Data Center Cooling Market size was valued at USD 21.2 billion in 2024 and is expected to cross USD 135.15 billion by the end of 2037, expanding at more than 15.1% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of data center cooling is estimated at USD 23.79 billion.
The growth of the market can be attributed to the growth in a number of data centers. In the entire world, there are about 7,999 data centers. Approximately 30% of the data centers among them are situated in the US. Hence, the demand for data center cooling is estimated to increase.
Moreover, there has been growth in data generated all across the world. Global data production is predicted to reach about 462 exabytes per day by 2025. Additionally, the higher data volumes brought on by the increased use of OTT and video streaming have fuelled market growth. Further, the demand for efficient cooling systems for data centers would rise as a result of the rising amount of data produced by online streaming services such as Disney+ Hotstar, Hulu, and Netflix.
Growth Drivers
Challenges
Base Year |
2024 |
Forecast Year |
2025 – 2037 |
CAGR |
15.1% |
Base Year Market Size (2024) |
USD 21.2 billion |
Forecast Year Market Size (2037) |
USD 135.15 billion |
Regional Scope |
|
End-User (BFSI, IT & Telecom, Manufacturing, Retail, Healthcare)
The IT & telecom segment in the data center cooling market is anticipated to garner the highest revenue of 30% by the end of 2037. Depending on the size of the business, the IT industry requires hyperscale data centers and on-premise private data storage for its operations. Also, since SaaS providers have multiplied over time, cloud storage has become more widely used. For instance, currently, there are about 29,999 or so forecast estimates, and many SaaS businesses operating worldwide.
Data Center Type (Large, Medium, Small-Scale DC)
Data center cooling market from the large-scale DC segment is anticipated to have significant growth over the projection period. A large-scale data center, also known as a hyperscale data center, is a crucial infrastructure that enables powerful and scalable applications. Large businesses with significant data processing and storage needs are frequently linked to hyperscale data centers. Moreover, large amounts of electricity are used to tunnel servers and cool systems in large-scale data centers. Hence, this factor is estimated to boost the demand for data center cooling.
Our in-depth analysis of the global market includes the following segments:
Product |
|
Data Center Type |
|
Cooling Technique |
|
End-User |
|
APAC Market Forecast
The data center cooling market in the Asia Pacific region is predicted to witness the largest revenue share of 33% during the forecast period. The introduction of 5G technologies as well as cutting-edge technologies such as the big data, AL & ML, and digitalization are the factors that are driving the Asia Pacific data centers cooling market. In 2030, 5G will boost the APAC economy by more than USD 133 billion. By 2030, 5G will mostly benefit the services (42%) and manufacturing (34%) sectors of the economy thanks to use cases in smart factories, smart cities, and the smart grid.
North America Market Statistics
In the North American region, the data center cooling market is estimated to hold a noteworthy revenue share during the projection period. Given the presence of tech behemoths like Facebook, Amazon Inc., and Google Inc. in the area, new technology-based solutions are expected to be adopted more maturely. The area is home to a sizable number of data centers that are distinguished by the existence of several IT businesses, opening doors for the data center cooling solutions market in the upcoming times.
Author Credits: Abhishek Verma
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