Report Overview

India Data Center Cooling Market – Industry Trends & Forecast Report, 2031

India Data Center Cooling Market size was estimated at USD 1,418.8 million in 2024. During the forecast period between 2025 and 2031, India Data Center Cooling Market size is projected to expand at a robust CAGR of 19.78% reaching a value of USD 5,019.67 million by 2031. Prominent drivers of India Data Center Cooling Market include sustained expansion of hyperscale cloud facilities, rising demand for data sovereignty, and government-backed digitalization initiatives. As rack densities exceed 15 kilowatts, the need for efficient cooling technologies, particularly liquid-based systems, is growing rapidly. Policy-driven incentives that ease land acquisition and improve access to renewable energy are enhancing project feasibility, while tightening carbon regulations are pushing data centers to adopt energy efficient cooling infrastructure. The surge in high performance computing, artificial intelligence, big data, and the Internet of Things is accelerating the need for advanced cooling to support high density server environments. Environmental sustainability is also a key market influence, prompting wider adoption of greener technologies like liquid and free cooling. Although high upfront costs, installation complexity, and ongoing maintenance remain notable challenges, the market is expected to grow steadily due to the increasing role of data centers in India's evolving digital economy. Vendors offering integrated hardware, software, and services are especially well positioned as operators seek scalable, energy saving, and reliable solutions across multiple sites.

Data Center Cooling – Overview

Data center cooling refers to the systems and technologies used to maintain optimal temperature, humidity, and airflow within data centers to ensure efficient operation of servers and other IT equipment. As data centers generate significant heat due to continuous computing activities, cooling solutions such as air conditioning, liquid cooling, and economizers are essential to prevent overheating, equipment failure, and downtime. Effective cooling improves energy efficiency, reduces operational costs, and supports higher rack densities. With growing data demands, advanced cooling methods are increasingly adopted to enhance performance, sustainability, and reliability in both traditional and hyperscale data center environments.

India Data Center Cooling Market

Growth Drivers

Rising Demand for Digital Infrastructure

India Data Center Cooling Market is witnessing significant growth, primarily driven by the surging demand for digital infrastructure. The exponential rise in smartphone penetration, affordable mobile data, and widespread internet connectivity is accelerating data consumption across sectors such as e-commerce, digital payments, online education, and OTT platforms. With India's digital economy projected to expand from USD 200 billion in 2018 to USD 1 trillion by 2025, there is an increasing need for reliable and high-capacity data centers. This, in turn, is propelling demand for advanced cooling systems to manage high-density servers and power-intensive IT loads. Technologies like AI, IoT, and big data are further intensifying processing requirements, prompting data center operators to adopt energy-efficient and sustainable cooling solutions. As India continues its digital transformation journey, the expansion of digital infrastructure remains a key catalyst for the growth of the data center cooling market.

Challenges

High Capital Expenditure

High capital expenditure is a key factor restraining the growth of India Data Center Cooling Market. Implementing advanced cooling systems, particularly liquid-based and energy-efficient technologies, requires significant upfront investment. These costs include not only the purchase of specialized equipment but also infrastructure modifications and integration with existing systems. For small and medium-sized data center operators, such expenses can be a major barrier, limiting adoption. Additionally, ongoing operational and maintenance costs add financial pressure, making it challenging for budget-constrained organizations to upgrade or expand their cooling infrastructure, despite the growing demand for efficient and sustainable data center operations.

Impact of Escalating Geopolitical Tensions on India Data Center Cooling Market

Escalating geopolitical tensions could significantly impact the growth of India Data Center Cooling Market. Heightened global uncertainties may disrupt the supply chain for critical cooling components, particularly those sourced from foreign manufacturers. It can lead to increased equipment costs, project delays, and limited access to advanced technologies. Additionally, rising energy prices and inflation driven by geopolitical conflicts may escalate operational expenses for data centers, impacting their expansion plans. Investor confidence may also waver amid uncertainty, slowing infrastructure development. As India aims to become a digital hub, such tensions pose risks to the timely implementation and cost-efficiency of data center cooling solutions nationwide.

India Data Center Cooling Market

Segmental Coverage

India Data Center Cooling Market – By Component

Based on component, India Data Center Cooling Market is bifurcated into Cooling Systems and Services segments.

India Data Center Cooling Market – By Data Center Type

India Data Center Cooling Market by data center type is divided into Enterprise Data Centers, Hyperscale Data Centers, Colocation Data Centers, and Edge Data Centers segments. The hyperscale data centers segment holds the largest share of India Data Center Cooling Market by data center type. Hyperscale operators are reshaping the India data center cooling market with massive capacity expansions that demand cutting-edge thermal management solutions. Projects like Sify Technologies’ USD 5 billion AI campus reflect a growing trend toward GPU-intensive infrastructures, which require liquid cooling for high-density racks exceeding 20 kW. Companies like Vertiv have seen a sharp rise in demand, reporting a 60% increase in organic orders in Q1 2024, driven by the growing need for advanced cooling systems. These long-term commitments from hyperscale players are enabling vendors to boost investments in R&D for immersion and direct-to-chip cooling, positioning cities like Mumbai, Chennai, and Hyderabad as emerging innovation hubs.

India Data Center Cooling Market – By Cooling Technique

On the basis of cooling technique, India Data Center Cooling Market is split into Air-based Cooling and Liquid-based Cooling segments. The liquid-based cooling segment holds a higher share in India Data Center Cooling Market by cooling technique. The method is preferred over air-based systems, due to its superior energy efficiency and ability to manage higher heat loads. In liquid cooling, water circulates through the heated sections of racks or cabinets to absorb and dissipate heat without directly touching sensitive components. The process involves cooling towers and pumps to maintain consistent temperatures. Technological advancements have led to more sophisticated solutions like immersion and direct-to-chip cooling. This approach is increasingly adopted in high-demand sectors such as smart cities, digital services, ecommerce, disaster recovery, and cryptocurrency, where efficient thermal management is critical.

India Data Center Cooling Market – By Region

The in-depth research report on India Data Center Cooling Market covers the market in the country’s major regions: North India, South India, East India, and West India regions.

Competitive Landscape

Major players operating in India Data Center Cooling Market include Cisco Systems Inc., Vertiv Holdings Co., Kirloskar Group, Rittal GmbH and Co. KG, Hitachi Ltd, Thermal Solutions, International Business Machines Corp., Stellar Energy, Mitsubishi Electric Corp., Johnson Controls International Plc, Dell Technologies Inc., NEC Corp., Exxon Mobil Corp., Black Box Ltd, Condair Group, Trane Technologies plc, Microsoft Corp., STULZ GmbH, Schneider Electric SE, and Emerson Electric Co. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In January 2025 - Modine, a global leader in thermal management solutions, announced the launch of a new manufacturing facility in Chennai, India, by mid-2025 to support the rising demand for data center cooling systems. Operating under the Airedale by Modine brand, the facility will produce advanced cooling solutions for data centers and power generation equipment.

Scope of the Report

By Component

• Cooling Systems

• Services

By Data Center Type

• Enterprise Data Centers

• Hyperscale Data Centers

• Colocation Data Centers

• Edge Data Centers

By Cooling Technique

• Air-based Cooling

• Liquid-based Cooling

By Region

• North India

• South India

• East India

• West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. India Data Center Cooling Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising Demand for Digital Infrastructure
         2. Growing Number of Hyperscale Data Center
         3. Government-led Initiatives
      2. Restraints
         1. High Capital Expenditure
         2. Rising Electricity Tariffs & Power Reliability Issues
      3. Opportunities
         1. Surging Adoption of Liquid Cooling Technologies
         2. Rising Focus on AI & ML-Driven Cooling Management
      4. Challenges
         1. Limited Availability of Skilled Professionals
         2. Dependence on Imported Components & Technologies
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. India Data Center Cooling Market: Marketing Strategies
5. India Data Center Cooling Market: Pricing Analysis
6. India Data Center Cooling Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Component
         1. Cooling Systems
         2. Services
      2. By Data Center Type
         1. Enterprise Data Centers
         2. Hyperscale Data Centers
         3. Colocation Data Centers
         4. Edge Data Centers
      3. By Cooling Technique
         1. Air-based Cooling
         2. Liquid-based Cooling
      4. By Region
         1. North India
         2. South India
         3. East India
         4. West India
7. North India Data Center Cooling Market
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Component
      2. By Data Center Type
      3. By Cooling Technique
8. South India Data Center Cooling Market
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Component
      2. By Data Center Type
      3. By Cooling Technique
9. East India Data Center Cooling Market
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Component
      2. By Data Center Type
      3. By Cooling Technique
10. West India Data Center Cooling Market
    1. Market Size & Forecast, 2019–2031
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Component
       2. By Data Center Type
       3. By Cooling Technique
11. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. India Data Center Cooling Company Market Share Analysis, 2024
    3. Competitive Benchmarking, By Operation Channel Parameters
    4. Key Strategic Development (Mergers, Acquisitions, Partnerships, etc.)
12. Impact of Geopolitical Tensions in India Data Center Cooling Market
13. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
    1. Cisco Systems Inc.
    2. Vertiv Holdings Co.
    3. Kirloskar Group
    4. Rittal GmbH and Co. KG
    5. Hitachi Ltd.
    6. Thermal Solutions
    7. International Business Machines Corp.
    8. Stellar Energy
    9. Mitsubishi Electric Corp.
    10. Johnson Controls International Plc
    11. Dell Technologies Inc.
    12. NEC Corp.
    13. Exxon Mobil Corp.
    14. Black Box Ltd.
    15. Condair Group
    16. Trane Technologies plc
    17. Microsoft Corp.
    18. STULZ GmbH
    19. Schneider Electric SE
    20. Emerson Electric Co.
    21. Other Prominent Players
14. Key Strategic Recommendations
15. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3. Market Breakdown & Data Triangulation
       1. Secondary Research
       2. Primary Research
    4. Breakdown of Primary Research Respondents, By Region
    5. Assumption & Limitation

*Financial information of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1       India Data Center Cooling Market Segmentation

Figure 2       India Data Center Cooling Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2024

Figure 4       India Data Center Cooling Market Size, By Value (USD Million), 2019–2031

Figure 5       India Data Center Cooling Market Share, By Component, By Value (USD Million) 2019–2031

Figure 6       India Data Center Cooling Market Share, By Data Center Type, By Value (USD Million) 2019–2031

Figure 7       India Data Center Cooling Market Share, By Cooling Technique, By Value (USD Million) 2019–2031

Figure 8       India Data Center Cooling Market Share, By Region, By Value (USD Million) 2019–2031

Figure 9       North India Data Center Cooling Market Size, By Value (USD Million), 2019–2031

Figure 10     North India Data Center Cooling Market Share, By Component, By Value (USD Million) 2019–2031

Figure 11     North India Data Center Cooling Market Share, By Data Center Type, By Value (USD Million) 2019–2031

Figure 12     North India Data Center Cooling Market Share, By Cooling Technique, By Value (USD Million) 2019–2031

Figure 13     South India Data Center Cooling Market Size, By Value (USD Million), 2019–2031

Figure 14     South India Data Center Cooling Market Share, By Component, By Value (USD Million) 2019–2031

Figure 15     South India Data Center Cooling Market Share, By Data Center Type, By Value (USD Million) 2019–2031

Figure 16     South India Data Center Cooling Market Share, By Cooling Technique, By Value (USD Million) 2019–2031

Figure 17     East India Data Center Cooling Market Size, By Value (USD Million), 2019–2031

Figure 18     East India Data Center Cooling Market Share, By Component, By Value (USD Million) 2019–2031

Figure 19     East India Data Center Cooling Market Share, By Data Center Type, By Value (USD Million) 2019–2031

Figure 20     East India Data Center Cooling Market Share, By Cooling Technique, By Value (USD Million) 2019–2031

Figure 21     West India Data Center Cooling Market Size, By Value (USD Million), 2019–2031

Figure 22     West India Data Center Cooling Market Share, By Component, By Value (USD Million) 2019–2031

Figure 23     West India Data Center Cooling Market Share, By Data Center Type, By Value (USD Million) 2019–2031

Figure 24     West India Data Center Cooling Market Share, By Cooling Technique, By Value (USD Million) 2019–2031

List of Tables      

Table 1        India Data Center Cooling Market Size, By Value (USD Million), 2019–2031

Table 2        India Data Center Cooling Market Share, By Component, By Value (USD Million) 2019–2031

Table 3        India Data Center Cooling Market Share, By Data Center Type, By Value (USD Million) 2019–2031

Table 4        India Data Center Cooling Market Share, By Cooling Technique, By Value (USD Million) 2019–2031

Table 5        India Data Center Cooling Market Share, By Region, By Value (USD Million) 2019–2031

Table 6        North India Data Center Cooling Market Size, By Value (USD Million), 2019–2031

Table 7        North India Data Center Cooling Market Share, By Component, By Value (USD Million) 2019–2031

Table 8        North India Data Center Cooling Market Share, By Data Center Type, By Value (USD Million) 2019–2031

Table 9        North India Data Center Cooling Market Share, By Cooling Technique, By Value (USD Million) 2019–2031

Table 10      South India Data Center Cooling Market Size, By Value (USD Million), 2019–2031

Table 11      South India Data Center Cooling Market Share, By Component, By Value (USD Million) 2019–2031

Table 12      South India Data Center Cooling Market Share, By Data Center Type, By Value (USD Million) 2019–2031

Table 13      South India Data Center Cooling Market Share, By Cooling Technique, By Value (USD Million) 2019–2031

Table 14      East India Data Center Cooling Market Size, By Value (USD Million), 2019–2031

Table 15      East India Data Center Cooling Market Share, By Component, By Value (USD Million) 2019–2031

Table 16      East India Data Center Cooling Market Share, By Data Center Type, By Value (USD Million) 2019–2031

Table 17      East India Data Center Cooling Market Share, By Cooling Technique, By Value (USD Million) 2019–2031

Table 18      West India Data Center Cooling Market Size, By Value (USD Million), 2019–2031

Table 19      West India Data Center Cooling Market Share, By Component, By Value (USD Million) 2019–2031

Table 20      West India Data Center Cooling Market Share, By Data Center Type, By Value (USD Million) 2019–2031

Table 21      West India Data Center Cooling Market Share, By Cooling Technique, By Value (USD Million) 2019–2031

Table 22      Cisco Systems Inc. Company Overview

Table 23      Cisco Systems Inc. Financial Overview

Table 24      Vertiv Holdings Co. Company Overview

Table 25      Vertiv Holdings Co. Financial Overview

Table 26      Kirloskar Group Company Overview

Table 27      Kirloskar Group Financial Overview

Table 28      Rittal GmbH and Co. KG Company Overview

Table 29      Rittal GmbH and Co. KG Financial Overview

Table 30      Hitachi Ltd. Company Overview

Table 31      Hitachi Ltd. Financial Overview

Table 32      Thermal Solutions Company Overview

Table 33      Thermal Solutions Financial Overview

Table 34      International Business Machines Corp. Company Overview

Table 35      International Business Machines Corp. Financial Overview

Table 36      Stellar Energy Company Overview

Table 37      Stellar Energy Financial Overview

Table 38      Mitsubishi Electric Corp. Company Overview

Table 39      Mitsubishi Electric Corp. Financial Overview

Table 40      Johnson Controls International Plc Company Overview

Table 41      Johnson Controls International Plc Financial Overview

Table 42      Dell Technologies Inc. Company Overview

Table 43      Dell Technologies Inc. Financial Overview

Table 44      NEC Corp. Company Overview

Table 45      NEC Corp. Financial Overview

Table 46      Exxon Mobil Corp. Company Overview

Table 47      Exxon Mobil Corp. Financial Overview

Table 48      Black Box Ltd. Company Overview

Table 49      Black Box Ltd. Financial Overview

Table 50      Condair Group Company Overview

Table 51      Condair Group Financial Overview

Table 52      Trane Technologies plc Company Overview

Table 53      Trane Technologies plc Financial Overview

Table 54      Microsoft Corp. Company Overview

Table 55      Microsoft Corp. Financial Overview

Table 56      STULZ GmbH Company Overview

Table 57      STULZ GmbH Financial Overview

Table 58      Schneider Electric SE Company Overview

Table 59      Schneider Electric SE Financial Overview

Table 60      Emerson Electric Co. Company Overview

Table 61      Emerson Electric Co. Financial Overview