Data Center Chillers Market Size, Share and Trends 2026 to 2035

Revenue, 2025

USD 4.80 Bn

Forecast Year, 2035

USD 11.26 Bn

CAGR, 2026 - 2035

8.90%

Report Coverage

Global

What is the Data Center Chillers Market Size in 2026?

The global data center chillers market size accounted for USD 4.80 billion in 2025 and is predicted to increase from USD 5.23 billion in 2026 to approximately USD 11.26 billion by 2035, expanding at a CAGR of 8.90% from 2026 to 2035. The data center chillers market is driven by rising heat loads from AI and high-performance computing and the rapid expansion of hyperscale and cloud data centers.

Key Takeaways

• North America dominated the global data center chillers market with a share of 40% in 2025.
• Asia Pacific is expected to grow at the fastest CAGR of 11.5% during the forecast period.
• By chiller type, the air-cooled chillers segment held a dominant position in the market by capturing a 45% share in 2025.
• By chiller type, the water-cooled chillers segment is the second-largest shareholder and is expected to grow at a 9.5% CAGR between 2026 and 2035.
• By cooling capacity, the above 2000 kW segment held a major share of 45% in the market in 2025.
• By cooling capacity, the 500–2000 kW segment is the second-largest shareholder and is expected to grow at a 7.5% CAGR between 2026 and 2035.
• By data center type, the hyperscale data centers segment led the global market with a share of 40% in 2025.
• By data center type, the colocation data centers segment is the second-largest shareholder and is expected to grow at a 7.5% CAGR between 2026 and 2035.
• By application, the IT & telecom data centers segment held a share of 30% in the market in 2025.
• By application, the cloud service providers segment held a 30% share in 2025 and is expected to grow at a 11% CAGR between 2026 and 2035.

Market Overview

The data center chillers market encompasses cooling systems that regulate temperature in data centers , removing excess heat generated by servers and other high-performance computing devices. These chillers are essential to maintain operational viability, system reliability, and uptime. A key market driver is the rise in heat output from next-generation processors, especially GPUs, used in artificial intelligence and machine learning software design. This trend has spurred greater adoption of high-efficiency and hybrid cooling techniques, such as liquid cooling and free-cooling chillers, to improve energy performance and reduce operating expenses.

How is AI Integration Impacting the Data Center Chillers Market?

Artificial intelligence integration is transforming the data center chillers market by enabling real-time monitoring and intelligent control of cooling systems through sensors and machine learning algorithms. These systems can predict heat loads, dynamically optimize temperature and energy usage, and automate chiller performance, significantly improving efficiency and reducing operational costs. As a result, AI-driven cooling enhances reliability by preventing overheating and equipment failures, while supporting the growing thermal demands of high-density and AI-powered data centers.

Data Center Chillers Market Trends

• The intensive use of artificial intelligence and generative AI is increasing rack densities and thermal loads , which is driving demand for high-capacity and liquid-compatible chiller systems.
• Supportive government policies, incentives, and infrastructure initiatives are accelerating data center expansion, boosting the need for energy-efficient and sustainable chiller technologies.
• The rise of hyperscale and edge data centers is fueling demand for compact, modular, and energy-efficient chillers capable of operating across diverse environments.

Market Scope

Market Dynamics

Drivers

Exponential Growth of Hyperscale & Edge Data Centers

Edge and hyperscale data centers are key drivers of the data center chillers market, fueled by rising demand for cloud computing , streaming services, and AI-driven applications. Hyperscale facilities require large-scale, high-efficiency cooling systems to handle intense thermal loads generated by dense server environments. Meanwhile, edge data centers supporting low-latency use cases such as IoT, autonomous systems, and real-time analytics are increasing demand for compact, energy-efficient chiller solutions.

Restraint

High Infrastructure Costs

The data center chillers market is constrained by high infrastructure costs, as deploying advanced cooling systems for high-density and AI-driven data centers requires substantial investment in equipment, installation, and facility upgrades. These significant upfront expenses can limit adoption, particularly for small and mid-sized data center operators.

Opportunity

Emergence of Liquid Cooling Technologies for High-Density Workloads

The emergence of liquid cooling technologies presents a strong opportunity in the data center chillers market, particularly as AI, machine learning, and high-performance computing drive higher rack densities and thermal loads. Liquid cooling offers superior thermal conductivity, enabling faster and more efficient heat dissipation at critical components. It also improves energy efficiency and space utilization, making it an ideal solution for next-generation data centers.

Segment Insights

Chiller Type Insights

Data Center Chillers Market Share, By Chiller Type, 2025-2035 (%)

The Air-cooled Chillers Segment Held a 45% Market Share in 2025

The air-cooled chillers segment dominated the data center chillers market with a major share of 45% in 2025, driven by increasing deployment of modular and edge data centers . Air-cooled chillers are preferred for their lower installation complexity and maintenance. They are heavily used in regions where there is a shortage of water. Air-cooled chillers do not need cooling towers or a storage system, making them cost-efficient.

The water-cooled chillers segment held a 40% share of the market in 2025 and is expected to grow at a CAGR of 9.5% during the projection period, driven by their great cooling performance and high efficiency, which are essential in hyperscale data centers. These chillers perform well in managing the continuous and large heat loads, hence appropriate in the high-density computer environment. Water chillers are more thermodynamically efficient than air-cooled chillers and thus relatively cheaper to run.

The hybrid chillers segment held a 15% share of the market in 2025 and is expected to grow at the fastest CAGR of 10.5% during the projection period, driven by increasing focus on energy efficiency and water conservation. Combining the advantages of air-cooled and water-cooled systems, hybrid chillers offer flexible operation based on environmental conditions and cooling requirements. This adaptability makes them especially attractive for sustainability-focused data centers aiming to optimize resource usage.

Cooling Capacity Insights

Data Center Chillers Market Share, By Cooling Capacity, 2025-2035 (%)

The Above 2000 kW Segment Led the Market With a 45% Share in 2025

The above 2000 kW segment led the data center chillers market by holding a share of 45% in 2025, due to the expansion of hyperscale and cloud data centers. These high-capacity chillers are designed to handle the substantial heat loads generated by modern, high-density computing environments, making them the preferred choice for large-scale facilities requiring consistent and efficient cooling.

The 500-2000 kW segment held the second-largest market share of 35% in 2025 and is expected to grow at a CAGR of 7.5% during the projection period, driven by demand from enterprise and colocation data centers. These mid-range chillers offer an optimal balance of performance, scalability, and cost-effectiveness, making them suitable for medium-sized deployments that require robust but not hyperscale-level cooling.

The below 500 kW segment held a 20% market share in 2025 and is expected to grow at a CAGR of 6.5% during the projection period, driven by the increasing adoption of edge computing and smaller enterprise data centers. These compact chillers are ideal for localized and distributed deployments, offering advantages such as easier installation, lower upfront costs, and reduced maintenance requirements.

Data Center Type Insights

Why Did the Hyperscale Data Centers Segment Dominate the Market in 2025?

The hyperscale data centers segment dominated the data center chillers market with a share of 40% in 2025, driven by large-scale investments from cloud service providers and rising AI workloads. These centers require highly efficient, large-capacity cooling systems to manage extreme heat loads generated by dense server environments powered by GPUs and high-performance computing for AI and machine learning applications.

The colocation data centers segment held a 25% share of the market in 2025 and is expected to grow at a CAGR of 7.5% during the projection period, driven by the increasing adoption of outsourced IT infrastructure and the need for cost-effective scalability. These shared infrastructure facilities enable businesses to reduce capital expenditure while maintaining access to high-performance computing capabilities.

Data Center Chillers Market Share, By Data Center Type, 2025-2035 (%)

The enterprise data centers segment held a 20% market share in 2025 and is expected to grow at a notable CAGR of 5.5% during the projection period, driven by organizations that continue to maintain on-premise infrastructure for security, compliance, and control requirements. Many enterprises are upgrading to advanced chiller systems to improve energy efficiency, reduce operational costs, and support evolving workloads.

The edge data centers segment held a 15% share of the market in 2025 and is expected to grow at the fastest CAGR of 9.5% during the projection period, fueled by the expansion of 5G networks and the proliferation of IoT devices, which require data processing with low latencies. These distributed, small-scale facilities demand compact, energy-efficient, and rapidly deployable cooling solutions designed for space-constrained environments.

Application Insights

The IT & Telecom Data Centers Segment Held a 30% Market Share in 2025

The IT & telecom data centers segment registered dominance in the data center chillers market with a share of 30% in 2025, driven by increasing data traffic, expanding network infrastructure, and rising demand for data-intensive applications. Increasing smartphone penetration, internet usage, and digital communication platforms have significantly boosted the need for robust and scalable data center infrastructure, thereby increasing cooling requirements.

The cloud service providers segment held a 30% market share in 2025 and is expected to grow at the fastest CAGR of 11% during the projection period, driven by the expansion of cloud computing, artificial intelligence, and big data analytics . Hyperscale and high-density data centers operated by cloud providers require highly efficient, large-capacity cooling systems, driving strong demand for advanced chiller solutions globally.

Data Center Chillers Market Share, By Application, 2025-2035 (%)

The banking, financial services, and insurance (BFSI) segment held a 15% share of the market in 2025 and is expected to grow at a CAGR of 7% during the projection period, driven by the need for secure, reliable, and high-performance data processing environments. With increasing adoption of digital banking and online transactions and a strong focus on regulatory compliance, financial institutions are investing in advanced cooling systems to ensure uninterrupted operations.

The government & defense data centers segment held a 10% market share in 2025 and is expected to grow at a CAGR of 6.5% during the projection period, driven by the rising investments in secure and sovereign data infrastructure. These facilities require highly reliable and efficient cooling systems to maintain operational continuity under strict security and compliance standards.

Region Insights

North America Data Center Chillers Market Size and Growth 2026 to 2035

The North America data center chillers market size is estimated at USD 1.92 billion in 2025 and is projected to reach approximately USD 4.56 billion by 2035, with a 9.04% CAGR from 2026 to 2035.

North America Lead the Global Data Center Chillers Market in 2025

North America dominated the data center chillers market with a share of 40% in 2025, driven by the strong availability of hyperscale cloud infrastructure , rapid expansion of AI-powered data centers, and widespread adoption of advanced cooling technologies. The region is home to major technology companies operating large-scale, high-density computing facilities, which significantly increases demand for efficient cooling systems. Additionally, supportive policies promoting energy efficiency and sustainability are accelerating the adoption of low-emission, high-performance chiller solutions aligned with corporate ESG goals.

U.S. Data Center Chillers Market Size and Growth 2026 to 2035

The U.S. data center chillers market size is calculated at USD 1.44 billion in 2025 and is expected to reach nearly USD 3.44 billion in 2035, accelerating at a strong CAGR of 9.10% between 2026 and 2035.

U.S. Market Analysis

The U.S. is a major contributor to the North American data center chillers market, with continuous infrastructure expansion by major tech firms to support AI workloads, big data analytics , and cloud computing. This has intensified demand for high-capacity and energy-efficient cooling systems capable of managing dense server environments. The country also leads in technological innovation, particularly in liquid cooling and AI-driven thermal management solutions.

What Makes Asia Pacific the Fastest-Growing Region in the Data Center Chillers Market?

Asia Pacific held a 25% share of the market in 2025 and is expected to grow at the fastest CAGR of 11.5% during the projection period, driven by rapid digitalization, hyperscale data center expansion, and increasing cloud adoption across China, India, Japan, and Southeast Asia. Rising internet penetration, e-commerce growth, and increasing data consumption are fueling the need for advanced cooling infrastructure. Strong government support for digital transformation, AI development, and energy-efficient infrastructure is further accelerating market growth.

China Market Analysis

China plays a pivotal role in the region, supported by strong government initiatives promoting digital infrastructure and AI development. Hyperscale data centers are a strategic priority under national programs such as the new infrastructure initiative led by the Ministry of Industry and Information Technology (MIIT). This has resulted in rapid development of large computing facilities, significantly increasing demand for high-density and advanced cooling systems.

Why is Europe Experiencing Notable Growth in the Data Center Chillers Market?

Europe held a 25% share of the market in 2025 and is expected to grow at a notable CAGR of 8% during the projection period, driven by stringent environmental regulations, sustainability goals, and increasing digital investments. The region's strong focus on green data centers and carbon reduction is accelerating the adoption of energy-efficient chiller technologies. Initiatives such as the European Commission's AI Continent Action Plan and InvestAI program are further supporting the expansion of sustainable computing infrastructure. Rising demand for data sovereignty and compliance with environmental standards is also contributing to market growth.

Germany Market Analysis

Germany is a key contributor to the European data center chillers market, driven by strong government investment in digitalization, AI, and industrial transformation. The country aims to significantly expand its data center and AI processing capacity by 2030, driving strong demand for energy-efficient and high-capacity cooling systems. Growth in Industry 4.0 and smart manufacturing is also increasing reliance on data-intensive applications , further supporting the expansion of advanced data center infrastructure.

Value Chain Analysis-Data Center Chillers Market

• Raw Material Sourcing: This stage involves the sourcing of key components such as compressors, heat exchangers, refrigerants, and control systems.

Key Players: Daikin Industries, Mitsubishi Electric, Siemens

• Testing and Certification: Testing and certification guarantee the performance, safety, and energy efficiency of the data center chillers.

Key Players: Schneide Electric, Emerson Electric, Intertek

• Maintenance and After-Sales Service: Maintenance and after-sales service entail routine examination of the system, predictive service, replacement of spare parts, and tech support.

Key Players: Vertiv, Siemens AG, Airedale

Data Center Chillers Market Companies

• Johnson Controls International plc
• Daikin Industries, Ltd.
• Trane Technologies plc
• Carrier Global Corporation
• Mitsubishi Electric Corporation
• Vertiv Group Corp.
• Schneider Electric SE
• STULZ GmbH
• Airedale International Air Conditionng Ltd.
• Rittal GmbH & Co. KG
• Blue Star Limited
• Climaveneta (Mitsubishi Electric Group)
• Smardt Chiller Group Inc.
• Thermal Care, Inc.
• LG Electronics Inc

Segments Covered in the Report

By Chiller Type

• Air-cooled Chillers
• Water-cooled Chillers
• Hybrid Chillers

By Cooling Capacity

• Below 500 kW
• 500-2000 kW
• Above 2000 kW

By Data Center Type

• Hyperscale Data Centers
• Colocation Data Centers
• Enterprise Data Centers
• Edge Data Centers

By Application

• IT & Telecom Data Centers
• Cloud Service Providers
• Government & Defense Data Centers
• Banking, Financial Services, and Insurance (BFSI)
• Healthcare Data Centers
• Others

By Region

• North America
• Latin America
• Europe
• Asia-pacific
• Middle and East Africa