Data Center Cooling System Global Market Insights 2025, Analysis and Forecast to 2030, by Manufacturers, Regions, Technology, Product Type

Data Center Cooling System Market Overview

The global data center cooling system market is poised for significant growth, driven by the increasing demand for efficient cooling solutions to support the expanding data center infrastructure. With the rise of cloud computing, big data, and IoT, data centers are under pressure to maintain optimal operating temperatures while minimizing energy consumption. The market is expected to grow at a compound annual growth rate (CAGR) of 12.5% from 2025 to 2030, reaching a market size of $20.5 billion by 2030.

Market Size and Share Analysis

In 2025, the global data center cooling system market is projected to be valued at $12.8 billion. The market is segmented by product type, process, application, end-use, and region. Among the product types, air cooling systems dominate the market, accounting for 45% of the total market share in 2025. Water cooling systems follow closely, holding a 35% share, while natural cooling systems are expected to grow at the fastest CAGR of 15% due to their energy efficiency and sustainability benefits.

Market Share by Product Type (2025)

• Air Cooling: 45%
• Water Cooling: 35%
• Natural Cooling: 20%

Key Players in the Market

The data center cooling system market is highly competitive, with key players such as Vertiv, Schneider Electric, Stulz, Nortek, Munters, Airedale, Mitsubishi Electric, DENCO/FlaktGroup, Silent-Aire, HiRef, Daikin, Data Aire, Citec, TECNAIR LV, Aermec, Delta Electronics, Envicool, Nanjing Canatal, Yimikang, Huawei, Sugon, Airsys, Iteaq, Shenzhen Kstar, and Kehua Hengsheng leading the industry. These companies are focusing on innovation, strategic partnerships, and mergers & acquisitions to strengthen their market position.

Market Trends and Drivers

The increasing adoption of liquid cooling solutions is one of the key trends in the market. Liquid cooling systems are gaining traction due to their ability to handle high-density workloads more efficiently than traditional air cooling systems. Additionally, the growing emphasis on sustainability and energy efficiency is driving the demand for natural cooling systems, which utilize outside air or evaporative cooling techniques to reduce energy consumption.

Another significant driver is the rapid expansion of hyperscale data centers, which require advanced cooling solutions to manage the heat generated by thousands of servers. The hyperscale data center segment is expected to grow at a CAGR of 14% from 2025 to 2030, further boosting the demand for innovative cooling technologies.

Market Segmentation by Process

The market is segmented by process into room-based cooling, rack-based cooling, and row-based cooling. In 2025, room-based cooling is expected to hold the largest market share of 50%, followed by rack-based cooling at 30%, and row-based cooling at 20%. However, rack-based cooling is anticipated to grow at the highest CAGR of 13% due to its ability to provide targeted cooling to high-density server racks.

Market Segmentation by End-Use

The end-use segment includes IT & telecom, BFSI, healthcare, government, and others. The IT & telecom sector is the largest end-user, accounting for 40% of the market share in 2025. The BFSI sector follows with a 25% share, driven by the increasing need for secure and reliable data storage solutions. The healthcare sector is expected to grow at a CAGR of 12%, fueled by the digital transformation of healthcare services and the need for efficient data management.

Regional Analysis

Geographically, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. North America is the largest market, holding a 35% share in 2025, driven by the presence of major data center operators and technological advancements. Asia-Pacific is expected to grow at the highest CAGR of 15%, fueled by the rapid expansion of data centers in countries like China, India, and Japan.

Market Share by Region (2025)

• North America: 35%
• Europe: 25%
• Asia-Pacific: 30%
• Latin America: 5%
• Middle East & Africa: 5%

Market News on Policy and Companies

Recent developments in the data center cooling system market include the introduction of new regulations aimed at reducing carbon emissions and promoting energy efficiency. For instance, the European Union's Energy Efficiency Directive has set stringent energy efficiency targets for data centers, encouraging the adoption of advanced cooling technologies.

On the corporate front, Vertiv recently launched a new line of liquid cooling solutions designed for high-density data centers. Similarly, Schneider Electric announced a partnership with a leading cloud service provider to develop energy-efficient cooling systems for hyperscale data centers. These developments highlight the industry's focus on innovation and sustainability.

Segment Forecasts (2025 - 2030)

The data center cooling system market is expected to witness robust growth across all segments from 2025 to 2030. The air cooling segment is projected to grow at a CAGR of 10%, while the water cooling segment is expected to grow at a CAGR of 12%. The natural cooling segment is anticipated to experience the highest growth rate of 15%, driven by the increasing demand for sustainable cooling solutions.

In terms of end-use, the IT & telecom sector is expected to maintain its dominance, growing at a CAGR of 11%. The BFSI sector is projected to grow at a CAGR of 10%, while the healthcare sector is expected to grow at a CAGR of 12%.

Conclusion

The global data center cooling system market is set for substantial growth over the next five years, driven by the increasing demand for efficient and sustainable cooling solutions. With key players focusing on innovation and strategic partnerships, the market is expected to witness significant advancements in cooling technologies. As data centers continue to expand, the adoption of advanced cooling systems will be crucial in ensuring optimal performance and energy efficiency.