At 17.2% CAGR, the Europe Data Center Cooling Market is Projected to be Worth US$ 12,922.91 Million by 2031, Says Business Market Insights

According to Business Market Insights research, the Europe data center cooling market was valued at US$ 3,639.56 in 2023 and is expected to reach US$ 12,922.91 million by 2031, registering a CAGR of 17.2% from 2023 to 2031. Rising investments in data centers and increasing demand for compute-intensive workloads are among the critical factors attributed to the Europe data center cooling market expansion.

Pressure to decarbonize data centers, climate change, unpredictable weather events, and the use of powerful computers are a few factors encouraging organizations to invest in cooling and energy-efficient technologies for data centers. The escalating demand for data center cooling solutions is fueled by the need for effective cooling technologies to maintain optimal operating conditions as these centers expand to accommodate increasing workloads and storage demands. The demand for data centers is increasing, prompting investments in companies that operate them. A few of such investments are listed below:

• In January 2024, Vantage Data Centers, a global provider of hyperscale data center campuses, announced a US$ 6.4 billion equity investment led by investment channels managed by DigitalBridge Group, Inc., the leading global alternative asset manager dedicated to investing in digital infrastructure, and Silver Lake—the global leader in technology investing. This substantial investment reflects the escalating demand for hyperscale data center campuses, which drives the need for advanced cooling solutions to maintain optimal operating conditions.
• In the initial five months of 2024, the global investment in data centers amounted to US$ 22 billion, continuing the momentum from the significant activity observed in 2023, when global investment in data centers reached a noteworthy $36 billion, making it the second-largest investment year in the past decade. Linklaters, the global law firm, conducted an analysis that highlighted the US and Europe as the leading jurisdictions in this emerging trend.
• In February 2024, NTT DATA, a global digital business and IT services leader, announced that TC Global Investments Americas LLC—a group company of Tokyo Century Corporation—is investing in NTT Global Data Centers' American data center business in Chicago, Illinois, a group company of NTT DATA.
• In May 2024, AI cloud provider CoreWeave was investing US$ 1.25 billion (£1 billion) in expanding its operations in the UK. The investment will facilitate the launch of two data centers in the UK in 2024, with further expansion plans for 2025.

All these investments in data centers worldwide reflect the increasing demand for data center campuses, which drives the need for advanced data center cooling solutions to maintain optimal operating conditions. Thus, rising investments in data centers fuel the data center cooling market growth.

On the contrary, high cost associated with data center cooling hampers the growth of Europe data center cooling market.

Based on component, the Europe data center cooling market is segmented into air conditioning system, chillers, air handling units, cooling towers, heat exchangers, humidifiers, and others. The air conditioning system segment held 40.3% share of the Europe data center cooling market in 2023, amassing US$ 1,468.50 million. It is projected to garner US$ 5,797.07 million by 2031 to expand at 18.7% CAGR during 2023–2031.

Based on cooling type, the Europe data center cooling market is segmented into room based cooling, row based cooling, and rack based cooling. The row based cooling segment held 59.6%share of the Europe data center cooling market in 2023, amassing US$ 2,169.98 million. It is projected to garner US$ 7,350.60 million by 2031 to expand at 16.5% CAGR during 2023–2031.

Based on data center type, the Europe data center cooling market is segmented into hyperscale data center, colocation data center, wholesale data center, and enterprise data center. The hyperscale data center segment held 34.3% share of the Europe data center cooling market in 2023, amassing US$ 1,249.99 million. It is projected to garner US$ 4,815.18 million by 2031 to expand at 18.4% CAGR during 2023–2031.

Based on industry vertical, the Europe data center cooling market is segmented into IT and telecom, BFSI, healthcare, manufacturing, government and defense, media and entertainment, retail, energy, and others. The IT and telecom segment held 31.2% share of the Europe data center cooling market in 2023, amassing US$ 1,135.26 million. It is projected to garner US$ 4,544.39 million by 2031 to expand at 18.9% CAGR during 2023–2031.

Based on country, the Europe data center cooling market is segmented into the UK, Germany, France, the Netherlands, Italy, Russia, and the Rest of Europe. The UK held 28.3% share of Europe data center cooling market in 2023, amassing US$ 1,030.36 million. It is projected to garner US$ 4,293.73 million by 2031 to expand at 19.5% CAGR during 2023–2031.

Key players operating in the data center cooling market are Asetek, Inc; Mitsubishi Corp; Stulz SpA; Vertiv Group Corp.; Aspen Systems, LLC.; Daikin Industries Ltd; Delta Electronics Inc; Danfoss AS; Motivair Corporation; Madison Industries; Fujitsu Ltd; Rittal GmbH & Co KG; Schneider Electric SE; Trane Technologies Plc; Black Box Corporation; Carrier Global Corp; Alfa Laval AB; Hewlett Packard Enterprise Development LP; Boyd Corp; and Evapco Inc, among others.

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