Data Center Cooling Tower Market to Reach USD 2.44 Billion by 2035 as Water Rules Push Hybrid and Adiabatic Coolers - DC Market Insights

Market grows at an 8.06% CAGR from USD 1.12 billion in 2025; hybrid and adiabatic coolers grow fastest at 12.39% a year as AI campuses trade water against power, and replacement plus service work rises to 43.4% of spending by 2035

, /PRNewswire/ -- The "Data Center Cooling Tower Market - Growth, Share, Opportunities & Competitive Analysis, 2026-2035" report has been added to the DC Market Insights offering. The global Data Center Cooling Tower Market was valued at USD 1.12 billion in 2025, is estimated at USD 1.30 billion in 2026, and is projected to reach USD 2.44 billion by 2035, growing at a CAGR of 8.06% from 2025 to 2035. DC Market Insights finds that money in this market follows water, not heat: evaporative cooling towers reject data center heat with the least electricity of any method, but water-use disclosure laws in the European Union, California and Utah, and 45 °C liquid-cooled AI racks that can run on dry coolers, are reshaping which designs new campuses buy.

Data Center Cooling Tower Market at a Glance

Metric

Value (DC Market Insights estimate)

Market size, 2020

USD 564.65 million

Market size, 2025 (base year)

USD 1.12 billion

Market size, 2026

USD 1.30 billion (+15.65% year on year)

Market size, 2030

USD 1.93 billion

Market size, 2035

USD 2.44 billion

CAGR 2025-2035

8.06% (low case 6.11%, high case 9.87%)

CAGR 2020-2025 (historical)

14.77 %

Largest product type

Open-circuit cooling towers, 45.0% of 2025 value

Fastest-growing product type

Hybrid and adiabatic coolers, 12.39% CAGR

Leading region

North America, 44.0% (USD 494.66 million)

Fastest-growing region

Latin America, 11.99% CAGR

Largest country

United States, USD 438.45 million (39.0%)

Fastest-growing large country

India, 14.82% CAGR

Market leaders

SPX Technologies (Marley), Baltimore Aircoil Company, EVAPCO: about 50% combined

Key Takeaways

The market more than doubles from USD 1.12 billion in 2025 to USD 2.44 billion in 2035, because new data center capacity served by evaporative heat rejection still grows 55%, from 5,448 MW to 8,467 MW a year, even as its share of new builds falls from 45.4% to 31.4%.

Hybrid and adiabatic coolers rise from 25.0% to 37.0% of market value, because they use water only on the hottest days and fit water-disclosure rules better than open towers.

Open-circuit towers keep the largest share in 2035 at 33.0%, because they remain the cheapest way to reject heat per kilowatt at water-rich and reclaimed-water sites.

Replacement and rebuild work grows 9.77% a year and service and maintenance grows 10.36% a year, both faster than new equipment, as towers built in the 2015-2025 boom reach mid-life.

The evaporative-served installed base grows from 55,680 MW of IT load in 2025 to 124,400 MW in 2035, creating a large recurring revenue pool for rebuilds, Legionella risk management and water metering.

Dry coolers are the main substitute: an October 2026 order for more than 1,000 dry coolers providing 5 GW of AI heat rejection shows how much new AI capacity can move outside this market.

Scope & Segmentation - Data Center Cooling Tower Market

The report analyzes the market across the following segments:

Product Type: Open-Circuit Cooling Towers; Closed-Circuit Fluid Coolers; Hybrid and Adiabatic Coolers.

Construction: Factory-Assembled Units; Field-Erected Towers.

Data Center Type: Hyperscale and AI Data Centers; Colocation Data Centers; Enterprise and Edge Data Centers.

Offering: New-Build Equipment; Installation and Commissioning; Replacement and Rebuilds; Service and Maintenance.

Geography: North America, Europe, Asia Pacific, Latin America, Middle East and Africa, with 12 country forecasts.

Report Updated: Oct. 18, 2026

Get Free Sample Report - Data Center Cooling Tower Market

"The data center cooling tower decision is now a water decision as much as a thermal one. AI campuses that are capped by their grid connection still value the low fan and compressor power of evaporative heat rejection, but disclosure laws and 45 °C liquid cooling are pushing many new halls toward hybrid, adiabatic or fully dry designs. That is why we see hybrid coolers, rebuilds and service contracts growing faster than open towers, and why suppliers that can retrofit an existing tower to cut water by 75% to 90% are best placed for the next decade."

— Amit Jain, Senior Consultant, ICT & Emerging Technologies, DC Market Insights, report author

Why This Report Matters

Cooling towers sit where three pressures meet: rising AI heat loads, constrained grid power and new public scrutiny of data center water use. The report helps cooling tower and fluid cooler manufacturers, data center operators, hyperscalers, mechanical contractors, water-treatment and service providers, and investors size evaporative and hybrid heat rejection spending, compare it with dry cooling, and track where rules and climate keep water-based designs competitive.

Key Attributes

Report attribute

Details

Historical Period

2020-2024

Base Year

2025

Forecast Period

2026-2035

Market Size 2025

USD 1.12 billion

Market Size 2026

USD 1.30 billion

Market Size 2035

USD 2.44 billion

CAGR 2025-2035

8.06 %

Leading Region

North America (44.0%)

Report Format

PDF + Excel, 21 chapters, 11 data tables

How Big Is the Data Center Cooling Tower Market in 2026?

DC Market Insights values the Data Center Cooling Tower Market at USD 1.30 billion in 2026, 15.65% above 2025, as AI campuses ordered in 2025 receive their heat rejection equipment. The market grew 14.77% a year from 2020 to 2025 because new data center IT capacity doubled from 6,000 MW to 12,000 MW a year. The chart below shows the market path to 2035.

Year

Market size (USD million)

Market size trend

2020

564.65

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2025

1,124.23

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2026

1,300.00

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2030

1,930.00

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2035F

2,441.75

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