The North America data center cooling market was worth USD 17.30 billion in 2024. The North American market is estimated to grow at a CAGR of 14.75% from 2025 to 2033 and be valued at USD million by the end of 2033 from USD 19.85 billion in 2025.
The North American data center cooling market encompasses a range of technologies and solutions designed to manage and dissipate heat generated by data center equipment. The effective cooling solutions have become essential for maintaining optimal operating conditions as data centers continue to proliferate due to the increasing demand for cloud computing, big data analytics, and digital services. The market includes various cooling methods, such as air conditioning systems, liquid cooling, and evaporative cooling, all aimed at ensuring the reliability and efficiency of data center operations.
This growth is driven by several factors, including the rising energy costs associated with cooling systems, the increasing density of data center equipment, and the growing emphasis on energy efficiency and sustainability. The continuous innovation in cooling technologies are reflecting the evolving needs of data center operators and the competitive landscape of the industry. The ongoing trend for more efficient and environmentally friendly cooling solutions positions the North American data center cooling market for substantial growth in the coming years.
The North American data center cooling market is significantly driven by the increasing demand for data centers, fueled by the rapid growth of cloud computing, big data analytics, and the Internet of Things (IoT). The need for robust data center infrastructure has surged as organizations continue to migrate their operations to the cloud and leverage data-driven insights. According to a report by the International Data Corporation, global spending on data center infrastructure is expected to reach $200 billion by 2024 with the substantial growth in this sector.
This rising demand for data centers directly correlates with the need for effective cooling solutions to manage the heat generated by high-density computing equipment. The operators are increasingly investing in advanced cooling technologies to ensure optimal performance and reliability as data centers become more complex and energy-intensive. Additionally, the growing focus on energy efficiency and sustainability in data center operations is driving the adoption of innovative cooling solutions that minimize energy consumption and reduce environmental impact. The North American data center cooling market is expected to experience sustained growth with the rising need for efficient cooling solutions.
Another major driver of the North American data center cooling market is the increasing emphasis on energy efficiency and sustainability in data center operations. The data center operators are seeking ways to reduce their energy consumption and carbon footprint as energy costs continue to rise and environmental concerns become more pressing. According to the U.S. Department of Energy, data centers account for approximately 2% of the total electricity consumption in the United States with the need for more efficient cooling solutions.
Innovative cooling technologies, such as liquid cooling and evaporative cooling, are gaining traction as they offer significant energy savings compared to traditional air conditioning systems. Additionally, the implementation of advanced monitoring and management systems allows operators to optimize cooling performance and reduce waste. The growing adoption of green building practices and sustainability certifications is further driving the demand for energy-efficient cooling solutions in data centers. The demand for effective and environmentally friendly cooling technologies is expected to grow as organizations increasingly prioritize sustainability in their operations.
One of the primary restraints affecting the North American data center cooling market is the high initial capital investment required for advanced cooling systems. While the long-term benefits of efficient cooling solutions are well-documented, the upfront costs associated with purchasing and installing these systems can be significant. The cost of implementing a state-of-the-art cooling system in a data center can range from hundreds of thousands to millions of dollars by depending on the size and complexity of the facility.
This financial burden can deter some organizations for small and medium-sized enterprises, from investing in advanced cooling technologies. Additionally, ongoing maintenance and operational costs associated with sophisticated cooling systems can further strain budgets. Organizations may also face challenges in justifying the return on investment (ROI) for cooling initiatives if the benefits are not immediately apparent. The data center operators must carefully evaluate their cooling investments and consider the long-term advantages of improved energy efficiency and reduced operational costs which can ultimately outweigh the initial capital expenditures.
The North American data center cooling market presents significant opportunities for growth through the adoption of advanced cooling technologies. The demand for innovative cooling solutions that enhance efficiency and reduce energy consumption is on the rise. Technologies such as liquid cooling, which offers superior heat dissipation compared to traditional air cooling methods, are gaining traction among data center operators. Additionally, the integration of artificial intelligence and machine learning into cooling management systems allows for real-time monitoring and optimization of cooling performance that further enhances energy efficiency. The demand for these solutions is expected to grow significantly by creating lucrative opportunities for market participants.
Another promising opportunity within the North American data center cooling market lies in the growth of edge data centers. The organizations are increasingly deploying edge data centers closer to the source of data generation as the demand for low-latency processing and real-time data analytics increases. Edge data centers often require specialized cooling solutions to manage the heat generated by high-density computing equipment in smaller footprints. The need for efficient and effective cooling systems in these facilities presents a significant opportunity for cooling solution providers. Additionally, the growing emphasis on sustainability and energy efficiency in edge computing environments is driving demand for innovative cooling technologies that minimize energy consumption. The demand for effective cooling solutions in edge data centers is expected to grow significantly by positioning this segment for rapid expansion in the North American data center cooling market.
Another significant challenge facing the North American data center cooling market is the complexity of regulatory compliance and standards that govern energy efficiency and environmental impact. Data center operators must navigate a myriad of regulations concerning energy consumption, emissions, and waste management, which can vary significantly by state and locality. According to a report by the National Institute of Standards and Technology, compliance with these regulations can be both time-consuming and costly for data center operators.
These regulatory challenges can lead to increased operational costs and legal risks for businesses, potentially hindering market growth. Additionally, the lack of uniformity in regulations can create uncertainty for cooling solution providers and end-users by making it difficult to ensure compliance across different jurisdictions. The companies may face delays in project timelines and increased scrutiny from regulatory bodies. To address these challenges, stakeholders in the data center cooling market must invest in compliance management systems and engage with regulatory authorities to ensure that their solutions meet safety and efficiency standards by ultimately fostering consumer trust and market growth.
The enterprise data centers segment was the largest by capturing 60.1% of the North American data center cooling market share in 2024. This dominance can be attributed to the extensive infrastructure and high energy demands associated with enterprise-level operations. Enterprise data centers typically house a significant amount of IT equipment is generating substantial heat that must be effectively managed to ensure optimal performance and reliability. The growing focus on energy efficiency and sustainability in enterprise operations is propelling the demand for advanced cooling technologies that minimize energy consumption while maintaining performance. Additionally, the rise of cloud computing and big data analytics is further driving the need for efficient cooling solutions in enterprise data centers.
The edge data centers segment is likely to register a prominent CAGR of 25.4% from 2025 to 2033. This growth is driven by the increasing demand for low-latency processing and real-time data analytics, which necessitates the deployment of data centers closer to the source of data generation. Edge data centers often require specialized cooling solutions to manage the heat generated by high-density computing equipment in smaller footprints. The need for efficient and effective cooling systems in these facilities presents a significant opportunity for cooling solution providers. Additionally, the growing emphasis on sustainability and energy efficiency in edge computing environments is driving demand for innovative cooling technologies that minimize energy consumption.
The air conditioning segment dominated the North America data center cooling market with an estimated share of 44.5% in 2024. This dominance can be attributed to the widespread use of traditional air conditioning systems in data centers to manage heat generated by IT equipment. Air conditioning systems are essential for maintaining optimal operating temperatures in data centers by ensuring the reliability and performance of critical IT infrastructure. The growing incidence of heat-related failures and the increasing focus on energy efficiency are propelling the demand for advanced air conditioning solutions that offer better cooling performance and lower energy consumption. Additionally, the integration of smart technologies into air conditioning systems allows for real-time monitoring and optimization of cooling performance that further enhances their effectiveness.
The liquid cooling systems segment is esteemed to achieve a CAGR of 30.2% from 2025 to 2033. This growth is driven by the increasing density of IT equipment and the need for more efficient cooling methods to manage heat in high-performance computing environments. Liquid cooling systems offer several advantages over traditional air conditioning methods by including superior heat dissipation and energy efficiency. These systems utilize liquid coolant to absorb heat directly from the equipment by allowing for more effective temperature management in high-density environments. The demand for liquid cooling solutions is expected to grow significantly as data centers continue to evolve with the adoption of more powerful servers and high-performance computing applications. Additionally, the increasing focus on sustainability and energy efficiency in data center operations is driving interest in liquid cooling technologies, which can reduce overall energy consumption and operational costs. The demand for liquid cooling systems is anticipated to expand rapidly is positioning this segment for significant growth in the North American data center cooling market.
The service segment dominated the market by occupying maintenance 60.1% of the North America data center cooling market share in 2024. This dominance can be attributed to the critical need for ongoing maintenance of cooling systems to ensure optimal performance and reliability. Regular maintenance of cooling systems is essential to prevent equipment failures, reduce downtime, and extend the lifespan of the infrastructure. The demand for comprehensive maintenance and support services is expected to rise. Additionally, the integration of predictive maintenance solutions, which utilize data analytics to anticipate equipment issues before they occur that is further enhancing the value of maintenance services.
The consulting and training segment is expected to witness a fastest CAGR of 18.3% from 2025 to 2033. This growth is driven by the increasing need for expert guidance in optimizing cooling strategies and ensuring compliance with evolving industry standards. Consulting services provide valuable insights into best practices for cooling system design, implementation, and management by helping organizations enhance their operational efficiency and reduce energy consumption. Additionally, training programs for staff on the latest cooling technologies and maintenance practices are becoming increasingly important as data center operations grow more complex. The emphasis on sustainability and energy efficiency is also driving demand for consulting services that focus on optimizing cooling performance while minimizing environmental impact. The demand for consulting and training services is expected to increase significantly by positioning this segment for rapid expansion in the North American data center cooling market.
The room-based cooling segment held the 50.3% of North America data center cooling market share in 2024. This dominance can be attributed to the traditional reliance on room-based cooling systems, such as Computer Room Air Conditioning (CRAC) units, to manage the temperature and humidity levels in data centers. Room-based cooling systems are designed to provide localized cooling to the entire data center environment by ensuring that all equipment operates within optimal temperature ranges. The growing incidence of heat-related failures and the increasing focus on energy efficiency are propelling the demand for advanced room-based cooling solutions that offer better performance and lower energy consumption. Additionally, the integration of smart technologies into room-based cooling systems allows for real-time monitoring and optimization of cooling performance, further enhancing their effectiveness.
The rack-based cooling segment is more likely to register a CAGR of 25.6% in the foreseen years. This growth is driven by the increasing density of IT equipment and the need for more efficient cooling methods to manage heat in high-performance computing environments. Rack-based cooling systems are designed to provide cooling directly to individual server racks by allowing for more precise temperature management in high-density environments. This approach not only improves cooling efficiency but also reduces energy consumption by targeting cooling efforts where they are needed most. The demand for rack-based cooling solutions is expected to grow significantly as data centers continue to evolve with the adoption of more powerful servers and high-performance computing applications. Additionally, the increasing focus on sustainability and energy efficiency in data center operations is driving interest in rack-based cooling technologies, which can optimize cooling strategies and enhance overall performance. The demand for rack-based cooling systems is anticipated to expand rapidly by positioning this segment for significant growth in the North American data center cooling market.
The large organizations segment was the largest and held the dominant share of the North America data center cooling market in 2024. This dominance can be attributed to the extensive infrastructure and high energy demands associated with large-scale data center operations. Large organizations typically house a significant amount of IT equipment, generating substantial heat that must be effectively managed to ensure optimal performance and reliability. The growing focus on energy efficiency and sustainability in large-scale operations is propelling the demand for advanced cooling technologies that minimize energy consumption while maintaining performance. Additionally, the rise of cloud computing and big data analytics is further driving the need for efficient cooling solutions in large organizations.
The small and medium organizations segment is projected to experience a CAGR of 20.4% from 2025 to 2033. This growth is driven by the increasing recognition of the importance of effective cooling solutions among smaller organizations that are expanding their IT infrastructure. Small and medium organizations are increasingly investing in data center cooling solutions to ensure the reliability and efficiency of their IT operations. The need for effective cooling becomes paramount to prevent equipment failures and maintain optimal performance as these organizations grow and adopt more sophisticated technologies. Additionally, the availability of cost-effective cooling solutions tailored to the needs of smaller organizations is driving demand in this segment. The demand for data center cooling solutions among small and medium organizations is expected to grow significantly by positioning this segment for rapid expansion in the North American market.
The United States was the dominant country by holding 70.4% of the North American data center cooling market share in 2024. The market growth is driven by a robust demand for cooling solutions driven by the rapid growth of data centers and the increasing focus on energy efficiency. According to the U.S. Department of Energy, data centers account for about 2% of the total electricity consumption in the country that is escalating the need for effective cooling technologies. The presence of major data center operators and a well-established technology infrastructure further contribute to the country's dominant position in the market. Additionally, the growing emphasis on sustainability and regulatory compliance is driving investments in innovative cooling solutions across various sectors.
Canada is projected to grow with an anticipated CAGR of 14.3% during the forecast period. The Canadian data center cooling market is influenced by the country's diverse data center landscape, which includes both public and private sector facilities. According to Statistics Canada, the adoption of data center cooling solutions is increasing with the need for enhanced energy efficiency and the growing incidence of heat-related failures. The Canadian government has implemented various initiatives aimed at promoting energy efficiency and sustainability in data center operations that further drives the adoption of advanced cooling technologies. Additionally, the increasing focus on regulatory compliance and risk management is leading to increased investments in data center cooling solutions within the Canadian market. The emphasis on innovation and consumer education is expected to drive further growth in the Canadian data center cooling sector.
Vertiv Group Corp. (U.S.), Eaton (U.S.), Daikin Applied (U.S.), Black Box Corporation (U.S.), Nortek Air Solutions, LLC (U.S.), 3M (U.S.), Coolcentric (U.S.).
Vertiv Group Corp. is a global leader in data center cooling solutions, renowned for its innovative technologies that address the growing demand for energy efficiency and sustainability. The company has developed advanced liquid cooling systems, such as rear-door heat exchangers and direct-to-chip cooling, which are widely adopted in high-density data centers worldwide. These innovations help reduce power usage effectiveness (PUE) and operational costs, making them highly attractive to hyperscale operators. Vertiv’s influence extends far beyond North America, as it operates in over 130 countries, leveraging its expertise to expand its global footprint. Its strong presence in regions like Europe, Asia-Pacific, and Latin America has enabled it to shape global standards and practices in data center cooling. Additionally, Vertiv has been a pioneer in developing specialized cooling solutions for edge data centers, which are critical for supporting real-time applications like IoT, AI, and 5G. By aligning its product offerings with global trends in edge computing and artificial intelligence, Vertiv has positioned itself as a key enabler of the next generation of data center technologies, solidifying its role as a major contributor to the global market.
Eaton is a diversified power management company that has established itself as a key player in the global data center cooling market through its focus on integrated solutions and sustainability. The company combines uninterruptible power supply (UPS) systems with advanced cooling technologies to ensure optimal energy efficiency and reliability, addressing the dual challenges of power management and thermal regulation. Eaton has been a pioneer in promoting sustainable cooling solutions, such as free cooling systems and economizers, which leverage ambient air to reduce reliance on mechanical cooling. These eco-friendly solutions are gaining traction globally, particularly in regions like Europe and Asia, where environmental regulations are stringent. Eaton’s commitment to sustainability aligns with global efforts to reduce the carbon footprint of data centers, influencing industry practices and encouraging the adoption of green technologies. Through strategic partnerships and collaborations with local distributors, Eaton has expanded its operations into emerging markets like India, China, and Southeast Asia, capturing a significant share of the global data center cooling market and reinforcing its leadership in innovation and sustainability.
Daikin Applied, a subsidiary of Daikin Industries, is a leading provider of HVAC and refrigeration solutions, with a strong focus on precision air conditioning for data centers. The company is known for its cutting-edge precision cooling systems that ensure consistent temperature and humidity control, making them ideal for hyperscale and colocation facilities worldwide. Daikin’s solutions are designed to meet global energy efficiency standards, such as ASHRAE guidelines and LEED certifications, which has made its products popular in regions like Europe, where regulatory frameworks prioritize sustainability. Daikin operates innovation hubs in North America, Europe, and Asia, enabling it to develop region-specific solutions that address local challenges. For example, its cooling systems for tropical climates in Asia-Pacific are tailored to handle high humidity and ambient temperatures, ensuring optimal performance. By focusing on energy efficiency and customization, Daikin Applied has strengthened its position as a global leader in data center cooling, contributing to the widespread adoption of its technologies and influencing global cooling practices.
The North American data center cooling market is characterized by a competitive landscape that includes a mix of established players and emerging companies. Major corporations dominate the market, leveraging advanced technologies and extensive distribution networks to offer a wide range of cooling solutions. Key players such as Schneider Electric, Vertiv, and Emerson Electric are at the forefront, providing innovative cooling systems and services tailored to meet the diverse needs of data center operators. These companies invest heavily in research and development to enhance their product offerings and maintain a competitive edge.
Additionally, the market is witnessing the entry of new players that focus on niche solutions, such as liquid cooling and energy-efficient systems, which cater to the growing demand for sustainable cooling technologies. The competition is further intensified by the increasing emphasis on energy efficiency and regulatory compliance, prompting companies to innovate and differentiate their offerings. As the market continues to evolve, collaboration and partnerships among industry stakeholders are becoming more common, enabling companies to expand their capabilities and enhance their service offerings. Overall, the North American data center cooling market is poised for continued growth, driven by technological advancements and the increasing demand for efficient cooling solutions.
Product Innovation
Product innovation is a cornerstone strategy for many key players in the North American data center cooling market. Companies like Vertiv Group Corp. and Daikin Applied invest heavily in research and development to create cutting-edge cooling technologies. These include advanced liquid cooling systems, precision air conditioning, and energy-efficient solutions that cater to the growing demand for sustainable and high-performance thermal management. These companies not only address current market needs but also stay ahead of regulatory requirements and technological trends by ensuring their solutions remain relevant in an evolving industry.
Partnerships and Collaborations
Another critical strategy is forming partnerships and collaborations, which are exemplified by companies like Vertiv and Eaton. These firms work closely with technology providers, system integrators, and data center operators to integrate their cooling solutions into broader infrastructure ecosystems. Such partnerships enable them to offer comprehensive and seamless solutions that cater to the specific needs of hyperscale data centers, colocation facilities, and edge computing environments.
Sustainability Initiatives
Sustainability initiatives are increasingly important in the data center cooling market, with companies like Eaton and Daikin emphasizing eco-friendly solutions. These firms focus on developing energy-efficient cooling systems that align with the growing demand for green data centers. By offering solutions that reduce energy consumption and comply with stringent environmental regulations, they appeal to environmentally conscious customers and contribute to lowering the carbon footprint of data center operations. This commitment to sustainability not only enhances their brand reputation but also positions them as leaders in the transition toward more sustainable data center practices.
Customization and Customer-Centric Approaches
Customization and customer-centric approaches are key strategies for companies like Nortek Air Solutions and Black Box Corporation. Nortek specializes in custom-engineered cooling solutions tailored to the unique requirements of large-scale data centers, while Black Box offers modular and scalable systems designed for mid-sized facilities and edge computing applications. This focus on customization allows these companies to address the specific thermal management challenges faced by different types of data centers. Additionally, Black Box emphasizes robust customer support and after-sales services, building long-term relationships with clients and enhancing customer satisfaction.
Targeted Marketing and Geographic Expansion:
Targeted marketing and geographic expansion are essential strategies for companies looking to strengthen their market presence. Firms like Coolcentric and 3M focus on niche markets, with Coolcentric targeting cost-effective liquid cooling solutions for budget-conscious operators and 3M pioneering immersion cooling technologies for high-performance computing environments. Meanwhile, companies like Vertiv expand their geographic reach by establishing new facilities and service centers across North America to better serve regional demands.
This research report on the North America data center cooling market is segmented and sub-segmented based on categories.
By Type
Enterprise Data Center
Edge Data Center
By Solutions
Air Conditioning
Chilling Units
Cooling Towers
Economizer System
Liquid Cooling System
Computer Room Air Conditioning (CRAC) and Computer Room Air Handler (CRAH)
Control Units
Others
By Service
Consulting and Training
Installation and Deployment
Maintenance and Support
By Cooling Type
Room-Based Cooling
Rack-Based Cooling
Row-Based Cooling
By Organization Size
Large Organization Size
Small and Medium Organization
By Country
Frequently Asked Questions
Challenges include high energy consumption, the rising cost of cooling solutions, the complexity of managing large-scale cooling infrastructure, and the environmental impact of cooling technologies.
The market is expected to grow due to the increasing demand for data processing power, the rise of edge computing, and the push for more energy-efficient and sustainable cooling solutions.
The future of data center cooling in North America looks promising, with an emphasis on advanced cooling technologies such as liquid cooling, AI-based optimization, and energy-efficient solutions aimed at reducing operational costs and environmental impact.
Related Reports
Access the study in MULTIPLE FORMATS
Purchase options starting from $ 2000
Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM
Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!
Call us on: +1 888 702 9696 (U.S Toll Free)
Write to us: [email protected]
Reports By Region