PUBLISHER: Grand View Research | PRODUCT CODE: 1728042
PUBLISHER: Grand View Research | PRODUCT CODE: 1728042
The global data center cooling market size is estimated to reach USD 56.15 billion by 2030, registering to grow at a CAGR of 16.4% from 2025 to 2030 according to a new report by Grand View Research, Inc. The market is expected to witness substantial growth on account of the need for enhanced cooling techniques to negate the scorching heat due to rising global temperatures. An increasing number of data center facilities worldwide is fueling market growth. In addition, a gradual shift toward cloud services is creating a rise in demand for eco-friendly cooling technology. Favorable initiatives by governing bodies across the globe that are focused on promoting cloud proliferation are driving demand for data centers, subsequently developing the sense of direction for the data center cooling industry.
For instance, the United Arab Emirates (UAE) funded several projects related to cloud computing, such as Smart Abu Dhabi or Smart Dubai. These projects were aimed at bringing in rapid digital transformation among enterprises while backing countries' economic growth. Such initiatives by different governments across the globe are expected to augment the usage of data centers, thereby supporting the demand for cooling solutions. The solution component segment led the market in 2024. The integration of data center cooling solutions with modern technologies, such as IoT sensors, enables the real-time monitoring of environmental conditions. The incorporation of AI further improves the role of air conditioners.
AI algorithms can evaluate data trends, forecast heat loads, and alter cooling parameters continuously for optimal effectiveness. Smart controls enable proactive modifications, improving cooling performance and enhancing overall data center efficiency. However, data center expansion is often associated with high CO2 emissions and increased energy usage. Furthermore, these cooling solutions are estimated to account for 35% of the total energy consumption in data center facilities. Therefore, vendors in this space are focused on introducing sustainable cooling solutions while attempting to save over 70% of the cost associated with cooling. For example, Apple's North Carolina data center facility functions on sustainable power sources, and data center cooling is attained through the free air cooling technique, allowing the chillers to be off almost 80% of the time.
In addition, there is growing pressure from local and federal government agencies, environmentalists, and the public on organizations to implement green initiatives. Hence, the increasing demand for eco-friendly and cost-effective cooling solutions is most likely to propel the industry growth.The precision air conditioners segment is expected to have the highest CAGR from 2025 to 2030. The global expansion of digital infrastructure, particularly in developing nations, is opening new avenues for the use of precision air conditioners. As data center operations expand globally, there is a growing need for accurate and effective cooling solutions. Precision air conditioners can address these demands and build a strong presence in emerging data center industries.
However, high maintenance and installation costs, carbon emissions, and electricity consumption are some of the challenges affecting the market growth. The market is consolidated and characterized by high competition. These global players focus on introducing different data center cooling techniques to strengthen their market presence. In May 2023, Vertiv Group Corp. unveiled a liquid cooling distribution unit. In air-cooled data centers, methods such as direct-to-chip liquid cooling can be implemented thanks to the Liebert XDU, which was introduced in the US in 2019. Europe, the Middle East, and Africa can now purchase it. Water efficiency and support for high-density data centers running analytics and machine learning applications are key architectural features of the XDU. There are two capacities available: 450kW and a variant with a maximum capacity of 1368kW.