Data Center Cooling Market to Reach USD 79.64 Billion by 2036 | CAGR 14.0%

The global data center cooling market was valued at USD 18.84 billion in 2025 and is expected to reach USD 79.64 billion by 2036, growing at an annual rate of 14.0% over the period from 2026 to 2036. This expansion is being driven by the rapid deployment of artificial intelligence, the integration of high-performance computing, the continued buildout of hyperscale data centers, and the growing need for cooling solutions that can handle intense thermal loads without consuming excessive amounts of energy.

Market Overview

Data center cooling systems have always been critical, but the stakes have risen considerably in recent years. As cloud adoption becomes universal, generative AI workloads multiply, and edge computing spreads, the amount of heat generated per rack has climbed dramatically. This increase in rack power density means that older air-based cooling approaches are increasingly inadequate, and more advanced thermal management infrastructure has become essential rather than optional.

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Operators are responding by investing in energy-efficient chillers, liquid cooling systems, AI-driven thermal optimization tools, and cooling architectures designed with sustainability in mind. The goals are straightforward: keep systems running reliably, reduce power usage effectiveness, and meet the carbon reduction targets that investors, regulators, and customers are all beginning to demand.

Adoption of Advanced & Sustainable Cooling Technologies

The industry is in the middle of a significant technological shift. Traditional air-based cooling, which has been the standard for decades, is giving way to liquid-based and immersion cooling solutions that are better suited to the thermal demands of AI servers and GPU-intensive workloads. Smart monitoring systems that track temperature in real time, AI-powered predictive maintenance that catches problems before they cause outages, and modular cooling units that can be deployed quickly as capacity needs change are all becoming standard practice rather than experimental technology.

Hyperscale operators, who run some of the largest and most demanding data center environments in the world, are investing heavily in scalable, high-capacity cooling infrastructure capable of supporting the explosive growth in AI and cloud data traffic they are seeing.

Key Market Trends

Several clear trends are shaping the market. There is a rapid shift underway toward liquid and immersion cooling technologies as operators look for ways to manage heat loads that air cooling simply cannot handle efficiently. AI-driven thermal management systems are being integrated into cooling infrastructure, allowing for more intelligent and responsive control. Sustainability and energy efficiency have moved from nice-to-have features to core design requirements, driven by both regulation and corporate climate commitments. Finally, modular and edge-ready cooling solutions are gaining traction as data centers become more distributed and operators need the flexibility to deploy capacity quickly in new locations.

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Regional Insights

North America leads the global market in 2026, reflecting the region's mature digital infrastructure and the strong presence of hyperscale operators in the United States and Canada. The concentration of major cloud providers and technology companies in this region creates sustained demand for advanced cooling solutions.

Asia-Pacific is expected to grow the fastest through 2036, driven by massive hyperscale investments across China, India, and Singapore. These markets are expanding data center capacity at an extraordinary pace to support both domestic demand and their growing role in the global cloud infrastructure ecosystem. Europe continues to see steady expansion, supported by stringent sustainability mandates that push operators toward more energy-efficient cooling technologies and by the region's strong engineering capabilities.

Market Drivers

Multiple factors are converging to drive this market forward. AI, cloud computing, and high-performance computing workloads are growing explosively, and each of these generates significantly more heat than traditional enterprise applications. Global data traffic keeps climbing, which translates directly into higher rack densities and more demanding cooling requirements. The focus on green data centers and carbon neutrality has shifted from a voluntary corporate initiative to a competitive necessity in many markets. Meanwhile, the ongoing expansion of hyperscale and colocation facilities creates baseline demand for cooling infrastructure that shows no signs of slowing.

Market Opportunities

Looking ahead, several areas offer particularly strong growth potential. Liquid-to-chip and immersion cooling innovations are opening up new ways to manage thermal loads that were previously impractical. The expansion of edge data centers, which need to operate reliably in a wider range of environments than centralized facilities, is creating demand for cooling solutions designed specifically for these conditions. AI-powered predictive thermal analytics are helping operators optimize their cooling infrastructure in real time and catch problems before they escalate. Finally, modular cooling infrastructure designed for rapid deployment is finding strong demand in emerging markets where data center capacity is being built out quickly.

Component Insights

The solutions segment holds the largest share of the market in 2026, which makes sense given the scale of investment in chillers and cooling system deployments happening across the industry. The services segment is growing rapidly as well, driven by increasing demand for maintenance, retrofitting older facilities with more efficient systems, and ongoing optimization of cooling performance.

Cooling Technique Insights

Air-based cooling still dominates in 2026 due to the widespread deployment of computer room air conditioning and computer room air handler units, which remain the standard in many facilities. However, liquid-based cooling is projected to grow at the fastest rate going forward. The reason is straightforward: as AI-driven workloads push rack densities higher, liquid cooling becomes not just more efficient but often the only practical option for maintaining acceptable operating temperatures.

Data Center Type Insights

The hyperscale segment leads the market in 2026, reflecting the enormous cloud and AI workloads these facilities handle. Colocation facilities are expected to grow steadily as well, driven by enterprises that want access to professional-grade infrastructure without having to build and operate it themselves.

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Key Players

The major companies operating in this market include Vertiv Holdings, Schneider Electric, Johnson Controls International, Stulz, Mitsubishi Electric Corporation, Rittal, LiquidStack, Submer, Green Revolution Cooling, and Iceotope Technologies Limited.

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