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North America Data Center Cooling Components Market: The AI Liquid Cooling Gold Rush Driving USD 22.2 Billion by 2032

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North America data center cooling components market to grow from USD 6.97B (2025) to USD 22.17B by 2032 at 17.99% CAGR, led by direct-to-chip liquid cooling.

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Regional market study: United States, Canada and Mexico, 2017 to 2032

North America Data Center Cooling Components Market Size, Share & Forecast to 2032

North America is where the AI cooling race is being run at full speed. Hyperscale campuses, GPU-dense colocation halls and billion-dollar cooling acquisitions have made it the world’s largest market for data center cooling hardware.

USD 6.97 bn
Market value, 2025
USD 22.17 bn
Forecast value, 2032
17.99%
CAGR, 2025 to 2032
35.0%
Share of the global market, 2025
25.99%
CAGR of direct-to-chip units

Interested in the global picture? Explore the Global Data Center Cooling Components Market report

Note: These links are for the Global Data Center Cooling Components Market report, which covers all regions worldwide, including North America.

North America data center cooling components market overview

The North America data center cooling components market was valued at USD 6,966.7 million in 2025 and is projected to reach USD 22,173.4 million by 2032, growing at a CAGR of 17.99% from 2025 to 2032. The region accounted for 35.0% of global revenue in 2025, making it the single largest regional market for CRAC and CRAH units, chillers, cooling towers, direct-to-chip cooling units, drives and controllers. Revenue has more than tripled since 2017, when the market stood at USD 2,054.3 million, and annual growth is forecast to accelerate every year from 17.3% in 2025 to 18.5% in 2032.

The United States drives the market with USD 5,867.8 million in 2025, or 84.2% of regional revenue, supported by Canada (USD 752.8 million) and Mexico (USD 346.1 million). What sets North America apart is how far it has already moved to liquid. Liquid-based cooling systems generated 55.2% of regional revenue in 2025, higher than the global average of 50.4%, and the region’s spending is dominated by retrofits of existing halls rather than new OEM equipment. Industry outlooks from CoreSite and Data Center World both place power and cooling at the top of operators’ 2026 agendas.

USD million Historical Base year Forecast
2,054
 
 
 
 
 
 
 
3,690
 
 
 
 
 
 
 
6,967
 
 
 
 
 
11,365
 
 
 
 
 
 
 
22,173
 
17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

Figure 1. North America data center cooling components market, 2017 to 2032 (USD million).

Key takeaways for 2025 to 2032

Liquid leads
Liquid-based systems rise from 55.2% to 61.1% of regional revenue.
Chip-level boom
Direct-to-chip units grow 5x, to USD 5,906.1 mn, becoming the largest sub-segment by 2032.
Retrofit economy
Aftermarket spending is 59.4% of 2025 revenue and grows at 19.20%.
Mexico accelerates
Mexico is the fastest-growing country at 18.75% CAGR.
Capital floods in
2026 deals include SLB’s USD 4.1 bn Kelvion purchase and Blackstone’s Flow Control Holdings buy.

Market dynamics in North America

From AI demand to cooling hardware orders

AI campuses scale
Hyperscalers and neoclouds add GPU capacity
Rack density jumps
Air cooling reaches its practical limit
Liquid goes mainstream
Direct-to-chip, two-phase and closed-loop systems
Plant and retrofits follow
Chillers, cooling towers, CDUs and controls
Drivers
  • AI and high-performance computing are pushing operators toward liquid, as described in Data Centers Get Ready for a Liquid-Cooled Future.
  • Rising cooling demand is reshaping facility operations, according to IR Pros.
  • Large hyperscale builds across the United States and new campuses in Canada and Mexico.
Restraints
  • Water and energy concerns, including local moratorium debates in Canada, as covered by CBC News.
  • Community pushback over water and power in Querétaro, reported by Mexico Business News.
  • High retrofit cost and engineering risk when adding liquid loops to live halls.
Opportunities
Trends

North America data center cooling components market segmentation

The North America market is analysed by component type, cooling equipment type (including air-based and liquid-based sub-segments), end user, data center tier and country, with values for every year from 2017 to 2032.

North America data center cooling components market
 
By component type
VFDs / drives
Controllers & PLCs
Others
By cooling equipment
Air-based: CRACs, CRAHs
Liquid-based: chillers, cooling towers, direct-to-chip units
Other cooling systems
By end user
OEM
Aftermarket / retrofit
By data center tier
Tier I & II
Tier III
Tier IV
By country
United States
Canada
Mexico

By cooling equipment type: North America is already liquid-first

Liquid-based cooling systems generated USD 3,846.8 million in North America in 2025, a 55.2% share, well ahead of air-based systems at USD 2,848.0 million (40.9%). Liquid grows at 19.70% a year against 15.65% for air, taking its share to 61.1% (USD 13,542.5 million) by 2032. Other cooling systems contributed USD 272.0 million in 2025.

USD 7.0 bn2025
USD 22.2 bn2032
Segment 2025 2032
 Liquid-based 55.2% 61.1%
 Air-based 40.9% 35.5%
 Other 3.9% 3.4%

Figure 2. North America revenue share by cooling equipment type, 2025 vs 2032.

Sub-segment outlook: direct-to-chip overtakes everything

Direct-to-chip cooling units are the stand-out opportunity in North America, growing at 25.99% from USD 1,171.7 million in 2025 to USD 5,906.1 million in 2032. They are forecast to pass chillers in 2029 and, by 2032, to be the largest single sub-segment in the region, ahead of CRAH units (USD 5,503.7 million). Cooling towers grow at 17.89%, while CRAC units, still worth USD 947.4 million in 2025, grow slowest at 14.05% as new builds favour chilled-water CRAH designs.

CAGR 2025 to 2032, with value in 2025 and 2032 (USD million)
Direct-to-chip cooling units1,171.7 → 5,906.1
25.99%
Cooling towers1,090.3 → 3,450.2
17.89%
Computer room air handlers (CRAHs)1,900.6 → 5,503.7
16.40%
Chillers1,584.7 → 4,186.2
14.89%
Computer room air conditioners (CRACs)947.4 → 2,377.2
14.05%

Figure 3. North America cooling sub-segments ranked by growth.

By component type

Controllers and PLCs were worth USD 130.5 million in North America in 2025 and will reach USD 385.7 million by 2032 (16.75% CAGR) as operators automate pumps, valves and fans across liquid loops. Variable frequency drives generated USD 61.6 million and grow at 12.42%. All other components, including heat exchangers, pumps, fans, cold plates and fluid connectors, totalled USD 6,774.6 million.

Controllers & PLCs
16.75%
CAGR, USD 130.5 mn (2025) to USD 385.7 mn (2032)
Variable frequency drives
12.42%
CAGR, USD 61.6 mn (2025) to USD 139.8 mn (2032)
Other components
18.05%
CAGR, USD 6,774.6 mn (2025) to USD 21,647.8 mn (2032)

By end user: a retrofit-led market

Unlike the global market, North America is led by the aftermarket. Retrofit and replacement spending reached USD 4,139.4 million in 2025, or 59.4% of regional revenue, against USD 2,827.3 million for OEM supply. Operators are upgrading existing halls to handle AI densities, so aftermarket revenue grows faster (19.20% CAGR) and is forecast to reach USD 14,157.0 million, a 63.8% share, by 2032.

2025
OEM 40.6%
Aftermarket 59.4%
2032
OEM 36.2%
Aftermarket 63.8%

Figure 4. North America end-user revenue split, 2025 vs 2032.

By data center tier

Tier III facilities, the backbone of North American colocation, accounted for USD 4,484.6 million (64.4%) in 2025. Tier IV sites are the fastest-growing tier at 19.20% CAGR, reaching USD 3,531.5 million by 2032, while Tier I and II facilities grow at 18.01% from USD 1,449.1 million.

Tier IV
USD 1,033.1 mn, 14.8% share, 19.20% CAGR
Tier III
USD 4,484.6 mn, 64.4% share, 17.69% CAGR
Tier I & II
USD 1,449.1 mn, 20.8% share, 18.01% CAGR

Figure 5. North America market by data center tier, 2025 values and 2025 to 2032 CAGR.

Compare North America with every region in the Global Data Center Cooling Components Market report

Note: These links are for the Global Data Center Cooling Components Market report, which covers all regions worldwide, including North America.

Country analysis: United States, Canada and Mexico

Share of North America revenue, 2025 vs 2032
2025
84%
11%
5%
2032
85%
10%
5%
United States
USD 5,867.8 mn → 18,791.1 mn
18.09% CAGR
Canada
USD 752.8 mn → 2,229.4 mn
16.78% CAGR
Mexico
USD 346.1 mn → 1,152.9 mn
18.75% CAGR

Figure 6. Country share and growth in North America.

United States

The United States data center cooling components market was worth USD 5,867.8 million in 2025 and is projected to reach USD 18,791.1 million by 2032 at an 18.09% CAGR. It is the centre of global cooling consolidation: Blackstone agreed to acquire Flow Control Holdings, a maker of engineered liquid cooling components, and secured UBS financing for the deal in September 2026. SLB’s agreement to acquire Kelvion, valued at USD 4.1 billion, brings an energy-services giant into data center heat exchange, while Vertiv acquired Strategic Thermal Labs to deepen its liquid cooling system engineering.

Canada

Canada’s market reached USD 752.8 million in 2025 and is forecast to hit USD 2,229.4 million by 2032 (16.78% CAGR). Cold climate and abundant water make it attractive for efficient cooling: Telehouse has deployed liquid cooling in Toronto, Meta broke ground on its first Canadian data center, and developers are exploring water’s-edge cooling designs. The pace of proposals is also raising questions about water and power, as CBC explains.

Mexico

Mexico is the fastest-growing country in the region, rising from USD 346.1 million in 2025 to USD 1,152.9 million by 2032 at an 18.75% CAGR, with Querétaro at the centre of investment. Aligned’s Querétaro campuses use DeltaFlow liquid cooling, and CloudHQ plans a US$4.8 billion, six-facility build in the state. Water stress is the main constraint: reports from Mexico Business News and the Business & Human Rights Resource Centre describe community concern over water access, which favours waterless and closed-loop cooling components.

North America vs global: growth heat map

North America grows slightly slower than the global market (17.99% vs 18.70%) because it starts from a much larger base. The heat map shows where the region still outpaces or trails the world. Aftermarket and Tier III and IV demand are close to global rates, while air-based equipment and chillers grow more slowly in the more mature US market.

Segment North America CAGR Global CAGR Gap (pts)
Total market 17.99% 18.70% -0.71
Air-based systems 15.65% 16.70% -1.05
Liquid-based systems 19.70% 20.52% -0.82
CRAC units 14.05% 16.19% -2.14
CRAH units 16.40% 17.24% -0.84
Chillers 14.89% 17.00% -2.11
Cooling towers 17.89% 18.70% -0.81
Direct-to-chip units 25.99% 26.79% -0.80
VFDs / drives 12.42% 13.69% -1.27
Controllers & PLCs 16.75% 17.32% -0.57
OEM 16.05% 17.83% -1.78
Aftermarket / retrofit 19.20% 19.76% -0.56
Tier I & II 18.01% 18.28% -0.27
Tier III 17.69% 18.36% -0.67
Tier IV 19.20% 20.03% -0.83
 below 14% 14 to 17% 17 to 19% 19 to 22% 22% and above

Figure 7. CAGR 2025 to 2032, North America vs global, by segment.

Competitive landscape in North America

North America is where cooling ownership is changing fastest. Strategic buyers and private equity are paying premium prices for liquid cooling know-how, heat-exchange capacity and fluid-management services. The table below brings together the most significant North American deals from 2023 to 2026.

2023
KKR → CoolIT Systems (Calgary, Canada)
2024
Schneider Electric → Motivair (Buffalo, US), 75% stake for USD 850 mn
2025
Daikin Applied → DDC Solutions (San Diego, US)
Vertiv → PurgeRite (Houston, US), about USD 1.0 bn
2026
Vertiv → Strategic Thermal Labs
SLB → Kelvion, USD 4.1 bn
Blackstone → Flow Control Holdings

Figure 8. Cooling-related acquisitions affecting North America, 2023 to 2026.

Date Acquirer Target Capability Source
May 2023 KKR CoolIT Systems (Calgary, Canada) Direct liquid cooling Business Wire
Oct 2024 Schneider Electric Motivair (Buffalo, US), 75% stake for USD 850 mn CDUs, cold plates, rear-door heat exchangers, chillers Motivair
Aug 2025 Daikin Applied DDC Solutions (San Diego, US) High-density GPU cooling cabinets PrivSource
Dec 2025 Vertiv PurgeRite (Houston, US), about USD 1.0 bn Liquid-loop flushing, purging and filtration ChannelDrive
2026 Vertiv Strategic Thermal Labs Liquid cooling system engineering DCD
2026 SLB Kelvion, USD 4.1 bn Heat exchangers and data center cooling Upstream
2026 Blackstone Flow Control Holdings Engineered liquid cooling components Blackstone

Table 1. Key North American cooling transactions.

Vendor landscape. Full-line leaders Vertiv, Schneider Electric and Daikin Applied compete for complete chip-to-chiller contracts. Liquid specialists including CoolIT Systems, Accelsius, Iceotope and Submer target the rack and chip layer, component makers such as Parker Hannifin, Danfoss and Alfa Laval supply heat exchangers and fluid connectors, and Rockwell Automation, Siemens and ABB supply the drives and controls that run cooling plants.

Full-line thermal leaders
VertivSchneider ElectricDaikin AppliedMitsubishi ElectricSTULZMuntersAiredale (Modine)
Liquid & two-phase specialists
CoolIT SystemsAccelsiusIceotopeSubmerDCXAsetek
Heat transfer & fluid components
Parker HannifinAlfa LavalDanfossKelvion (SLB)Flow Control Holdings
Drives, controls & automation
Rockwell AutomationSiemensABBLegrandRittal

Recent developments timeline

 
Mar 2026
Accelsius debuts the NeuCool IR150 integrated two-phase liquid cooling rack at NVIDIA GTC.
 
2026
Vertiv acquires Strategic Thermal Labs to strengthen liquid cooling.
 
2026
SLB agrees to acquire Kelvion, expanding across data center infrastructure.
 
Sep 2026
Blackstone lands UBS financing for its Flow Control Holdings acquisition.

North America report scope

Market size, 2025 USD 6,966.7 million
Forecast, 2032 USD 22,173.4 million
CAGR, 2025 to 2032 17.99%
Historical data 2017 to 2024
Base year 2025
Forecast period 2026 to 2032
Units USD million
Segments covered Component type, cooling equipment type (air-based and liquid-based sub-segments), end user, data center tier
Countries covered United States, Canada, Mexico
Key companies Vertiv, Schneider Electric, Daikin Applied, CoolIT Systems, Accelsius, Parker Hannifin, Rockwell Automation, Munters, STULZ, Airedale, Iceotope, Submer, Legrand, Siemens, ABB, Danfoss, Mitsubishi Electric, Alfa Laval, Rittal, Asetek

Get the Global Data Center Cooling Components Market report: all regions, segments and company profiles

Note: These links are for the Global Data Center Cooling Components Market report, which covers all regions worldwide, including North America.

1. Introduction

  • Report scope and market definition
  • Research methodology and data sources
  • Assumptions and limitations
  • Currency, units and forecast years (historical 2017–2024, base year 2025, forecast 2026–2032)

2. Executive Summary

  • North America market snapshot, 2025 vs 2032
  • Key findings and analyst recommendations
  • North America compared with the global market

3. North America Market Dynamics

  • Drivers: AI and HPC build-outs, liquid-ready facilities, operator efficiency demands
  • Restraints: water and energy concerns, community pushback, retrofit cost
  • Opportunities: private equity investment, water-based cooling in Canada, waterless designs in Mexico
  • Trends: two-phase and integrated rack cooling, closed-loop liquid designs
  • Porter’s five forces analysis
  • Value chain analysis

4. North America Market Size and Forecast, 2017–2032

  • Market value (USD million)
  • Year-on-year growth analysis

5. Market Analysis by Component Type

  • Variable frequency drives (VFDs) / drives
  • Controllers & PLCs
  • Others

6. Market Analysis by Cooling Equipment Type

  • Air-based cooling systems
  •   Computer room air conditioners (CRACs)
  •   Computer room air handlers (CRAHs)
  • Liquid-based cooling systems
  •   Chillers
  •   Cooling towers
  •   Direct-to-chip cooling units
  • Other cooling systems

7. Market Analysis by End User

  • OEM (original equipment manufacturer)
  • Aftermarket / retrofit

8. Market Analysis by Data Center Tier

  • Tier I & II
  • Tier III
  • Tier IV

9. United States Market Analysis

  • By component type, cooling equipment type, end user and data center tier

10. Canada Market Analysis

  • By component type, cooling equipment type, end user and data center tier

11. Mexico Market Analysis

  • By component type, cooling equipment type, end user and data center tier

12. Competitive Landscape

  • Vendor landscape
  • Mergers and acquisitions, 2023–2026
  • Recent developments
  • North America vs global growth heat map

13. Company Profiles

  • Vertiv
  • Schneider Electric
  • Daikin Applied
  • CoolIT Systems
  • Accelsius
  • Parker Hannifin
  • Rockwell Automation
  • Munters
  • STULZ
  • Airedale (Modine)
  • Iceotope
  • Submer
  • Legrand
  • Siemens
  • ABB
  • Danfoss
  • Mitsubishi Electric
  • Alfa Laval
  • Rittal
  • Asetek

14. Appendix

  • Abbreviations
  • Research sources
  • Disclaimer

Key players profiled

  • Vertiv
  • Schneider Electric
  • Daikin Applied
  • CoolIT Systems
  • Accelsius
  • Parker Hannifin
  • Rockwell Automation
  • Munters
  • STULZ
  • Airedale (Modine)
  • Iceotope
  • Submer
  • Legrand
  • Siemens
  • ABB
  • Danfoss
  • Mitsubishi Electric
  • Alfa Laval
  • Rittal
  • Asetek

Market segmentation

By component type Variable frequency drives (VFDs) / drives
Controllers & PLCs
Others
By cooling equipment type Air-based cooling systems: CRACs, CRAHs
Liquid-based cooling systems: chillers, cooling towers, direct-to-chip cooling units
Other cooling systems
By end user OEM
Aftermarket / retrofit
By data center tier Tier I & II
Tier III
Tier IV
By country United States
Canada
Mexico

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Frequently Asked Questions

Frequently Asked Questions

How big is the North America data center cooling components market?

It was USD 6,966.7 million in 2025 and is projected to reach USD 22,173.4 million by 2032, a 17.99% CAGR.

Which country dominates?

The United States, with USD 5,867.8 million in 2025 (84.2% of the region). Mexico grows fastest at 18.75% CAGR.

Is liquid cooling bigger than air cooling in North America?

Yes. Liquid-based systems held 55.2% of revenue in 2025 and are forecast to reach 61.1% by 2032.

Which segment grows fastest?

Direct-to-chip cooling units, at 25.99% CAGR. They rise from USD 1,171.7 million to USD 5,906.1 million and become the largest sub-segment by 2032.

Why is retrofit demand so strong?

Operators are upgrading existing halls for AI densities. Aftermarket spending was 59.4% of revenue in 2025 and grows at 19.20%.

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