Data Center Chillers Market Revenue to Attain USD 11.26 Bn by 2035

Data Center Chillers Market Revenue and Trends 2026 to 2035

The data center chillers market revenue surpassed USD 4.80 billion in 2025 and is predicted to attain around USD 11.26 billion by 2035 with a CAGR of 8.90% during the forecast period. The market for data center chillers is experiencing rapid growth, driven by growing AI workloads and the expansion of hyperscale infrastructures where cooling becomes a critical factor.

Market at a Glance

The data center chillers market comprises advanced cooling systems specifically designed to manage heat in high-density computing environments, where maintaining thermal stability is critical for operational uptime. These systems include both air-cooled and water-cooled chillers, integrated into large-scale cooling infrastructures across hyperscale, colocation, and enterprise facilities.

Unlike traditional HVAC solutions, modern data center chillers are engineered to meet stringent performance requirements driven by rapidly increasing computational intensity. As a result, they have become essential components in temperature regulation and energy management within next-generation data centers. Increasingly, chillers are deployed as part of broader cooling ecosystems that incorporate advanced compressor technologies and support emerging liquid cooling strategies.

What are the Major Trends Influencing the Data Center Chillers Market?

• Rising Demand for Water-Based Cooling Ecosystem: The growing reliance on water-based cooling highlights both the scale and urgency of innovation in this market. Data centers in North America alone consumed approximately 1 trillion liters of water in 2025, underscoring the need for more sustainable cooling approaches. Major technology companies such as Microsoft and Google are actively transitioning toward closed-loop and low-water cooling systems. This shift is creating significant opportunities for advanced chiller technologies that optimize water usage while maintaining high cooling efficiency.
• Expanding Applications: The deployment of data center chillers spans hyperscale data centers, colocation facilities, and edge environments, where performance is evaluated based on metrics such as energy efficiency, water usage effectiveness, and cooling capacity. These systems are continuously evolving to address rising heat loads, particularly those generated by AI-driven workloads.

Data Center Power Usage and Thermal Management Insights

• Data centers consume 2% of total electricity in the U.S., with demand rising rapidly due to digital expansion and AI-driven workloads.
• Cooling systems, especially chillers, account for nearly 40% of total power usage, making them a major but often overlooked energy consumer.
• The U.S. Department of Energy has allocated $40 million across 15 projects, elevating efficient cooling to a national priority.
• While cooling currently uses 30-40% of total energy, advancements aim to reduce this to ~5%, highlighting inefficiencies and upgrade potential.
• Data centers can consume over 50x more electricity per square foot than office buildings, driving the need for high-performance cooling systems.
• Increasing investments in high-density, next-generation servers are expected to significantly raise heat output, making integrated cooling strategies essential for future growth.

Market Segmentation Overview

• By chiller type, the air-cooled chillers segment dominated the data center chillers market with a major share of 45% in 2025, because of their reduced complexity in installation, lower reliance on water resources, and compatibility with modular and edge data centers. In scenarios where rapid deployment was as critical as performance, particularly within modular and edge data center environments, their straightforward design facilitated scalability without complications.
• By chiller type, the hybrid chillers segment is expected to grow at the fastest CAGR of 10.5% in the market between 2026 and 2035, as operators seek a balance between efficiency and water conservation. In sustainability-focused data centers, the ability to balance performance with resource conservation is turning hybrid systems into a pragmatic middle ground.
• By cooling capacity, the above 2000kW segment held a revenue share of 45% in the market in 2025, due to the expansion of hyperscale and cloud data centers. These data centers require high-density cooling solutions that could operate continuously. Smaller systems were inadequate for such demands, positioning large-capacity units not merely as an option but rather as a necessary standard for operations
• By cooling capacity, the 500-2000 kW segment held the second-largest market share of 35% in 2025 and is expected to expand at a CAGR of 7.5% in the coming years, as it is extensively utilized by both enterprise and colocation data centers. It strikes an effective balance by providing sufficient capacity while maintaining cost efficiency comparable to that of hyperscale systems, making it suitable for diverse performance requirements.
• By data center type, the hyperscale data centers segment led the data center chillers market with a share of 40% in 2025, owing to massive investment by cloud providers. Their scale, combined with AI-driven workloads, required high cooling efficiency that could operate efficiently under relentless thermal pressure, reinforcing their position as the primary demand center.
• By data center type, the edge data centers segment is expected to expand at a significant CAGR of 9.5% in the coming years, as the expansion of these data centers is closely linked to the rise of 5G and IoT technologies, where proximity takes precedence over sheer scale. These data centers require compact, energy-efficient cooling solutions, driving the demand for chillers that can operate effectively within constrained physical and power environments.
• By application, the IT & telecom data centers segment accounted for a major revenue share of 30% in the market in 2025, due to the rapid data generation in the sector and an expanding network infrastructure. As dependence on data-intensive services increased, so did the demand for cooling solutions, positioning these facilities as consistent and substantial users of chiller-based cooling systems.
• By application, the cloud service providers segment is expected to grow at the fastest CAGR of 11% in the market between 2026 and 2035, due to the rising demand for cloud computing capabilities, artificial intelligence applications, and big data processing frameworks. The rapid evolution of their infrastructure necessitates advanced cooling systems that can adjust to varying workloads while maintaining efficiency and minimizing downtime.

Regional Insights

North America dominated the global data center chillers market with a share of 40% in 2025, driven by the strong presence of hyperscale cloud providers, investments in AI infrastructure, and a proactive approach toward adopting advanced cooling technologies. The U.S. leads the market within North America with major data center clusters concentrated in the country. Canada also contributed to regional market growth by leveraging its cold climate and sustainable cooling practices, enabling more energy-efficient operations. Collectively, these factors have positioned North America as a region where high-capacity, high-efficiency chillers are integrated at the design stage rather than added as retrofits.

Asia Pacific held a market share of 25% in 2025 and is expected to grow at the fastest CAGR of 11.5% during the forecast period. This growth is fueled by rapid digitalization and the expansion of cloud infrastructure across key economies. China continues to build hyperscale infrastructure with strong state support, while India is emerging as a major hub for data center development, driven by data localization policies and rising internet penetration.

Moreover, countries such as Japan and Southeast Asia are facing space and energy constraints, which are accelerating innovation in efficient cooling technologies. As a result, demand for data center chillers in the region is not only increasing but also evolving, with solutions tailored to address high-density environments and resource limitations.

Data Center Chillers Market Coverage

Top Companies in the Data Center Chillers Market

The major players in the data center chillers market include companies such as Johnson Controls International plc, Carrier Global Corporation, Trane Technologies plc, and Daikin Industries, Ltd.. These companies contribute by providing large-scale, energy-efficient chiller systems designed to support hyperscale and high-density data center environments with reliable thermal management. In addition, players like Mitsubishi Electric Corporation and Climaveneta drive innovation through advanced refrigerant technologies and high-efficiency cooling solutions that improve sustainability and performance.

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

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