Asia-Pacific Data Center Cooling Market: Focus on Product, Application, and Country-Level Analysis

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Introduction to Asia-Pacific Data Center Cooling Market

The Asia-Pacific data center cooling market is projected to reach $41.10 billion by 2035 from $9.46 billion in 2024, growing at a CAGR of 13.61% during the forecast period 2025-2035. Advanced data centre cooling solutions are becoming more and more necessary as APAC's digital infrastructure, cloud use, and data generation all rise. Effective cooling solutions are essential to maintaining equipment longevity and uptime as workloads related to AI and high-performance computing increase. Sustainable, low-impact cooling technologies are becoming more popular as a result of regional governments enforcing stronger energy efficiency requirements, water usage caps, and refrigerant regulations. To meet national sustainability goals, nations like Singapore, Australia, and India are pushing for closed-loop systems, free cooling, and low-GWP refrigerants. Although innovation is speeding up the adoption of AI-driven airflow control, liquid cooling, and immersion systems, obstacles including high upfront costs and integration difficulties continue to be major obstacles. However, the drive for more eco-friendly and effective digital infrastructure is changing cooling tactics in data centres around Asia.

KEY MARKET STATISTICS
Forecast Period	2025 - 2035
2025 Evaluation	$11.47 Billion
2035 Forecast	$41.10 Billion
CAGR	13.61%

Market Introduction

The market for data centre cooling in Asia Pacific is expanding quickly due to the region's increased use of cloud computing, AI, and digital transformation. Effective and sustainable cooling solutions are now essential to maintaining uptime, performance, and regulatory compliance as data centre density rises and rack power levels climb from 10 kW to over 30 kW. In order to better handle increasing heat loads, operators are aggressively moving away from conventional CRAC/CRAH units and towards cutting-edge technologies like immersion cooling, rear-door heat exchangers, and direct-to-chip liquid cooling.

Data centre operators are being pushed to implement low-impact, closed-loop, and hybrid cooling systems by nations like Singapore, Australia, India, and Japan that are imposing tougher energy efficiency standards, water usage laws, and low-GWP refrigerant mandates. In order to increase energy efficiency and reduce PUE (Power Usage Effectiveness), AI-powered thermal management, modular cooling designs, and the usage of free cooling in appropriate regions are increasingly becoming more popular.

With the help of government incentives and sustainability standards, the market is still growing despite obstacles including high initial investment, complicated retrofits, and water scarcity in some areas. The APAC data centre cooling market is expected to grow quickly as environmental restrictions tighten and demand for high-performance computing increases, eventually becoming a vital component of green, future-ready digital infrastructure.

Market Segmentation

Segmentation 1: by End-Use Industry

IT and Telecom
Healthcare
Retail
Banking, Financial Services, and Insurance
Government and Public Sector
Manufacturing
Others

Segmentation 2: by Data Center Type

Centralized Data Center
- Hyperscale
- Colocation
- Enterprise
Edge Data Center

Segmentation 3: by Application Area

Artificial Intelligence (AI)
High-Performance Computing (HPC)
Cloud Computing
Edge Computing
Others

Segmentation 4: by Solution

Air Cooling
- Air Conditioner
- Air Handling Unit
- Chiller
- Cooling Tower
- Economizer System
- Others
Liquid Cooling
- Direct
- Rear Door Heat Exchangers (RDHX)
Free Cooling

Segmentation 5: by Rack Density

Low Rack Density (1-4 kW)
Medium Rack Density (5-9 kW)
High Rack Density (Above 9 kW)

Segmentation 6: by Region

Asia-Pacific

Market trends, Drivers and Challenges of APAC Data Center Cooling Market

Market Trends

Rapid adoption of liquid-cooling solutions (direct-to-chip, rear-door heat exchangers) to manage rising rack power densities.
Growth in immersion-cooling pilots, especially for high-performance computing and AI workloads.
Expansion of modular, prefabricated cooling units to accelerate deployment and scalability at edge sites.
Integration of AI/ML-driven monitoring and dynamic airflow management for predictive maintenance and efficiency gains.
Increasing use of free-cooling (air-side and water-side economizers) in temperate APAC climates to reduce chiller runtime.
Circular-economy initiatives: waste-heat recovery for district heating or facility reuse in mature markets.

Market Drivers

Escalating IT load per rack (from 10 kW to 30 kW+), necessitating more efficient thermal solutions.
Corporate net-zero and ESG targets prompting facility owners to minimize PUE and carbon footprints.
Stringent regional regulations on water use and refrigerant emissions, driving adoption of low-GWP coolants and closed-loop systems.
Demand for rapid deployment of hyperscale and edge data centers across Southeast Asia, India and Australia.
Rising electricity costs incentivizing operators to invest in energy-efficient chillers and airflow optimization.

Market Challenges

High initial CAPEX for advanced cooling technologies (liquid cooling, immersion systems) versus traditional CRAC units.
Water scarcity in certain APAC regions complicates adoption of water-cooled chillers and economizers.
Complex integration requirements when retrofitting legacy facilities with new cooling architectures.
Skills and talent shortages for design, installation and maintenance of specialized cooling systems.
Fragmented regulatory landscape across APAC, with varying standards for refrigerant handling, water discharge and energy efficiency.
Supply-chain constraints for critical components (heat exchangers, pumps, specialty coolants) amid global procurement pressures.

How can this report add value to an organization?

Product/Innovation Strategy: This report provides a comprehensive product/innovation strategy for the APAC data center cooling market, identifying opportunities for market entry, technology adoption, and sustainable growth. It offers actionable insights, helping organizations to meet environmental standards, gain a competitive edge, and capitalize on the increasing demand for eco-friendly solutions in various industries.

Growth/Marketing Strategy: This report offers a comprehensive growth and marketing strategy designed specifically for the APAC data center cooling market. It presents a targeted approach to identifying specialized market segments, establishing a competitive advantage, and implementing creative marketing initiatives aimed at optimizing market share and financial performance. By harnessing these strategic recommendations, organizations can elevate their market presence, seize emerging prospects, and efficiently propel revenue expansion.

Competitive Strategy: This report crafts a strong competitive strategy tailored to the APAC data center cooling market. It evaluates market rivals, suggests methods to stand out, and offers guidance for maintaining a competitive edge. By adhering to these strategic directives, companies can position themselves effectively in the face of market competition, ensuring sustained prosperity and profitability.

Key Market Players and Competition Synopsis

The companies that are profiled in the Asia-Pacific data center cooling market have been selected based on input gathered from primary experts and analyzing company coverage, product portfolio, and market penetration.

Some of the prominent names in this market are:

PEZY Computing K.K.
Fujitsu

Product Code: MS03131SS

Executive Summary

Scope and Definition

1 Markets

1.1 Trends: Current and Future Impact Assessment
- 1.1.1 Trends Shaping Data Center Cooling Market
- 1.1.2 Increase in Data Requirements
  - 1.1.2.1 Increasing Rack Power Density - New Data Center Reality
  - 1.1.2.2 5G Services to Drive Exponential Growth in Data Centers
- 1.1.3 Growth in Demand for Environment-Friendly Cooling Systems
  - 1.1.3.1 Carbon Neutrality
  - 1.1.3.2 Utilization of Renewable Energies
  - 1.1.3.3 Green Initiatives by Government Body
- 1.1.4 New Data Center Trends toward Adoption of Liquid Cooling, 2024-2034
  - 1.1.4.1 Case Study
    - 1.1.4.1.1 Immersion Cooling Technology
      - 1.1.4.1.1.1 HYDRA Immersion Cooling: Revolutionizing Data Centre Efficiency and Sustainability
      - 1.1.4.1.1.2 Advancing Thermal Efficiency: The Role of Liquid Immersion Cooling in Future Data Centers
- 1.1.5 Regional Overview of Evaporative Cooling Market for Data Center
  - 1.1.5.1 Asia-Pacific
1.2 Supply Chain Overview
- 1.2.1 Value Chain Analysis
- 1.2.2 Market Map
  - 1.2.2.1 Data Center Cooling Market - Product (by Solution)
    - 1.2.2.1.1 Air Cooling
    - 1.2.2.1.2 Liquid Cooling
1.3 Research and Development Review
- 1.3.1 Patent Filing Trend (by Country and Company)
1.4 Ecosystem and Ongoing Programs
- 1.4.1 Government Programs and Initiatives Landscape
  - 1.4.1.1 Asia-Pacific
  - 1.4.1.2 China
1.5 Market Dynamics Overview
- 1.5.1 Market Drivers
  - 1.5.1.1 High-Efficient Cooling Systems
    - 1.5.1.1.1 Emerging Technologies Promote Cost-Effectiveness
    - 1.5.1.1.2 AI-Assisted Automatic Cooling Control
    - 1.5.1.1.3 Power Usage Effectiveness (PUE) Optimization with Economic Cooling Solutions
  - 1.5.1.2 Increasing Number of Data Centers and Spendings
  - 1.5.1.3 Thermal Energy Recovery Conversion from Data Centers
  - 1.5.1.4 Water Usage Effectiveness Driving Adoption of Alternate Cooling Solutions
  - 1.5.1.5 Retrofitting to a Free Cooling Data Center
- 1.5.2 Market Restraints
  - 1.5.2.1 High Investment Costs for Non-Conventional Cooling Systems
  - 1.5.2.2 Technical Challenges to Cooling Systems
    - 1.5.2.2.1 Air and Free Cooling Systems Adaption Complexities
    - 1.5.2.2.2 Reliability Limitations with Immersion Liquid Cooling
- 1.5.3 Business Opportunities
  - 1.5.3.1 Growing Emphasis for Retrofit Data Center
  - 1.5.3.2 Data Center Infrastructure Management for Power Management
  - 1.5.3.3 Increasing Number of Distributed or Edge Data Centers
1.6 Key Start-Ups in the Data Center Cooling Market

2 Regions

2.1 Regional Summary
2.2 Asia-Pacific
- 2.2.1 Key Market Participants in Asia-Pacific
- 2.2.2 Business Drivers
- 2.2.3 Business Challenges
- 2.2.4 Application
- 2.2.5 Product
- 2.2.6 Asia-Pacific (By Country)
  - 2.2.6.1 China
    - 2.2.6.1.1 Application
    - 2.2.6.1.2 Product
  - 2.2.6.2 Japan
    - 2.2.6.2.1 Application
    - 2.2.6.2.2 Product
  - 2.2.6.3 Australia
    - 2.2.6.3.1 Application
    - 2.2.6.3.2 Product
  - 2.2.6.4 Singapore
    - 2.2.6.4.1 Application
    - 2.2.6.4.2 Product
  - 2.2.6.5 India
    - 2.2.6.5.1 Application
    - 2.2.6.5.2 Product
  - 2.2.6.6 Rest-of-Asia-Pacific
    - 2.2.6.6.1 Application
    - 2.2.6.6.2 Product

3 Competitive Benchmarking & Company Profiles

3.1 Next Frontiers
3.2 Geographic Assessment
3.3 Competitive Landscape
3.4 Company Profiles
- 3.4.1 PEZY Computing K.K.
  - 3.4.1.1 Overview
  - 3.4.1.2 Top Products/Product Portfolio
  - 3.4.1.3 Top Competitors
  - 3.4.1.4 Target Customers
  - 3.4.1.5 Key Personnel
  - 3.4.1.6 Analyst View
  - 3.4.1.7 Market Share, 2024
- 3.4.2 Fujitsu
  - 3.4.2.1 Overview
  - 3.4.2.2 Top Products/Product Portfolio
  - 3.4.2.3 Top Competitors
  - 3.4.2.4 Target Customers/End-Use Industries
  - 3.4.2.5 Key Personnel
  - 3.4.2.6 Analyst View
  - 3.4.2.7 Market Share, 2024

4 Research Methodology

4.1 Data Sources
- 4.1.1 Primary Data Sources
- 4.1.2 Secondary Data Sources
- 4.1.3 Data Triangulation
4.2 Market Estimation and Forecast

Product Code: MS03131SS

List of Figures

Figure 1: Data Center Cooling Market (by Region), $Billion, 2024, 2029, and 2035
Figure 2: Asia-Pacific Data Center Cooling Market (by End-Use Industry), $Billion 2024, 2029, and 2035
Figure 3: Asia-Pacific Data Center Cooling Market (by Data Center Type), $Billion, 2024, 2029, and 2035
Figure 4: Asia-Pacific Data Center Cooling Market (by Application Area), $Billion, 2024, 2029, and 2035
Figure 5: Asia-Pacific Data Center Cooling Market (by Solution), $Billion 2024, 2029, and 2035
Figure 6: Asia-Pacific Data Center Cooling Market (by Air Cooling), $Billion, 2024, 2029, and 2035
Figure 7: Asia-Pacific Data Center Cooling Market (by Liquid Cooling), $Billion, 2024, 2029, and 2035
Figure 8: Asia-Pacific Data Center Cooling Market (by Direct Liquid Cooling), $Billion, 2024, 2029, and 2035
Figure 9: Asia-Pacific Data Center Cooling Market (by Rack Density), $Billion, 2024, 2029, and 2035
Figure 10: Data Center Cooling Market, Recent Developments
Figure 11: Projected Growth in Data Center Power Demand (including and excluding AI), 2021-2030
Figure 12: Population Coverage by Technology, 2023 and 2029
Figure 13: Future Market Analysis: Estimated Share of Liquid Cooling Deployment in Data Centers with AI Workload Impact, 2024-2034
Figure 14: Asia-Pacific Evaporative Cooling Market for Data Center, $Million, 2024-2035
Figure 15: Supply Chain Analysis for Data Center Cooling Market
Figure 16: Patent Filed (by Country), January 2021-April 2025
Figure 17: Patent Filed (by Company), January 2021-April 2025
Figure 18: Impact Analysis of Data Center Cooling Market Navigating Factors, 2023-2034
Figure 19: Outages Costing over $1 Million Increasing, 2019-2024
Figure 20: Cost Comparison of Traditional Cooling vs. Liquid Cooling Systems
Figure 21: Information Technology (IT) Spending on Data Centers, 2012 to 2023
Figure 22: Water Utility and Wastewater Cost Comparison in Data Center
Figure 23: Improved PUE with Data Center's Free Cooling System Retrofit
Figure 24: Power Usage Efficiency Comparison
Figure 25: Suppliers' Expected Number of Edge Data Centers Expansion from 2021 to 2024
Figure 26: China Data Center Cooling Market, $Billion, 2024-2035
Figure 27: Japan Data Center Cooling Market, $Billion, 2024-2035
Figure 28: Australia Data Center Cooling Market, $Billion, 2024-2035
Figure 29: Singapore Data Center Cooling Market, $Billion, 2024-2035
Figure 30: India Data Center Cooling Market, $Billion, 2024-2035
Figure 31: Rest-of-Asia-Pacific Data Center Cooling Market, $Billion, 2024-2035
Figure 32: Strategic Initiatives, January 2021-July 2024
Figure 33: Share of Strategic Initiatives, January 2021-July 2024
Figure 34: Data Triangulation
Figure 35: Top-Down and Bottom-Up Approach
Figure 36: Assumptions and Limitations

List of Tables

Table 1: Market Snapshot
Table 2: Data Center Cooling Market, Opportunities
Table 3: Key Associations and Consortiums in the Data Center Cooling Market
Table 4: Government Programs and Initiatives Landscape
Table 5: Government Programs and Initiatives Landscape
Table 6: Claimed AI-Based Energy-Saving Effects for HVAC Systems across Different Companies
Table 7: Key Start-Ups in the Data Center Cooling Market
Table 8: Data Center Cooling Market (by Region), $Billion, 2024-2035
Table 9: Asia-Pacific Data Center Cooling Market (by End-Use Industry), $Billion, 2024-2035
Table 10: Asia-Pacific Data Center Cooling Market (by Data Center Type), $Billion, 2024-2035
Table 11: Asia-Pacific Data Center Cooling Market (by Centralized Data Center), $Billion, 2024-2035
Table 12: Asia-Pacific Data Center Cooling Market (by Application Area), $Billion, 2024-2035
Table 13: Asia-Pacific Data Center Cooling Market (by Solution), $Billion, 2024-2035
Table 14: Asia-Pacific Data Center Cooling Market (by Air Cooling), $Billion, 2024-2035
Table 15: Asia-Pacific Data Center Cooling Market (by Liquid Cooling), $Billion, 2024-2035
Table 16: Asia-Pacific Data Center Cooling Market (by Direct), $Billion, 2024-2035
Table 17: Asia-Pacific Data Center Cooling Market (by Rack Density), $Billion, 2024-2035
Table 18: China Data Center Cooling Market (by End-Use Industry), $Billion, 2024-2035
Table 19: China Data Center Cooling Market (by Data Center Type), $Billion, 2024-2035
Table 20: China Data Center Cooling Market (by Centralized Data Center), $Billion, 2024-2035
Table 21: China Data Center Cooling Market (by Application Area), $Billion, 2024-2035
Table 22: China Data Center Cooling Market (by Solution), $Billion, 2024-2035
Table 23: China Data Center Cooling Market (by Air Cooling), $Billion, 2024-2035
Table 24: China Data Center Cooling Market (by Liquid Cooling), $Billion, 2024-2035
Table 25: China Data Center Cooling Market (by Direct), $Billion, 2024-2035
Table 26: China Data Center Cooling Market (by Rack Density), $Billion, 2024-2035
Table 27: Japan Data Center Cooling Market (by End-Use Industry), $Billion, 2024-2035
Table 28: Japan Data Center Cooling Market (by Data Center Type), $Billion, 2024-2035
Table 29: Japan Data Center Cooling Market (by Centralized Data Center), $Billion, 2024-2035
Table 30: Japan Data Center Cooling Market (by Application Area), $Billion, 2024-2035
Table 31: Japan Data Center Cooling Market (by Solution), $Billion, 2024-2035
Table 32: Japan Data Center Cooling Market (by Air Cooling), $Billion, 2024-2035
Table 33: Japan Data Center Cooling Market (by Liquid Cooling), $Billion, 2024-2035
Table 34: Japan Data Center Cooling Market (by Direct), $Billion, 2024-2035
Table 35: Japan Data Center Cooling Market (by Rack Density), $Billion, 2024-2035
Table 36: Australia Data Center Cooling Market (by End-Use Industry), $Billion, 2024-2035
Table 37: Australia Data Center Cooling Market (by Data Center Type), $Billion, 2024-2035
Table 38: Australia Data Center Cooling Market (by Centralized Data Center), $Billion, 2024-2035
Table 39: Australia Data Center Cooling Market (by Application Area), $Billion, 2024-2035
Table 40: Australia Data Center Cooling Market (by Solution), $Billion, 2024-2035
Table 41: Australia Data Center Cooling Market (by Air Cooling), $Billion, 2024-2035
Table 42: Australia Data Center Cooling Market (by Liquid Cooling), $Billion, 2024-2035
Table 43: Australia Data Center Cooling Market (by Direct), $Billion, 2024-2035
Table 44: Australia Data Center Cooling Market (by Rack Density), $Billion, 2024-2035
Table 45: Singapore Data Center Cooling Market (by End-Use Industry), $Billion, 2024-2035
Table 46: Singapore Data Center Cooling Market (by Data Center Type), $Billion, 2024-2035
Table 47: Singapore Data Center Cooling Market (by Centralized Data Center), $Billion, 2024-2035
Table 48: Singapore Data Center Cooling Market (by Application Area), $Billion, 2024-2035
Table 49: Singapore Data Center Cooling Market (by Solution), $Billion, 2024-2035
Table 50: Singapore Data Center Cooling Market (by Air Cooling), $Billion, 2024-2035
Table 51: Singapore Data Center Cooling Market (by Liquid Cooling), $Billion, 2024-2035
Table 52: Singapore Data Center Cooling Market (by Direct), $Billion, 2024-2035
Table 53: Singapore Data Center Cooling Market (by Rack Density), $Billion, 2024-2035
Table 54: India Data Center Cooling Market (by End-Use Industry), $Billion, 2024-2035
Table 55: India Data Center Cooling Market (by Data Center Type), $Billion, 2024-2035
Table 56: India Data Center Cooling Market (by Centralized Data Center), $Billion, 2024-2035
Table 57: India Data Center Cooling Market (by Application Area), $Billion, 2024-2035
Table 58: India Data Center Cooling Market (by Solution), $Billion, 2024-2035
Table 59: India Data Center Cooling Market (by Air Cooling), $Billion, 2024-2035
Table 60: India Data Center Cooling Market (by Liquid Cooling), $Billion, 2024-2035
Table 61: India Data Center Cooling Market (by Direct), $Billion, 2024-2035
Table 62: India Data Center Cooling Market (by Rack Density), $Billion, 2024-2035
Table 63: Rest-of-Asia-Pacific Data Center Cooling Market (by End-Use Industry), $Billion, 2024-2035
Table 64: Rest-of-Asia-Pacific Data Center Cooling Market (by Data Center Type), $Billion, 2024-2035
Table 65: Rest-of-Asia-Pacific Data Center Cooling Market (by Centralized Data Center), $Billion, 2024-2035
Table 66: Rest-of-Asia-Pacific Data Center Cooling Market (by Application Area), $Billion, 2024-2035
Table 67: Rest-of-Asia-Pacific Data Center Cooling Market (by Solution), $Billion, 2024-2035
Table 68: Rest-of-Asia-Pacific Data Center Cooling Market (by Air Cooling), $Billion, 2024-2035
Table 69: Rest-of-Asia-Pacific Data Center Cooling Market (by Liquid Cooling), $Billion, 2024-2035
Table 70: Rest-of-Asia-Pacific Data Center Cooling Market (by Direct), $Billion, 2024-2035
Table 71: Rest-of-Asia-Pacific Data Center Cooling Market (by Rack Density), $Billion, 2024-2035
Table 72: Market Share, 2023

Asia-Pacific Data Center Cooling Market: Focus on Product, Application, and Country-Level Analysis - Analysis and Forecast, 2025-2035

Description

Table of Contents

List of Tables

Table of Contents

Executive Summary

1 Markets

2 Regions

3 Competitive Benchmarking & Company Profiles

4 Research Methodology

List of Figures

List of Tables