Data Center Cooling Market Analysis

Component Segment Analysis

Under the component segment, the solutions are leading the segment and are poised to hold the share value of 80.3% by 2035. The segment is driven by the continuous capital expenditure in new cooling hardware required for data center buildouts and high-density retrofits. The core growth is in the advanced liquid cooling systems, including direct-to-chip and immersion units, which are essential for modern AI clusters. The key statistical indicator from the OEC 2023 shows the scale of this hardware base. The U.S. imports of air conditioning machinery, a category that includes data center cooling units, were valued at over USD 14.3 billion, highlighting the huge global supply chain for cooling solutions. This import value indicates the sector's critical reliance on the global manufacturing and specialized components to meet the escalating demand.

Data Center Type Segment Analysis

The data center type segmentation analyzes cooling demand by facility scale and function, with hyperscale data centers being the leader and projected to hold the maximum share by 2035. The facilities operated by the cloud giants, such as Amazon, Microsoft, and Google, drive innovation and volume demand due to their unprecedented scale and power density. Their centralized procurement and operational focus on extreme energy efficiency make them the primary adopters of advanced sustainable cooling technologies. The data from the Invest UP in November 2022 indicates that the Uttar Pradesh Chief Minister Yogi Adityanath has inaugurated the hyperscale data center Yotta D1 in Noida. This development indicates the global expansion of hyperscale facilities, which are the primary engines of growth for the advanced, high-capacity cooling solutions worldwide.

Type of Cooling Segment Analysis

The type of cooling segment categorizing the core technological approach is undergoing a vital transformation, with liquid-based cooling rapidly ascending to become the leading sub-segment with the greatest revenue share by 2035. The segment is driven by the physical limitations of air in cooling AI servers and the high-performance computing racks. Liquid cooling via immersion or direct to chip methods offers an order of magnitude improvement in heat transfer efficiency, enabling higher compute densities while reducing the energy and water use. The U.S. Environmental Protection Agency’s Energy Star program highlights this technological pivot, indicating the servers capable of liquid cooling saw a dramatic increase in model availability, signaling a massive industry shift toward liquid-ready IT hardware.

Our in-depth analysis of the market includes the following segments: