Press release
Data Center Chiller Market Heats Up: Expected to Reach USD 7.1 Billion by 2030, Accelerating at a 6.8% CAGR
The market, which was valued at an estimated USD 4.8 Billion in 2024, is projected to grow to USD 7.1 Billion by 2030. This growth represents a steady Compound Annual Growth Rate (CAGR) of 6.8% during the forecast period of 2024 to 2030, fueled by the relentless demand for computing power and energy-efficient operations.
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Key Market Drivers
The market's expansion is fundamentally linked to the proliferation of digital services and the escalating power density of servers:
• Hyperscale and Cloud Computing Surge: The exponential growth of cloud services, Artificial Intelligence (AI), and Big Data analytics necessitates the continuous construction and expansion of hyperscale data centers. These facilities require high-capacity, resilient chiller systems to manage extreme heat loads, driving significant market investment.
• Rising Rack Power Densities: Newer server hardware, particularly those using advanced GPUs and CPUs for AI and High-Performance Computing (HPC), generate dramatically higher heat per rack. This trend is pushing the limits of traditional air cooling, making high-efficiency chiller solutions a strategic imperative for thermal management.
• Focus on Energy Efficiency and Sustainability (ESG): Data centers consume vast amounts of energy, with cooling often accounting for up to 40% of operational power. Regulatory pressure and corporate sustainability goals (ESG) are driving demand for advanced, energy-efficient chillers, such as variable-speed centrifugal chillers and systems compatible with free cooling and liquid cooling, to lower the Power Usage Effectiveness (PUE).
• Grid Modernization and IoT Integration: The integration of chiller systems with IoT-enabled sensors and AI-driven controls allows for real-time thermal monitoring and predictive maintenance. This enhances operational efficiency, reduces downtime, and allows the cooling infrastructure to dynamically adapt to varying IT workloads and ambient conditions.
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Market Segmentation Highlights
Analysis of the market segments reveals a clear preference for efficiency and scale:
• By Chiller Type: Water-Cooled Chillers hold the largest market share, predominantly favored for their higher efficiency and scalability in large and hyperscale data center deployments. However, Air-Cooled Chillers remain essential for smaller facilities and regions where water conservation is a priority.
• By Cooling Technology: While traditional cooling methods persist, Centrifugal and Magnetic Bearing chillers are gaining traction due to their superior efficiency, especially in high-capacity requirements (Above 2,000 kW), which is the fastest-growing segment by capacity.
• By End-User: IT & Cloud data centers represent the largest end-use segment, contributing the highest demand, followed closely by Colocation Providers and the Telecom sector, which relies on chillers for maintaining network resilience.
Regional Analysis
• North America - Market Leader: North America continues to dominate the market, largely due to its high concentration of hyperscale cloud providers and consistent, massive investment in data center infrastructure, particularly in the US.
• Asia-Pacific - Fastest Growing: The Asia-Pacific region is projected to be the fastest-growing, driven by rapid digitalization, surging demand for local cloud services, and significant investment in new data center construction across key economies like China, India, and Japan.
• Europe: The European market is expanding steadily, motivated by stringent EU regulations and directives aimed at making data centers more energy-efficient and reducing their carbon footprint, thereby accelerating the adoption of green chiller technologies.
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Competitive Landscape
The Data Center Chiller Market is competitive, with key players focusing on innovation in energy efficiency and integration capabilities. Major competitors include HVAC giants and specialized cooling providers: Carrier, Johnson Controls, Schneider Electric, Vertiv, Siemens, Daikin Industries, and Mitsubishi Electric. Companies are investing heavily in R&D to launch modular chiller plants and systems optimized for liquid cooling architectures to handle the next generation of high-density AI infrastructure.
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