Report Forecasts Global Data Center Cooling Market Exceeding $40 Billion by 2034
As AI secures its foothold in the data center market, there has been growing interest in liquid cooling, immersion cooling, and thermal management technologies. In a Data Center Cooling report by Guidehouse Research, “The global data center cooling market is projected to grow significantly from 2025 to 2034, driven by the rapid expansion of data centers, increasing adoption of AI and high-performance computing, and the need for energy-efficient and sustainable cooling solutions.” The report estimates that the global value of the data center cooling market will increase from $20.5 billion to $40.2 billion from 2025 to 2034 at a compound annual growth rate (CAGR) of 7.8%.
The report states that the market is influenced by a few major factors, not just AI, but also the boom of cloud computing and big data. Each of these factors plays into the surge of demand for data centers with high energy density. On top of this, government regulations and corporate sustainability initiatives are pushing for sustainability and energy efficiency in data center operations. This expands the need for and adoption of advanced cooling technologies like liquid and AI-powered cooling systems.
Despite this anticipated growth, the report notes that the market still faces obstacles, including the high upfront costs needed for cutting-edge cooling technologies. Other challenges in the way of the adoption of advanced liquid cooling solutions include regional issues, economic uncertainty, limited infrastructure, and energy access problems in newly surfacing markets. The report also points out that climate conditions in particular regions “may not always justify the costs associated with sophisticated cooling technologies, thus leading to continued reliance on traditional cooling systems”.
This report can be purchased, and a free executive summary of it can be downloaded at Guidehouse Research.