Data Center Cooling Market Size to Reach US$58.80 Billion by 2035 As US AI Workloads, Liquid Cooling and US Data Center Investments Accelerate

According to DataM Intelligence, The Data Center Cooling Market size reached USD 16.37 billion in 2025 and is projected to reach USD 58.80 billion by 2035, growing at a 14% CAGR during 2026 to 2035. The rapid expansion of AI workloads, cloud computing, hyperscale facilities, and high-density computing is increasing the need for advanced and energy-efficient cooling infrastructure.

As data centers handle increasingly intensive workloads, liquid cooling, hybrid cooling, and advanced thermal-management solutions are gaining greater attention. This shift is creating opportunities across cooling technologies, infrastructure upgrades, and energy-efficient data center operations, making cooling a critical component of next-generation digital infrastructure.

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2026 U.S. Data Center Cooling Industry Developments: AI Infrastructure, Liquid Cooling and Thermal Innovation

May 2026 - U.S. Department of Energy:

The DOE continued supporting advanced data-center cooling through initiatives focused on energy efficiency, water efficiency and next-generation cooling technologies. Its Data Center Cooling Collaborative is intended to accelerate the development and deployment of more efficient cooling systems.

June 2026 - Google:

Google introduced Brazos, a rack-mounted closed-loop liquid-to-air cooling system designed to bring liquid cooling into existing air-cooled data centers. The system is intended to enable high-density AI and HPC deployments without requiring a complete facility-wide conversion to chilled-water infrastructure.

July 2026 - Vertiv:

Vertiv highlighted the increasing importance of intelligent thermal management as AI rack densities move beyond 100 kW. Its technology development emphasizes real-time sensing, flow control and intelligent cooling optimization to maintain performance while managing energy consumption.

August 2026 - DOE COOLERCHIPS 1.5:

The U.S. Department of Energy announced continued funding and testing under COOLERCHIPS 1.5, targeting advanced water-free cooling technologies capable of handling heat loads of up to 1 MW per rack for AI applications. The program is focused on validating cooling systems that reduce energy and water requirements.

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Strategic Growth Landscape: M&A, AI Infrastructure Investment and Next-Generation Cooling Innovation

Mergers, Acquisitions & Strategic Expansion

United States:

The U.S. data-center cooling industry is attracting significant strategic investment as AI infrastructure requires increasingly sophisticated power and thermal-management systems. Eaton's acquisition of Boyd Thermal expanded its liquid-cooling capabilities, while SLB's announced US$4.1 billion acquisition of Kelvion demonstrates the growing strategic importance of cooling equipment as companies move into the data-center infrastructure sector.
The competitive landscape is therefore moving toward integrated solutions combining power distribution, cooling, thermal monitoring, liquid infrastructure and data-center engineering services.

Japan:

Japan provides opportunities for advanced cooling suppliers through its sophisticated electronics, semiconductor, cloud and high-performance computing ecosystem. Demand is increasingly centered on compact, energy-efficient and high-density cooling technologies capable of supporting advanced computing infrastructure.

AI Infrastructure & Liquid Cooling Innovation

United States:

AI workloads are increasing rack power density beyond the levels that conventional air cooling can efficiently handle. This is accelerating adoption of direct-to-chip liquid cooling, coolant distribution units, rear-door heat exchangers, immersion cooling and hybrid architectures. Vertiv notes that AI is driving rack density beyond 100 kW, while Google's Brazos system demonstrates an approach for integrating liquid cooling into existing air-cooled facilities.

Japan:

Japanese technology providers are increasingly focused on high-efficiency thermal management, liquid cooling, compact cooling systems and energy optimization for advanced computing environments. The combination of semiconductor development, AI adoption and high-performance computing is creating opportunities for next-generation thermal solutions.

Key Players and Strategic Positioning: Liquid Cooling, AI Infrastructure and Thermal Management Reshape the Data Center Cooling Market

The competitive landscape includes Vertiv, Schneider Electric, Eaton, Johnson Controls, STULZ, Rittal, Munters, CoolIT Systems, Asetek and Iceotope. Competition is increasingly focused on liquid cooling, high-density thermal management, modular infrastructure, energy efficiency, intelligent controls and integrated power-and-cooling systems.

Vertiv

Vertiv has a strong position in data-center thermal infrastructure, with solutions spanning precision cooling, direct-to-chip liquid cooling, coolant distribution units and modular cooling infrastructure. Its 2026 MegaMod HDX platform targets AI and HPC environments with rack densities above traditional air-cooling capabilities.

Schneider Electric

Schneider Electric provides integrated data-center infrastructure covering cooling, power management, monitoring and energy optimization. Its strategic positioning is supported by the industry's movement toward high-density AI infrastructure, where thermal management increasingly needs to be coordinated with power and facility design.

Eaton

Eaton is expanding its data-center thermal-management capabilities through its acquisition of Boyd Thermal, combining liquid-cooling expertise with Eaton's established electrical and power-management portfolio. This supports an integrated approach to infrastructure extending from power systems to chip-level thermal management.

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Market Segmentation Analysis: Liquid Cooling, High-Density Infrastructure and AI Workloads Shape Future Growth

By Component

The market includes Cooling Systems, Cooling Distribution Units, Chillers, Heat Exchangers, Air Conditioners and Cooling Towers. Cooling systems remain fundamental to facility operation, while CDUs and heat exchangers are becoming increasingly important for high-density liquid-cooled AI environments.

By Cooling Type

Key segments include Air Cooling, Liquid Cooling, Immersion Cooling and Hybrid Cooling. Air cooling remains widely deployed, while liquid and hybrid systems are gaining adoption as AI and HPC workloads increase rack-level thermal loads.

By Data Center Type

Major categories include Hyperscale Data Centers, Colocation Data Centers, Enterprise Data Centers and Edge Data Centers. Hyperscale and AI-focused facilities require increasingly advanced cooling infrastructure, while edge facilities favor compact and modular thermal-management solutions.

By Application

Key applications include AI & Machine Learning, Cloud Computing, High-Performance Computing, Enterprise IT and Telecommunications. AI and HPC are particularly important growth areas because GPU-intensive computing generates significantly higher heat loads than conventional workloads.

Regional Analysis US Data Center Cooling Market: AI Expansion, Hyperscale Investment and Liquid Cooling Adoption Across Key Markets

United States:

The U.S. is a major demand center for data-center cooling due to rapid expansion of AI infrastructure, hyperscale facilities, cloud computing and high-performance computing. Increasing rack power density is accelerating the transition toward liquid and hybrid cooling, while water and energy considerations are encouraging more efficient thermal-management systems.

Japan:

Japan's market is supported by AI computing, cloud infrastructure, semiconductor technology and enterprise digitalization. Data-center operators are increasingly interested in high-efficiency cooling technologies that can manage dense computing environments while improving energy performance and reducing facility constraints.

Germany:

Germany is supported by industrial digitalization, cloud infrastructure, HPC and energy-efficiency requirements. Demand for efficient cooling is increasing as operators seek to manage higher computing density while controlling energy consumption and addressing sustainability requirements.

South Korea:

South Korea benefits from its strong semiconductor, telecommunications, cloud and AI ecosystem. Increasing deployment of AI and high-performance computing infrastructure is supporting demand for advanced cooling, particularly liquid cooling, high-density thermal management and energy-efficient systems.

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