Data Center Thermal Management Market

The data center thermal management market is projected to grow from USD 13.24 billion in 2026 to USD 32.38 billion by 2032, at a CAGR of 16.1% during the forecast period. The rapid expansion of artificial intelligence (AI), generative AI, high performance computing (HPC), and cloud computing is driving the data center thermal management market. AI servers, particularly those equipped with high-performance GPUs and AI accelerators, consume significantly more power than older CPU-based machines. As a result, rack densities have increased significantly, rising from the typical range of 5–15 kW to as high as 50–100 kW. In some large hyperscale setups, racks can exceed 120 kW. With such high thermal loads, conventional air cooling systems struggle to keep pace. This has led to a strong demand for innovative thermal management solutions, including direct-to-chip liquid cooling, immersion cooling, rear-door heat exchangers, smart airflow management, precision cooling systems, and liquid distribution layer infrastructure.

Vertiv Group Corp (US), Johnson Controls, Inc. (US), Schneider Electric (France), Carrier (US), and Daikin Applied (Japan) fall under the winners’ category. These are leading players in the global data center thermal management market. These players have adopted strategies such as expansions and partnerships to increase their market share.

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Vertiv Group Corp (US)

Vertiv Group Corp. provides products for verticals like power, thermal, and IT & edge infrastructure solutions and services. It addresses the most significant challenges faced by today’s data centers, communication networks, and commercial and industrial facilities. The company has a global, well-established footprint and supply chain network, serving customers in some critical industries.

It also provides power management products, thermal management products, integrated rack systems, modular solutions, and management systems for monitoring and controlling digital infrastructure. The main customers of Vertiv Group Corp. include Alibaba, Alstom, AT&T, Equinix, Ericsson, Reliance, and Vodafone.

Vertiv Group Corp. offers products and services including critical power, thermal management, racks and enclosures, and monitoring and management. Thermal management products consist of heat rejection, high-density solutions, outdoor packaged systems, room cooling, in-row cooling, rack cooling, evaporative free cooling, free cooling chillers, and thermal control and monitoring. The company employs nearly 24,000 people worldwide, with manufacturing facilities in the Americas, Asia Pacific, and EMEA, and operates in more than 40 countries.

Johnson Controls, Inc. (US)

Johnson Controls, Inc. is a multinational company providing comprehensive solutions for data centers. The company offers integrated solutions that help reduce costs, boost efficiency, and improve timing when speed is critical. Johnson Controls, Inc. has a wide range of HVAC cooling products for data centers, including BlueStream Hybrid Cooling System, YORK Mission Critical Direct Evaporative Cooling (DEC) Air Handling Units, and YVFA Free Cooling Variable Speed Screw Chiller, among others. The company operates in North America, Europe, South America, and parts of Asia Pacific.

Schneider Electric (France)

Schneider Electric delivers energy and digital automation solutions aimed at efficiency and sustainability by integrating energy technologies, real-time automation, software, and services for data centers, infrastructure, and industries. It produces various products, including power management, Uninterruptible Power Supply (UPS) systems, surge suppressors, precision cooling equipment, power conditioning devices, and software, and also provides professional and consulting services. Schneider Electric operates through two segments: Energy Management and Industrial Automation. The Energy Management segment offers a complete end-to-end technology solution powered by EcoStruxure. The Industrial Automation segment includes industrial automation and control activities across discrete, process, and hybrid industries. The company provides data center cooling solutions through the Energy Management segment. Schneider Electric serves the construction, residential, energy, and infrastructure sectors. The company has manufacturing facilities in the US, Switzerland, Denmark, Ireland, the Philippines, China, India, and Brazil.

Carrier (US)

Carrier is a leading global provider of innovative solutions for healthy, safe, sustainable, and smart buildings, as well as cold chain systems. Originally focused on manufacturing and distributing heating, ventilation, and air conditioning (HVAC) systems, the company has expanded its offerings to include commercial refrigeration, foodservice equipment, fire & security solutions, and building automation technologies. It operates through two main business segments: HVAC and Refrigeration. Carrier operates in the HVAC controls market through its HVAC segment, providing a range of equipment, control components, and building automation systems for residential and commercial use.

The company’s products are sold under various brands, including Automated Logic, Bryant, Carrier, CIAT, Day & Night, Heil, NORESCO, and Riello. Its HVAC product range includes air conditioners, heating systems, controls, aftermarket components, repair and maintenance services, and building automation systems. Carrier’s Healthy Buildings Program offers targeted solutions to enhance and optimize indoor air quality in homes and buildings, boosting health, safety, and productivity. The company’s products and solutions are sold directly to building contractors and owners, as well as indirectly through joint ventures, independent sales representatives, distributors, wholesalers, dealers, and retail outlets. With operations in over 1,200 locations across more than 160 countries, it maintains a strong global presence. In June 2024, Honeywell International Inc. finalized the acquisition of Carrier Global Access Solutions’ business for USD 4.95 billion.

Daikin Industries Ltd. (Japan)

Daikin is a global leader in designing and manufacturing advanced commercial and industrial HVAC systems. The company creates and provides high-performance solutions that ensure precise temperature and climate control for mission-critical environments. Its technologies and services support the reliable operation of facilities worldwide, with solutions delivered through a global network of dedicated sales, service, and distribution offices. In addition to serving offices, schools, hospitals, and manufacturing facilities, Daikin specializes in advanced cooling systems for data centers. These solutions are designed to maintain precise temperature and humidity levels, protect sensitive IT infrastructure, and enhance energy efficiency. Using deep industry knowledge and innovative technology, the company helps data center operators improve reliability, lower operational costs, and achieve sustainability goals.

Market Ranking

The data center thermal management market is competitive, with five major players: Vertiv Group Corp (US), Johnson Controls, Inc. (US), Schneider Electric (France), Carrier (US), and Daikin Industries Ltd. (Japan). In the global data center thermal management market, Vertiv Group Corp, Johnson Controls, Inc., Schneider Electric, Carrier, and Daikin Applied collectively occupy a top-tier competitive position, often categorized as “market leaders” or “winners” based on their strong revenue base, global manufacturing footprint, and diversified product portfolios. These companies are ranked highly due to their capabilities in thermal management solutions across key end-use industries such as data centers.

Related Reports:

Data Center Thermal Management Market by Solution (Hardware, Services), Component, Data Center Type (Hyperscale, Enterprise, Colocation Providers), End-use Industry, Technology, Type of Cooling (Air, Liquid), and Region - Global Forecast to 2032

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