Data Center Waste Heat Recovery & Reuse Market

The data center waste heat recovery & reuse market is projected to grow from USD 0.46 billion in 2026 to USD 1.29 billion by 2031, registering a CAGR of 22.9% during the forecast period (2026-2031). The data center waste heat recovery & reuse market consists of equipment used to recover the heat that is wasted by the operation of data centers. Numerous technologies and types of equipment have been developed to recover the waste heat. The waste heat produced from the operation of these data centers can be transferred, modified, stored, and reused. The rapid growth of data centers globally is spurred by the increase in artificial intelligence, cloud computing, high-performance computing and various types of digital services. These facilities are trying to improve their energy efficiency by reducing their carbon footprint. Waste heat recovery equipment has the capability to convert the excess thermal energy into useful outputs such as heating and cooling, and the generation of electric power. Types of waste heat recovery equipment consist of heat exchangers, heat pumps, thermal energy storage, absorption chillers, and organic Rankine cycle (ORC) units. The trends that are driving this market include sustainability mandates, stringent energy efficiency regulations, and integration of district heating networks. The rapid growth in liquid cooling technologies and large amounts of investments currently focusing on sustainable infrastructure in data centers are contributing to the rapid growth of this market.

Danfoss (Denmark), ALFA LAVAL (Sweden), Everllence SE (Germany), Vertiv Group Corp. (US), Johnson Controls (Ireland), Trane Technologies plc (Ireland), Rittal GmbH & Co. KG (Germany), Turboden S.p.A (Italy), Submer (Spain), and Munters Group AB (Sweden) are the key players operating in the data center waste heat recovery & reuse market. To maintain their growth trajectory, companies operating within data center heat recovery are investing in a range of technologies and maintaining strategic relationships with vertically integrated companies. Companies are investing heavily in advanced heat pumps, high-efficiency heat exchangers, intelligent coolant distribution units and thermal energy storage solutions in order to optimize heat recovery performance, as well as install systems that meet the demands of next-generation liquid-cooled data centers. Strategic partnerships between manufacturers and hyperscale operators (e.g., Google), colocation providers (e.g., Equinix), district heating utilities (e.g., Energy Networks Australia), and engineering firms enable the deployment of large-scale integrated waste heat recovery projects. Some manufacturers have expanded their service delivery capabilities to include system integration, monitoring, and system lifecycle support, thus creating a recurring stream of revenue. At the same time, manufacturers are focused on achieving decarbonization goals, meeting compliance obligations, introducing circular energy solutions, and researching and developing higher-temperature heat recovery technologies in order to strengthen their competitive position and take advantage of emerging market opportunities.

To know about the assumptions considered for the study download the pdf brochure

In February 2026, Danfoss launched the new B3-260C brazed plate heat exchanger, which is engineered for maximum efficiency, enabling data centers to operate their cooling distribution units (CDUs) with minimal energy loss while meeting uptime requirements. With capacities up to 1 MW and optimized for very low Log Mean Temperature Difference (LMTD) applications (~2 K), the B3-260C marks a major step forward in efficient and reliable thermal management for data centers.

In June 2024, ALFA LAVAL launched the new ALFA LAVAL AC65 brazed plate heat exchanger. Produced at Alfa Laval’s state-of-the-art factory in San Bonifacio, Italy, the AC65 is designed to meet the growing market demand for next-generation heat exchangers for the high-volume heat pump market.

Danfoss

Danfoss is a Denmark-based global engineering company with operations across Europe, North America, Asia-Pacific, the Middle East, and Latin America, serving customers through an extensive network of manufacturing facilities, sales offices, and technology centers. Within the Data center waste heat recovery & reuse market, Danfoss offers specialized solutions including Heat Recovery Modules (HRM), Heat Recovery Units (HRU), heat exchangers, heat pump solutions, district energy transfer stations, valves, controls, monitoring systems, and hydronic balancing technologies designed to capture and utilize surplus heat from data center cooling systems. Its solutions enable recovered heat to be transferred to district heating networks, industrial users, and commercial buildings. Danfoss remains competitive through continuous investment in energy-efficient technologies, modular system designs, digital monitoring platforms, strategic collaborations with data center operators and district heating utilities, and a strong focus on decarbonization and circular energy ecosystems that transform data centers into heat suppliers.

ALFA LAVAL

ALFA LAVAL is a Sweden-based global leader in heat transfer, separation, and fluid handling technologies, with a strong presence across Europe, North America, Asia-Pacific, the Middle East, Africa, and Latin America. In the Data center waste heat recovery & reuse market, the company provides a broad portfolio of thermal management and heat recovery solutions, including gasketed plate-and-frame heat exchangers, brazed plate heat exchangers, fusion-bonded heat exchangers, cooling systems, liquid cooling technologies, and heat reuse solutions that enable efficient recovery and redistribution of excess thermal energy from data centers. ALFA LAVAL's technologies support free cooling, liquid cooling, and waste heat utilization across hyperscale, colocation, and high-performance computing facilities. To maintain market relevance, the company focuses on continuous innovation in thermal efficiency, expansion of liquid cooling capabilities for AI-driven data centers, strategic partnerships with infrastructure developers, and sustainability-driven solutions that reduce energy consumption while converting waste heat into valuable energy resources.

MARKET RANKING:

Danfoss, ALFA LAVAL, Everllence SE, Vertiv, and Johnson Controls are positioned among the leading participants in the Data center waste heat recovery & reuse market because they possess strong technological capabilities, established customer relationships within the data center ecosystem, and product portfolios directly aligned with waste heat capture, transfer, upgrading, and utilization. Danfoss and ALFA LAVAL benefit from decades of expertise in heat transfer technologies, offering advanced heat exchangers, heat pumps, and thermal management systems that are increasingly deployed in heat reuse projects. Everllence SE has emerged as a key player through large-scale industrial heat pump solutions that enable district heating integration from hyperscale data centers. Vertiv leverages its extensive presence in data center cooling infrastructure, including CDUs and liquid cooling solutions, providing a natural pathway into heat recovery applications. Johnson Controls contributes high-efficiency heat pumps and absorption chillers that support heat reuse and energy optimization. Collectively, these companies benefit from global footprints, strong engineering capabilities, substantial R&D investments, and strategic alignment with decarbonization, energy efficiency, and liquid-cooling trends that are driving adoption of waste heat recovery technologies across modern data center facilities.

Related Reports:

Data Center Waste Heat Recovery & Reuse Market by Equipment Type (Heat Exchangers, Heat Pumps), Recovery Mechanism (Air-Based Recovery, Liquid Single-Phase Recovery), Data Center Type, End Use of Recovered Heat, and Region - Global Forecast to 2031

Contact:
Mr. Rohan Salgarkar
MarketsandMarkets™ INC.
1615 South Congress Ave.
Suite 103, Delray Beach, FL 33445
USA : 1-888-600-6441
[email protected]