Data Center HVAC Systems Market To Reach $10.2 Billion By 2033

Data Center HVAC Systems Market Growth & Trends

The global data center HVAC systems market is anticipated to reach USD 10.2 billion by 2033 and is expected to expand at a CAGR of 11.3% during the forecast period, according to a new report by Grand View Research, Inc. The rapid expansion of data center infrastructure is a major factor driving the global data center HVAC systems market. Growing adoption of cloud computing, digital services, enterprise applications, and online platforms is increasing the need for additional computing capacity. The construction of new hyperscale and colocation facilities is creating substantial demand for cooling infrastructure, particularly high-capacity chillers, CRAH systems, cooling towers, and other thermal-management equipment.

The growing adoption of artificial intelligence and high-performance computing is further increasing demand for advanced cooling systems. AI servers and accelerated computing equipment generate greater heat loads and require more effective thermal management than conventional computing infrastructure. As data center operators deploy higher-density server configurations, conventional cooling approaches are increasingly being supplemented with solutions such as in-row cooling, fan walls, and liquid-assisted cooling systems to maintain reliable operating conditions.

The increasing focus on energy efficiency and operating costs is also supporting market growth. Cooling systems consume a significant amount of energy within data centers, encouraging operators to invest in high-efficiency chillers, variable-speed equipment, advanced air-handling systems, free-cooling solutions, and intelligent controls. Improving cooling efficiency can help operators reduce electricity consumption while maintaining equipment reliability, making HVAC modernization an important consideration for both newly constructed and existing facilities.

The modernization of existing data center infrastructure is creating an additional source of demand for HVAC systems. Aging cooling equipment may have limited capacity, higher energy consumption, or reduced ability to support increasingly dense computing environments. As operators upgrade facilities to accommodate new workloads and improve reliability, replacement and retrofit activities are generating opportunities for newer, scalable, and more efficient cooling technologies. This trend is particularly relevant as enterprises, telecom operators, and other data center owners modernize their infrastructure to support evolving digital requirements.

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Data Center HVAC Systems Market Report Highlights

• Based on product, the chillers segment dominated the market in 2025 due to its high cooling capacity, scalability, and suitability for large-scale hyperscale and colocation data centers. Increasing adoption of centralized cooling systems for managing high-density computing loads further supported segment demand.

• On the basis of data center type, the hyperscale segment accounted for the largest market share in 2025, owing to the rapid expansion of large-scale cloud and AI infrastructure and their substantial cooling requirements. The high computing density and continuous operation of hyperscale facilities drive demand for high-capacity, reliable, and energy-efficient cooling systems.

• The new installation segment emerged as the largest deployment segment in 2025, driven by the construction of new hyperscale and colocation data centers to support growing cloud, AI, and high-performance computing requirements. Increasing investments in data center capacity are creating strong demand for new cooling infrastructure, including chillers, CRAH, CRAC, cooling towers, and other HVAC systems.

• North America accounted for the largest revenue share of 38.6% in 2025, driven by the strong presence of hyperscale and colocation data centers, continued expansion of cloud and AI infrastructure, and increasing investments in high-density computing facilities. The region’s large installed base and ongoing development of new data center capacity are generating substantial demand for high-capacity, reliable, and energy-efficient cooling systems.

• In June 2025, Schneider Electric introduced new data center solutions designed to address the thermal and infrastructure demands of high-density AI and accelerated computing applications. Its new modular pod architecture supports high-density racks of 1 MW and beyond and integrates liquid cooling, InRow cooling, rear-door heat exchangers, and hot-aisle containment.

Data Center HVAC Systems Market Segmentation

Grand View Research has segmented the global data center HVAC systems market on the basis of product, deployment, data center type, and region:

Data Center HVAC Systems Product Outlook (Revenue, USD Billion, 2021 - 2033)

• CRAC

• CRAH

• Chillers

• Cooling Towers

• Fan Wall

• In-Row Cooling

• Others

Data Center HVAC Systems Deployment Outlook (Revenue, USD Billion, 2021 - 2033)

• New Installation

• Replacement

Data Center HVAC Systems Data Center Type Outlook (Revenue, USD Billion, 2021 - 2033)

• Hyperscale

• Colocation

• Enterprise

• Telecom

• Edge

• Government

Data Center HVAC Systems Regional Outlook (Revenue, USD Billion, 2021 - 2033)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • France

  • Italy

  • Spain

  • UK

• Asia Pacific

  • China

  • India

  • Japan

  • South Korea

  • Australia

• Latin America

  • Brazil

  • Argentina

• Middle East & Africa

  • Saudi Arabia

  • UAE

  • South Africa

List of Key Players in the Data Center HVAC Systems Market

• Vertiv Group Corp.

• Schneider Electric

• Johnson Controls

• STULZ GMBH

• Rittal Pvt. Ltd.

• Trane Technologies

• Carrier

• Daikin Industries, Ltd.

• Mitsubishi Electric Power Products Inc.

• Munters

• Delta Electronics, Inc.

• ALFA LAVAL

• Danfoss A/S

• Eaton

• Kirloskar