Press release
Steady Expansion Forecast for Data Center Cooling Market, Projected to Reach $37.51 Billion by 2029
Data Center Cooling Market
Data Center Cooling Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
The size of the market for data center cooling has expanded significantly in the recent past. The market is projected to increase from a worth of $16.97 billion in 2024, to a value of $19.74 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 16.3%. The historical progression can be credited to factors such as quick expansion of data centers, high-density computing, issues related to energy efficiency, regulatory adherence, the internationalization of data storage as well as raised heat load per rack.
Data Center Cooling Market Size Forecast: What's the Projected Valuation by 2029?
The size of the data center cooling market is projected to experience substantial growth over the next several years. The market value is predicted to reach $37.51 billion by 2029, with a compound annual growth rate (CAGR) of 17.4%. Factors contributing to this anticipated growth during the forecast period include the integration of renewable energy, emphasis on water conservation, the introduction of heat recovery systems and modular data center solutions, along with the integration of immersive cooling. Key trends during the forecast period comprise liquid cooling solutions, use of free cooling techniques, AI-driven cooling management, high-density cooling systems, edging data center cooling solutions, and the adoption of cooling-as-a-service models.
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What Are the Drivers Transforming the Data Center Cooling Market?
The projected growth of the data center cooling market is largely due to the increasing global temperatures. These rising temperatures are a result of factors such as elevated greenhouse gas emissions due to human-related activities, deforestation, industrial processes, and burning of fossil fuels, all of which contribute to the enhancement of the greenhouse effect causing heat to be trapped in the Earth's atmosphere. As global temperatures rise, the need for data center cooling systems to sustain acceptable operational conditions for servers and to prevent overheating in high-energy consumption facilities becomes more critical. For example, in June 2023, a US-based organization, the National Oceanic and Atmospheric Administration (NOAA) National Centers for Environmental Information which offers authoritative climate, weather, and environmental data, reported in their publication that the global surface temperatures recorded by NOAA were 1.00 °C (1.80 °F) above the average temperature, establishing April as the fourth-warmest in their 174-year record. This was a significant increase from a temperature of 0.85 °C (1.53 °F) reported in April 2022. Hence, the increasing global temperatures are set to boost the need for data center cooling in the future.
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What Long-Term Trends Will Define the Future of the Data Center Cooling Market?
Leading businesses involved in the data center cooling sector are introducing new products like immersion cooling fluids to improve their market profitability. These fluids, also often called coolants or dielectric fluids, are specialized liquids used within immersion cooling systems to absorb and eliminate heat produced by electronic components including servers and other IT hardware. To illustrate, in October 2023, the US-based natural gas company, ExxonMobil Corporation, rolled out data center immersion cooling fluids. The cooling fluids from ExxonMobil, focused on energy efficiency and performance, provide a wide range of synthetic and non-synthetic variants with different thermal capacities. They are specifically crafted to deliver lower viscosity for effective heat extraction, ensuring compatibility with a variety of materials, endorsing longevity of equipment. These immersion cooling fluids are crucial for liquid cooling in data centers and are intended to boost energy efficiency, lower water usage, and amplify rack density, leading to an alleged reduction in total cost of ownership for IT equipment by up to 40%.
Which Segments in the Data Center Cooling Market Offer the Most Profit Potential?
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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Which Firms Dominate the Data Center Cooling Market by Market Share and Revenue in 2025?
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.
Which Regions Offer the Highest Growth Potential in the Data Center Cooling Market?
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.
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