market. The increase in adoption of data center cooling as it offers, energy-efficient, environment-friendly, and cost-effective cooling solutions drive the segment growth. In addition, stringent environmental safety rules imposed by various governments further augment the growth of this segment. However, the services segment is projected to showcase the fastest CAGR of 14.6% during the forecast period. Data centers are required to be maintained by trained professionals to keep efficiency intact. Moreover, the rapid growth in data centers, service providers for services such as installation & deployment, support & maintenance, and consulting for data center cooling further drive the growth of the segment.

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Based on type of cooling, the room-based cooling segment held the largest share in 2019, contributing nearly half of the global data center cooling market, owing to less capital cost as requirement of number of piping and cooling units are less. However, the rack-based cooling segment is projected to register the fastest CAGR of 15.4% through 2027, owing to extreme density capability of rack-based cooling. In addition, rack-based cooling reduces airflow path length of CRAH fan resulting in increased operational efficiency along with energy efficiency.

The market across North America held the largest share in 2019, with nearly half of the global data center cooling market, and would lead the trail by 2027. North America is the world's biggest hub for software companies and offers data storage facilities worldwide. Therefore, with growth in number of data centers, the requirement for cooling systems is also expected to increase to maintain HVAC level of data centers and support data center operations. However, the market across Asia-Pacific region is projected to register the fastest CAGR of 16.9% during the forecast period. China & India has a tremendous potential for growth in the data center cooling market, due to rapid industrialization. Furthermore, increase in number of data centers boosts the data center cooling market in this region.

Key Market Players in the industry-

Hitachi, Ltd.
Nortek Air Solutions
Rittal GmbH & Co. KG
STULZ GmbH
Schneider Electric
Vertiv Co.
Asetek
Airedale International Air Conditioning
Black Box Corporation
Fujitsu Limited

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