Global data center cooling market heats up

The global data center cooling sector is experiencing a significant period of growth as operators worldwide strive to support AI, high-performance computing (HPC), cloud platforms, and distributed architectures. Market data suggests that the industry is poised to expand from $21.86 billion in 2025 to a projected $92.78 billion by 2035.

This shift represents a major transformation in thermal management technologies, component design, and data center operations for readers of eeNews Europe. With workloads intensifying and sustainability regulations becoming more stringent, advanced cooling approaches are now integral to facility planning and long-term competitiveness.

Market growth driven by AI, hyperscale, and high-density computing

DC Market Insights reports that the rapid global expansion of hyperscale data centers is a key driver of market growth. Cloud providers and AI compute clusters are adopting increasingly dense architectures to support advanced analytics, generative AI, and machine learning, resulting in high heat output that necessitates sophisticated cooling solutions to maintain system reliability.

Traditional air-based cooling is no longer sufficient for high-performance workloads that exceed conventional thresholds. This trend is pushing operators towards direct-to-chip liquid cooling, immersion cooling, and hybrid systems that offer superior thermal performance while reducing energy consumption. The demand for scalable and resilient cooling systems is on the rise, especially in regions heavily investing in 5G networks and digital transformation.

AI and HPC workloads are reshaping cooling strategies, with generative AI and advanced modeling applications requiring racks capable of supporting significantly higher power densities than before. Liquid cooling and modular thermal solutions are gaining traction, providing the efficiency and heat management needed for next-generation compute environments.

Sustainability and regulatory pressure accelerate adoption

Energy efficiency has become a crucial factor in data center design and operation globally. Traditional cooling methods contribute significantly to a facility’s power consumption, making them a prime target for operators looking to reduce carbon footprints and operational costs. Regulators worldwide are imposing stricter requirements on emissions, water usage, and energy efficiency, prompting companies to prioritize eco-friendly cooling strategies.

Efforts to enhance sustainability include incorporating renewable energy sources, optimizing airflow management, and expanding liquid-based cooling deployments. Upgraded cooling systems are now considered essential infrastructure investments as organizations align with sustainability goals and net-zero initiatives.

Despite the push towards green cooling solutions, economic and technical challenges persist. Advanced cooling technologies often require substantial upfront investments and specialized facility modifications. Legacy data centers, in particular, face hurdles in integrating modern cooling systems with older infrastructures, potentially slowing adoption in developing regions and among smaller operators.

Regional momentum in a global expansion

North America leads the market for advanced cooling technology, buoyed by a high concentration of hyperscale cloud operators and AI investments. Europe is witnessing rapid growth driven by stringent environmental regulations and climate neutrality targets, notably in countries like Germany, the Netherlands, Sweden, and the UK.

As digital infrastructure expands globally, data center cooling technologies will play a crucial role in enabling performance, sustainability, and operational resilience. This presents a decade of significant opportunities for suppliers, innovators, and engineering teams worldwide.