en.Wedoany.com Reported - The global data center chiller market is experiencing scale expansion, projected to grow from $2.8 billion in 2026 to $6.4 billion by 2035. According to an industry report released by Global Market Insights Inc., the market is expected to achieve a compound annual growth rate (CAGR) of 9.6% during the forecast period. The market was valued at $2.6 billion in 2025, serving as the base year.
The primary driver of market growth is the global shift toward a hyper-digital era. The exponential growth of generative artificial intelligence (AI), machine learning, and high-performance computing (HPC) workloads has significantly increased rack power density. Cooling demand is directly linked to IT loads, with modern multi-megawatt hyperscale and colocation facilities requiring large-scale industrial chiller systems to maintain operational stability and prevent thermal stress.
Water-cooled chillers dominated the market in 2025, holding a 61.8% share with revenue of $1.6 billion. Water-cooled systems are favored for their efficient heat transfer performance and scalability, and are expected to grow at a CAGR of 10% by 2035, particularly suitable for large hyperscale campuses. Air-cooled chillers held a 32.9% market share in 2025, with expansion driven primarily by speed-to-capacity advantages, ease of installation, and stringent water conservation requirements in arid regions such as the western United States and northern China.
In response to environmental policies and power usage effectiveness (PUE) targets, the industry is shifting toward technological innovation. Magnetic bearing centrifugal chillers and oil-free platforms have become growth drivers. Data indicates that these systems can reduce compressor power consumption by up to 49% under partial load cycles, making them attractive to procurement teams retrofitting legacy server rooms or building dedicated AI zones.
North America remains the largest market, valued at $1.3 billion in 2025, primarily driven by domestic AI infrastructure investments. The Asia-Pacific region is expected to achieve the fastest growth, with a CAGR of 10.8% by 2035. Infrastructure upgrades in China and government-supported digital initiatives in India position Asia-Pacific as a key region for data center deployment.
The data center chiller market is highly consolidated, with the top five players in 2025—Johnson Controls, Carrier Global, Daikin, Trane Technologies, and Vertiv—collectively holding a 74.2% market share. Johnson Controls led as the individual market leader with a 20.9% share. Major players are introducing modular, water-free, and high-capacity units (such as recent 2026 product launches by Panasonic and Johnson Controls) to address demand driven by generative AI infrastructure.
