PUBLISHER: MarketsandMarkets | PRODUCT CODE: 2112300
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 2112300
The global data center cooling market is projected to grow from USD 13.23 billion in 2026 to USD 37.62 billion by 2033, at a CAGR of 16.1% over the forecast period.
| Scope of the Report | |
|---|---|
| Years Considered for the Study | 2021-2033 |
| Base Year | 2025 |
| Forecast Period | 2026-2033 |
| Units Considered | Value (USD Million/Billion) |
| Segments | Component, Solutions, Type of Cooling, Technology, Data Center Type, End-use Industry, and Region |
| Regions covered | Asia Pacific, Europe, North America, the Middle East & Africa, and Latin America |
The market is driven by the need to improve data center efficiency and the growing number of data centers across end-use industries, including IT & telecom, BFSI, government & defense, research & academic, healthcare, manufacturing, retail, energy, and other industries.

"Government & defense segment, by end-use industry, is projected to account for the largest share of the market during the forecast period."
The government & defense segment, by industry, is projected to account for the largest share of the data center cooling market over the forecast period. This growth is driven by rising investments in secure, mission-critical digital infrastructure, the modernization of government IT systems, and the growing adoption of artificial intelligence (AI), high-performance computing (HPC), and cloud technologies across defense and public-sector organizations. Government agencies and defense organizations require highly reliable data centers that support sensitive workloads, ensure uninterrupted operations, and meet stringent security and regulatory requirements, thereby driving demand for advanced cooling solutions.
As governments continue to expand digital infrastructure and invest in next-generation computing capabilities, the need for energy-efficient, high-performance cooling systems is expected to grow. Advanced cooling technologies help maintain optimal operating conditions, improve energy efficiency, reduce downtime, and support the reliable operation of mission-critical applications, making them essential for modern government and defense data centers.
"Hardware, by solution, is estimated to account for the largest share of the data center cooling market during the forecast period."
The hardware segment, by solution, is projected to hold the largest share of the data center cooling market over the forecast period. This dominance is driven by ongoing investments in cooling infrastructure, including air conditioning systems, chillers, cooling towers, liquid cooling systems, economizer systems, and control systems, to support the growing global deployment of data centers. Rapid growth in artificial intelligence (AI), cloud computing, and high-performance computing (HPC) workloads is increasing demand for advanced cooling hardware capable of handling higher rack densities and greater heat loads. As hyperscale, colocation, and enterprise data centers continue to expand and modernize, investments in energy-efficient cooling equipment are expected to remain strong, supporting the hardware segment's leading position throughout the forecast period.
Vertiv Group Corp. (US), Schneider Electric (France), Daikin Industries Ltd. (Japan), Johnson Controls, Inc. (US), and Carrier (US) are among the major players in the data center cooling market. These companies have pursued strategies such as acquisitions, expansions, partnerships, and agreements to increase their market share and revenue.
The report defines, segments, and projects the data center cooling market by data center type, cooling type, service, solution, end-use industry, component, and region. It provides detailed information on the key factors influencing market growth, including drivers, restraints, opportunities, and challenges. It profiles data center cooling manufacturers, analyzes their market shares and core competencies, and tracks and analyzes competitive developments, such as expansions, partnerships, and product launches, undertaken by them in the market.
The report is expected to help market leaders and new entrants by providing the closest approximations of revenue figures for the data center cooling market and its segments. It is also expected to help stakeholders gain a clearer understanding of the competitive landscape, derive insights to strengthen their business positions, and develop suitable go-to-market strategies. It also enables stakeholders to understand the pulse of the market and provides information on key market drivers, restraints, challenges, and opportunities.