United States Data Center Cooling Market Size
| Study Period | 2018 - 2030 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 4.90 Billion |
| Market Size (2030) | USD 15.90 Billion |
| CAGR (2024 - 2030) | 21.60 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
United States Data Center Cooling Market Analysis
The United States Data Center Cooling Market size is estimated at USD 4.90 billion in 2024, and is expected to reach USD 15.90 billion by 2030, growing at a CAGR of 21.60% during the forecast period (2024-2030).
The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investments by domestic players are some of the major factors driving the demand for data centers in the country.
- Under Construction IT Load Capacity: The IT load capacity of the US data center rack market is expected to reach 25,500 MW by 2030.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 91 million sq. ft by 2030.
- Planned Racks: The country's total number of racks installed is expected to reach 4.5 million units by 2030. Northern Virginia is expected to house the maximum number of racks by 2030.
- Planned Submarine Cables: More than 90 submarine cable systems connect the United States, and many are under construction. One such submarine cable, which is estimated to start service in 2025, is Gold Data-1; it stretches over 2,333 km with landing points from Naples to the United States.
United States Data Center Cooling Market Trends
The IT and Telecommunication Segment Holds the Majority Share
- The need for high-performance computing in technologies like cloud computing has led to the development of scalable, efficient, and flexible business operations, prompting many mid-sized companies to establish effective data centers like web hosting clouds and colocation centers. As a result, the increasing use of data centers has sparked a growing interest in cloud and mega data centers, which creates massive demand for data center cooling solutions, thus creating a high demand for Air and Liquid cooling components.
- With the ongoing expansion and enhancement of 5G networks, the stage is set for the rise of emerging edge edge applications. These applications demand swift, high-capacity data transfers and, in turn, produce substantial heat. In response, major service providers are pivoting toward advanced data center cooling solutions to bolster their automation capabilities.
- The segment is expected to witness a surge in demand during the forecast period, driven by the rapid growth and construction of IT infrastructure. The number of IoT devices utilizing network connections from telecommunication providers is likely to generate huge amounts of data. For instance, connected consumer device unit shipments in the United States reached more than 800 million in 2023. By 2025, IoT connections in the United States are projected to grow to more than 4 billion. The average monthly mobile data speed in the United States is projected to reach 534 Mbps by 2029 through 5G service. Such instances in the market are expected to create more need for data centers, boosting the demand for data center cooling infrastructure manufacturers in the coming years.
Liquid-based Cooling is Expected to Be the Fastest Growing Segment
- In US data centers, key operators are increasing their IT load capacities to meet the growing demand for data storage. This generates more heat from the servers, requiring efficient cooling solutions with increased capacity benefits. For instance, in August 2024, T5 Data Centers secured a 91-acre plot in Palmetto, outside Atlanta, Georgia, for its upcoming data center campus. The site, already zoned for data center operations, has the potential to scale up to a power capacity of 300 MW. Utility power will be supplied through an on-site electrical substation, slated to become operational in 2026.
- In data centers, liquid cooling offers many benefits and is an attractive option for cooling computing environments with high performance. The use of liquid cooling is more energy efficient compared to conventional air conditioning. It reduces the need for overcooling and improves the energy efficiency of data centers by providing precise temperature control.
- Cryptocurrency and blockchain technology drive innovation in the US data center market. It pushes the computing limits of traditional data centers. Innovations include new cooling methods, clean energy initiatives, and advances in data center architecture. Cryptocurrency mining operations are designed to be extremely dense and always run at maximum capacity. This approach gives operators the greatest chance of profitability (i.e., the value of the collected cryptocurrencies is greater than the energy consumed). However, this strategy also comes with the challenge of consuming huge amounts of energy and dissipating significant heat loads that are not typical of traditional data center operations. To contain the heat dissipation from the data center, cooling solutions are extensively used, and with all the benefits of cooling, this cooling technology is one of the major growing markets in the data center industry.
- The United States has been at the forefront of developments in liquid cooling technologies for data centers and other applications. Direct-to-chip cooling is expected to hold the major share, and immersion cooling is expected to be the fastest-growing segment in the United States, particularly in high-performance computing (HPC) and cryptocurrency mining operations.
- Innovative liquid cooling solutions have been introduced to the market by several companies, and they are an efficient solution for data centers in terms of maximizing heat efficiency and reducing energy consumption. For instance, in May 2023, Nvidia was awarded USD 5 million from the United States Department of Energy (DOE) to develop a data center cooling system that combines two-phase direct-to-chip and immersion cooling techniques using low-global warming potential (GWP) refrigerants and per- and polyfluorinated alkyl substances (PFAs) that comply with environmental regulations. Nvidia’s funding is part of the DOE’s Cooling Operations Optimized for Leaps in Energy, Carbon Hyperefficiency and Reliability for Information Processing Systems program, which has also awarded funds to projects at HP, Flexnode, Intel Federal, universities, and research centers.
- Moreover, companies are in the process of installing new cooling systems to cater to the growing data center construction in the region. For instance, Microsoft announced the installation of a new liquid immersion cooling infrastructure at a data center in Washington, which saves water and lowers energy costs. This shift to two-phase liquid immersion cooling provides increased flexibility for the proper management of cloud resources.
United States Data Center Market Industry Overview
The upcoming DC construction projects in the country will increase the demand for data center cooling in the coming years. The US data center cooling market is moderately fragmented. Market players include Stulz GmbH, Rittal GMBH & Co. KG, Schneider Electric SE, Vertiv Group Corp., and Mitsubishi Electric Corporation. These major players, with a prominent market share, focus on expanding their regional customer base.
- April 2024: Carrier Global Corporation partnered with Strategic Thermal Labs to develop direct-to-chip cooling technology. Under this partnership, Carrier will leverage the advancement in direct-to-chip technology and incorporate it into the data center cooling solutions.
- December 2023: Vertiv acquired Cooltera Ltd, a manufacturer of coolant distribution units (CDU) and secondary fluid networks (SFN). This acquisition is expected to improve the existing DC cooling solutions offered by the company.
United States Data Center Market Leaders
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Stulz GmbH
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Rittal GMBH & Co.KG
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Schneider Electric SE
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Vertiv Group Corp.
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Mitsubishi Electric Corporation
*Disclaimer: Major Players sorted in no particular order
United States Data Center Market News
- March 2024: German heat exchanger manufacturer Kelvion and US immersion cooling company Rosseau announced a partnership to deliver enhanced immersion cooling solutions for the high-performance computing (HPC) market.
- January 2024: Data center firm Aligned launched a new liquid cooling system called DeltaFlow. The liquid cooling technology is designed to support high-density computing requirements and supercomputers and can cool densities up to 300 kW per rack. The new DeltaFlow system works simultaneously with Aligned's air-cooled Delta technology, enabling no change in power delivery or existing data hall temperatures.
United States Data Center Cooling Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption and Market Definition
1.2 Scope Of The Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Key cost considerations for Cooling
4.2.1 Analysis of the key cost overheads related to DC operations with an eye on DC Cooling
4.2.2 Comparative Study of the cost and operational considerations related to each Cooling technology based on key factors such as design complexity, PUE, advantages, drawbacks, extent of utilization of natural weather conditions)
4.2.3 Key innovations and developments in Data Center Cooling
4.2.4 Key energy efficiency practices adopted in Data Centers
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increased emphasis on energy consumption drives the demand for the studied market
5.1.2 Growing demand toward green solutions drives the demand for the studied market
5.2 Market Challenges
5.2.1 Dynamic Nature of Regulations on Cooling Solutions
5.3 Market Opportunities
5.3.1 Growing Use of Single-phase Immersion Cooling
5.4 Industry Ecosystem Analysis
6. ANALYSIS OF THE CURRENT DATA CENTER FOOTPRINT COUNTRY
6.1 Analysis of IT Load Capacity & Area footprint of Data Centers (for the period of 2017-2030)
6.2 Analysis of the current DC hotspots and scope for future expansion in the Country)
6.3 Analysis of major Data Center Contractors and Operators in the Country
7. MARKET SEGMENTATION
7.1 By Cooling Technology
7.1.1 Air-based Cooling
7.1.1.1 Chiller and Economizer
7.1.1.2 CRAH
7.1.1.3 Cooling Tower (Covers Direct, Indirect, and Two-stage Cooling)
7.1.1.4 Other Air-based Cooling
7.1.2 Liquid-based Cooling
7.1.2.1 Immersion Cooling
7.1.2.2 Direct-to-chip Cooling
7.1.2.3 Rear-door Heat Exchanger
7.2 By Type
7.2.1 Hyperscalers (Owned and Leased)
7.2.2 Enterprise (On-premise)
7.2.3 Colocation
7.3 By End-user Industry
7.3.1 IT and Telecom
7.3.2 Retail and Consumer Goods
7.3.3 Healthcare
7.3.4 Media and Entertainment
7.3.5 Federal and Institutional Agencies
7.3.6 Other End-user Industry
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 Stulz GmbH
8.1.2 Rittal GMBH & Co. KG
8.1.3 Schneider Electric SE
8.1.4 Vertiv Group Corp.
8.1.5 Mitsubishi Electric Corporation
8.1.6 Asetek A/S
8.1.7 Johnson Controls International PLC
8.1.8 Green Revolution Cooling Inc.
8.1.9 Airedale International Air Conditioning Ltd
8.1.10 Emerson Electric Co.
- *List Not Exhaustive
9. INVESTMENT ANALYSIS
10. MARKET OPPORTUNITIES AND FUTURE TRENDS
11. ABOUT US
United States Data Center Cooling Industry Segmentation
Data center cooling is a set of techniques and technologies to maintain optimal operating temperatures in data center environments. This is important because data centers house many computer servers and network equipment that generate heat during operation. Efficient cooling systems are used to dissipate this heat and prevent equipment from overheating, ensuring continued reliable operation of the data center. Various methods, such as air conditioning, liquid cooling, and hot/cold aisle containment, are commonly used to control temperature and humidity in data centers.
The US data center cooling market is segmented by technology (air-based cooling (chiller and economizer, CRAH, cooling towers, and other technologies), liquid-based cooling (immersion cooling, direct-to-chip cooling, and rear-door heat exchanger)), type of data center (hyperscaler, enterprise, and colocation), and end-user industry (IT and telecom, retail and consumer goods, healthcare, media and entertainment, federal and institutional agencies, and other end-user industries).
| By Cooling Technology | ||||||
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| By Type | |
| Hyperscalers (Owned and Leased) | |
| Enterprise (On-premise) | |
| Colocation |
| By End-user Industry | |
| IT and Telecom | |
| Retail and Consumer Goods | |
| Healthcare | |
| Media and Entertainment | |
| Federal and Institutional Agencies | |
| Other End-user Industry |
United States Data Center Cooling Market Research FAQs
How big is the United States Data Center Cooling Market?
The United States Data Center Cooling Market size is expected to reach USD 4.90 billion in 2024 and grow at a CAGR of 21.60% to reach USD 15.90 billion by 2030.
What is the current United States Data Center Cooling Market size?
In 2024, the United States Data Center Cooling Market size is expected to reach USD 4.90 billion.
Who are the key players in United States Data Center Cooling Market?
Stulz GmbH, Rittal GMBH & Co.KG, Schneider Electric SE, Vertiv Group Corp. and Mitsubishi Electric Corporation are the major companies operating in the United States Data Center Cooling Market.
What years does this United States Data Center Cooling Market cover, and what was the market size in 2023?
In 2023, the United States Data Center Cooling Market size was estimated at USD 3.84 billion. The report covers the United States Data Center Cooling Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the United States Data Center Cooling Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
United States Data Center Cooling Industry Report
Statistics for the 2024 United States Data Center Cooling market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United States Data Center Cooling analysis includes a market forecast outlook for 2024 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
