The global data centre cooling market size is estimated to reach $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.
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 centre 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 centres, subsequently developing the sense of direction for the data centre 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 centres, thereby supporting the demand for cooling solutions.
The solution component segment led the market in 2024. The integration of data centre 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 centre efficiency. However, data centre expansion is often associated with high CO2 emissions and increased energy usage.
In addition, these cooling solutions are estimated to account for 35% of the total energy consumption in data centre facilities. So vendors in this space are focused on introducing sustainable cooling solutions while attempting to save over 70% of the cost associated with cooling.
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 centre 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 centre 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 centre cooling techniques to strengthen their market presence.
Highlights of the data centre cooling market report include:
- The solution segment dominated the data centre cooling industry in 2024 driven by the surge in data traffic due to the rise of AI, big data, and cloud computing.
- The air conditioners segment dominated the market in 2024 due to the growth in data centre densities.
- The installation & deployment segment dominated the market in 2024. The increasing focus on improving operational efficiency and reducing downtime is fueling demand for high-quality installation and deployment services.
- The non-raised floor dominated the market and accounted for the revenue share of over 57% in 2024, driven by evolving data centre designs and the increasing demand for efficient, space-saving cooling solutions.
- The containment segment is further segregated into raised floor with containment and raised floor without containment.
- The room based cooling dominated the market and accounted for the revenue share of over 47% in 2024.
- The telecom segment dominated the market and accounted for the revenue share of over 28% in 2024.