Stringent EU Regulations on Energy Efficiency (e.g., EN50600, EU Taxonomy) Pushing Operators to Adopt Greener Solutions
The European data center cooling market is projected to reach $20.55 billion by 2035 from $6.76 billion in 2024, growing at a CAGR of 10.18% during the forecast period 2025-2035.
The rise in data generation, cloud computing, and the expansion of digital infrastructure are driving the data centre cooling industry in Europe. Efficient cooling systems are becoming essential for preserving equipment reliability and uptime as the need for high-performance computing rises. Strict EU rules and sustainability goals have impacted the market, leading to a move towards low-energy, eco-friendly cooling technology.
The region's adoption of sophisticated, energy-efficient cooling solutions is accelerating due to ongoing innovation and mounting pressure to cut energy usage, even while obstacles like high initial investment and system complexity still exist.
The market for data centre cooling in Europe is changing quickly because to the exponential rise in workloads related to artificial intelligence, cloud computing, and data production. Effective thermal management has become essential for maintaining hardware longevity, operational continuity, and regulatory compliance as data centres grow in size and complexity. Energy-efficient solutions are a strategic focus for operators throughout the region because cooling systems can contribute up to 40% of a data center's overall energy consumption.
The adoption of cutting-edge cooling technologies is mostly being driven by European nations, especially Germany, the Netherlands, Ireland, and the Nordics.
These include direct-to-chip systems, liquid cooling, and free air cooling, which are made to manage high-density computing with little effect on the environment. Low-carbon, water-efficient, and environmentally friendly cooling techniques are becoming more popular in the region as a result of the push for sustainability brought about by EU climate rules, the Renewable Energy Directive, and the European Green Deal.
Europe's diverse climates have an impact on cooling tactics as well. While southern nations need more durable solutions to sustain efficiency in hot conditions, northern locations benefit from ambient cold air to lessen reliance on mechanical systems. The European data centre cooling market is expected to continue to innovate and grow as regulatory pressure increases and digital infrastructure keeps growing.
Market Trends, Drivers and Challenges of Europe Data Center Cooling Market
Market Trends
Shift toward liquid and immersion cooling to manage high-density AI and HPC workloads
Rising focus on energy-efficient and sustainable cooling systems to meet ESG and carbon neutrality goals
Adoption of free cooling and economizers in colder regions like Scandinavia to reduce energy consumption
Growing use of AI and automation for real-time thermal management and predictive maintenance
Integration of modular and prefabricated cooling solutions for faster deployment and scalability
Increase in green data centers powered by renewable energy and eco-friendly cooling technologies
Market Drivers
Surge in data traffic and cloud computing demand driving data center expansion across Europe
Stringent EU regulations on energy efficiency (e.g., EN50600, EU Taxonomy) pushing operators to adopt greener solutions
Government incentives and sustainability mandates supporting low-carbon infrastructure development
Need to reduce operational costs, particularly energy expenses tied to cooling (up to 40% of total energy use)
Rise in edge data centers and colocation facilities, requiring compact and efficient cooling systems
Market Challenges
High upfront costs for advanced cooling technologies like liquid immersion and adiabatic systems
Regulatory complexity and variations across European countries creating compliance difficulties
Water usage concerns, especially in drought-prone regions, limiting the viability of water-based cooling
Legacy infrastructure limitations slowing the transition to next-gen cooling methods
Skilled labor shortage in cooling system design, integration, and maintenance across the region
Key Market Players and Competition Synopsis
This report crafts a strong competitive strategy tailored to the Europe data center cooling market. It evaluates market rivals, suggests methods to stand out, and offers guidance for maintaining a competitive edge.
By adhering to these strategic directives, companies can position themselves effectively in the face of market competition, ensuring sustained prosperity and profitability.
Some of the prominent names in this market are:
Schneider Electric
Asetek, Inc.
Submer
Munters
ALFA LAVAL
Condair Group
Danfoss
Johnson Controls International plc
STLUZ
DCX Liquid Cooling Systems
Rittal GmbH & Co. KG
Key Attributes:
Report Attribute Details No. of Pages 150 Forecast Period 2025 - 2035 Estimated Market Value (USD) in 2025 $7.8 Billion Forecasted Market Value (USD) by 2035 $20.55 Billion Compound Annual Growth Rate 10.1% Regions Covered Europe
Expand
Key Topics Covered:
1 Markets
1.1 Trends: Current and Future Impact Assessment
1.1.1 Trends Shaping Data Center Cooling Market
1.1.2 Increase in Data Requirements
1.1.2.1 Increasing Rack Power Density - New Data Center Reality
1.1.2.2 5G Services to Drive Exponential Growth in Data Centers
1.1.3 Growth in Demand for Environment-Friendly Cooling Systems
1.1.3.1 Carbon Neutrality
1.1.3.2 Utilization of Renewable Energies
1.1.3.3 Green Initiatives by Government Body
1.1.4 New Data Center Trends toward Adoption of Liquid Cooling, 2024-2034
1.1.4.1 Case Study
1.1.4.1.1 Immersion Cooling Technology
1.1.4.1.1.1 Advancing Data Center Cooling Efficiency: The University of Leeds' Adoption of Fully Immersed Liquid-Cooled Servers
1.1.4.1.1.2 PeaSoup Cloud: Pioneering Eco-Friendly Cloud Services with Immersion Cooling Technology
1.2 Evaporative Cooling Market for Data Center Overview
1.3 Supply Chain Overview
1.4 Research and Development Review
1.5 Ecosystem and Ongoing Programs
1.6 Market Dynamics Overview
1.6.1 Market Drivers
1.6.1.1 High-Efficient Cooling Systems
1.6.1.1.1 Emerging Technologies Promote Cost-Effectiveness
1.6.1.1.2 AI-Assisted Automatic Cooling Control
1.6.1.1.3 Power Usage Effectiveness (PUE) Optimization with Economic Cooling Solutions
1.6.1.2 Increasing Number of Data Centers and Spendings
1.6.1.3 Thermal Energy Recovery Conversion from Data Centers
1.6.1.4 Water Usage Effectiveness Driving Adoption of Alternate Cooling Solutions
1.6.1.5 Retrofitting to a Free Cooling Data Center
1.6.2 Market Restraints
1.6.2.1 High Investment Costs for Non-Conventional Cooling Systems
1.6.2.2 Technical Challenges to Cooling Systems
1.6.2.2.1 Air and Free Cooling Systems Adaption Complexities
1.6.2.2.2 Reliability Limitations with Immersion Liquid Cooling
1.6.3 Business Opportunities
1.6.3.1 Growing Emphasis for Retrofit Data Center
1.6.3.2 Data Center Infrastructure Management for Power Management
1.6.3.3 Increasing Number of Distributed or Edge Data Centers
1.7 Key Start-Ups in the Europe Data Center Cooling Market
2 Regions
2.1 Regional Summary
2.2 Europe
2.2.1 Key Market Participants in Europe
2.2.2 Business Drivers
2.2.3 Business Challenges
2.2.4 Application
2.2.5 Product
2.2.6 Europe (By Country)
2.2.6.1 Germany
2.2.6.2 France
2.2.6.3 U.K.
2.2.6.4 Italy
2.2.6.5 Netherlands
2.2.6.6 Spain
2.2.6.7 Rest-of-Europe
3 Competitive Benchmarking & Company Profiles
3.1 Next Frontiers
3.2 Geographic Assessment
3.3 Competitive Landscape
3.4 Company Profiles
3.4.1 Schneider Electric
3.4.2 Asetek
3.4.3 Submer
3.4.4 Munters
3.4.5 ALFA LAVAL
3.4.6 Condair Group
3.4.7 Danfoss
3.4.8 Johnson Controls International
3.4.9 STULZ GMBH
3.4.10 DCX Liquid Cooling Systems
3.4.11 Rittal GmbH & Co. KG
3.5 Other Key Market Participants
For more information about this report visit https://www.researchandmarkets.com/r/pkpioe
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