Data Center Refrigerant Market Report with Forecast 2026 to 2035
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Global Data Center Refrigerant Market Size is valued at USD 563.31 Mn in 2025 and is predicted to reach USD 1,383.94 Mn by the year 2035 at a 9.7% CAGR during the forecast period for 2026 to 2035.
Data Center Refrigerant Market Size, Share & Trends Analysis Distribution by Data Center Type (Hyperscale, Edge Data Center, Colocation, and Enterprise), Refrigerant Type (Liquid Cooling Fluids and Conventional Refrigerants), Deployment (Installation/OEM and Aftermarket), Cooling Type (Liquid Cooling, Air Cooling, and Free Cooling), Industry (IT and Telecom, Manufacturing, Banking Financial Services and Insurance (BFSI), Retail, Research and Healthcare, Others), By Region and Segment Forecasts, 2026 to 2035.
Data Center Refrigerant Market Key Takeaways:
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Data centre refrigerants constitute specialised heat-transfer fluids employed within air-conditioning and liquid-cooling systems to maintain precise temperature and humidity control in high-density computing environments. During continuous operation, servers, storage arrays, and networking equipment generate substantial thermal loads; the effective removal of this heat is essential to prevent performance degradation, hardware failure, and unplanned service interruptions.
Refrigerants circulate through computer room air-conditioning (CRAC) units, computer room air-handling (CRAH) systems, chillers, and increasingly direct-to-chip or immersion liquid-cooling loops, absorbing thermal energy from the indoor environment and rejecting it externally via condensers, dry coolers, or heat exchangers. These devices collect heat from the data center environment and release it outdoors via condensers or heat exchangers. The growing need for environmentally friendly cooling options, legal requirements for low-GWP refrigerants, and the development of high-density computing environments are the main factors propelling the data center refrigerants market.
The data center refrigerant market is being driven by the use of waterless cooling systems to save water and improve energy efficiency. Through the elimination of water use and the reduction of energy expenses, these systems provide significant operational benefits. Additionally, the data center refrigerant market is seeing substantial growth due to the growing need for hyperscale data centers. To handle high-density server settings, hyperscale facilities run by well-known cloud service providers like Amazon, Google, and Microsoft need sophisticated cooling technologies.
In addition, the use of effective and eco-friendly refrigerants becomes essential as these companies grow internationally to accommodate the growing demands for data processing and storage. The data center refrigerant market is expanding because advanced refrigerants, including HFOs, which have a low global warming potential (GWP), are being used more and more to maintain regulatory compliance and maximum cooling efficiency. However, the data center refrigerant market's expansion is being hampered by the hefty upfront costs involved in switching to more ecologically friendly, cutting-edge refrigerants. It frequently costs a lot of money to upgrade or replace the current cooling infrastructure in order to implement these new refrigerants. Furthermore, upgrading existing systems and requiring specialist equipment may result in higher capital costs.
Driver
Growth of Edge and Hyperscale Data Centers
The data center refrigerant market is significantly driven by the hyperscale and edge facilities' rapid growth. In order to handle extreme heat loads from cloud computing and AI-driven applications, hyperscale operators need high-capacity cooling systems. For edge data centers to continue operating at distant locations, small, energy-efficient solutions are needed. In order to maintain steady thermal conditions for these sophisticated infrastructures, refrigerants are essential. Additionally, the deployment of data center refrigerant is accelerated by the requirement for low-latency applications and the growing volume of data traffic. Globally, the deployment of effective refrigerant-based cooling systems is fueled by the growth of distributed computer infrastructure. For instance, Asetek announced that 11 new liquid cooling product models started selling in Q1 2025, and that 171,000 sealed-loop liquid cooling units had been shipped in that quarter, supporting compact cooling in dense server racks even in edge situations.
Restrain/Challenge
Stricter Environmental Rules Pertaining to Refrigerants with High Global Warming Potential
The stricter environmental constraints on high-GWP (global warming potential) refrigerants are one of the main factors limiting the data center refrigerant market. In accordance with national cooling laws and international climate frameworks, many commonly used refrigerants—in particular, hydrofluorocarbons (HFCs) like R-410A and R-134a—are decreasing in usage. As a result, data center operators must deal with the expensive task of updating or replacing their current cooling systems to accept next-generation refrigerants such as natural alternatives or HFOs. Additionally, due to the vital nature of cooling systems and the unacceptable danger of interruption, these changes are difficult. New refrigerants also frequently necessitate redesigning compressors, lubricants, seals, and safety compliance procedures, which raises technical uncertainty and capital costs.
The enterprise category held the largest share in the Data Center Refrigerant market in 2025. The expansion of the enterprise data centres category is being driven by the growing demand for cost and energy reductions. Companies are using cutting-edge cooling systems that use refrigerants with excellent thermal characteristics as they seek to reduce operating costs and improve energy efficiency. Additionally, for enterprise data centers to remain profitable and operationally effective, these solutions aid in lowering cooling expenses and energy usage. The data center refrigerant market is expanding due to the move towards refrigerants that enhance cooling effectiveness and complement energy management plans. Furthermore, to construct cooling systems for their data centers, businesses are now collaborating with IT firms. For instance, Hewlett Packard Enterprise and Danfoss collaborated to create modular data centers in June 2024.
In 2025, the air cooling category dominated the Data Centre Refrigerant market, driven by easier system design, less complicated maintenance, and lower initial investment requirements than liquid-based cooling systems. Because they save operating expenses, air conditioning since are commonly used in small and medium-sized businesses and in areas where the climate permits free cooling. Additionally, the efficiency of air cooling solutions has been enhanced by developments in containment systems, energy-efficient fans, and airflow management. Furthermore, data centers can satisfy sustainability goals due to the segment's compatibility with a range of refrigerant alternatives, including eco-friendly HFOs, which further solidifies its leadership.
The Data Centre Refrigerant market was dominated by the North America region in 2025 because of its big hyperscale data centre operators, early embrace of cutting-edge technology, and sophisticated digital infrastructure. The region's strong emphasis on sustainability and energy efficiency has accelerated the transition to liquid cooling technologies, particularly in scientific simulations, machine learning, and high-density computing uses of AI. The transition has also been made easier by government incentives and legislation that support green data center activities.
Additionally, a large number of cloud and colocation service providers in North America are renovating existing buildings to meet performance and thermal efficiency standards. Furthermore, the rising use of next-generation cooling technology has been fueled by the availability of qualified technical staff and a robust research and development culture.
| Report Attribute | Specifications |
| Market size value in 2025 | USD 563.31 Mn |
| Revenue forecast in 2035 | USD 1,383.94 Mn |
| Growth Rate CAGR | CAGR of 9.7% from 2026 to 2035 |
| Quantitative Units | Representation of revenue in US$ Bn and CAGR from 2026 to 2035 |
| Historic Year | 2022 to 2025 |
| Forecast Year | 2026-2035 |
| Report Coverage | The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
| Segments Covered | Data Center Type, Refrigerant Type, Deployment, Cooling Type, Industry, and By Region |
| Regional Scope | North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
| Country Scope | U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; The UK; France; Italy; Spain; China; Japan; India; South Korea; Southeast Asia; South Korea; Southeast Asia |
| Competitive Landscape | Honeywell International Inc., The Chemours Company, Climalife, Arkema, Orbia, DAIKIN INDUSTRIES, Ltd., Dow, M&I Materials Ltd, Asetek, Inc. A/S, 3M, and Cargill, Incorporated |
| Customization Scope | Free customization report with the procurement of the report, Modifications to the regional and segment scope. Geographic competitive landscape. |
| Pricing and Available Payment Methods | Explore pricing alternatives that are customized to your particular study requirements. |
This study employed a multi-step, mixed-method research approach that integrates:
This approach ensures a balanced and validated understanding of both macro- and micro-level market factors influencing the market.
Secondary research for this study involved the collection, review, and analysis of publicly available and paid data sources to build the initial fact base, understand historical market behaviour, identify data gaps, and refine the hypotheses for primary research.
Secondary data for the market study was gathered from multiple credible sources, including:
These sources were used to compile historical data, market volumes/prices, industry trends, technological developments, and competitive insights.
Primary research was conducted to validate secondary data, understand real-time market dynamics, capture price points and adoption trends, and verify the assumptions used in the market modelling.
Primary interviews for this study involved:
Interviews were conducted via:
Primary insights were incorporated into demand modelling, pricing analysis, technology evaluation, and market share estimation.
All collected data were processed and normalized to ensure consistency and comparability across regions and time frames.
The data validation process included:
This ensured that the dataset used for modelling was clean, robust, and reliable.
The bottom-up approach involved aggregating segment-level data, such as:
This method was primarily used when detailed micro-level market data were available.
The top-down approach used macro-level indicators:
This approach was used for segments where granular data were limited or inconsistent.
To ensure accuracy, a triangulated hybrid model was used. This included:
This multi-angle validation yielded the final market size.
Market forecasts were developed using a combination of time-series modelling, adoption curve analysis, and driver-based forecasting tools.
Given inherent uncertainties, three scenarios were constructed:
Sensitivity testing was conducted on key variables, including pricing, demand elasticity, and regional adoption.