Press release
Global Data Center Cooling Market Outlook 2025-2034: Trends, Innovations, And Future Outlook
Data Center Cooling
What Is the Expected Data Center Cooling Market Size During the Forecast Period?
In recent times, the size of the data center cooling market has seen quick expansion. Projected to escalate from $16.97 billion in 2024 to $19.74 billion in 2025, it has a strong compound annual growth rate (CAGR) of 16.3%. The accelerated growth during the historic period is due to factors like the swift proliferation of data centers, high-density computing, apprehensions about energy efficiency, regulatory adherence, globalized data storage, and an upsurge in heat load per rack.
Forecasts indicate a rapid expansion in the size of the data center cooling market over the coming years. The projection puts the value at $37.51 billion by 2029, representing a compound annual growth rate (CAGR) of 17.4%. This development during the forecast period can be linked to various factors such as integration of renewable energy, emphasis on water conservation, heat recovery systems, modular data center solutions, and the incorporation of immersive cooling. Significant trends anticipated within this timeframe include the adoption of liquid cooling solutions, the application of free cooling techniques, AI-powered cooling management, high-density cooling systems, edge data center cooling solutions, and the emergence of cooling-as-a-service models.
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What Are the High-Growth Segments in the Data Center Cooling Market?
The data center cooling market covered in this report is segmented -
1) By Data Centre Type: Large Data Centers, Enterprise Data Centers, Mid-Sized Data Centers
2) By Cooling Technology: Rack Or Row-Based, Room-Based
3) By Component: Solution, Service
4) By Industry: Banking, Financial Services And Insurance (BFSI), Information Technology (IT) And Telecom, Research And Academic, Government And Defense, Retail, Energy, Manufacturing, Healthcare, Other Industries
Subsegments:
1) By Large Data Centers: Hyperscale Data Centers, Cloud Data Centers, Co-Location Data Centers
2) By Enterprise Data Centers: Private Enterprise Data Centers, In-House Data Centers
3) By Mid-Sized Data Centers: Edge Data Centers, Regional Data Centers
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What Key Drivers Are Expected to Influence Future Data Center Cooling Market Growth?
The anticipated increase in global temperatures is predicted to be a crucial factor in propelling the expansion of the data center cooling market during the forecast period. The rise in global temperatures can be attributed to several elements such as heightened greenhouse gas emissions due to human activity, deforestation, industrial procedures, and the burning of fossil fuels. These factors intensify the greenhouse effect, causing heat to be trapped within the Earth's atmosphere. Data center cooling mechanisms play an increasingly vital role in mitigating these temperature increases. They ensure ideal operational conditions for servers and stave off overheating in high-energy consumption establishments. For example, in June 2023, a report by the National Oceanic and Atmospheric Administration (NOAA) National Centers for Environmental Information, a reputable organization providing reliable data on climate, weather, and environment, indicated that the global surface temperatures noted by NOAA were 1.00 °C (1.80 °F) above average. This marked it as the fourth warmest April in their 174-year record, a notable rise from the previous year's temperature of 0.85 °C (1.53 °F) in April. Therefore, the continued increase in global temperatures will bolster the demand for data center cooling in the future.
Which Companies Hold the Largest Share Across Different Data Center Cooling Market Segments?
Major companies operating in the data center cooling market include 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.
What Are the Latest Developing Trends in the Data Center Cooling Market?
In an effort to enhance their market profitability, leading firms in the data center cooling industry are introducing innovative products such as immersion cooling fluids. Known alternatively as dielectric fluids or coolants, these specialized liquids are utilized in immersion cooling systems inside data centers to absorb and dissipate heat produced by electronic parts, servers, and other IT hardware. For instance, the US-based natural gas company ExxonMobil Corporation introduced its own version of these fluids in October 2023. The firm's data center cooling fluids have been specifically designed to optimize energy efficiency and performance and come in a wide range of synthetic and non-synthetic options, each possessing different thermal capacities. Crafted to have lower viscosity for better heat removal, the fluids are compatible with a variety of materials, thereby supporting extended equipment lifespan. Immersion cooling fluids play a crucial role in data center liquid cooling, with their usage aimed at improving energy efficiency, minimizing water use, and boosting rack density, all contributing to a potential reduction of up to 40% in the overall cost of IT equipment ownership.
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What Are the Emerging Geographies for The Data Center Cooling Market Growth?
Asia-Pacific was the largest region in the data center cooling market in 2024. 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, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Data Center Cooling Market?
2. What is the CAGR expected in the Data Center Cooling Market?
3. What Are the Key Innovations Transforming the Data Center Cooling Industry?
4. Which Region Is Leading the Data Center Cooling Market?
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