Data Center Chillers Market To Reach $1,450.5 Million By 2033

September 2026 | Report Format: Electronic (PDF)

Data Center Chillers Market Growth & Trends

The global data center chillers market size is anticipated to reach USD 1,450.5 million by 2033 and is expected to grow at a CAGR of 7.2% during the forecast period, according to a new report by Grand View Research, Inc. The rapid expansion of hyperscale, colocation, and enterprise data centers is a major factor supporting the growth of the market. Increasing cloud adoption, digital services, online applications, and data storage requirements are encouraging operators to expand computing capacity across established and emerging markets. New facilities require dedicated cooling infrastructure to maintain stable operating conditions, creating consistent demand for air-cooled and water-cooled chillers across different capacity ranges.

The surge in AI, high-performance computing, and high-density workloads is further increasing cooling requirements. AI servers and GPU-based infrastructure generate considerably higher heat loads, requiring cooling systems capable of operating reliably under intensive and continuous workloads. This trend is encouraging data center operators to deploy higher-capacity chillers, advanced compressor technologies, and cooling configurations that can accommodate increasing rack densities while maintaining equipment reliability and energy performance.

The growing emphasis on energy efficiency and operating-cost reduction is also driving adoption of advanced chiller technologies. Cooling represents a significant portion of data center energy consumption, encouraging operators to improve overall facility efficiency through variable-speed operation, magnetic-bearing compressors, intelligent controls, free-cooling integration, and optimized chilled-water systems. The increasing focus on reducing power consumption and improving PUE is therefore creating opportunities for manufacturers offering high-efficiency chiller solutions.

The expansion and modernization of data center infrastructure across emerging markets is providing another source of market growth. Countries across Asia Pacific, Latin America, and the Middle East are investing in cloud infrastructure, digital services, AI capabilities, and localized data storage, leading to new data center construction. At the same time, established facilities in mature markets are upgrading or replacing aging cooling equipment to accommodate higher IT loads and improve efficiency. This combination of new installations and replacement activity is broadening the addressable market for data center chillers.

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Data Center Chillers Market Report Highlights

Based on product, air-cooled chillers dominated the market in 2025 due to their simpler installation, lower infrastructure requirements, and reduced dependence on water resources. Their suitability for water-constrained locations, relatively straightforward maintenance, and flexibility in deployment supported their widespread adoption across data center facilities.
The <500 kW modular capacity segment accounted for the largest market share in 2025, owing to the widespread deployment of compact and modular data centers, edge facilities, and enterprise-level installations. These lower-capacity chillers offer greater flexibility, simpler integration, and lower infrastructure requirements, making them suitable for facilities with moderate and distributed cooling loads.
The centrifugal compressor segment emerged as the largest segment in 2025, driven by its high cooling capacity, strong energy efficiency at full and partial loads, and suitability for large-scale data center facilities. Its scalability and reliable performance make centrifugal chillers particularly suitable for hyperscale and colocation facilities with continuous, high-density cooling requirements, supporting their widespread adoption across large data center projects.
North America accounted for the largest revenue share of 56.6% in 2025, driven by the region’s extensive base of hyperscale and colocation data centers, continued investments in AI and high-performance computing infrastructure, and strong demand for reliable, high-capacity cooling systems. The presence of leading data center operators and technology providers, coupled with ongoing expansion and modernization of facilities, has supported the adoption of advanced and energy-efficient chiller technologies across the region.
In February 2026, Carrier introduced the AquaEdge 30CF, an air-cooled centrifugal chiller developed to support the reliability and uptime requirements of modern data centers. The system can provide more than 3 MW of cooling and is designed to operate across a wide range of ambient conditions. Its magnetic-bearing, oil-free compressor architecture supports efficient operation with reduced maintenance requirements.

Data Center Chillers Market Segmentation

Grand View Research, Inc. has segmented the global data center chillers market on the basis of product, modular capacity, compressor, deployment and region:

Data Center Chillers Product Outlook (Revenue, USD Million, 2021 - 2033)