Data center cooling refers to the systems and technologies used to maintain optimal temperatures in data centers, preventing overheating of servers and IT infrastructure. As global data consumption and cloud computing continue to surge, effective cooling has become essential for ensuring performance, reliability, and energy efficiency. It matters because without proper cooling, data centers face hardware failures, service disruptions, and increased energy costs. Moreover, sustainable cooling technologies are critical in reducing carbon footprints and supporting environmentally responsible digital infrastructure growth.
According to BIS Research, global data center cooling market was valued at $25.77 billion in 2024 and expected to reach $100.12 billion by 2035 at a CAGR of 12.55%.
• Rising demand for energy-efficient cooling in expanding data centers
• Advanced cooling tech lowers cost, energy use, and emissions footprint
• Liquid and AI-driven systems improve thermal control and performance
• Free cooling solutions gain traction for sustainable infrastructure goals
• High upfront costs hinder adoption of advanced cooling technologies
• Retrofitting old infrastructure poses technical and financial difficulties
• Immersion cooling risks include spills, corrosion, and microbial growth
• Free cooling demands location-specific conditions and large capital investment
• Air cooling systems are noisy, inefficient, and energy-intensive
• October 2024 – Schneider Electric acquired a 75% stake in Motivair for $850 million, expanding its liquid cooling and thermal management solutions for high-performance computing.
• June 2024 – Danfoss partnered with Hewlett Packard Enterprise (HPE) to implement heat reuse technology in modular data centers, aiming to boost energy efficiency and optimize power distribution.
• 2024 – Boyd Corporation acquired Durbin Group to strengthen its liquid cooling capabilities, addressing the thermal needs of AI and high-performance computing data centers.
• North America
• Europe
• Asia Pacific
• Rest of the World
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The data center cooling market is evolving rapidly, fueled by the need for greater energy efficiency, sustainable operations, and advanced thermal management. As server densities rise and heat loads increase, operators are turning to next-generation solutions like liquid and immersion cooling. Retrofitting existing facilities offers a practical path to improved efficiency without the expense of new buildings. The growing deployment of edge data centers and the adoption of DCIM tools are further accelerating this trend. While upfront costs remain a challenge, the pursuit of reliable, cost-efficient, and environmentally compliant cooling technologies continues to drive strong market momentum.
-BIS Research Analyst Team
The data center cooling market is expected to grow at a CAGR of 12.55% from 2025–2035.
Key leaders are Vertiv Group Corp., Schneider Electric, Asetek, Inc., Submer, Munters and others
Technologies in demand include liquid cooling, immersion cooling, free cooling, and AI-powered DCIM systems, all aimed at enhancing efficiency and sustainability.
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