Data Center Cooling Market Revenues Pegged at US$ 15.7 billion by 2025, at a CAGR of 10.7%| MarketsandMarkets™

Posted by Jack Martin on March 29th, 2023

The global data center cooling market is projected to grow from USD 9.4 billion in 2020 to USD 15.7 billion by 2025, at a CAGR of 10.7% from 2020 to 2025. The major reasons for the growth of the data center cooling market include improving efficiency in data centers, rising spending on data centers, and significant growth in the number of data centers and their power density. Furthermore, factors like increasing demand for cost-effective data center solutions, and the rising significance of eco-friendly data center solutions are also responsible for driving the demand for data center cooling.  

The liquid cooling systems solution segment is projected to record the highest growth in the global data center cooling market, during the forecast period. The high growth of the liquid cooling systems solution segment is majorly attributed to their advantages over air-cooled systems. The liquid cooling systems provide cooling at a reduced energy cost as compared to air cooling systems along with lower noise levels originating from equipment such as fans in the air cooling systems. 

The room-based type of cooling segment is projected to grow with a high CAGR in the global data center cooling market, during the forecast period. Room-based cooling consists of cooling units operating concurrently to address the heat load of the entire room and focuses on reducing the rising temperature in data centers and server rooms. These cooling units overcome the issues related to the lack of space in data centers. 

The IT & Telecom industry segment is estimated to dominate the global data center cooling market, during the forecast period. The IT & telecom industry is increasingly adopting advanced technologies, such as blade servers and 5G, to cater to the growing computational requirements. This segment has been witnessing increases in the energy requirement creating growth opportunities for efficient cooling solution providers in the data center market. 

Asia Pacific is projected to be the fastest-growing market for data center cooling during the forecast period. The growing demand for data center cooling is primarily driven by increasing public and private sector investments in projects catering to sectors such as banking, telecom, and government. Also, factors like the growing IT and digital commerce sectors are expected to increase the data traffic in the region, in turn propelling the growth of the data center cooling market during the forecast period.