Data Center Thermal Management Market | 2026-2032

Market Size & Opportunities

Global Demand Analysis & Sales Opportunities in Data Center Thermal Management Market 

• The annual demand for data center thermal management was USD 33.6 billion in 2025 and is expected to reach USD 39.5 billion in 2026, up 17.8% than the value in 2025. 

• During the forecast period (2026-2032), the market is expected to grow at a CAGR of 16.8%. The annual demand will reach USD 100.6 billion in 2032, which is almost 2.5 times the demand in 2026. 

• By solution, hardware is expected to remain dominant, while services are projected to witness the fastest growth.

• By component, liquid cooling systems are expected to remain dominant, while control systems are projected to witness the fastest growth.

• By data center type, hyperscale data centers are expected to remain both the largest and the fastest-growing segment.

• By type of cooling, room-based cooling is expected to remain dominant, while row/rack-based cooling is projected to witness the fastest growth.

• North America is expected to remain both the largest and the fastest-growing regional market during the forecast period.  

“According to the Senior Analyst at Stratview Research, the global data center thermal management market will generate a cumulative sales opportunity worth USD 466.1 billion during 2026-2032. Over the forecast period, liquid cooling, hyperscale data centers, and North America are expected to offer significant growth opportunities for market stakeholders.”

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Market Statistics

Have a look at the sales opportunities presented by the data center thermal management market in terms of growth and market forecast. 

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Market Dynamics

​The data center thermal management market is evolving rapidly as rising computing densities, AI workloads, and expanding data center infrastructure increase cooling requirements. Market analysis indicates that operators are increasingly focusing on efficient thermal management solutions to maintain reliable performance while controlling energy and resource consumption. The market trend is shifting toward liquid cooling, higher-density cooling infrastructure, and advanced technologies designed to support next-generation data center environments.

Market Drivers

Need for Enhanced Data Center Energy Efficiency

The growing power requirements of AI, cloud computing, and high-density workloads are increasing the amount of energy required for both computing and cooling operations. As operators seek to accommodate rising workloads while controlling operating costs and resource consumption, market demand is increasing for thermal management systems that can remove heat efficiently while minimizing cooling-related energy use.

• Microsoft reported a global PUE of 1.17 for FY2025, with its Americas and EMEA data centers achieving a PUE of 1.16, while its direct-to-chip cooling technology saves more than 125 million liters of water per data center annually. These efficiency improvements demonstrate how optimized thermal management can reduce the energy and resource requirements of cooling infrastructure while supporting the growing needs of AI and cloud workloads.

• Google reported a fleet-wide average PUE of 1.09 across its data centers in 2025, meaning only 9% additional energy was used for overhead operations beyond IT equipment, while its data centers consumed 83% less overhead energy than the industry average. This efficiency demonstrates the importance of optimized cooling and facility systems in reducing auxiliary energy consumption, supporting market demand for advanced thermal management solutions that can improve energy efficiency as data center workloads expand.

Rapid Expansion of Data Center Infrastructure

The increasing number of data centers worldwide is expanding the installed base of IT and cooling infrastructure that requires continuous heat removal and temperature control. This expansion is driving market demand for data center thermal management systems that can support reliable operations, rising computing loads, and energy-efficient facility performance.

• India’s Press Information Bureau reported in September 2026 that installed data-center power capacity had increased from around 375 MW in 2020 to 1.57 GW as of August 2026 and is projected to reach nearly 8 GW by 2030. The government also reported that nearly USD 70 billion in data-center investments are already underway, with another USD 90 billion in announced projects. The rapid expansion of data-center capacity will increase the installed base of servers and supporting infrastructure requiring continuous heat removal, thereby strengthening market demand for thermal management systems.

• The UK Government reported in September 2025 that its North East AI Growth Zone, including a new data center in Blyth, is expected to increase energy capacity to 1.1 GW over the following six years. The large-scale expansion of computing infrastructure will require corresponding cooling and heat-rejection systems to maintain reliable operation, supporting market demand for advanced thermal management solutions in newly developed data centers.

“As per the analyst, the global data center thermal management industry is evolving rapidly. While conducting the market analysis and speaking with leading players, it is evident that the next decade will be shaped by trends such as liquid cooling adoption, rising rack densities, and energy- and water-efficient cooling solutions.”

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Market Challenges

Cooling Reliability During Power Outages

Power interruptions can disrupt chillers, pumps, cooling towers, and other electrically driven thermal systems, potentially causing heat buildup even when backup power is available for IT equipment. This creates a market challenge for thermal management providers, as data centers increasingly require cooling systems that can maintain stable temperatures during grid disruptions and other power-related emergencies.

Need to Reduce Data Center Carbon Emissions

The rising energy consumption of data centers is increasing their associated carbon footprint, particularly where electricity is generated from carbon-intensive sources. This is increasing the market demand for energy-efficient thermal management systems that can reduce cooling-related electricity consumption while maintaining reliable operating conditions.

• The IEA estimates that data centers currently generate around 180 million tonnes of indirect CO₂ emissions from electricity consumption, with these emissions projected to increase by nearly 80% by 2035 in its base case. As electricity-related emissions rise alongside data center expansion, more efficient cooling and heat-management systems can help reduce the carbon intensity associated with facility operations

Market Opportunities

Accelerating Adoption of Liquid Cooling Technologies

The growing deployment of high-density AI and HPC workloads is increasing the heat generated by data center servers beyond the practical capabilities of conventional air-cooling systems. This market trend is creating opportunities for direct-to-chip, immersion, and other liquid cooling technologies that can provide more efficient heat removal while supporting higher rack densities.

• Vertiv reported in February 2025 that data center rack densities had reached 30 kW as a standard level, with some racks reaching 120 kW or higher. These higher heat loads are pushing conventional air-cooling systems toward their practical limits. The shift toward high-density AI infrastructure is accelerating the adoption of liquid cooling. This creates opportunities for direct-to-chip systems, coolant distribution units, and other advanced thermal-management technologie

• Dell Technologies introduced new PowerEdge servers in May 2026 with advanced air- and liquid-cooling designs, including the liquid-cooled PowerEdge M9825, which is designed for ultra-dense AI and HPC workloads beyond the limits of conventional air-cooled racks. The expansion of liquid-cooled server platforms is increasing opportunities for integrated thermal-management solutions across new AI data center deployments. 

Segments’ Analysis

By Solution

“Hardware segment is projected to be the dominant segment during the market forecast period.”

• The data center thermal management market is segmented by solution into hardware and services.

• Hardware is projected to remain the dominant segment during the market forecast period, supported by the increasing deployment of cooling equipment and infrastructure required to manage rising heat loads from high-density computing environments.

• The expansion of hyperscale, colocation, and AI-ready data centers is further increasing investments in physical thermal management infrastructure, including cooling systems, heat exchangers, and related equipment.

By Component

“Liquid Cooling Systems segment is projected to be the dominant segment during the market forecast period.”

• The data center thermal management market is segmented by component into air conditioning, chilling units, cooling towers, economizer systems, liquid cooling systems, control systems, and other components.

• Liquid cooling systems are projected to remain the dominant segment during the market forecast period, supported by the increasing deployment of AI, high-performance computing, cloud computing, and other workloads that generate substantially higher heat loads.

• The growing adoption of high-density server configurations is increasing demand for liquid cooling infrastructure, including coolant distribution units, pumps, cold plates, manifolds, and heat exchangers.

By Data Center Type

“Hyperscale Data Centers segment is projected to be the dominant and fastest-growing segment during the market forecast period.”

• The data center thermal management market is segmented by data center type into hyperscale data centers, enterprise data centers, and colocation providers.

• Hyperscale data centers are projected to remain the dominant segment during the market forecast period, supported by the expansion of large-scale cloud infrastructure, AI training clusters, and high-performance computing facilities that operate large numbers of high-density servers.

• Hyperscale data centers are also projected to be the fastest-growing segment during the market forecast period, driven by continued investments in AI-ready infrastructure and the increasing deployment of high-density computing systems that require advanced thermal management solutions.

By Type of Cooling

“Room-based Cooling segment is projected to be the dominant segment during the market forecast period.”

• The data center thermal management market is segmented by type of cooling into room-based cooling and row/rack-based cooling.

• Room-based cooling is projected to remain the dominant segment during the market forecast period, supported by its broad applicability across enterprise, colocation, and hyperscale data centers and its extensive use in both legacy and newly constructed facilities.

• The continued use of centralized cooling infrastructure, including CRACs, CRAHs, chillers, and cooling towers, is further supporting the adoption of room-based cooling systems across diverse data center environments.

Regional Analysis

“North America is projected to be the dominant and fastest-growing region during the market forecast period.”

• Based on region, the data center thermal management market has been segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

• North America is projected to remain the dominant regional market during the market forecast period, supported by its established data center infrastructure, significant presence of hyperscale operators, and rapid expansion of AI and high-performance computing infrastructure.

• North America is also projected to be the fastest-growing regional market during the market forecast period, driven by continued investments in AI-ready data centers and increasing adoption of advanced cooling technologies, including direct-to-chip liquid cooling, immersion cooling, and precision cooling systems.

“Analysis suggests that the Top 10 countries generate >80% of the annual sales for the data center thermal management. A few countries are the demand powerhouses and will drive the regional markets in big ways offering attractive business opportunities.”

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Competitive Landscape

The market is fragmented with the presence of less than 100 global and regional players. Some of the major players also manufacture data center thermal management and its required equipment. Leading players hold excellent market positions with a vast product portfolio, a wide distribution network, and years of track record.  

The following are the key players in the data center thermal management market. 

• Vertiv Group Corp.

• Johnson Controls Inc

• Rittal GmbH

• Mitsubishi Electric Corporation

• Schneider Electric

• Lenovo

• Delta Electronics

• Legrand

• Eaton

Note: The above list is not an exhaustive list of the key players in the market. If your company is active in this market and would like to be considered for inclusion in future editions of this study, please contact us at [email protected].   

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Recent Developments/Mergers & Acquisitions

Recent mergers & acquisitions and other developments in the data center thermal management market reflect evolving market trends, and impact the market. Below given are a few recent developments in the market – 

• In August 2026, SLB agreed to acquire Kelvion for approximately USD 3.4 billion in cash plus USD 0.7 billion of assumed debt, for a total transaction value of approximately USD 4.1 billion. Kelvion provides thermal management and heat-exchange technologies, strengthening SLB’s data center solutions with cooling and heat-transfer capabilities.

• In July 2026, Ecolab completed its acquisition of CoolIT Systems for approximately USD 4.75 billion. CoolIT specializes in advanced liquid cooling solutions for AI and high-performance data centers, expanding Ecolab’s thermal management and high-tech infrastructure portfolio.

• In June 2026, Vertiv completed its acquisition of ThermoKey, a provider of heat-rejection and heat-exchange technologies. The acquisition expanded Vertiv’s thermal management portfolio and manufacturing capabilities across Europe, the Middle East, and Africa, strengthening its solutions for high-density and AI data centers. Transaction value was not disclosed.

• In April 2026, Carrier Ventures expanded its investment in ZutaCore, a provider of direct-to-chip, waterless liquid cooling solutions. The investment strengthened Carrier’s liquid cooling capabilities and expanded its QuantumLeap thermal management portfolio for high-density AI data centers. Investment value was not disclosed.

• In March 2026, Eaton completed its acquisition of Boyd Thermal for USD 9.5 billion. The transaction added liquid cooling technologies, including coolant distribution units, cold plates, and heat exchangers, to Eaton’s data center infrastructure portfolio.

• In March 2026, Trane Technologies completed its acquisition of LiquidStack, a provider of high-density, direct-to-chip, and immersion liquid cooling technologies for data centers. The acquisition expanded Trane’s thermal management portfolio from central plant cooling and heat rejection to liquid distribution and chip-level cooling. Transaction value was not disclosed.

• In February 2026, Trane Technologies completed its acquisition of Stellar Energy Americas, a provider of turnkey data center cooling solutions. The acquisition strengthened Trane’s data center thermal management capabilities, particularly in prefabricated and modular cooling systems. Transaction value was not disclosed.

• In December 2025, Vertiv completed its acquisition of PurgeRite for approximately USD 1.0 billion. PurgeRite’s specialized fluid-management services expanded Vertiv’s liquid cooling services portfolio for high-density computing and AI data centers.

Report Scope

Market Definition 

The data center thermal management market comprises the products, systems, and services used to remove, transfer, and dissipate heat generated by IT equipment and supporting infrastructure within data centers. It includes technologies such as air cooling, liquid cooling, chillers, cooling towers, heat exchangers, cooling distribution units (CDUs), air conditioning systems, economizers, and thermal control systems. The market serves enterprise, hyperscale, and colocation data centers across industries to maintain optimal operating temperatures, improve energy efficiency, and support the reliable operation of high-density computing infrastructure.

Report Structure 

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. 

The following are the key features of the report: 

• Market structure: Overview, industry life cycle analysis, supply chain analysis. 

• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis. 

• Market trend and forecast analysis. 

• Market segment trend and forecast. 

• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc. 

• Attractive market segments and associated growth opportunities. 

• Emerging trends. 

• Strategic growth opportunities for the existing and new players. 

• Key success factors. 

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Segmentation 

The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market. 

The data center thermal management market is segmented into the following categories: 

Data Center Thermal Management Market, By Solution Type 

• Hardware

• Services

Data Center Thermal Management Market, By Component Type 

• Liquid Cooling

• Air Conditioning

• Chilling Units

• Cooling Towers

• Economizer Systems

• Control Systems

• Others

Data Center Thermal Management Market, By Data Center Type 

• Hyperscale Data Centers

• Enterprise Data Centers

• Colocation Providers

Data Center Thermal Management Market, By Type of Cooling

• Room Based Cooling

• Row/Rack Based Cooling

Data Center Thermal Management Market, By Region

• North America (Country Analysis: The USA, Canada, and Mexico) 

• Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe) 

• Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific) 

• Rest of the World (Country Analysis: Brazil and Others) 

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Research Methodology

This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s data center thermal management market realities and future market possibilities for the forecast period. 

The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market. 

The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruits available in the market and formulating growth strategies to expedite their growth process. 

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. 

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. 

We conducted more than 10 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights. 

Customization Options

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Company Profiling 

• Detailed profiling of additional market players (up to three players) 
• SWOT analysis of key players (up to three players) 

Competitive Benchmarking 

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

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