What is the Data Centre HVAC Market size in 2026?

The Data Centre HVAC market is estimated at USD 26.00 Billion in 2026, up from USD 20.00 Billion in 2025.

What is the Data Centre HVAC Market forecast for 2035?

Revenue is forecast to reach USD 68.00 Billion by 2035.

What is the CAGR of the Data Centre HVAC Market from 2026 to 2035?

The Data Centre HVAC market is expected to grow at a CAGR of 11.3% from 2026 to 2035.

Which cooling technology dominates the Data Centre HVAC market?

Air cooling leads with USD 17.50 Billion in 2025, about 87.5% of revenue.

Which cooling technology is growing fastest?

Immersion and rear door cooling grows at 27.3%, ahead of direct to chip liquid cooling at 24.3%.

Which region dominates the market?

North America leads with approximately 46% share, or USD 9.20 Billion, in 2025.

Which region is growing fastest?

Asia-Pacific is fastest growing at 12.7% CAGR from 2026 to 2035.

Which country has the largest market?

The U.S. leads with an estimated USD 8.30 Billion in 2025.

Who are the key players in the Data Centre HVAC market?

Eleven verified companies lead, headed by Vertiv, which reported net sales of USD 10.23 Billion in 2025.

What are the main growth drivers?

AI rack density is the largest driver, adding approximately 2.6% to the forecast CAGR.

What are the main restraints?

Grid and power availability delays are the main restraint, reducing the CAGR by approximately 1.4%.

What opportunities exist for suppliers?

Services grow from USD 4.40 Billion in 2025 to USD 12.50 Billion by 2035, alongside liquid cooling retrofits.

How is AI affecting data centre cooling?

Liquid technologies rise from 12.5% of revenue in 2025 to 45.6% by 2035.

What is the regulatory environment for data centre cooling?

Efficiency and energy reporting rules are tightening, and cooling can account for 30% to 55% of data centre energy use.

How large is the India market and how fast is it growing?

India grows from USD 0.55 Billion in 2025 to USD 2.85 Billion by 2035, a CAGR of 16.0%.

Data Centre HVAC Market Size & Share Analysis

Name: Data Centre HVAC Market Size & Share Analysis
Creator: Next Move Strategy Consulting
Published: 2026-11-02T00:00:00+00:00
License: https://www.nextmsc.com/privacy-policy

Research Methodology

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In tandem with qualitative methodologies, NMSC leverages the power of Quantitative Research to provide a robust foundation of numerical insights. Through systematic data collection and analysis, we quantify patterns, preferences, and market trends, offering a comprehensive view of the business landscape.

Our quantitative research approach employs diverse tools, including surveys, experiments, and statistical modelling. These methodologies enable us to gather data from a large and representative sample, ensuring the statistical significance of our findings. By employing structured questionnaires and standardized data collection methods, we guarantee the reliability and validity of the information we present to our clients.

Quantitative research is particularly effective in measuring the prevalence of trends, assessing market size, and gauging the impact of various factors on consumer behavior. The numerical precision attained through this approach equips our clients with actionable insights, facilitating data-driven decision-making and strategy formulation.

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We utilize a forecasting model to predict future consumption by considering parameters like population, economics, regulations, market competition, drivers, constraints, technology, and pricing. We also employ statistical techniques such as multilinear regression, exponential smoothing, moving average, ARIMA, and Monte Carlo simulations for accurate predictions. In econometric forecasting, we analyzed short-term and long-term event impacts, attributing values based on regulatory frameworks, economic factors, and market events.

What Is the Data Centre HVAC Market Size?

The global Data Centre HVAC Market was valued at USD 20.00 Billion in 2025, is estimated at USD 26.00 Billion in 2026 and is forecast to reach USD 68.00 Billion by 2035, growing at a CAGR of 11.3% from 2026 to 2035. North America leads with approximately 46% share, while air cooling holds approximately 88% of revenue.

We observed that AI training clusters now push rack power far beyond what room level air handling was designed to remove, so operators are layering direct to chip liquid loops, coolant distribution units and larger chiller plants onto existing air cooled halls. This hybrid build pattern raises cooling spend per megawatt of IT load and keeps air cooling relevant while liquid cooling captures most incremental growth.

The following Key Takeaways table summarises dominant and fastest growing segments, regions and countries across the forecast period.

Data Centre HVAC Market Global Industry Analysis and Forecast (2026–2035) Revenue Forecast

Values in USD Billion

2025 $20.00 Billion

2025

2026 $26.00 Billion

2026

2027 $28.94 Billion

2027

2028 $32.21 Billion

2028

2029 $35.85 Billion

2029

2030 $39.90 Billion

2030

2031 $44.41 Billion

2031

2032 $49.42 Billion

2032

2033 $55.01 Billion

2033

2034 $61.23 Billion

2034

2035 $68.00 Billion

2035

Key Takeaways

By Cooling Technology: Air cooling held the largest share, expanding from USD 17.50 Billion in 2025 to USD 37.00 Billion by 2035; Immersion and rear door cooling is the fastest growing at 27.3% CAGR from 2026–2035.

By Equipment and Services: Chillers and heat rejection held the largest share, expanding from USD 7.00 Billion in 2025 to USD 22.00 Billion by 2035; Coolant distribution and liquid cooling units is the fastest growing at 19.9% CAGR from 2026–2035.

By Data Centre Type: Hyperscale and cloud held the largest share, expanding from USD 11.00 Billion in 2025 to USD 41.00 Billion by 2035; it is also the fastest growing at 11.8% CAGR from 2026–2035.

Dominant Region: North America dominated with approximately 46% revenue share in 2025, anchored by hyperscale campuses and AI cluster construction in the United States.

Fastest-Growing Region: Asia-Pacific is expected to register the highest CAGR of 12.7% during 2026–2035, driven by capacity additions in China, India and South Korea.

Dominant Country: The U.S. led the market with an estimated USD 8.30 Billion in 2025, supported by the largest installed base of AI ready data centre capacity.

Fastest-Growing Country: India is among the fastest growing major countries, projected to expand from USD 0.55 Billion in 2025 at a CAGR of 16.0%, driven by new hyperscale and colocation campuses.

The Data Centre HVAC Market presents an absolute investment opportunity of approximately USD 42.00 Billion between 2026 and 2035, calculated as the difference between the 2035 forecast of USD 68.00 Billion and the 2026 estimate of USD 26.00 Billion. This makes coolant distribution units, modular chiller plants and lifecycle services the most capital efficient categories for equipment makers and infrastructure investors.

According to NMSC analysis, the decisive shift is the move from component sales to engineered thermal systems, because hyperscale buyers increasingly award chillers, coolant distribution units, controls and commissioning as one package. Vendors that can guarantee delivery capacity and commissioning speed are winning multi year framework agreements that separate them from component suppliers.

What Does the Data Centre HVAC Market Encompass?

The Data Centre HVAC Market covers the design, manufacture, installation and servicing of heating, ventilation and air conditioning systems that remove heat from data centre halls, racks and chips. Scope includes chillers and heat rejection, computer room air handlers, in row and rack units, coolant distribution units, direct to chip and immersion systems, and lifecycle services. Comfort cooling for office space and power equipment are excluded.

Our analysis shows that the structure of demand changed after 2024, when AI accelerators lifted rack densities and operators began specifying liquid ready facilities from day one. Regulatory attention to energy and water use is rising alongside, and the International Energy Agency expects data centre electricity use to reach about 945 TWh by 2030, which keeps efficiency central to every cooling specification.

Key Emerging Trends

NMSC's analysis indicates that four structural shifts are reshaping specification, procurement and service models across the sector.

How Is Direct to Chip Liquid Cooling Moving from Pilot to Standard Specification?

Liquid cooling has moved from high performance computing niches into mainstream AI halls, with nVent management estimating that liquid still represents only 10% to 15% of data centre cooling, which signals a long adoption runway. Vendors such as Vertiv, Schneider Electric through Motivair, Eaton through Boyd Thermal and Daikin through Chilldyne have acquired or built coolant distribution and cold plate capability, and operators now design facilities as liquid ready by default.

Why Are Hybrid Air and Liquid Architectures Becoming the Dominant Retrofit Path?

Most existing halls were built for air cooling, so operators add rear door heat exchangers, sidecar units and coolant distribution units beside installed computer room air handlers rather than rebuilding. Our findings suggest that this hybrid path lets enterprises and colocation providers raise rack density in stages, protects uptime during conversion and creates recurring service demand for fluid management, commissioning and filtration across a growing installed base.

How Are Prefabricated and Modular Cooling Plants Changing Delivery Speed?

Hyperscale buyers value time to capacity as much as price, which favours factory built chiller plants and modular cooling blocks. Trane has described its Stellar acquisition as focused almost entirely on data centres, Modine has agreed to guarantee more than USD 4 Billion of data centre cooling supply to a hyperscale customer, and Munters won a SEK 2.0 billion order for a modular AI cooling solution in April 2026.

What Role Do Digital Twins and Controls Play in Thermal Management?

Operators now simulate thermal behaviour in a digital twin before construction and tune plants continuously afterwards. Carrier has paired its equipment with 75F controls and Nlyte data centre infrastructure management software, and Schneider Electric offers EcoStruxure software for air and liquid cooling. During our Data Centre HVAC market evaluation, we noticed that integrated controls shorten commissioning and help operators prove efficiency claims to regulators and customers.

Ecosystem Analysis of the Data Centre HVAC Market

The data centre HVAC market ecosystem comprises component suppliers, HVAC manufacturers, engineering and system integrators, maintenance providers, and data centre operators. Suppliers provide compressors, heat exchangers, fans, and controls, while manufacturers develop chillers, CRAH/CRAC units, and liquid cooling systems. Integrators manage installation and optimisation, while service providers support maintenance, repairs, upgrades, and long-term cooling performance.

Market Drivers & Dynamics

Interactive Dataset


AI rack densities exceeding air cooling limits	driver	+2.6%	Global, led by North America	2026–2032
Hyperscale and colocation capacity additions	driver	+2.2%	North America, Asia-Pacific	2026–2030
Retrofit of legacy halls to hybrid liquid cooling	driver	+1.1%	North America, Europe	2027–2033
Energy, water and efficiency regulation	driver	+0.9%	Europe, Asia-Pacific	2026–2035
Grid interconnection and power availability delays	restraint	−1.4%	North America, Europe	2026–2029
Equipment lead times, tariffs and component constraints	restraint	−0.9%	Global	2026–2028
Water scarcity limits on evaporative cooling	restraint	−0.6%	Middle East & Africa, Asia-Pacific	2026–2035

Source: Next Move Strategy Consulting

Growth Drivers

Growth Inhibitors

Segmentation Analysis

2025 (USD Billion)

2035 (USD Billion)

Air cooling 2025: $17.50 Billion | 2035: $37.00 Billion

Air cooling

Direct to chip liquid cooling 2025: $2.10 Billion | 2035: $24.00 Billion

Direct to ch

Immersion and rear door cooling 2025: $0.40 Billion | 2035: $7.00 Billion

Immersion an


Air cooling	$17.50 Billion	$37.00 Billion	6.1%
Direct to chip liquid cooling	$2.10 Billion	$24.00 Billion	24.3%
Immersion and rear door cooling	$0.40 Billion	$7.00 Billion	27.3%

2025 (USD Billion)

2035 (USD Billion)

Air cooling

Direct to ch

Immersion an

Chillers and

Room and row

Segment Item	2025 (USD Billion)	2035 (USD Billion)	CAGR
Air cooling	$10.0 USD Billion	$40.0 USD Billion	25.0%
Direct to chip liquid cooling	$17.1 USD Billion	$51.1 USD Billion	11.0%
Immersion and rear door cooling	$24.2 USD Billion	$62.2 USD Billion	25.0%
Chillers and heat rejection	$31.3 USD Billion	$73.3 USD Billion	11.0%
Room and row cooling units	$38.4 USD Billion	$84.4 USD Billion	16.0%

Segment-wise data is locked

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2025 (USD Billion)

2035 (USD Billion)

Air cooling

Direct to ch

Immersion an

Chillers and

Room and row

Segment Item	2025 (USD Billion)	2035 (USD Billion)	CAGR
Air cooling	$10.0 USD Billion	$40.0 USD Billion	27.0%
Direct to chip liquid cooling	$17.1 USD Billion	$51.1 USD Billion	9.0%
Immersion and rear door cooling	$24.2 USD Billion	$62.2 USD Billion	19.0%
Chillers and heat rejection	$31.3 USD Billion	$73.3 USD Billion	17.0%
Room and row cooling units	$38.4 USD Billion	$84.4 USD Billion	18.0%

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2025 (USD Billion)

2035 (USD Billion)

Air cooling

Direct to ch

Immersion an

Chillers and

Room and row

Segment Item	2025 (USD Billion)	2035 (USD Billion)	CAGR
Air cooling	$10.0 USD Billion	$40.0 USD Billion	14.0%
Direct to chip liquid cooling	$17.1 USD Billion	$51.1 USD Billion	24.0%
Immersion and rear door cooling	$24.2 USD Billion	$62.2 USD Billion	22.0%
Chillers and heat rejection	$31.3 USD Billion	$73.3 USD Billion	12.0%
Room and row cooling units	$38.4 USD Billion	$84.4 USD Billion	27.0%

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Growth Opportunities

Our assessment indicates that three opportunity pools offer the clearest revenue visibility through 2035.

Where Does Liquid Cooling Retrofit Create the Largest Revenue Pool?

Installed air cooled halls need coolant distribution units, rear door exchangers and fluid management to host AI racks. This retrofit demand benefits the coolant distribution and liquid cooling units segment, which grows from USD 3.90 Billion in 2026 to USD 20.00 Billion by 2035. Colocation and enterprise operators gain most because they avoid full rebuilds.

How Can Services and Fluid Management Build Recurring Revenue?

A growing installed base of liquid loops creates demand for commissioning, flushing, filtration and maintenance contracts. The services segment expands from USD 5.70 Billion in 2026 to USD 12.50 Billion by 2035. Vendors with field service networks, including Trane and Vertiv, benefit most, because recurring contracts smooth the cyclical timing of large equipment projects.

Which Emerging Regions Offer the Fastest Capacity Additions?

Asia-Pacific grows at 12.7% and India reaches 16.0%, as new hyperscale and colocation campuses are commissioned. Middle East and African projects add demand for chillers designed for hot climates and low water use. These regions favour chillers and heat rejection suppliers with local manufacturing or service partners, and they diversify revenue away from North America.

Porter’s Five Forces Analysis of the Data Centre HVAC Market

The data centre HVAC market experiences high competitive rivalry due to established HVAC manufacturers and specialised cooling providers. Supplier power ranges from moderate to high because of specialised components, while large data centre operators influence pricing and service contracts. High capital and technical requirements create moderate entry barriers. Alternative cooling technologies pose a low-to-moderate substitution threat, as reliable thermal management remains essential for data centre operations.

Regional Outlook

2025 (USD Billion)

2035 (USD Billion)

North Americ

Europe

Asia-Pacific

Middle East

Latin Americ

Region	2025 (USD Billion)	2035 (USD Billion)	CAGR (%)
North America	$10.0 USD Billion	$40.0 USD Billion	9.0%
Europe	$17.1 USD Billion	$51.1 USD Billion	27.0%
Asia-Pacific	$24.2 USD Billion	$62.2 USD Billion	25.0%
Middle East & Africa	$31.3 USD Billion	$73.3 USD Billion	23.0%
Latin America	$38.4 USD Billion	$84.4 USD Billion	12.0%

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North America Data Centre HVAC Market

2025 Size

$9.20 Billion

CAGR

10.7%

Based on our estimates, North America generated USD 9.20 Billion in 2025 and is projected to reach USD 30.50 Billion by 2035 at a CAGR of 10.7%. The region is the most mature, led by hyperscale campuses and AI clusters, and Carrier, Trane and Vertiv all report record order books. Power availability and equipment lead times are the main constraints on near term conversion.

Primary Driver:

Key National Markets

U.S. Data Centre HVAC Market

Based on our estimates, the U.S. is the largest national market, supported by hyperscale campuses and AI clusters across Virginia, Texas, Arizona and the Midwest. Demand favours chillers, coolant distribution units and prefabricated plants, and the IEA attributes about 45% of global data centre electricity use to the country. Competition among global HVAC and power infrastructure suppliers is intense, and backlog growth signals strong strategic outlook. Estimated at USD 8.30 Billion in 2025, it is projected to reach USD 27.80 Billion by 2035, a CAGR of 10.8%.

Canada Data Centre HVAC Market

The Data Centre HVAC market in Canada benefits from cool climates, abundant hydropower and growing cloud regions, which favour free cooling and efficient chillers. Demand is led by hyperscale and colocation operators, while provincial grid capacity shapes project timing. Technology penetration of liquid cooling is early, competition is moderate, and the strategic outlook is positive as operators seek low carbon, efficient locations. Estimated at USD 0.55 Billion in 2025, it is projected to reach USD 1.75 Billion by 2035, a CAGR of 10.7%.

Mexico Data Centre HVAC Market

As per our estimate, Mexico is emerging as a nearshore data centre hub around Queretaro, where cloud providers and colocation firms are adding capacity. Demand centres on air cooled chillers and room units, with liquid cooling confined to early AI deployments. Water availability, grid reliability and import dependence influence specifications, and competition is led by global suppliers with local service partners. Estimated at USD 0.35 Billion in 2025, it is projected to reach USD 0.95 Billion by 2035, a CAGR of 8.7%.

Europe Data Centre HVAC Market

2025 Size

$3.30 Billion

CAGR

10.2%

Based on our analysis, we observed that the Data Centre HVAC market in Europe is projected to rise from USD 3.30 Billion in 2025 to USD 9.80 Billion by 2035, expanding at a CAGR of 10.2%. Growth is shaped by energy efficiency and reporting obligations, heat reuse expectations and constrained grid access in major hubs. Operators favour efficient free cooling chillers and liquid ready designs, and local manufacturers such as STULZ and Munters hold strong positions.

Primary Driver:

Key National Markets

UK Data Centre HVAC Market

According to our analysis, the UK is led by London area colocation and cloud capacity, where land and grid constraints raise the value of efficient cooling. Demand favours free cooling chillers and growing liquid ready designs, and operators face rising energy reporting expectations. Local manufacturing by firms such as Modine through Airedale supports competition, and the strategic outlook rests on AI related capacity approvals. Estimated at USD 0.65 Billion in 2025, it is projected to reach USD 1.90 Billion by 2035, a CAGR of 10.1%.

Germany Data Centre HVAC Market

Based on our estimates, Germany is Europe's largest cooling market by value, anchored by the Frankfurt hub and strict energy efficiency obligations for new facilities. Demand favours efficient chillers, heat reuse capable plants and hybrid liquid designs. Domestic suppliers including STULZ compete with global vendors, and the strategic outlook depends on grid expansion and approvals for new AI capable campuses. Estimated at USD 0.80 Billion in 2025, it is projected to reach USD 2.35 Billion by 2035, a CAGR of 10.0%.

France Data Centre HVAC Market

Based on our market evaluation, we identified that the Data Centre HVAC market in France combines low-carbon electricity with growing hyperscale and sovereign cloud investments around Paris and Marseille. Demand centres on efficient chillers, free cooling and heat reuse, supported by national digital infrastructure priorities. Schneider Electric, headquartered in the country, strengthens local supply and services, and technology penetration of liquid cooling is rising through AI focused projects. Estimated at USD 0.45 Billion in 2025, it is projected to reach USD 1.30 Billion by 2035, a CAGR of 10.0%.

Asia-Pacific Data Centre HVAC Market

2025 Size

$5.80 Billion

CAGR

12.7%

As per our estimate, Asia-Pacific is the fastest growing region, advancing from USD 5.80 Billion in 2025 to USD 21.70 Billion by 2035 at 12.7% CAGR. Large cloud and AI investments in China, India, South Korea and Australia drive demand for chillers, liquid cooling and modular plants. Competition blends global vendors with strong domestic suppliers, which keeps pricing disciplined.

Primary Driver:

Key National Markets

China Data Centre HVAC Market

As per our estimate, China is the largest Asia-Pacific market, supported by national cloud and AI programmes and strong domestic equipment manufacturing. Demand spans chillers, indirect evaporative units and a rising share of liquid cooling, encouraged by energy efficiency policy. Competitive intensity is high because domestic suppliers compete aggressively on price, while global vendors focus on high density and overseas customers. Estimated at USD 2.10 Billion in 2025, it is projected to reach USD 7.30 Billion by 2035, a CAGR of 11.9%.

India Data Centre HVAC Market

According to our analysis, India is the fastest growing major country, with new hyperscale and colocation campuses in Mumbai, Chennai and Hyderabad. Demand favours chillers, precision units and growing liquid ready designs, while hot climates raise cooling intensity. Global and local suppliers, including STULZ with Indian production, compete for projects, and the strategic outlook is strongly positive as cloud adoption accelerates. Estimated at USD 0.55 Billion in 2025, it is projected to reach USD 2.85 Billion by 2035, a CAGR of 16.0%.

Japan Data Centre HVAC Market

Based on our estimates, Japan has a mature, efficiency focused Data Centre HVAC market with strong domestic suppliers such as Daikin and demand tied to cloud regions and AI computing around Tokyo and Osaka. Seismic design, land costs and energy prices favour compact, efficient systems. Liquid cooling adoption is rising in AI projects, and competition is shaped by close buyer and supplier relationships. Estimated at USD 0.75 Billion in 2025, it is projected to reach USD 2.30 Billion by 2035, a CAGR of 10.3%.

South Korea Data Centre HVAC Market

According to our findings, the Data Centre HVAC market in South Korea is expanding rapidly driven by cloud and AI capacity growth around Seoul, supported by domestic technology groups and telecom operators. Demand favours efficient chillers, liquid ready designs and modular plants, and grid limits in the capital region shape site selection. Competitive intensity is moderate, with global vendors partnering with local engineering firms, and the strategic outlook is positive as AI investment rises. Estimated at USD 0.35 Billion in 2025, it is projected to reach USD 1.35 Billion by 2035, a CAGR of 13.0%.

Australia Data Centre HVAC Market

As per our estimate, Australia is growing through hyperscale and colocation campuses in Sydney and Melbourne, with demand for efficient chillers suited to warm summers. Water use and energy costs push operators toward closed loop and low water designs. Competition includes global HVAC majors and local integrators, and the strategic outlook is supported by sovereign cloud and AI investment. Estimated at USD 0.40 Billion in 2025, it is projected to reach USD 1.50 Billion by 2035, a CAGR of 13.0%.

Middle East & Africa Data Centre HVAC Market

2025 Size

$0.90 Billion

CAGR

12.0%

According to our analysis, Middle East and Africa grows from USD 0.90 Billion in 2025 to USD 3.60 Billion by 2035, a CAGR of 12.0%. Sovereign cloud programmes and AI campuses in the Gulf anchor demand for high temperature chillers and water efficient heat rejection. Trane and Johnson Controls have both flagged Middle East conflict effects on regional business, which is a near term risk.

Primary Driver:

Key National Markets

UAE Data Centre HVAC Market

According to our analysis, the UAE is investing heavily in AI campuses and cloud regions, creating demand for high temperature chillers and water efficient heat rejection. Liquid cooling adoption is beginning with AI clusters, and national digital strategies support capacity expansion. Global suppliers lead, with local service partners crucial, and strategic outlook is positive despite regional geopolitical risk. Estimated at USD 0.22 Billion in 2025, it is projected to reach USD 0.90 Billion by 2035, a CAGR of 12.2%.

Saudi Arabia Data Centre HVAC Market

Based on our estimates, Saudi Arabia is building large data centre and AI capacity under national digital programmes, which drives demand for chillers designed for extreme heat. Domestic content ambitions encourage local assembly and service partnerships. Technology penetration of liquid cooling is early, competition features global vendors seeking anchor projects, and the strategic outlook is strongly positive. Estimated at USD 0.20 Billion in 2025, it is projected to reach USD 0.90 Billion by 2035, a CAGR of 13.0%.

South Africa Data Centre HVAC Market

Based on market observations, we analyzed that the Data Centre HVAC market in South Africa remains the leading African market, supported by expanding cloud regions and colocation facilities around Johannesburg and Cape Town. Grid reliability and water constraints push operators toward efficient chillers and resilient designs. Demand is steady rather than rapid, liquid cooling is at an early stage, and competition features global suppliers working through regional partners. Estimated at USD 0.12 Billion in 2025, it is projected to reach USD 0.38 Billion by 2035, a CAGR of 10.1%.

Latin America Data Centre HVAC Market

2025 Size

$0.80 Billion

CAGR

10.2%

Based on our estimates, Latin America grows from USD 0.80 Billion in 2025 to USD 2.40 Billion by 2035, a CAGR of 10.2%. New cloud regions and colocation campuses in Brazil, Chile and Mexico drive chiller and air handler demand, while liquid cooling adoption stays limited to a few AI projects. Warm climates and import dependence make efficient equipment and local service coverage decisive.

Primary Driver:

Key National Markets

Brazil Data Centre HVAC Market

As per our estimate, Brazil is the largest Latin American market, anchored by Sao Paulo cloud regions and colocation expansion. Demand favours chillers and room units suited to warm, humid conditions, while import costs and local service coverage shape purchasing. Liquid cooling remains limited to AI pilots, and the strategic outlook is positive as cloud providers add capacity. Estimated at USD 0.45 Billion in 2025, it is projected to reach USD 1.40 Billion by 2035, a CAGR of 10.3%.

Argentina Data Centre HVAC Market

According to our analysis, Argentina is a smaller market, with growth tied to cloud services, colocation in Buenos Aires and emerging AI workloads. Currency volatility and import restrictions slow equipment purchases, so operators favour proven air cooled designs and efficient retrofits. Competition is led by global suppliers and local integrators, and the outlook depends on macroeconomic stability. Estimated at USD 0.06 Billion in 2025, it is projected to reach USD 0.20 Billion by 2035, a CAGR of 10.7%.

Competitive Landscape

Our analysis shows that competition is moderately concentrated, with global HVAC, power infrastructure and thermal specialists converging on integrated offers.

Dimension	Description
Market Structure	Moderately concentrated; global HVAC majors, power infrastructure suppliers and thermal specialists compete for the same hyperscale framework agreements.
Innovation Focus	Direct to chip liquid cooling, coolant distribution units, modular chiller plants and integrated controls for AI racks.
M&A Activity	Active; Eaton–Boyd Thermal, Schneider Electric–Motivair and Daikin Applied–Chilldyne add liquid cooling capability.

Key Market Players

Our assessment indicates that the following verified companies, ranked qualitatively on data centre cooling scale and breadth, shape the competitive landscape.

Vertiv Holdings Co Schneider Electric SE Johnson Controls International plc Trane Technologies plc Carrier Global Corporation Daikin Industries, Ltd. Eaton Corporation plc Modine Manufacturing Company nVent Electric plc Munters Group AB (publ) STULZ GmbH

Latest Developments

Based on research conducted by NMSC, the following verified developments from 2025 and 2026 show where capacity and capability are being added.

Date	Event
September 2026	Schneider Electric introduced the Motivair WCDU, a coolant distribution unit designed to integrate with fan-wall air cooling and support hybrid liquid/air architectures in high-density AI data centers. Each unit provides up to 3.5 MW capacity, can be grouped in sets of 20, and is optimized for technical-corridor installation.
September 2026	Vertiv announced that its 2.3 MW CoolChip coolant distribution unit became the first CDU to qualify specifically as NVIDIA DSX Ready. The liquid-to-liquid system supports direct-to-chip and rear-door heat exchanger applications, allowing AI factory developers to evaluate a high-capacity cooling component against defined platform requirements.
July 2026	nVent announced an additional 160,000-square-foot manufacturing site in Blaine, Minnesota, dedicated to data-centre liquid-cooling production. The facility is expected to begin production in the first half of 2027 and marks the company’s third cooling-capacity expansion in three years, adding more than 400,000 square feet overall.

Expert Insights

Jensen Huang

Founder and Chief Executive Officer | NVIDIA

"New data centers are built for accelerated computing and generative AI with architectures that are significantly more complex than those for general-purpose computing."

Analyst Interpretation

The statement highlights how accelerated computing and generative AI are increasing the complexity of data centre infrastructure. As AI workloads drive higher rack power densities and greater thermal loads, data centre operators require more advanced and integrated cooling solutions. This creates opportunities for HVAC suppliers offering liquid cooling systems, high-efficiency chillers, precision air cooling, and integrated thermal management technologies. The trend also reinforces the importance of coordinating cooling infrastructure with server architecture and power distribution to support operational efficiency, reliability, and future scalability.

Market Interpretation

Investment Opportunities

How Are Capital Inflows Shaping Investment in Data Centre Cooling?

Capital is flowing into capacity, acquisitions and technology. Eaton's Boyd Thermal purchase, Daikin Applied's two 2025 acquisitions and Schneider Electric's Motivair deal show strategic buyers paying for liquid cooling capability. Manufacturers are also investing in plants, including Modine's capacity expansion, nVent's third Minnesota facility and Carrier's planned new U.S. factory, which gives investors visibility on supply growth through 2027.

Where Is Infrastructure Investment Concentrated?

Infrastructure spending concentrates on hyperscale campuses in North America, which account for USD 9.20 Billion of 2025 revenue, and on fast growing Asia-Pacific hubs. Investors should watch factory built chiller plants, coolant distribution capacity and field service networks, because these assets convert backlog into revenue. Power availability remains the gating factor for site timing, so grid ready locations command premium attention.

How Do ESG Considerations Influence Cooling Investment?

Energy and water use are central to permitting and customer procurement. The International Institute of Refrigeration notes that cooling can take a large share of data centre energy, so efficient chillers, free cooling, closed loop liquid systems and heat reuse reduce both cost and environmental exposure. Investors increasingly favour suppliers that document efficiency gains and low water designs, which strengthens the case for liquid ready portfolios.

Key Benefits for Stakeholders

How Does This Report Benefit Data Centre Operators and Enterprise Leaders?

Operators gain segment level forecasts for cooling technology, equipment categories and data centre types, which supports capacity planning and vendor selection. The analysis shows when hybrid air and liquid architectures become cost effective, how services contracts affect lifecycle cost, and which regions face the tightest equipment lead times, helping leaders sequence retrofit and new build programmes.

How Does This Report Benefit Investors and Financial Analysts?

Investors receive reconciled 2025, 2026 and 2035 values, segment growth rates and an absolute opportunity of USD 42.00 Billion between 2026 and 2035. The report separates fast growing liquid categories from mature air cooling revenue, links growth to named company capacity additions and acquisitions, and flags restraints such as power availability, which supports risk adjusted valuation and portfolio positioning.

How Does This Report Benefit Technology Vendors and Product Teams?

Vendors can benchmark product roadmaps against segment growth, regional demand and competitor moves. The analysis highlights where coolant distribution units, modular plants and controls are gaining traction, which buyer groups award multi year frameworks, and how services build recurring revenue, helping product teams prioritise capacity, partnerships and acquisitions with the strongest return.

Data Centre HVAC Market Key Segments

By Cooling Technology

Air cooling
Direct to chip liquid cooling
Immersion and rear door cooling

By Equipment and Services

Chillers and heat rejection
Room and row cooling units
Coolant distribution and liquid cooling units
Services

By Data Centre Type

Hyperscale and cloud
Colocation
Enterprise and edge

By Region

North America: U.S., Canada, Mexico
Europe: UK, Germany, France, Italy, Spain, Sweden, Denmark, Finland, Netherlands, Rest of Europe
Asia-Pacific: China, India, Japan, South Korea, Taiwan, Indonesia, Vietnam, Australia, Philippines, Malaysia, Rest of APAC
Middle East & Africa: Saudi Arabia, UAE, Egypt, Israel, Turkey, Nigeria, South Africa, Rest of MEA
Latin America: Brazil, Argentina, Chile, Colombia, Rest of LATAM

Conclusion & Recommendations

The outlook is strongly positive. Revenue is forecast to rise from USD 26.00 Billion in 2026 to USD 68.00 Billion by 2035, with liquid technologies taking an increasing share as AI rack densities climb. Near term growth of about 30% in 2026 reflects backlog conversion, then moderates toward the long run rate as capacity additions normalise and cooling efficiency improves. Operators should plan for hybrid architectures as the default design.

What Strategic Positioning Recommendations Does NMSC Offer?

We recommend that vendors secure factory capacity, expand liquid cooling portfolios and bundle controls and services into one accountable offer. Suppliers lacking coolant distribution or heat rejection depth should partner or acquire. Operators should lock multi year supply agreements early, specify liquid ready designs, and diversify sourcing across regions to reduce tariff and lead time exposure.

What Is the Investment Attractiveness of the Data Centre HVAC Market?

Attractiveness is high but selective. Coolant distribution and liquid cooling units grow at 19.9%, and immersion and rear door cooling at 27.3%, while air cooling grows at 6.1% from a larger base. Backlog visibility at listed suppliers supports earnings, yet valuation depends on execution, capacity delivery and the pace of AI capital spending.

What Are the Data Centre HVAC Market Shifts and Key Risks Through 2035?

Key shifts include the rise of liquid cooling, modular delivery and integrated power and thermal offers. Key risks include grid connection delays, tariff driven cost inflation, component shortages, water scarcity and the possibility that AI investment slows. Trane and Munters have both noted supply chain or project timing pressures, so forecasts assume gradual rather than uninterrupted capacity conversion.

What Are the Primary Growth Pathways Through 2035?

Growth pathways include liquid cooling retrofits of installed halls, hyperscale and colocation capacity in North America and Asia-Pacific, and recurring services that reach USD 12.50 Billion by 2035. Asia-Pacific grows at 12.7%, and India at 16.0%. Vendors that combine regional manufacturing with global service coverage are best placed to capture these pathways.

FAQs

Sources & References

International Energy Agency, Energy and AI (Executive Summary)

iea.org

International Institute of Refrigeration, AI set to drive doubling of electricity demand from data centres

iifiir.org

Vertiv Holdings Co, Form 10-K for fiscal year 2025 (SEC)

sec.gov

Vertiv Holdings Co, 2025 Annual Report

s205.q4cdn.com

Carrier Global Corporation, Second Quarter 2026 results (Form 8-K, Exhibit 99)

sec.gov

Trane Technologies plc, Second Quarter 2026 earnings release

s2.q4cdn.com

Johnson Controls International plc, Third Quarter 2026 press release

s21.q4cdn.com

Modine Manufacturing Company, Fourth Quarter Fiscal 2026 earnings presentation

s205.q4cdn.com

Modine Manufacturing Company, First Quarter Fiscal 2026 results (SEC Exhibit 99.1)

sec.gov

10.

Munters Group AB, Second Quarter 2026 regulatory press release

mfn.se

11.

Munters Group AB, First Quarter 2026 regulatory press release

mfn.se

12.

nVent Electric plc, Second Quarter 2026 earnings presentation

s22.q4cdn.com

13.

Eaton Corporation plc, press release on completion of the Boyd Thermal acquisition

businesswire.com

14.

Daikin Applied, news release on the acquisition of Chilldyne

daikinapplied.com

15.

Schneider Electric, liquid cooling portfolio with Motivair press release

se.com

16.

STULZ GmbH, company website

stulz.com/en-it/regions

Key Market Segments Evaluated

By Cooling Technology

Air cooling
Direct to chip liquid cooling
Immersion and rear door cooling

By Equipment and Services

Air cooling
Direct to chip liquid cooling
Immersion and rear door cooling
Chillers and heat rejection
Room and row cooling units
Coolant distribution and liquid cooling units
Services
Hyperscale and cloud
Colocation
Enterprise and edge
North America: U.S.
Canada
Mexico
Europe: UK
Germany
France
Italy
Spain
Sweden
Denmark
Finland
Netherlands
Rest of Europe
Asia-Pacific: China
India
Japan
South Korea
Taiwan
Indonesia
Vietnam
Australia
Philippines
Malaysia
Rest of APAC
Middle East & Africa: Saudi Arabia
UAE
Egypt
Israel
Turkey
Nigeria
South Africa
Rest of MEA
Latin America: Brazil
Argentina
Chile
Colombia
Rest of LATAM

By Data Centre Type

Air cooling
Direct to chip liquid cooling
Immersion and rear door cooling
Chillers and heat rejection
Room and row cooling units
Coolant distribution and liquid cooling units
Services
Hyperscale and cloud
Colocation
Enterprise and edge
North America: U.S.
Canada
Mexico
Europe: UK
Germany
France
Italy
Spain
Sweden
Denmark
Finland
Netherlands
Rest of Europe
Asia-Pacific: China
India
Japan
South Korea
Taiwan
Indonesia
Vietnam
Australia
Philippines
Malaysia
Rest of APAC
Middle East & Africa: Saudi Arabia
UAE
Egypt
Israel
Turkey
Nigeria
South Africa
Rest of MEA
Latin America: Brazil
Argentina
Chile
Colombia
Rest of LATAM

By Region

Air cooling
Direct to chip liquid cooling
Immersion and rear door cooling
Chillers and heat rejection
Room and row cooling units
Coolant distribution and liquid cooling units
Services
Hyperscale and cloud
Colocation
Enterprise and edge
North America: U.S.
Canada
Mexico
Europe: UK
Germany
France
Italy
Spain
Sweden
Denmark
Finland
Netherlands
Rest of Europe
Asia-Pacific: China
India
Japan
South Korea
Taiwan
Indonesia
Vietnam
Australia
Philippines
Malaysia
Rest of APAC
Middle East & Africa: Saudi Arabia
UAE
Egypt
Israel
Turkey
Nigeria
South Africa
Rest of MEA
Latin America: Brazil
Argentina
Chile
Colombia
Rest of LATAM

About the Author

Liza Phukan

Liza Phukan is Research Associate at Next Move Strategy Consulting, where she has covered emerging industries and market research across sectors for 3.5 years. Her work includes analyzing industry developments, validating market data, and developing structured business content from research findings. She uses secondary research and data-validation practices to turn complex market information into clear decision-useful market analysis for business audiences and support report development and B2B.

About the Reviewer

Supradip Baul

Supradip Baul is an accomplished business consultant and strategist with over a decade of rich experience in market intelligence, strategy, technology, and business transformation. His work has included rigorous qualitative and quantitative analysis across multiple industries, helping clients shape investment decisions and long-term roadmaps. Earlier in his career, he was associated with Gartner, where he contributed to industry-leading reports and market share analyses. He has worked with leading global companies and holds an MBA with a dual specialization in Marketing and Finance.

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Data Centre HVAC Market Global Industry Analysis and Forecast (2026–2035)

Select License

Research Methodology

Qualitative Approach

Our Specialized Toolbox for Industry-Specific Market Research

Information Procurement

Market Research Approach

Porters Five Forces Analysis

SWOT Analysis

Forecasting

What Is the Data Centre HVAC Market Size?

Data Centre HVAC Market Global Industry Analysis and Forecast (2026–2035) Revenue Forecast

Key Takeaways

What Does the Data Centre HVAC Market Encompass?

Key Emerging Trends

How Is Direct to Chip Liquid Cooling Moving from Pilot to Standard Specification?

Why Are Hybrid Air and Liquid Architectures Becoming the Dominant Retrofit Path?

How Are Prefabricated and Modular Cooling Plants Changing Delivery Speed?

What Role Do Digital Twins and Controls Play in Thermal Management?

Ecosystem Analysis of the Data Centre HVAC Market

Market Drivers & Dynamics

Growth Drivers

Growth Inhibitors

Segmentation Analysis

Growth Opportunities

Where Does Liquid Cooling Retrofit Create the Largest Revenue Pool?

How Can Services and Fluid Management Build Recurring Revenue?

Which Emerging Regions Offer the Fastest Capacity Additions?

Porter’s Five Forces Analysis of the Data Centre HVAC Market

Regional Outlook

North America Data Centre HVAC Market

Key National Markets

Europe Data Centre HVAC Market

Key National Markets

Asia-Pacific Data Centre HVAC Market

Key National Markets

Middle East & Africa Data Centre HVAC Market

Key National Markets

Latin America Data Centre HVAC Market

Key National Markets

Competitive Landscape

Key Market Players

Latest Developments

Expert Insights

Jensen Huang

Analyst Interpretation

Market Interpretation

Investment Opportunities

How Are Capital Inflows Shaping Investment in Data Centre Cooling?

Where Is Infrastructure Investment Concentrated?

How Do ESG Considerations Influence Cooling Investment?

Key Benefits for Stakeholders

How Does This Report Benefit Data Centre Operators and Enterprise Leaders?

How Does This Report Benefit Investors and Financial Analysts?

How Does This Report Benefit Technology Vendors and Product Teams?

Data Centre HVAC Market Key Segments

By Cooling Technology

By Equipment and Services

By Data Centre Type

By Region

Conclusion & Recommendations

What Strategic Positioning Recommendations Does NMSC Offer?

What Is the Investment Attractiveness of the Data Centre HVAC Market?

What Are the Data Centre HVAC Market Shifts and Key Risks Through 2035?

What Are the Primary Growth Pathways Through 2035?

FAQs

Sources & References

Key Market Segments Evaluated

By Cooling Technology

By Equipment and Services

By Data Centre Type

By Region

About the Author

About the Reviewer

Download Free Sample

Testimonials

GAURAV JAISWAL

DIANA TREJO

PRATYUSH KUMAR DAS

NISHANT AWATE