Data Center Cooling Market Trends: The Shift Towards Non-Raised Floor Solutions

The global data center cooling market was valued at USD 22.13 billion in 2024 and is projected to reach USD 56.15 billion by 2030, growing at a CAGR of 16.4% from 2025 to 2030. This growth is primarily driven by the increasing need for energy-efficient data center operations amid rising data volumes and processing demands.

The sharp growth in data generation—driven by digital transformation, cloud computing, and artificial intelligence (AI)—has led to an exponential rise in data center deployment globally. These facilities, which consume vast amounts of electricity, also generate substantial heat, necessitating advanced cooling solutions to maintain system performance and hardware longevity. As a result, data center cooling has become a critical component in maintaining energy efficiency and operational stability.

In response to market demands, several major companies are expanding their cooling operations and investing in innovative technologies. For instance, in October 2024, Schneider Electric announced its acquisition of a majority stake in Motivair Corporation, a U.S.-based company specializing in liquid cooling and thermal management for high-performance computing. Additionally, technological advancements—such as the integration of AI and automation into cooling systems—are allowing for real-time monitoring and trend analysis, enhancing efficiency and reducing energy consumption.

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Key Market Trends & Insights

• North America held a dominant share of over 34.0% in 2024, driven by the rising demand for data processing and storage infrastructure. This growth is further fueled by the widespread adoption of high-performance computing (HPC) and AI technologies, which require high-capacity cooling systems.
• By component, the solution segment led the market in 2024, as the rise of AI, big data, and cloud services has increased thermal output in data centers, making sophisticated cooling systems essential for maintaining efficiency and uptime.
• Within the solution category, air conditioners were the leading cooling technology in 2024. The trend toward increased data center density—where more computing power is housed in smaller physical footprints—has intensified the need for reliable air-based cooling systems.
• In the services segment, installation & deployment dominated in 2024. The growing need for seamless integration of cooling technologies has pushed operators to engage with experienced service providers for efficient and precise deployment.
• By type, non-raised floor configurations held the largest share at over 57.0% in 2024. The shift toward more compact, space-saving designs has driven this trend, as modern data centers move away from traditional raised floor architectures.
• Under the containment category, raised floors with containment—including Hot Aisle Containment (HAC) and Cold Aisle Containment (CAC)—captured over 57.0% of the market in 2024. These systems optimize airflow and reduce cooling costs by segregating hot and cold air streams.
• Regarding cooling structure, room-based cooling was the dominant approach in 2024, accounting for over 47.0% of total revenue. This method remains essential for organizations dealing with high-density IT environments, especially those transitioning to cloud or hybrid infrastructure.
• By application, the telecom sector led the market with a revenue share of over 28.0% in 2024. With the continued expansion of 5G networks, telecom operators are scaling up their data centers, driving demand for advanced and energy-efficient cooling solutions.

Market Size & Forecast

• 2024 Market Size: USD 22.13 Billion
• 2030 Projected Market Size: USD 56.15 Billion
• CAGR (2025-2030): 16.4%
• North America: Largest market in 2024
• Asia Pacific: Fastest growing market

Key Companies & Market Share Insights

Prominent players in the data center cooling industry include Vertiv Group Corp., Schneider Electric, Fujitsu, Mitsubishi Electric Corporation, and Asetek, Inc. These companies are investing in R&D, forming strategic partnerships, and developing specialized products to stay competitive.

• In March 2025, Vertiv Group Corp. entered into a partnership with Tecogen Inc., a U.S.-based clean energy provider. This collaboration aims to integrate natural gas-powered chiller technology into Vertiv’s global offerings. The solution is tailored for AI applications and addresses energy constraints in high-performance data centers.
• In December 2024, Schneider Electric, in partnership with NVIDIA, introduced AI-ready data center solutions, including a liquid-cooled cluster reference design supporting up to 132 kW per rack. They also unveiled the Galaxy VXL UPS, which offers 52% space savings and delivers high power density, optimizing power delivery for AI-intensive data centers.

Key Players

• Air Enterprises
• Asetek, Inc.
• Climaveneta Climate Technologies PVT. LTD.
• Coolcentric
• Dell Inc.
• Fujitsu
• Hitachi, Ltd.
• Johnson Controls
• Mitsubishi Electric Corporation
• Nortek Air Solutions, LLC
• NTT Ltd.
• Rittal GmBH & Co. KG
• Schneider Electric
• STULZ GMBH
• Vertiv Group Corp.

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Conclusion

The global data center cooling market is on a robust growth trajectory, driven by escalating demands from AI, cloud computing, and high-performance data centers. As data volumes continue to rise, energy efficiency and thermal management have become mission-critical. The shift toward AI-integrated and liquid cooling systems, along with innovations in deployment and containment strategies, positions the industry for continued expansion. With North America leading in 2024 and Asia Pacific emerging as the fastest-growing region, the data center cooling sector is poised to play an increasingly vital role in the global digital infrastructure landscape through 2030.