India Data Center Cooling Market Analysis - Size and Forecast 2025-2029

India Data Center Cooling Market Size 2025-2029

The India data center cooling market size is valued to increase USD 1.69 billion, at a CAGR of 22.5% from 2024 to 2029. Increasing number of data canters in India will drive the India data center cooling market.

Major Market Trends & Insights

• By Technology - Liquid-based cooling segment was valued at USD 235.90 billion in 2022
• By Product - Air conditioning segment accounted for the largest market revenue share in 2022
• CAGR : 22.5%

Market Summary

• The market is experiencing significant growth due to the increasing number of data centers and the rising adoption of high-performance computing systems. According to a recent study, the data center market in India is projected to reach a 30% share in the Asia Pacific region by 2025. This growth is driven by the need for efficient cooling solutions as data center operators strive to minimize energy consumption and reduce carbon footprint. Core technologies such as economizers and free cooling systems are gaining popularity, while applications in sectors like BFSI, IT & ITeS, and telecommunications are witnessing high demand.
• However, challenges such as high initial investment costs and lack of standardization pose significant hurdles. Despite these challenges, opportunities abound, particularly in the form of government initiatives to promote renewable energy and the increasing adoption of cloud computing.

What will be the Size of the India Data Center Cooling Market during the forecast period?

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How is the Data Center Cooling in India Market Segmented and what are the key trends of market segmentation?

The data center cooling in India industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

• Technology
  • Liquid-based cooling
  • Air-based cooling
• Product
  • Air conditioning
  • Economizers
  • Cooling towers
  • Chillers
  • Others
• Type
  • Room cooling
  • Rack and row cooling
• Geography
  • APAC
    • India

By Technology Insights

The liquid-based cooling segment is estimated to witness significant growth during the forecast period.

In the dynamic market, adiabatic cooling and hot aisle containment are increasingly adopted for improving airflow management and energy efficiency. According to recent reports, energy efficiency metrics, such as Power Usage Effectiveness (PUE), have seen a significant improvement, with an average reduction of 15% in energy consumption. Furthermore, the market is expected to witness substantial growth, with an estimated 30% increase in the adoption of cooling technologies like CRAC units, cold aisle containment, and humidity control systems. Advancements in thermal management solutions, such as refrigerant leaks prevention, have led to the evolution of free cooling systems and liquid cooling technology.

These innovative cooling methods, including server rack cooling and HVAC systems, have been instrumental in enhancing cooling infrastructure's overall performance. Moreover, the integration of DCIM software, heat exchangers, and temperature monitoring systems has facilitated the optimization of cooling capacity and heat dissipation. Airside economizers and evaporative cooling have gained popularity due to their cost-effectiveness and energy efficiency. Direct expansion cooling and environmental controls have also emerged as essential components of thermal design, ensuring optimal temperature maintenance. The market's continuous growth is further fueled by the increasing demand for IT equipment cooling and the adoption of raised floor systems. The future of the market is promising, with a projected 25% increase in market size.

The integration of advanced cooling technologies, such as liquid cooling and heat exchangers, is expected to revolutionize the industry, offering improved efficiency and reduced energy consumption. The adoption of free cooling systems and thermal design innovations will further contribute to the market's growth, making it an exciting space for businesses to explore.

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The Liquid-based cooling segment was valued at USD 235.90 billion in 2019 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

The market is witnessing significant growth due to the increasing demand for efficient and effective cooling solutions. With the digital transformation driving businesses towards data-intensive operations, the need for robust cooling systems is becoming increasingly crucial. Effective cooling tower operation and improving CRAC unit efficiency are key focus areas for data center operators in India. Advanced thermal management strategies, such as optimizing chilled water system performance and data center airflow optimization techniques, are gaining popularity to reduce energy consumption and improve overall efficiency. Preventative maintenance for cooling systems is another critical aspect, as cooling failures can lead to significant downtime and infrastructure damage.

Reducing energy consumption in data centers is a significant concern, with implementing free cooling strategies and advanced monitoring and control technologies becoming increasingly common. Data center cooling capacity planning, thermal modeling and simulation software, and predictive analytics for cooling maintenance are essential tools for optimizing cooling systems. Best practices in data center cooling, such as refrigerant management and handling, efficient data center cooling solutions, and new data center cooling innovations like liquid cooling technology advancements, are shaping the market's dynamics. The Indian market is witnessing a significant shift towards adopting advanced cooling technologies, with adoption rates nearly double those in traditional cooling methods.

This trend is driven by the need for increased efficiency, reliability, and energy savings. The industrial application segment accounts for a significantly larger share of the market compared to the academic segment, reflecting the growing importance of data centers in various industries. In conclusion, the market is poised for growth, driven by the increasing demand for efficient cooling solutions, advanced thermal management strategies, and the need for energy savings. The market is witnessing significant innovation, with a focus on improving cooling system performance, reducing energy consumption, and implementing advanced monitoring and control technologies.

What are the key market drivers leading to the rise in the adoption of Data Center Cooling in India Industry?

• The proliferation of data centers in India is the primary catalyst fueling market growth. 

• The expanding use of cloud-based services and big data analytics across various sectors, including cloud services platforms (CSPs), government agencies, and telecommunications organizations, is fueling the growing demand for data centers. India, in particular, is experiencing significant investments in data center construction due to the increasing need for modern technological solutions in developing countries. This trend is driving the growth of data centers in India and other emerging markets. In response, data center operators are adopting advanced cooling techniques to minimize costs and energy consumption.
• companies in the market are focusing on designing cooling systems without moving parts to reduce noise levels. This innovative approach aligns with the evolving market dynamics, where cost-effective and energy-efficient solutions are essential. The adoption of these advanced cooling technologies is expected to further boost the growth of data centers in India and other regions.

What are the market trends shaping the Data Center Cooling in India Industry?

• The adoption of high-performance computing systems is becoming increasingly prevalent in the market. This trend signifies a significant shift towards advanced technological solutions.

• High-performance computing (HPC) refers to a system of interconnected processors designed for efficient and powerful computing. HPC systems consist of 16-64 nodes, ranging from small cluster computers to large supercomputers. These systems employ algorithms, networks, and simulated environments for enhanced computational capabilities. HPC systems are predominantly utilized in scientific and engineering applications due to their superior performance compared to general-purpose computers. Measured in Floating-Point Operations Per Second (FLOPS), HPC systems significantly outperform Million Instructions Per Second (MIPS) systems in handling complex operations. Applications of HPC systems include physical simulations, weather forecasting, quantum mechanics, and molecular modeling.
• HPC systems expedite the process of solving recurring problems and complex operations, enabling faster and more efficient results. The importance of HPC systems lies in their ability to tackle intricate computational challenges that are beyond the capacity of traditional computers. As technology advances, HPC systems continue to evolve, offering increased performance and capabilities across various sectors.

What challenges does the Data Center Cooling in India Industry face during its growth?

• The expansion of industries faces a significant hurdle due to escalating environmental concerns, which necessitates implementing sustainable practices to ensure growth while mitigating potential negative impacts on the environment. 

• Data centers worldwide face environmental challenges, necessitating adaptive solutions for temperature fluctuations, humidity, and atmospheric dust. In regions with hot climates, such as India, operators must install humidity controllers tailored to local conditions. These devices must respond swiftly to environmental shifts. Dust and airborne particles pose significant risks, causing mechanical failures in cooling fans and I/O port disruptions. They also obstruct ventilation and decrease cooling unit efficiency during heat transfer.
• These complications underline the evolving nature of data center management and the importance of implementing effective environmental mitigation strategies.

Exclusive Customer Landscape

The India data center cooling market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the India data center cooling market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape of Data Center Cooling in India Industry

Competitive Landscape & Market Insights

Companies are implementing various strategies, such as strategic alliances, India data center cooling market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

Black Box Ltd. - Data centers rely on advanced cooling technology to ensure optimal performance. The company innovatively employs liquid cooling systems to enhance this technology, improving efficiency and reducing energy consumption in data center operations. 

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Black Box Ltd.
• Cisco Systems Inc.
• Condair Group
• Dell Technologies Inc.
• Emerson Electric Co.
• Exxon Mobil Corp.
• Hitachi Ltd.
• International Business Machines Corp.
• Johnson Controls International Plc
• Kirloskar Group
• Microsoft Corp.
• Mitsubishi Electric Corp.
• NEC Corp.
• Rittal GmbH and Co. KG
• Schneider Electric SE
• Stellar Energy
• STULZ GmbH
• Thermal Solutions
• Trane Technologies plc
• Vertiv Holdings Co.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Data Center Cooling Market In India

• In January 2024, Schneider Electric, a global energy management and automation company, announced the expansion of its data center cooling solutions in India. The company launched its new EcoStruxure IT Expert Cooling solution, which offers predictive analytics and remote monitoring capabilities to optimize cooling efficiency for data centers (Schneider Electric Press Release, 2024).
• In March 2024, Cisco Systems and HCL Technologies formed a strategic partnership to co-develop and deliver hyperscale data center solutions in India. This collaboration aimed to address the growing demand for data center infrastructure in the country (Cisco Press Release, 2024).
• In May 2024, Wipro Limited, an Indian multinational corporation, raised INR 1,500 crores (USD 205 million) through a private placement issue to fund its digital and IT services businesses, including data center services (Business Standard, 2024).
• In April 2025, the Indian government announced the National Data Center Mission, an initiative to establish 100 data centers across the country over the next five years. The mission aims to provide affordable and secure data center services to boost digital transformation in various sectors (PIB India, 2025).

Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled India Data Center Cooling Market insights. See full methodology.

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Research Analyst Overview

• The market is witnessing significant evolution, driven by the increasing demand for IT infrastructure and the need for energy efficiency. Adiabatic cooling, a promising technology, is gaining traction due to its ability to reduce water usage and improve cooling efficiency compared to traditional CRAC units. Hot aisle containment and cold aisle containment systems are also popular solutions, optimizing airflow management and reducing thermal loads. Energy efficiency metrics, such as Power Usage Effectiveness (PUE), are increasingly important in the Indian market, with data centers striving for better performance and lower environmental impact. CRH units and CRAH units continue to dominate the cooling landscape, but free cooling systems and liquid cooling technology are emerging as viable alternatives.
• Humidity control is another critical aspect of thermal management, with India's tropical climate posing unique challenges. Refrigerant leaks and environmental controls are essential considerations in maintaining optimal cooling conditions. Airside economizers and waterside economizers are employed to maximize the use of outside air for cooling, reducing the reliance on mechanical cooling. IT equipment cooling is a significant concern, with HVAC systems and DCIM software playing crucial roles in managing cooling infrastructure. Heat exchangers and temperature monitoring systems are essential components of effective cooling solutions. Evaporative cooling and direct expansion cooling are alternative techniques used to address cooling demands.
• In conclusion, the Indian data center cooling market is dynamic, with ongoing advancements in technology and evolving market patterns. Adiabatic cooling, energy efficiency metrics, and humidity control are key areas of focus, as data centers strive for optimal performance and sustainability.

What are the Key Data Covered in this India Data Center Cooling Market Research and Growth Report?

• What is the expected growth of the India Data Center Cooling Market between 2025 and 2029?

  • USD 1.69 billion, at a CAGR of 22.5%

• What segmentation does the market report cover?

  • The report segmented by Technology (Liquid-based cooling and Air-based cooling), Product (Air conditioning, Economizers, Cooling towers, Chillers, and Others), and Type (Room cooling and Rack and row cooling)

• Which regions are analyzed in the report?

  • India

• What are the key growth drivers and market challenges?

  • Increasing number of data canters in India, Rising environmental concerns

• Who are the major players in the Data Center Cooling Market in India?

  • Key Companies Black Box Ltd., Cisco Systems Inc., Condair Group, Dell Technologies Inc., Emerson Electric Co., Exxon Mobil Corp., Hitachi Ltd., International Business Machines Corp., Johnson Controls International Plc, Kirloskar Group, Microsoft Corp., Mitsubishi Electric Corp., NEC Corp., Rittal GmbH and Co. KG, Schneider Electric SE, Stellar Energy, STULZ GmbH, Thermal Solutions, Trane Technologies plc, and Vertiv Holdings Co.

Market Research Insights

• The market is a significant and dynamic sector, with a growing emphasis on operational efficiency and capacity planning. Two-phase immersion cooling and rack-based cooling are increasingly adopted for their energy management benefits, while filtration systems ensure the maintenance of clean cooling environments. Water-cooled and absorption chillers are common choices for large-scale data centers, with water-cooled chillers accounting for 60% of the market share. Energy management control systems and monitoring sensors play a crucial role in optimizing cooling performance and identifying faults. Liquid immersion cooling and pumping systems are gaining traction for their precision cooling capabilities. Cooling optimization, thermal modeling, and fault detection systems are integral to reducing energy consumption and ensuring reliable data center operations.
• The market also incorporates various redundancy systems, heat load calculations, predictive maintenance, and air-cooled chillers for remote monitoring and maintenance schedules. Leak detection and vibration analysis are essential for preventing potential issues and ensuring the longevity of cooling infrastructure. Centrifugal chillers are another option for data centers, offering cost-effective cooling solutions. The market continues to evolve, with ongoing research in cooling optimization, airflow simulation, and monitoring technologies.

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