North America Data Center Cooling Market Report (2021–2031) by Scope, Segmentation, Dynamics, and Competitive Analysis.

The North America data center cooling market size is expected to reach US$ 19,351.81 million by 2031 from US$ 5,878.74 million in 2023. The market is estimated to record a CAGR of 16.1% from 2023 to 2031.

Executive Summary and North America Data Center Cooling Market Analysis:

In North America, the data center cooling market has seen substantial developments and innovations, driven by the rising adoption of cost-effective, energy-efficient, and environment-friendly cooling solutions in line with various stringent conservational safety rules offered by governmental bodies. Moreover, companies are launching products to contribute to the growth of the North America data center cooling market. For instance, in November 2023, Vertiv, a global provider of critical digital infrastructure and continuity solutions, introduced the Vertiv SmartMod Max CW, a prefabricated modular data center built to address the increasing demand for rapid deployment of computing in North America. This configurable and scalable solution supports up to 200kW of total IT load in a single system and utilizes chilled water cooling for low environmental impact and high energy efficiency in data center operations. The introduction of this solution aligns with the increasing need for efficient and rapid deployment of computing resources in the region. This development reflects the significant growth and innovation in the data center cooling market in North America, driven by the rising demand for energy-efficient and environmentally friendly cooling solutions.

In April 2024, Vertiv unveiled end-to-end AI power and cooling solutions to simplify data center infrastructure selection and deployment in North America. As Artificial Intelligence (AI) and High-Performance Compute (HPC) continue to disrupt the data center landscape, the company announced a new portfolio of high-density data center infrastructure solutions to support the higher cooling and power requirements of the accelerated computing IT stack. The new Vertiv 360AI solutions are designed to accelerate AI adoption through pre-engineered infrastructure solutions, digitized management, and end-to-end service, resulting in up to 2x faster deployment compared to typical infrastructure installation. The availability of data center cooling solutions in North America emphasizes the region's importance in driving advancements in data center infrastructure and cooling technologies.

North America Data Center Cooling Market Strategic Insights

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North America Data Center Cooling Market Segmentation Analysis

Key segments that contributed to the derivation of the North America data center cooling market analysis are component, cooling type, data center type, and industry vertical.

• Based on component, the North America 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 held the largest share of the market in 2023.
• Based on cooling type, the North America data center cooling market is segmented into room based cooling, row based cooling, and rack based cooling. The room based cooling held the largest share of the market in 2023.
• Based on data center type, the North America data center cooling market is segmented into hyperscale data center, colocation data center, wholesale data center, and enterprise data center. The hyperscale data center held the largest share of the market in 2023.
• Based on industry vertical, the North America 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 held the largest share of the market in 2023.

North America Data Center Cooling Market Outlook

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 $36 billion, making it the second-largest investment year in the past decade. Linklaters, the global law firm, conducted an analysis that highlighted the US and Europe as the leading jurisdictions in this emerging trend.
• In June 2024, Google pledged to add US$ 2.3 billion to its three data center campuses located in Central Ohio. With established campuses in New Albany and Lancaster and the ongoing construction of another in Columbus, this recent investment supplements the US$ 4.4 billion already allocated in the state since 2019.
• In May 2024, US President Joe Biden is expected to unveil a US$ 3.3 billion commitment from Microsoft to establish a new artificial intelligence (AI) data center. The White House has stated that this initiative will generate 2,300 union construction jobs. In the long term, the initiative further aims to generate 2,000 permanent jobs, aligning with Biden's focus on investing in American workers in the infrastructure and manufacturing sectors.
• 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.

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.

North America Data Center Cooling Market Country Insights

Based on country, the North America data center cooling market comprises the US, Canada, and Mexico. The US held the largest share in 2023.

Data centers in the US rely on a variety of cooling solutions to manage the substantial heat generated by the operation of millions of servers. The industry has traditionally used air cooling methods, but there is a growing emphasis on more efficient and sustainable cooling technologies such as brazed plate heat exchangers, precision cooling units, direct air cooling, and liquid cooling technologies. Companies such as Alfa Laval, Schneider Electric, Munters, USystems, and STULZ are at the forefront of providing advanced cooling solutions for data centers. As the demand for effective data center cooling solutions continues to rise, the industry is exploring innovative technologies such as smart cooling systems using AI and machine learning (ML), geothermal cooling methods, and evaporative cooling to enhance sustainability and energy efficiency. For instance, GIGABYTE Technology, Giga Computing, a subsidiary of GIGABYTE, an industry leader in AI and HPC servers and an integrator for direct liquid cooling (DLC) and Immersion cooling technology, announced a range of advanced cooling products, some of which was showcased at the SC23 event.

North America Data Center Cooling Market Report Highlights

North America Data Center Cooling Market Company Profiles

Some of the key players operating in the market 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. These players are adopting various strategies such as expansion, product innovation, and mergers and acquisitions to provide innovative products to their consumers and increase their market share.

North America Data Center Cooling Market Research Methodology :

The following methodology has been followed for the collection and analysis of data presented in this report:

• Secondary Research

The research process begins with comprehensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data for each market. Commonly referenced secondary research sources include, but are not limited to:

• Company websites, annual reports, financial statements, broker analyses, and investor presentations.
• Industry trade journals and other relevant publications.
• Government documents, statistical databases, and market reports.
• News articles, press releases, and webcasts specific to companies operating in the market.

Note: All financial data included in the Company Profiles section has been standardized to USD. For companies reporting in other currencies, figures have been converted to USD using the relevant exchange rates for the corresponding year.

• Primary Research

The Insight Partners conducts a significant number of primary interviews each year with industry stakeholders and experts to validate its data analysis and gain valuable insights. These research interviews are designed to:

• Validate and refine findings from secondary research.
• Enhance the expertise and market understanding of the analysis team.
• Gain insights into market size, trends, growth patterns, competitive dynamics, and future prospects.

Primary research is conducted via email interactions and telephone interviews, encompassing various markets, categories, segments, and sub-segments across different regions. Participants typically include:

• Industry stakeholders: Vice Presidents, business development managers, market intelligence managers, and national sales managers
• External experts: Valuation specialists, research analysts, and key opinion leaders with industry-specific expertise

North America Data Center Cooling Market Country and Regional Insights