North America Data Center Cooling Market Size (2024 - 2029)

North America Data Center Cooling Market Analysis

The NA Data Center Cooling Market size is estimated at USD 6.44 billion in 2024, and is expected to reach USD 11.24 billion by 2029, growing at a CAGR of 11.80% during the forecast period (2024-2029).

The rapid development of various containerized, modular, and performance-optimized data center (POD) facilities is anticipated to boost the overall demand for various cooling systems that can be utilized in the data centers, driving the market's growth extensively.

• The United States dominated the total North American data center cooling market mainly due to the growth in the development of colocation and hyperscale facilities with over 100 MW power capacity. A surge in the need for cost-effective and efficient data centers, healthy growth of enterprises with data centers, various green initiatives for eco-friendly data center solutions, and power density are expected to drive the market's growth.

• In addition, the emergence of portable cooling and liquid-based cooling technologies and growth in the need for a modular data center cooling approach are expected to offer lucrative opportunities for the North American data center cooling market. The solution segment had ruled the North American data center cooling market primarily due to the rising adoption of energy-efficient, cost-effective, and environment-friendly cooling solutions in line with various stringent environmental safety rules offered by governmental bodies.

• Moreover, the market witnessed significant product launches and innovations, driving the market significantly. For instance, in June 2023, a 5MW, state-of-the-art testing laboratory was commissioned at the Modine Rockbridge facility in Virginia, further expanding the services that Airedale by Modine can provide data center customers and meet growing demand from the data center industry for validated, sustainable cooling solutions. The new lab can test a complete range of air conditioning equipment, accommodating air-cooled chillers up to 2.1MW and water-cooled chillers up to 5MW.

• However, the need for specialized infrastructure, higher investment costs, and various cooling challenges during a power outage are expected to restrict the growth of the North American data center cooling market throughout the forecast period.

• The COVID-19 pandemic placed data centers in unchartered territory. There were many supply chain disruptions, and due to lockdowns globally, the smooth operations of the systems were hugely impacted. Owing to shipping disruptions and factory closures that affected the delivery of data center equipment, operators found workarounds to meet the challenges. However, during the post-COVID-19 period, the market is expected to witness various lucrative growth opportunities throughout the forecast period.

North America Data Center Cooling Industry Segmentation

The equipment, tools, methods, and procedures used to maintain an ideal operating temperature inside a data center building are collectively referred to as data center cooling. There is a growing need for energy-efficient cooling of IT equipment mainly due to the increased capacity and higher data density. In addition, advantages provided by technology and government support by imposing efficiency rules for data centers are anticipated to directly contribute to developing the data center cooling market in several applications, including IT, BFSI, telecommunication, etc.

The North American data center cooling market is segmented by cooling technology (air-based cooling (CRAH, chiller and economizer, cooling tower (covers direct, indirect & two-stage cooling), and others)), liquid-based cooling (immersion cooling, direct-to-chip cooling, rear-door heat exchanger), end-user vertical (IT & telecom, retail & consumer goods, healthcare, media & entertainment, federal & institutional agencies, and other end-user verticals), and geography (United States, Canada, and the Rest of North America). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.