UK Data Center Cooling Market

UK Data Center Cooling Market Size and Share:

The UK data center cooling market size was valued at USD 634.1 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 1,610.2 Million by 2033, exhibiting a CAGR of 10.9% from 2025-2033. The rising data demand and expanding digital infrastructure, along with a focus on energy efficiency and sustainability are driving the adoption of advanced cooling technologies. Innovations like liquid cooling and AI management systems enhance performance and reduce costs, while strict regulations and the push for green data centers boost market growth across the United Kingdom.

The UK data center cooling market is experiencing significant growth due to the increasing adoption of high-density computing and the rising demand for energy-efficient cooling systems. Advanced liquid cooling technologies, including immersion cooling, are gaining traction for their ability to handle intensive workloads. For instance, in September 2024, Park Place Technologies enhanced its IT infrastructure services in the UK by introducing Immersion Liquid Cooling and Direct-to-Chip Cooling for data centers. These solutions address the rising demand for computational power while improving energy efficiency and reducing carbon emissions.  Additionally, there is a strong focus on sustainable practices, with providers adopting green cooling solutions powered by renewable energy to meet stringent environmental regulations and reduce operational costs in data centers.

The integration of AI and IoT for real-time cooling optimization and predictive maintenance, enhancing efficiency and reliability is also creating a positive outlook for the market. Modular and scalable cooling systems are also becoming popular, allowing data centers to adjust to dynamic workloads and growing capacities. For instance, in July 2024, Iceotope launched Iceotope Labs, the first liquid cooling lab in the data center industry, located in Sheffield, UK. Designed for high-density computing research, the facility offers advanced testing for AI and HPC, supporting clients in deploying efficient liquid cooling solutions for future data center needs. Moreover, hybrid cooling approaches that combine traditional and innovative techniques are being implemented to strike a balance between cost-effectiveness and performance. These advancements are reshaping the market landscape in the United Kingdom.

UK Data Center Cooling Market Trends:

Adoption of Liquid Cooling Technologies

The widespread adoption of liquid cooling technologies, such as immersion cooling and direct-to-chip cooling, is transforming data center operations by effectively managing the rising demand for high-density computing and AI workloads. These systems use liquids, which have a higher heat capacity than air to directly dissipate heat from critical components like processors and GPUs. Immersion cooling involves submerging hardware in non-conductive fluids, ensuring optimal temperature control even under intensive computing tasks. Similarly, direct-to-chip cooling uses liquid flow systems attached directly to processors for targeted heat extraction. These technologies reduce energy consumption, enhance performance, and support sustainability goals by lowering carbon footprints. For instance, Castrol, a global leader in lubricants and fluid technology, has officially opened its state-of-the-art ‘Liquid Cooling Centre of Excellence’ at its global technology center in Pangbourne, Berkshire, UK.

Rising Demand for Modular Cooling Systems

Modular cooling systems are becoming increasingly popular as they offer scalable solutions tailored to the dynamic requirements of expanding data centers. These systems allow operators to add or upgrade cooling units incrementally ensuring cost efficiency and reduced downtime during capacity expansion. Modular designs provide flexibility supporting varied workloads including high-density computing and edge deployments. Their compact and plug-and-play nature ensures quicker installation and easy integration with existing infrastructure. This adaptability makes them ideal for meeting the growing demand for efficient cooling in hyperscale and colocation facilities. In line with this, in May 2024, Sonic Edge announced its partnership with Iceotope to launch AI modular data centers featuring liquid-cooling technology. The multi-tenant micro data centers (MDCs), measuring 12m by 4m and offering up to 450kW power capacity, can be deployed on-site or remotely. They aim to reduce energy use and emissions significantly while enabling rapid setup within just 16 weeks for businesses, especially startups. Additionally, modular systems often incorporate energy-efficient technologies, aligning with sustainability goals in the industry.

Rising Need for Sustainability and Energy Efficiency

Sustainability and energy efficiency are pivotal in modern data centers. Green initiatives focus on reducing carbon footprints by adopting energy-efficient cooling technologies and integrating renewable energy sources like solar and wind power. For instance, in October 2024, UK managed services provider DSM Group announced the launch of its Eco Data Centre in Peterborough, expanding from a WWII hangar. Featuring U-Systems water-cooled racks and a 200kW solar system, the facility supports up to 1MW capacity with plans for further expansion in the coming future. This transition not only lowers reliance on fossil fuels but also promotes environmentally responsible operations. Concurrently, Energy Usage Effectiveness (EUE) is a key metric, driving data centers to optimize energy consumption without sacrificing performance. By enhancing EUE, facilities achieve greater efficiency, reducing operational costs and environmental impact. Together, these efforts ensure data centers operate sustainably, balancing high performance with a commitment to environmental stewardship.

UK Data Center Cooling Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the UK data center cooling market, along with forecasts at the regional and country levels from 2025-2033. The market has been categorized based on component, type of cooling, cooling technology, data center size, and vertical.

Analysis by Component:

• Solution
  • Air Conditioning
  • Chilling Units
  • Cooling Towers
  • Economizer Systems
  • Liquid Cooling Systems
  • Control Systems
  • Others
• Services
  • Consulting
  • Installation and Deployment
  • Maintenance and Support
     

The UK data center cooling market encompasses a variety of solutions essential for maintaining optimal operating temperatures. Air conditioning systems remain fundamental, providing reliable climate control. Chilling units and cooling towers are increasingly utilized for their efficiency in heat dissipation. Economizer systems leverage external air to reduce energy consumption, enhancing sustainability. Liquid cooling systems are gaining traction due to their superior heat management capabilities, especially for high-density setups. Advanced control systems enable precise monitoring and regulation, ensuring seamless operation and energy efficiency. Additionally, innovative technologies and hybrid solutions are emerging, addressing diverse cooling needs and driving the market’s technological advancement.

Services in the UK data center cooling market are pivotal for ensuring the effective implementation and longevity of cooling solutions. Consulting services provide expert guidance on system design, energy efficiency, and regulatory compliance, helping clients tailor solutions to their specific needs. Installation and deployment services ensure that cooling systems are correctly and efficiently set up, minimizing downtime and optimizing performance from the outset. Ongoing maintenance and support are crucial for sustaining system reliability, involving regular inspections, troubleshooting, and upgrades to address evolving demands. These comprehensive service offerings enhance customer satisfaction, foster long-term partnerships, and support the continuous growth and adaptation of data center cooling infrastructures.

Analysis by Type of Cooling:

• Room-Based Cooling
• Row-Based Cooling
• Rack-Based Cooling
   

Room-based cooling systems manage the temperature of entire data center spaces, making them a staple in the UK market. Utilizing CRAC (Computer Room Air Conditioning) units, these systems distribute conditioned air uniformly across the room. They offer centralized control and ease of maintenance, which are attractive for large-scale data centers. However, they can be less energy-efficient in high-density environments. Advances in airflow management and integration with energy-efficient technologies are enhancing the effectiveness and sustainability of room-based cooling solutions in the UK.

Row-based cooling targets specific server rows, improving efficiency by directing airflow precisely where needed. In the UK, this approach is favored for its ability to reduce energy consumption and enhance cooling performance in high-density data centers. Techniques such as in-row cooling units and aisle containment systems minimize hot and cold air mixing, ensuring optimal temperature control. This method offers better scalability and adaptability to varying workloads, making it a preferred choice for expanding data centers aiming to balance efficiency and cost-effectiveness.

Rack-based cooling focuses on individual server racks, providing highly localized temperature control. In the UK data center market, this approach is gaining traction due to its precision and adaptability, especially in environments with diverse and dynamic computing needs. Solutions include liquid cooling directly to racks and intelligent airflow management systems that adjust cooling based on real-time server performance. Rack-based cooling enhances energy efficiency and reduces latency, making it ideal for high-performance and mission-critical applications. Its flexibility supports the integration of advanced technologies, positioning it as a key trend in modern UK data centers.

Analysis by Cooling Technology:

• Liquid-Based Cooling
• Air-Based Cooling
   

Liquid-based cooling is rapidly gaining prominence in the UK data center market due to its superior efficiency and ability to handle high-density server environments. By directly transferring heat from components using fluids like water or specialized coolants, liquid cooling significantly reduces energy consumption as compared to traditional air-based systems. This technology supports the growing demand for sustainable and energy-efficient solutions, aligning with the UK's stringent environmental regulations. Additionally, liquid cooling enables higher performance and lower latency, making it ideal for advanced applications such as AI and big data. However, the initial installation costs and the need for specialized maintenance pose challenges, driving ongoing innovation and investment in this sector.

Air-based cooling remains a cornerstone of the UK data center cooling market, favored for its simplicity, reliability, and lower initial costs. Utilizing traditional methods like Computer Room Air Conditioning (CRAC) units and raised floor systems, air cooling effectively manages temperature across diverse data center sizes. Advances in airflow management, such as hot aisle/cold aisle configurations and containment strategies, have enhanced its efficiency and scalability. Air-based systems are highly adaptable, making them suitable for both existing facilities and new deployments. Despite facing challenges in high-density environments, continuous improvements in energy efficiency and integration with smart control systems ensure that air cooling remains a vital and cost-effective solution in the UK’s evolving data center landscape.

Analysis by Data Center Size:

• Mid-Sized Data Centers
• Enterprise Data Centers
• Large Data Centers
   

Mid-sized data centers in the UK play a crucial role in supporting regional businesses and specialized industries. These facilities typically require scalable and flexible cooling solutions to accommodate varying workloads and growth. Air-based cooling systems are commonly employed due to their cost-effectiveness and ease of implementation. However, there is a growing adoption of row-based and liquid-based cooling technologies to enhance energy efficiency and manage increasing server densities. Mid-sized centers often prioritize modular cooling infrastructure, allowing for incremental upgrades and minimizing downtime. Additionally, these data centers emphasize sustainable practices, aligning with the UK’s environmental goals, and leverage smart control systems to optimize cooling performance and reduce operational costs.

Enterprise data centers in the UK cater to large organizations with substantial data processing and storage needs. These facilities demand robust and high-performance cooling solutions to ensure uninterrupted operations and support mission-critical applications. Advanced liquid-based cooling systems are increasingly preferred for their ability to handle high-density deployments and enhance thermal management. Enterprise data centers also implement sophisticated air-based cooling techniques, such as hot aisle/cold aisle configurations and containment strategies, to maximize efficiency. Emphasis on sustainability drives the integration of energy-efficient technologies and renewable energy sources. Additionally, enterprise centers invest in comprehensive monitoring and management systems to maintain optimal cooling performance, ensure compliance with regulatory standards, and achieve cost-effective operations.

Large data centers dominate the UK cooling market with their extensive infrastructure and high energy demands. These facilities require highly efficient and scalable cooling technologies to manage vast amounts of heat generated by thousands of servers. Liquid-based cooling is a key driver in large data centers, offering superior thermal performance and reduced energy consumption compared to traditional air cooling. Additionally, large centers leverage hybrid cooling systems that combine air and liquid methods to optimize efficiency and flexibility. The implementation of advanced cooling strategies, such as free cooling and economizer systems, further enhances sustainability and reduces operational costs. Large data centers also focus on automation and AI-driven cooling management to ensure precise temperature control, minimize downtime, and support continuous expansion, making them pivotal in the UK’s digital infrastructure landscape.

Analysis by Vertical:

• BFSI
• IT and Telecom
• Research and Educational Institutes
• Government and Defense
• Retail
• Energy
• Healthcare
• Others
   

The BFSI sector in the UK relies heavily on data centers to manage vast amounts of sensitive financial data. Efficient cooling solutions are critical to ensure uninterrupted operations and data security. Advanced air and liquid-based cooling systems are preferred for their reliability and energy efficiency. Additionally, compliance with stringent regulatory standards necessitates robust cooling infrastructure to maintain optimal temperatures and prevent data loss. The focus on sustainability also drives BFSI firms to adopt eco-friendly cooling technologies, enhancing their operational resilience and reducing environmental impact.

The IT and telecom industries in the UK are major drivers of the data center cooling market, fueled by the exponential growth in data traffic and digital services. High-density server deployments require sophisticated cooling solutions, such as liquid cooling and in-row cooling systems, to maintain performance and prevent overheating. Energy efficiency is paramount, leading to the adoption of advanced airflow management and AI-driven cooling controls. As 5G and cloud computing expand, the demand for scalable, reliable, and sustainable cooling technologies continues to rise, ensuring seamless connectivity and robust IT infrastructure.

UK research and educational institutes depend on data centers to support complex computational tasks and large-scale data analysis. Effective cooling solutions are essential to maintain the performance and longevity of high-performance computing (HPC) systems. Air-based and liquid-based cooling technologies are commonly used to manage heat generated by intensive research activities. Additionally, these institutions prioritize energy efficiency and sustainability, adopting eco-friendly cooling methods to align with their environmental goals. Reliable cooling infrastructure ensures that critical research projects and academic activities proceed without interruptions.

Government and defense data centers in the UK require highly secure and resilient cooling solutions to protect sensitive information and ensure operational continuity. Advanced cooling technologies, including liquid cooling and precision air conditioning, are implemented to maintain stringent temperature and humidity controls. These sectors demand robust infrastructure to withstand extreme conditions and potential threats, necessitating reliable and redundant cooling systems. Additionally, energy efficiency and sustainability are important considerations, driving the adoption of innovative cooling methods that support national security objectives while minimizing environmental impact.

The retail sector in the UK leverages data centers to handle e-commerce, customer data, and supply chain management. Effective cooling solutions are vital to ensure the reliability and performance of these data centers, especially during peak shopping periods. Air-based cooling remains popular for its cost-effectiveness, while liquid cooling is increasingly adopted for high-density applications. Retailers also focus on energy-efficient cooling technologies to reduce operational costs and support sustainability initiatives. Reliable cooling infrastructure helps maintain seamless online operations, enhancing customer experience and business continuity.

The energy sector in the UK utilizes data centers for managing smart grids, monitoring energy consumption, and supporting renewable energy projects. Efficient cooling solutions are crucial to handle the high computational demands and ensure the reliability of critical infrastructure. Liquid-based cooling is favored for its superior thermal management and energy efficiency, especially in high-density data centers. Additionally, the sector emphasizes sustainable cooling practices to align with environmental goals and reduce carbon footprints. Advanced cooling technologies help optimize energy usage, enhance system performance, and support the transition to a greener energy landscape.

Healthcare data centers in the UK manage vast amounts of patient data, medical records, and research information, requiring reliable and efficient cooling solutions. Maintaining optimal temperatures is essential to ensure data integrity and system performance, especially for critical applications like electronic health records and telemedicine. Air-based and liquid-based cooling systems are widely used to achieve energy efficiency and sustainability. Additionally, healthcare providers prioritize cooling technologies that offer high reliability and minimal downtime, supporting uninterrupted access to vital medical information and enhancing patient care outcomes.

Regional Analysis:

• London
• South East 
• North West 
• East of England 
• South West 
• Scotland 
• West Midlands 
• Yorkshire and The Humber
• East Midlands
• Others
   

London is a hub for data center cooling due to its high concentration of IT infrastructure and global connectivity. The city’s advanced facilities are supported by efficient cooling technologies to address high-density computing needs. With significant investments in sustainable cooling solutions, London remains a leading market. The demand for liquid cooling and free-air cooling is rising, driven by the focus on reducing energy consumption. Its strategic importance attracts international operators, reinforcing its dominance in the UK’s data center cooling sector.

The South East region leverages its proximity to London and a growing number of tech companies to expand its data center cooling market. High-performance cooling systems are being adopted to meet the increasing demand for scalable IT infrastructure. The presence of hyperscale data centers and colocation facilities has accelerated the implementation of green cooling technologies. Businesses in the region focus on operational efficiency, making the South East a critical area for innovation in cooling solutions.

The North West is becoming a stronghold for data center cooling, driven by regional IT growth and digital transformation. The market focuses on hybrid cooling systems to manage varying workload demands while minimizing energy usage. Manchester serves as a central hub, with rising interest in edge data centers to enhance local processing capabilities. Cooling advancements prioritize eco-friendly approaches, catering to regional sustainability goals. The North West’s strategic location supports its growing role in the UK’s data center landscape.

The East of England benefits from growing tech infrastructure and a supportive business environment, making it a vital player in the data center cooling market. Facilities here are adopting efficient cooling systems to manage high workloads, with an emphasis on renewable energy sources. The region’s data centers focus on modular cooling solutions to enhance scalability. Its strategic location near London and advanced power grid make the East of England a key contributor to the industry’s expansion.

The South West’s data center cooling market is growing due to regional initiatives in technology and infrastructure. The region is increasingly investing in low-energy cooling methods, including liquid cooling and heat recovery systems. Bristol, as a regional tech hub, drives demand for efficient and sustainable solutions. Its focus on eco-friendly cooling aligns with broader goals for energy efficiency. With a strong emphasis on innovation, the South West is solidifying its role in the UK’s data center ecosystem.

Scotland’s data center cooling market is bolstered by its cooler climate, which supports natural and energy-efficient cooling methods. Renewable energy sources, such as wind and hydroelectric power, further enhance the sustainability of data center operations. The region focuses on direct and indirect evaporative cooling to lower operational costs. Edinburgh and Glasgow are central to the market’s growth, with expanding IT hubs fostering demand for advanced cooling solutions. Scotland’s commitment to green energy makes it a standout region.

The West Midlands is an emerging market for data center cooling, driven by industrial growth and digital transformation in cities like Birmingham. The focus here is on adopting energy-efficient technologies to support expanding colocation and enterprise facilities. The region emphasizes air-cooled systems and modular solutions to meet scalable requirements. Its growing technology sector and connectivity infrastructure contribute to the rising demand for robust cooling systems, establishing the West Midlands as a competitive player.

Yorkshire and The Humber is gaining traction in the data center cooling market with increasing investments in edge computing and colocation facilities. The region’s emphasis on operational efficiency has led to the adoption of innovative cooling technologies, such as liquid immersion cooling. Data centers in Leeds are central to this growth, leveraging the area’s digital transformation initiatives. Yorkshire’s focus on cost-effective and sustainable solutions makes it a promising region in the UK’s cooling market.

The East Midlands plays a growing role in the data center cooling market, fueled by regional technology expansion and increasing demand for scalable IT infrastructure. Cities like Nottingham and Derby are key to this growth, with investments in efficient cooling technologies like evaporative cooling and liquid systems. The region prioritizes sustainability, aligning with national energy goals. The East Midlands’ strategic location and connectivity further enhance its appeal as a data center hub in the UK.

Competitive Landscape:

The UK data center cooling market is highly competitive, featuring a mix of global giants and specialized local firms. Key players differentiate themselves through advanced technologies like liquid cooling and AI-driven management systems, emphasizing energy efficiency and sustainability to meet regulatory demands. Companies invest heavily in research and development (R&D) to innovate and stay ahead, while strategic partnerships and collaborations enhance their service offerings. Competitive pricing and superior customer support also play crucial roles in gaining market share. Additionally, firms focus on expanding their geographic presence and scaling operations to address the growing demand, intensifying the competitive landscape within the sector. For instance, in February 2024, Global Switch received planning approval for its new 27,000 sq m London South data centre, expanding its campus to 115,000 sq m. Designed for high-density HPC and AI needs, it features both air and liquid cooling options, aims for a PUE below 1.2, and utilizes 100% renewable energy while supporting community heat export.

The report provides a comprehensive analysis of the competitive landscape in the UK data center cooling market with detailed profiles of all major companies.

Latest News and Developments:

• In October 2024, Modine launched production at its new 14.6-acre facility in Bradford, UK, dedicated to Airedale by Modine precision cooling products for data centers. The site began operations two months ahead of schedule, enhancing capacity to meet rising global demand for energy-efficient cooling. Art Laszlo has been appointed as the new Group VP for Data Centers, driving growth strategies in this division.

• In September 2024, UK's Stellium Datacenters announced their partnership with Submer and ExxonMobil to implement immersion cooling technology. The deployment details were not disclosed, but the initiative aims to integrate ExxonMobil’s cooling fluid with Stellium's infrastructure.

UK Data Center Cooling Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UK data center cooling market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the UK data center cooling market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UK data center cooling industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.