Key Insights

The European data center cooling market, currently valued at €7.5 billion in 2025, is experiencing robust growth, projected to expand at a Compound Annual Growth Rate (CAGR) of 16.5% from 2025 to 2033. This significant expansion is driven by several key factors. The increasing adoption of cloud computing and big data analytics necessitates high-performance data centers, which in turn demand advanced cooling solutions to maintain optimal operating temperatures and prevent costly equipment failures. Furthermore, stringent regulations aimed at reducing carbon emissions are pushing data center operators towards energy-efficient cooling technologies like liquid-based cooling and more sustainable air-based systems. Growing demand from key end-user verticals, including IT & Telecom, healthcare, and financial services, further fuels market growth. Germany, the UK, and France represent the largest national markets within Europe, benefiting from established digital infrastructure and substantial investments in data center facilities. However, market growth faces challenges such as high initial investment costs for advanced cooling systems and the need for skilled workforce to install and maintain these sophisticated technologies. The competitive landscape is dynamic, with established players like Schneider Electric and Vertiv competing with innovative companies offering next-generation cooling solutions. The market will witness increasing adoption of AI-driven cooling management systems to optimize energy consumption and improve operational efficiency.

Looking ahead, the European data center cooling market is poised for sustained expansion. The integration of renewable energy sources into data center operations will become a crucial factor influencing technology choices and market dynamics. Furthermore, advancements in cooling technologies, such as immersion cooling and direct-to-chip cooling, are likely to gain traction, offering greater efficiency and scalability compared to traditional air-based systems. The increasing adoption of edge computing will also drive localized cooling needs, leading to opportunities for smaller-scale, localized cooling solutions. Competition is expected to intensify, with a focus on offering comprehensive solutions that integrate cooling with power and other data center infrastructure components. The market's long-term trajectory will be shaped by the interplay of technological innovation, regulatory pressures, and evolving data center architectures.

Europe Data Center Cooling Market: A Comprehensive Report (2019-2033)

This in-depth report provides a comprehensive analysis of the Europe Data Center Cooling market, encompassing market dynamics, growth trends, regional dominance, product landscape, key players, and future outlook. The study period covers 2019-2033, with 2025 as the base year and a forecast period of 2025-2033. The report segments the market by cooling technology (air-based and liquid-based), end-user vertical (IT & Telecom, Retail & Consumer Goods, Healthcare, Media & Entertainment, Federal & Institutional agencies, and Others), and key European countries (United Kingdom, Germany, Russia, Denmark, Norway, Netherlands, Spain, Poland, Switzerland, Austria, Belgium, France, Italy, Ireland, and Sweden). The market size is presented in million units.

Europe Data Center Cooling Market Dynamics & Structure

The European data center cooling market is characterized by a moderately concentrated landscape with several major players and a growing number of niche providers. Technological innovation, driven by the need for higher energy efficiency and increased cooling capacity, is a key driver. Stringent environmental regulations are pushing the adoption of sustainable cooling solutions, while the increasing demand for data center capacity fuels market growth. Competition is intense, with companies vying for market share through product differentiation, strategic partnerships, and mergers and acquisitions (M&A).

• Market Concentration: The market exhibits moderate concentration, with the top 5 players holding approximately xx% of the market share in 2024.
• Technological Innovation: The market is witnessing rapid innovation in liquid cooling technologies, including immersion cooling and direct-to-chip cooling, driven by the need to cool high-density servers efficiently.
• Regulatory Framework: EU regulations on energy efficiency and environmental sustainability are influencing the adoption of energy-efficient cooling solutions.
• Competitive Product Substitutes: While air-based cooling remains dominant, liquid-based cooling is emerging as a significant competitor due to its superior cooling capabilities.
• End-User Demographics: The IT & Telecom sector is the largest end-user, followed by the federal and institutional agencies. Growth is expected across all sectors due to increasing digitization.
• M&A Trends: The number of M&A deals in the sector has increased in recent years, reflecting industry consolidation and the pursuit of technological synergies. xx M&A deals were recorded in 2023.

Europe Data Center Cooling Market Growth Trends & Insights

The Europe data center cooling market experienced significant growth during the historical period (2019-2024), driven by factors such as the rapid expansion of data centers, increasing data traffic, and the adoption of high-density computing. The market is projected to maintain a robust Compound Annual Growth Rate (CAGR) of xx% during the forecast period (2025-2033), reaching a market size of xx million units by 2033. This growth is fuelled by increasing demand for efficient cooling solutions to meet rising energy consumption and environmental concerns. Technological advancements in liquid cooling and hybrid cooling systems are driving market adoption, along with the rising adoption of cloud computing and edge data centers. Consumer behavior shifts towards increased digital interactions are driving growth. Specific metrics reflecting this growth include a market penetration rate of xx% in 2024, with projections reaching xx% by 2033.

Dominant Regions, Countries, or Segments in Europe Data Center Cooling Market

The United Kingdom and Germany are the leading markets for data center cooling in Europe, driven by strong IT infrastructure, significant data center deployments, and favorable government policies. The IT & Telecom sector dominates the end-user segment, reflecting the high density of servers and computing equipment in these industries. Liquid-based cooling is emerging as a key segment, with increasing adoption driven by its energy efficiency and high cooling capacity. Within this segment, immersion cooling is experiencing the fastest growth, driven by the ability to cool high-density servers in data centers.

• Key Drivers: Strong IT infrastructure, government support for digitalization, increasing data center capacity, and favorable regulatory frameworks.
• Dominance Factors: High density of data centers, strong IT infrastructure, and the adoption of advanced cooling technologies.
• Growth Potential: Continued growth is expected in the UK and Germany, along with increasing market penetration in other European countries as digital transformation continues.

Europe Data Center Cooling Market Product Landscape

The market offers a range of cooling technologies, including air-based cooling (CRAC, CRAH) and liquid-based cooling (immersion cooling, direct-to-chip cooling). Recent innovations focus on improving energy efficiency, enhancing cooling capacity, and reducing environmental impact. Liquid cooling technologies are gaining popularity due to their superior cooling capabilities for high-density servers, while advancements in air-based cooling focus on improving energy efficiency and reducing noise levels. Many products incorporate smart features for remote monitoring and management.

Key Drivers, Barriers & Challenges in Europe Data Center Cooling Market

Key Drivers:

• Growth of data centers: Increasing demand for data storage and processing is driving the expansion of data centers.
• High-density computing: The adoption of high-density servers requires advanced cooling solutions.
• Government regulations: Stricter environmental regulations are pushing the adoption of energy-efficient cooling systems.

Challenges and Restraints:

• High initial investment costs: Liquid cooling systems can be expensive to install and maintain.
• Complexity of implementation: Implementing liquid cooling systems can be complex, requiring specialized expertise.
• Limited skilled workforce: A shortage of trained personnel to install and maintain advanced cooling systems.

Emerging Opportunities in Europe Data Center Cooling Market

• Growth of edge computing: Edge data centers require efficient cooling solutions, creating new market opportunities.
• Adoption of AI and machine learning: Advanced analytics and automation in data center cooling management enhance efficiency.
• Increased focus on sustainability: The demand for energy-efficient and eco-friendly cooling systems is growing.

Growth Accelerators in the Europe Data Center Cooling Market Industry

Long-term growth will be driven by continued investment in data center infrastructure, technological advancements in cooling systems, and a growing focus on sustainability. Strategic partnerships between cooling solution providers and data center operators will accelerate market adoption. Expansion into emerging markets within Europe, coupled with advancements in cooling techniques like AI-powered predictive maintenance, will further drive growth.

Key Players Shaping the Europe Data Center Cooling Market Market

• Chilldyne Inc
• Asetek A/S
• Airedale International Air Conditioning Ltd
• Schneider Electric SE
• Rittal GmbH & Co KG
• Iceotope Technologies Limited
• Stulz GmbH
• Vertiv Group Corp
• Alfa Laval AB
• Green Revolution Cooling Inc

Notable Milestones in Europe Data Center Cooling Market Sector

• May 2024: Stulz launched the CyberCool CDU, boosting liquid cooling efficiency with models ranging from 345 kW to 1,380 kW.
• October 2023: Mitsubishi Heavy Industries introduced a 40 kVA container data center with a hybrid immersion/air-cooled system, showcasing multi-cooling method integration.

In-Depth Europe Data Center Cooling Market Market Outlook

The future of the Europe data center cooling market is bright, with sustained growth projected through 2033. The focus on energy efficiency, sustainability, and advanced cooling technologies will drive market expansion. Strategic partnerships and technological innovations will be critical factors in capturing market share. The ongoing digital transformation and expanding data center infrastructure will present significant opportunities for growth and innovation in the years to come.

Europe Data Center Cooling Market Segmentation

• 1. Cooli
  • 1.1. Air-based Cooling
    • 1.1.1. CRAH
    • 1.1.2. Chiller and Economizer
    • 1.1.3. Cooling
    • 1.1.4. Others
  • 1.2. Liquid-based Cooling
    • 1.2.1. Immersion Cooling
    • 1.2.2. Direct-to-Chip Cooling
    • 1.2.3. Rear-Door Heat Exchanger
• 2. End-user Vertical
  • 2.1. IT & Telecom
  • 2.2. Retail & Consumer Goods
  • 2.3. Healthcare
  • 2.4. Media & Entertainment
  • 2.5. Federal & Institutional agencies
  • 2.6. Other End Users

Europe Data Center Cooling Market Segmentation By Geography

• 1. Europe
  • 1.1. United Kingdom
  • 1.2. Germany
  • 1.3. France
  • 1.4. Italy
  • 1.5. Spain
  • 1.6. Netherlands
  • 1.7. Belgium
  • 1.8. Sweden
  • 1.9. Norway
  • 1.10. Poland
  • 1.11. Denmark