Updated
Updated · PR Newswire · Aug 10
Data Center Cooling Market to Hit $37.62 Billion by 2033 as AI Drives 16.1% CAGR
Updated
Updated · PR Newswire · Aug 10

Data Center Cooling Market to Hit $37.62 Billion by 2033 as AI Drives 16.1% CAGR

1 articles · Updated · PR Newswire · Aug 10

Summary

  • $37.62 billion is the projected size of the global data center cooling market in 2033, up from $13.23 billion in 2026, according to a MarketsandMarkets forecast.
  • 16.1% annual growth is being driven by heavier heat loads from expanding cloud computing, AI and big-data workloads, which are pushing operators to deploy more advanced cooling systems.
  • 31.5% is the forecast CAGR for liquid cooling by technology, while liquid cooling systems by component are seen growing 29.5%, reflecting demand from high-density AI and HPC infrastructure.
  • 44.1% of the market was held by North America in 2025, and hyperscale data centers are expected to remain the largest data-center segment through 2033 as major cloud providers expand capacity.
  • 2024-2026 funding rounds of $25 million to $65 million and acquisitions worth $270 million to $9.5 billion point to a consolidating market as established vendors build AI-ready thermal management portfolios.

Insights

As AI pushes data center heat to unprecedented levels, could the liquid cooling boom quietly solve the industry's looming water crisis?
With AI racks exceeding 100 kW, will legacy air-cooled data centers face obsolescence or find a way to survive the liquid revolution?