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Study Period | 2019 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Size (2025) | USD 3.56 Billion |
Market Size (2030) | USD 7.31 Billion |
CAGR (2025 - 2030) | 15.47 % |
Market Concentration | Low |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
APAC Data Center Cooling Market Analysis
The APAC Data Center Cooling Market size is estimated at USD 3.56 billion in 2025, and is expected to reach USD 7.31 billion by 2030, at a CAGR of 15.47% during the forecast period (2025-2030).
- Surging internet usage and the rising number of data centers—driven by the vast computational needs of artificial intelligence (AI) and media applications—have fueled a massive expansion in the data center cooling market, particularly in the Asia-Pacific (APAC) region.
- Emerging countries in APAC are witnessing rapid IT infrastructure development, further propelling the market. This surge in data center demand has piqued the interest of a diverse array of investors in the region, spanning growth capital, buyout, real estate, and increasingly, infrastructure sectors. For example, in February 2025, CapitalLand Investment Ltd. made headlines with its acquisition of a freehold land parcel in Osaka, marking its inaugural foray into Japan's data center landscape, backed by an investment exceeding USD 700 million. This significant uptick in data center demand underscores the necessity for efficient cooling solutions, as these centers, often housing thousands of servers, require optimal cooling to function effectively.
- The International Energy Agency (IEA) highlights a relentless surge in demand for digital services. Since 2010, the global internet user base has nearly doubled, and web traffic has skyrocketed 20-fold. However, this digital boom raises sustainability concerns. Currently, data centers account for 1.5 percent of the world's electricity consumption, positioning providers as pivotal players in the quest for net-zero emissions. While enhancing energy efficiency poses challenges for the data center industry, it simultaneously opens doors for innovative solutions. Central to this endeavor is the adoption of efficient and sustainable cooling methods for data centers.
- Given that cooling constitutes about 40 percent of a data center's energy consumption, it's a vital determinant of profitability. Overheating can lead to costly downtimes.
- In response to these challenges, APAC companies are pioneering "Green" data centers, opting for Free Air Cooling systems over conventional air conditioners. This shift towards green data centers for data management and distribution has enabled numerous software firms to slash both energy consumption and overall energy expenses.
- Yet, the market faces hurdles, notably adaptability demands and power outages in the APAC region. A typical cooling system for data centers needs to be pre-engineered, standardized, and modular, with flexibility and scalability to align with regional demands. However, firms are increasingly hesitant to invest in high-end, customized cooling solutions, complicating this endeavor.
- Market players are turning to liquid cooling solutions to enhance their offerings. A case in point: in December 2024, British industrial lubricant giant Castrol unveiled its new direct-to-chip cooling fluid, tailored for the intense thermal demands of AI and high-performance computing data centers. Dubbed Castrol ON Direct Liquid Cooling PG 25, this propylene glycol-based fluid is specifically crafted for direct-to-chip applications, comes ready-to-use, and boasts features like corrosion and bacterial growth protection.
APAC Data Center Cooling Market Trends
Information Technology and Telecom Industry to Witness Highest Growth
- Transformative advancements across industries have been largely driven by the Information Technology (IT) vertical. The market studied has seen remarkable growth, largely attributed to a global surge in digitization, spurred by IT innovations. Telenor reports that in the Asia-Pacific (APAC) region, the combined growth of established IoT powerhouses like South Korea, Japan, Australia, and China, alongside emerging players such as India, Pakistan, Bangladesh, Indonesia, and Thailand, is set to propel 14.5 billion IoT devices in 2022 in circulation to a staggering 38.9 billion by 2030.
- Asia-Pacific stands at the forefront of this burgeoning segment. With its status as a burgeoning hub for technology and digital transformation, the IT sector has adeptly risen to the occasion, driving the market studied to unprecedented heights.
- Over the years, as Software as a Service (SaaS) providers have broadened their horizons, the expansion of cloud storage has followed suit. This growth trajectory is poised to amplify the demand for data center cooling systems. Industry giants like Microsoft, AWS, and Google are not just expanding their storage capacities for streamlined cloud workflows but are also making significant investments in hyperscale transactions.
- With the evolution of data-centric technologies such as cloud computing, artificial intelligence, and the Internet of Things (IoT), the appetite for data centers has surged. As companies broaden their digital reach, there's a growing need for either expansive data centers or a network of smaller facilities across diverse regions. This rapid expansion brings forth challenges, particularly in efficiently managing the cooling requirements of these extensive infrastructures.
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China is Expected to Witness Significant Market Share
- Data center cooling is rapidly expanding in the Asia-Pacific, driven by the region's burgeoning data center infrastructure, increasing digital service adoption, and the rise of cloud computing. As the demand for data centers surges, there's a heightened focus on efficiency and ensuring maximum uptime.
- Especially, China is making significant strides to outpace global competitors in data center construction. In a relatively brief period, China has evolved from a technological underdog to one of the globe's foremost digital economies. The nation has witnessed a pronounced uptick in the adoption of 5G, wearable tech, the Internet of Things (IoT), and artificial intelligence. According to GSMA, by 2030, 5G adoption in Greater China is projected to hit an average of 88% of total connections, positioning these markets as frontrunners in the global 5G landscape. This digital expansion fuels a surging demand for processing capacity, prompting larger organizations to upscale their data centers to ensure stable and reliable data services.
- As artificial intelligence and similar workloads gain traction across various Chinese sectors, accelerator processors are making their way into enterprise data centers. Services sensitive to latency are increasingly turning to zero-latency technologies, leveraging acceleration systems for swift data handling. These hardware accelerators have substantial cooling needs, often exceeding 200 W. When combined with a robust server, a single unit can demand nearly 1 kW. This heightened energy requirement has spurred the adoption of immersion cooling technologies in China's data centers.
- While Microsoft Azure and Amazon Web Services are busy building expansive global cloud data center networks, Alibaba Group – the cloud computing arm of China's leading e-commerce giant – is making waves with its innovative cooling solutions. Alibaba's approach involves submerging server motherboards in liquid coolant, a strategy designed to rival the advancements of its global counterparts. This method capitalizes on liquid's superior heat transfer capabilities compared to air. Thanks to the energy efficiency of immersion cooling, Alibaba has managed to slash its data center operating expenses by 20%.
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APAC Data Center Cooling Industry Overview
The Asia-Pacific data center cooling market is fragmented. The advantages offered by the technology and aid from the government by imposing efficiency regulations on data centers are expected to help the growth of the data center cooling market directly. Market penetration is growing with a strong presence of major players in established markets. With the increasing focus on innovation, the demand for new technologies is growing, which, in turn, is driving investments for further developments. Key players are Vertiv Co., Schneider Electric SE, STULZ GMBH, etc.
As demand for high-performance computing surges, data centers grapple with the heat produced by cutting-edge components. Enter Direct Liquid Cooling (DLC), a timely answer to the cooling challenges posed by new AI chips. While DLC offers a stopgap for AI chip integration, it doesn't fully tackle the long-term cooling demands of other high-density components or the overarching efficiency and environmental concerns of data centers. The persistent use of air cooling and chillers not only complicates infrastructure but also curtails potential enhancements in Power Usage Effectiveness (PUE).
Looking ahead, immersion cooling stands out as a method to fine-tune workloads in relation to the cooling capacity, positioning dry cooling as a baseline and overclocking as the pinnacle. This strategy, already in play at scale within the Bitcoin and cryptocurrency mining sector, showcases its resilience even in some of the planet's most challenging environments, often where water resources are limited.
APAC Data Center Cooling Market Leaders
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Vertiv Co
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Stulz GmbH
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Schneider Electric SE
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Rittal GmbH & Co. KG
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Mitsubishi Electric Hydronics & IT Cooling Systems SpA
- *Disclaimer: Major Players sorted in no particular order
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APAC Data Center Cooling Market News
- May 2024: Stulz has launched the CyberCool Coolant Management and Distribution Unit (CDU), designed to enhance heat exchange efficiency in liquid cooling systems. The lineup features four models, offered in two sizes, with heat exchange capacities spanning from 345 kW to 1,380 kW. Stulz has established a rated water supply temperature of 32°C (89.6°F) for its facility water system, while the technology cooling system's liquid supply temperature is set at 36°C (96.8°F).
- March 2024: Schneider Electric, a leading name in energy management and automation, has unveiled a new cooling facility in Bangalore, pouring in a hefty investment of INR 100 crores. Spread across 6.5 acres, this facility is set to bolster Schneider Electric's global supply chain, with a significant 85% of its production destined for international markets. Addressing the surging demand for cutting-edge cooling solutions in the data center arena, both domestically and internationally, this factory is set to revolutionize the landscape. It will focus on developing innovative cooling solutions specifically designed for data centers, telecommunications, and a range of commercial and industrial sectors.
APAC Data Center Cooling Industry Segmentation
Datacenter cooling encompasses the tools, techniques, and processes that maintain optimal temperatures in data centers. As data centers expand and their equipment becomes denser, the demand for energy-efficient cooling solutions intensifies. Moreover, the advantages of this technology, coupled with government-imposed efficiency regulations, are poised to drive the growth of the data center cooling market across diverse applications.
The Asia-Pacific data center cooling market is segmented by cooling technology (air-based cooling [CRAH, chiller and economizer, cooling tower [covers direct, indirect & two-stage cooling], others]), liquid-based cooling (immersion cooling, direct-to-chip cooling, rear-door heat exchanger), by end-user vertical (IT & telecom, retail & consumer goods, healthcare, media & entertainment, federal & institutional agencies, and other end-users), and by geography (China, India, Japan, Australia, New Zealand, Singapore, South Korea, Malaysia, Indonesia, Philippines, Taiwan, Hong Kong, Thailand, Vietnam, and the Rest of Asia-Pacific). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
By Cooling Technology (Key trends, market size estimates & projections for the period of 2023-2030 and future outlook) | Air-based Cooling | CRAH | |
Chiller and Economizer | |||
Cooling Tower (covers direct, indirect & two-stage cooling) | |||
Others | |||
Liquid-based Cooling | Immersion Cooling | ||
Direct-to-Chip Cooling | |||
Rear-Door Heat Exchanger | |||
By End-user Vertical | IT & Telecom | ||
Retail & Consumer Goods | |||
Healthcare | |||
Media & Entertainment | |||
Federal & Institutional agencies | |||
Other end-users | |||
By Country*** | China | ||
India | |||
Japan | |||
Australia | |||
New Zealand | |||
Singapore | |||
South Korea | |||
Malaysia | |||
Indonesia | |||
Philippines | |||
Taiwan | |||
Hong Kong | |||
Thailand | |||
Vietnam |
APAC Data Center Cooling Market Research Faqs
How big is the APAC Data Center Cooling Market?
The APAC Data Center Cooling Market size is expected to reach USD 3.56 billion in 2025 and grow at a CAGR of 15.47% to reach USD 7.31 billion by 2030.
What is the current APAC Data Center Cooling Market size?
In 2025, the APAC Data Center Cooling Market size is expected to reach USD 3.56 billion.
Who are the key players in APAC Data Center Cooling Market?
Vertiv Co, Stulz GmbH, Schneider Electric SE, Rittal GmbH & Co. KG and Mitsubishi Electric Hydronics & IT Cooling Systems SpA are the major companies operating in the APAC Data Center Cooling Market.
What years does this APAC Data Center Cooling Market cover, and what was the market size in 2024?
In 2024, the APAC Data Center Cooling Market size was estimated at USD 3.01 billion. The report covers the APAC Data Center Cooling Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the APAC Data Center Cooling Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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APAC Data Center Cooling Industry Report
Statistics for the 2025 APAC Data Center Cooling market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. APAC Data Center Cooling analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.