The Europe data center cooling market was worth USD 4.88 billion in 2024. The European market is estimated to reach USD 13.38 billion by 2033 from USD 5.46 billion in 2025, rising at a CAGR of 11.85% from 2025 to 2033.
Data center cooling is an advanced thermal management solution designed to regulate and dissipate heat generated by high-performance computing infrastructure. As data centers become larger and more complex, efficient cooling mechanisms are essential to maintain optimal operational conditions, prevent equipment failures, and enhance energy efficiency. The rapid expansion of cloud computing, artificial intelligence, and edge computing have resulted in the increased demand for innovative cooling technologies.
The European data center cooling market has experienced significant growth in the recent years and is anticipated to continue to evolve owing to the increasing investments in hyperscale and colocation data centers across Europe to prioritize reliability, sustainability and cost-effectiveness.
The rapid expansion of cloud computing and the integration of Internet of Things (IoT) devices are key drivers of the Europe data center cooling market. As organizations increasingly adopt cloud-based services, data centers are experiencing higher workloads, leading to greater heat generation. Additionally, IoT devices generate vast amounts of data that require real-time processing, further increasing the need for efficient cooling solutions. According to the European Commission, IoT connections in Europe are expected to reach 740 million by 2025, emphasizing the growing demand for energy-efficient and high-performance cooling technologies to maintain data center reliability and sustainability.
European governments have implemented stringent energy efficiency regulations, driving the adoption of advanced cooling technologies in data centers. The European Union has set a target of improving energy efficiency by 32.5% by 2030, compelling data center operators to enhance cooling efficiency and reduce carbon emissions. The European Commission’s Best Practices for the EU Code of Conduct on Data Centre Energy Efficiency underscores the importance of sustainable cooling solutions in meeting these regulatory standards. As energy consumption remains a key concern, data center operators are investing in innovative cooling techniques such as liquid cooling and free cooling to comply with regulations while optimizing operational efficiency.
The adoption of advanced cooling technologies in data centers involves significant capital expenditures, making it a major restraint for market growth. Implementing energy-efficient cooling solutions such as liquid cooling, free cooling, and immersion cooling requires costly infrastructure upgrades and specialized equipment. Additionally, the installation and maintenance of these systems add to operational expenses. Many small and medium-sized enterprises (SMEs) struggle to allocate sufficient budgets for these high-end cooling solutions, limiting widespread adoption. The financial burden associated with upgrading legacy cooling systems also discourages some data center operators from transitioning to more efficient technologies, slowing market expansion.
Integrating modern cooling technologies into existing data centers often presents infrastructural challenges. Many traditional data centers were not originally designed to support innovative cooling solutions like liquid or immersion cooling. Retrofitting these systems requires extensive modifications to server racks, piping, and facility layouts, leading to increased costs and operational disruptions. The complexity of implementing new cooling solutions without affecting data center uptime further deters operators from making immediate upgrades. As a result, companies may hesitate to adopt next-generation cooling techniques, prolonging reliance on conventional cooling methods and limiting the pace of technological advancement in the market.
The growing focus on sustainability and energy efficiency presents a significant opportunity for data centers to adopt waste heat recovery systems. These systems capture excess heat generated by servers and repurpose it for district heating, industrial applications, or nearby commercial facilities. By utilizing waste heat, data centers can reduce overall energy consumption and align with carbon reduction initiatives. Several European cities are encouraging data centers to contribute to urban heating networks, reducing reliance on fossil fuels. This opportunity not only helps data centers lower their environmental impact but also creates additional revenue streams by supplying recovered heat to external consumers.
The demand for high-performance computing, artificial intelligence, and cloud services is driving the need for more efficient cooling solutions in data centers. Advanced cooling technologies, such as liquid cooling and immersion cooling, offer greater thermal management capabilities while reducing energy consumption. These solutions allow data centers to operate with higher server densities, improving overall performance and cost efficiency. As energy regulations become stricter across Europe, operators are increasingly investing in next-generation cooling methods to enhance sustainability and optimize operational efficiency. The transition to advanced cooling technologies also supports the expansion of edge computing, enabling data centers to maintain efficiency in decentralized locations.
As data centers expand across Europe, they face growing concerns about their environmental impact, particularly regarding energy and water consumption. Cooling systems, which are essential for maintaining optimal operating conditions, require substantial electricity and, in many cases, large amounts of water. This creates challenges in regions where water resources are limited or where governments are pushing for stricter sustainability measures. To address these concerns, data centers must transition to more eco-friendly cooling solutions, such as liquid cooling and free cooling, which use less energy and water. Additionally, increasing regulatory pressure on carbon emissions and sustainability goals requires operators to innovate cooling methods while maintaining operational efficiency.
The high energy demand of data center cooling systems poses a challenge to power grids, particularly in areas where data center clusters are concentrated. With the increasing reliance on digital infrastructure, cooling requirements continue to rise, putting strain on national electricity grids. This can lead to concerns about energy availability, higher operational costs, and potential restrictions on new data center developments. To overcome these challenges, data centers must integrate renewable energy sources, improve cooling efficiency, and implement advanced power management strategies. Governments and utility providers are also pushing for energy-efficient cooling solutions to reduce grid stress and ensure long-term sustainability.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2024 to 2033 |
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Base Year |
2024 |
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Forecast Period |
2025 to 2033 |
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CAGR |
11.85% |
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Segments Covered |
By Product, Cooling Technique, Industry, and Country |
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Various Analyses Covered |
Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Countries Covered |
UK, France, Spain, Germany, Italy, Russia, Sweden, Denmark, Switzerland, Netherlands, Turkey, Czech Republic, and Rest of Europe |
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Market Leaders Profiled |
Daikin Industries, Ltd. (Japan), Johnson Controls (U.S.), Schneider Electric (France), Asetek Inc. (Denmark), Thermal Care (U.S.), Vertiv Group Corp. (U.S.), Mitsubishi Electric Corporation (Japan), Danfoss (Denmark), Airedale International Air Conditioning Ltd. (U.K.), and STULZ Air Technology Systems, Inc. (U.S.) are some of the major players in the Europe data center cooling market. |
The air conditioners segment dominated the Europe data center cooling market in 2024 due to their widespread adoption and proven reliability. These systems are essential for maintaining controlled temperatures in data centers, preventing overheating, and ensuring seamless operations. Their dominance is driven by the high number of traditional data centers still relying on air-based cooling methods, as well as the continuous expansion of colocation and enterprise data centers. The increasing demand for cloud computing, storage, and digital transformation initiatives across Europe further reinforces the importance of air conditioners as a primary cooling solution.
The liquid cooling segment is predicted to be the fastest growing segment in the Europe data center cooling market. The superior efficiency of liquid cooling in managing high-density computing workloads is one of the major factors driving the rapid expansion of the liquid cooling segment in the European market. This technology is gaining traction as data centers seek energy-efficient solutions that minimize power consumption and operational costs. Liquid cooling is particularly beneficial for applications such as artificial intelligence, machine learning, and high-performance computing, which generate significant heat loads. Additionally, as sustainability regulations become stricter, liquid cooling’s ability to reduce carbon emissions and optimize cooling efficiency makes it an attractive choice for modern data centers. Its expansion is further supported by technological advancements and the push toward greener data center operations.
The room-based cooling segment is the most dominant cooling technique in the Europe data center cooling market and accounted for the largest share of the European market in 2024. Room-based cooling method is widely used in traditional data centers, where cooling is managed at the room level to maintain optimal temperatures for all equipment. Its widespread adoption is due to its simplicity, cost-effectiveness, and ability to provide uniform cooling across entire server rooms. Many enterprise and colocation data centers continue to rely on this approach, making it the most commonly used cooling technique. Additionally, room-based cooling is ideal for facilities with lower rack densities, ensuring stable thermal conditions without requiring specialized infrastructure modifications.
The rack-based cooling segment is on the rise and is likely to be the fastest-growing segment in the Europe data center cooling market over the forecast period due to the increasing adoption of high-density computing environments. This technique provides direct cooling at the rack level, ensuring efficient heat dissipation for powerful computing applications, including artificial intelligence, big data analytics, and cloud services. The shift toward compact, high-performance server architectures has made rack-based cooling a preferred choice for modern data centers. Additionally, it improves energy efficiency by reducing cooling losses and optimizing airflow management. As businesses demand greater processing power, rack-based cooling is gaining traction as a sustainable and performance-driven solution for next-generation data centers.
The IT and Telecom segment led the data center cooling market in Europe in 2024. The domination of the IT and telecom segment is primarily attributed to its high data processing and storage requirements. With the increasing demand for cloud computing, 5G networks, and Internet of Things (IoT) applications, data centers in this sector require efficient cooling solutions to maintain server performance and prevent overheating. IT and telecom companies operate large-scale data centers that handle vast amounts of digital traffic, making cooling a critical factor in ensuring operational efficiency and sustainability. The sector’s reliance on high-performance computing infrastructure further reinforces the need for advanced cooling technologies.
The healthcare segment is estimated to grow at the highest CAGR in the European market over the forecast period due to the increasing digitization of medical records, telemedicine expansion, and AI-driven healthcare applications. Hospitals, research institutions, and healthcare providers generate and store vast amounts of patient data, requiring reliable and efficient cooling to maintain system performance. As healthcare facilities adopt AI for diagnostics and big data analytics for research, high-performance computing environments are becoming more common. Efficient cooling is essential to support continuous operations, regulatory compliance, and data security. The sector’s rapid technological transformation is driving the adoption of innovative cooling solutions to ensure long-term efficiency and reliability.
Germany holds the top position in the Europe data center cooling market due to its strong data center infrastructure, sustainability initiatives, and high demand for cloud services. The country hosts several hyperscale and colocation data centers, driven by increasing digitalization and enterprise cloud adoption. Germany’s strict energy efficiency regulations encourage the adoption of advanced cooling technologies, making it a leader in sustainable data center operations. The presence of major technology companies and cloud providers further supports its dominance in the market, with continuous investments in expanding data center capacity and improving cooling efficiency.
The United Kingdom is another key player in the Europe data center cooling market. The growth of the UK market is primarily driven by its strong IT and financial services sectors. The high concentration of colocation and hyperscale data centers, particularly in London, drives demand for advanced cooling solutions. The UK’s focus on digital transformation, along with government-backed initiatives to modernize IT infrastructure, fuels further growth. With the expansion of AI, cloud computing, and fintech services, data centers require energy-efficient cooling solutions to manage rising workloads. The growing emphasis on sustainability and green data centers also influences investment in innovative cooling technologies.
France is rapidly growing in the European data center cooling market due to its increasing cloud adoption and digital innovation efforts. The country is home to a strong network of colocation and enterprise data centers, supported by favorable government policies promoting energy efficiency and sustainability. The demand for advanced cooling technologies is driven by rising AI applications, edge computing, and regulatory compliance to reduce carbon footprints. France’s strategic location in Europe and its commitment to green energy initiatives make it an attractive hub for data center investments, further accelerating the need for high-efficiency cooling solutions.
Daikin Industries, Ltd. (Japan), Johnson Controls (U.S.), Schneider Electric (France), Asetek Inc. (Denmark), Thermal Care (U.S.), Vertiv Group Corp. (U.S.), Mitsubishi Electric Corporation (Japan), Danfoss (Denmark), Airedale International Air Conditioning Ltd. (U.K.), and STULZ Air Technology Systems, Inc. (U.S.) are some of the major players in the Europe data center cooling market.
This research report on the European data center cooling market is segmented and sub-segmented into the following categories.
By Product
By Cooling Technique
By Industry
By Country
Frequently Asked Questions
The market is growing due to the increasing adoption of cloud computing, the expansion of hyperscale data centers, and stricter regulations on energy efficiency and sustainability.
Popular cooling methods include air-based cooling (such as free cooling and evaporative cooling) and liquid-based cooling (such as direct-to-chip and immersion cooling).
Industries like cloud computing, finance, e-commerce, and artificial intelligence are increasing the demand for efficient and scalable cooling solutions.
The market is expected to see strong growth with advancements in liquid cooling, increased investment in sustainable solutions, and a push towards carbon-neutral data centers.
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