Asia-Pacific Data Center Cooling Market Forecast Report 2025-2035, with Competitive Benchmarking for PEZY Computing K.K. and Fujitsu

The Asia-Pacific data center cooling market growth surge is driven by increased cloud adoption and data generation, emphasizing the need for advanced cooling solutions. As AI and high-performance computing workloads grow, effective cooling is crucial for equipment longevity and uptime. Governments in regions like Singapore, Australia, and India are pushing for sustainable cooling technologies due to rising energy efficiency standards. Challenges include high initial costs and integration complexities, but the demand for eco-friendly infrastructure is reshaping data center cooling strategies across Asia Pacific.

Dublin, Aug. 21, 2025 (GLOBE NEWSWIRE) -- The "Asia-Pacific Data Center Cooling Market: Focus on Product, Application, and Country-Level Analysis - Analysis and Forecast, 2025-2035" report has been added to ResearchAndMarkets.com's offering.

The Asia-Pacific data center cooling market is projected to reach $41.10 billion by 2035 from $9.46 billion in 2024, growing at a CAGR of 13.61% during the forecast period 2025-2035.

Advanced data centre cooling solutions are becoming more and more necessary as APAC's digital infrastructure, cloud use, and data generation all rise. Effective cooling solutions are essential to maintaining equipment longevity and uptime as workloads related to AI and high-performance computing increase.

Sustainable, low-impact cooling technologies are becoming more popular as a result of regional governments enforcing stronger energy efficiency requirements, water usage caps, and refrigerant regulations. To meet national sustainability goals, nations like Singapore, Australia, and India are pushing for closed-loop systems, free cooling, and low-GWP refrigerants. Although innovation is speeding up the adoption of AI-driven airflow control, liquid cooling, and immersion systems, obstacles including high upfront costs and integration difficulties continue to be major obstacles. However, the drive for more eco-friendly and effective digital infrastructure is changing cooling tactics in data centres around Asia.



The market for data centre cooling in Asia Pacific is expanding quickly due to the region's increased use of cloud computing, AI, and digital transformation. Effective and sustainable cooling solutions are now essential to maintaining uptime, performance, and regulatory compliance as data centre density rises and rack power levels climb from 10 kW to over 30 kW. In order to better handle increasing heat loads, operators are aggressively moving away from conventional CRAC/CRAH units and towards cutting-edge technologies like immersion cooling, rear-door heat exchangers, and direct-to-chip liquid cooling.

Data centre operators are being pushed to implement low-impact, closed-loop, and hybrid cooling systems by nations like Singapore, Australia, India, and Japan that are imposing tougher energy efficiency standards, water usage laws, and low-GWP refrigerant mandates. In order to increase energy efficiency and reduce PUE (Power Usage Effectiveness), AI-powered thermal management, modular cooling designs, and the usage of free cooling in appropriate regions are increasingly becoming more popular.

With the help of government incentives and sustainability standards, the market is still growing despite obstacles including high initial investment, complicated retrofits, and water scarcity in some areas. The APAC data centre cooling market is expected to grow quickly as environmental restrictions tighten and demand for high-performance computing increases, eventually becoming a vital component of green, future-ready digital infrastructure.

Market trends, Drivers and Challenges of APAC Data Center Cooling Market

Market Trends

• Rapid adoption of liquid-cooling solutions (direct-to-chip, rear-door heat exchangers) to manage rising rack power densities.
• Growth in immersion-cooling pilots, especially for high-performance computing and AI workloads.
• Expansion of modular, prefabricated cooling units to accelerate deployment and scalability at edge sites.
• Integration of AI/ML-driven monitoring and dynamic airflow management for predictive maintenance and efficiency gains.
• Increasing use of free-cooling (air-side and water-side economizers) in temperate APAC climates to reduce chiller runtime.
• Circular-economy initiatives: waste-heat recovery for district heating or facility reuse in mature markets.

Market Drivers

• Escalating IT load per rack (from 10?kW to 30?kW+), necessitating more efficient thermal solutions.
• Corporate net-zero and ESG targets prompting facility owners to minimize PUE and carbon footprints.
• Stringent regional regulations on water use and refrigerant emissions, driving adoption of low-GWP coolants and closed-loop systems.
• Demand for rapid deployment of hyperscale and edge data centers across Southeast Asia, India and Australia.
• Rising electricity costs incentivizing operators to invest in energy-efficient chillers and airflow optimization.

Market Challenges

• High initial CAPEX for advanced cooling technologies (liquid cooling, immersion systems) versus traditional CRAC units.
• Water scarcity in certain APAC regions complicates adoption of water-cooled chillers and economizers.
• Complex integration requirements when retrofitting legacy facilities with new cooling architectures.
• Skills and talent shortages for design, installation and maintenance of specialized cooling systems.
• Fragmented regulatory landscape across APAC, with varying standards for refrigerant handling, water discharge and energy efficiency.
• Supply-chain constraints for critical components (heat exchangers, pumps, specialty coolants) amid global procurement pressures.

Competitive Strategy:

This report crafts a strong competitive strategy tailored to the APAC 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:

• PEZY Computing K.K.
• Fujitsu

Key Attributes:

Key Topics Covered:

Markets Trends Shaping Data Center Cooling Market

• Increase in Data Requirements
  • Increasing Rack Power Density - New Data Center Reality
  • 5G Services to Drive Exponential Growth in Data Centers
• Growth in Demand for Environment-Friendly Cooling Systems
  • Carbon Neutrality
  • Utilization of Renewable Energies
  • Green Initiatives by Government Body

New Data Center Trends toward Adoption of Liquid Cooling, 2024-2034

• Case Study - Immersion Cooling Technology
  • HYDRA Immersion Cooling: Revolutionizing Data Centre Efficiency and Sustainability
  • Advancing Thermal Efficiency: The Role of Liquid Immersion Cooling in Future Data Centers

Market Dynamics Overview

Market Drivers

• High-Efficient Cooling Systems
  • Emerging Technologies Promote Cost-Effectiveness
  • AI-Assisted Automatic Cooling Control
  • Power Usage Effectiveness (PUE) Optimization with Economic Cooling Solutions
• Increasing Number of Data Centers and Spendings
• Thermal Energy Recovery Conversion from Data Centers
• Water Usage Effectiveness Driving Adoption of Alternate Cooling Solutions
• Retrofitting to a Free Cooling Data Center

Market Restraints

• High Investment Costs for Non-Conventional Cooling Systems
• Technical Challenges to Cooling Systems
  • Air and Free Cooling Systems Adaption Complexities
  • Reliability Limitations with Immersion Liquid Cooling

Business Opportunities

• Growing Emphasis for Retrofit Data Center
• Data Center Infrastructure Management for Power Management
• Increasing Number of Distributed or Edge Data Centers

Key Start-Ups in the Data Center Cooling Market

Competitive Benchmarking & Company Profiles

• PEZY Computing K.K.
• Fujitsu

For more information about this report visit https://www.researchandmarkets.com/r/r8ewka

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• Asia-Pacific Data Center Cooling Market

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