In-Row Cooling Market - Global Forecast 2026-2032

The In-Row Cooling Market size was estimated at USD 948.56 million in 2025 and expected to reach USD 1,058.03 million in 2026, at a CAGR of 12.01% to reach USD 2,099.59 million by 2032.

In-row cooling has emerged as an indispensable solution for data centers operating at high power densities, addressing critical thermal management challenges that traditional room-level or rack-based systems struggle to mitigate. As enterprises and hyperscale operators continue to deploy AI and high-performance computing infrastructure, the localized deployment of in-row cooling units adjacent to heat sources ensures more efficient heat extraction and minimizes the risk of thermal hotspots. This proximity-based strategy enhances system reliability by maintaining consistent inlet temperatures and reducing the responding time of cooling systems to sudden load fluctuations.

Moreover, the modular nature of in-row cooling designs offers significant advantages in energy efficiency and operational resilience. Industry data indicates that liquid cooling solutions within in-row configurations can reduce overall cooling energy consumption by up to 50 percent, while advanced control algorithms and digital sensors help predict and prevent potential failures that account for a large share of unplanned downtime. The Amazon Web Services In-Row Heat Exchanger exemplifies this approach, demonstrating how retrofit-friendly in-row units can integrate with existing infrastructure to support high-density GPU workloads without extensive facility redesign.

The last several years have witnessed a paradigm shift in in-row cooling architectures, driven by innovations in liquid-to-chip delivery and immersion technologies. Data centers are increasingly adopting two-phase direct-to-chip systems that leverage non-water refrigerants to toggle between liquid and vapor states, delivering superior heat removal performance for AI-intensive workloads. As these systems become more mainstream, operators are integrating them with existing chilled-water loops and leveraging digital twins to simulate and optimize thermal performance under varying conditions.

Parallel to the emergence of advanced cooling technologies, environmental regulations have catalyzed the development of next-generation refrigerants and energy-efficient hardware. Variable-speed EC fans, inverter-driven pumps, and low-global warming potential refrigerants are now standard features in new in-row units, enabling compliance with the Kigali Amendment and reinforcing sustainability goals. Additionally, prefabricated in-row modules, as indicated by recent industry surveys, are set to become integral components of greenfield data centers, allowing for rapid deployment and consistent performance benchmarks across diverse geographic locations.

United States tariffs enacted in January 2025 have introduced substantial levies on imported cooling equipment, reshaping supply chain economics for in-row cooling manufacturers and data center operators alike. Reciprocal duties of up to 34 percent on imports from China and baseline tariffs on all tech hardware have elevated procurement costs, prompting organizations to reevaluate sourcing strategies and inventory buffers. Reports indicate that these measures have already led to project delays and cost escalations in major cloud and AI deployments, as operators absorb or pass on additional expenses tied to essential components such as condensers, pumps, and heat exchangers.

In response to these evolving trade policies, some market participants are accelerating investments in domestic manufacturing capacity to mitigate exposure to Section 301 levies. Strategic partnerships and facility expansions are underway, supported by government incentives aimed at bolstering onshore production. However, the initial transition phase is marked by supply shortages and lead-time extensions that may temporarily constrain the rollout of high-density in-row cooling solutions. Industry stakeholders are advised to engage early with suppliers and explore tariff exclusion requests to manage risk and maintain project timelines.

An in-depth examination of the in-row cooling market reveals that condenser units remain the primary throughput drivers for traditional chilled-water systems, yet the rapid emergence of rack-integrated cooling modules underscores a shift toward turnkey, factory-integrated solutions. Air-cooling remains the predominant remit for general-purpose enterprise applications, while liquid-cooling technologies are increasingly adopted in environments demanding power densities above 50 kilowatts per rack. Mounting options bifurcate into floor-mounted units, which offer higher cooling capacities and easier service access, and overhead systems favored in raised-floor or space-constrained deployments.

Capacity segmentation highlights a triad of operational tiers: sub-50 kW units targeting small-scale installations, 50 to 100 kW systems driving mainstream adoption, and high-capacity platforms exceeding 100 kW per row powering hyperscale and AI-focused data centers. End-user segmentation further differentiates the sector, with traditional data center operators coexisting alongside enterprise verticals in banking, financial services, insurance, and IT telecom enterprises. Each segment exhibits distinct performance requirements and regulatory pressures, necessitating modular design flexibility and scalable control architectures that align with diverse operational profiles.

The Americas continue to lead in-row cooling innovation, driven by hyperscale data center investments in the United States and regulatory incentives for energy-efficient infrastructure. Collaborative ventures between technology leaders and energy providers are expanding the deployment of high-capacity, liquid-cooled solutions that address the growing demands of AI and edge computing workloads. Moreover, several states are offering rebates to offset the incremental costs associated with advanced cooling systems, reinforcing the region’s competitive advantage.

In Europe, Middle East & Africa (EMEA), sustainability mandates and energy price volatility have accelerated the adoption of free-cooling and heat-reuse strategies. Data center operators are retrofitting existing facilities with in-row heat exchangers and integrating district heating partnerships to maximize the value of waste heat. Upcoming EU regulations on PUE and carbon intensity will further propel demand for hybrid cooling architectures and proactive thermal management platforms.

Asia-Pacific markets exhibit a dual focus on rapid infrastructure expansion and cost optimization. Leading telecommunications providers in South Korea and Japan are co-developing next-generation in-row cooling technologies, while major Chinese hyperscale operators are enhancing their domestic manufacturing footprint to curtail tariff-related disruptions. Collaborative research initiatives in Singapore and Malaysia are exploring non-water refrigerants and modular in-row designs optimized for tropical climates, underlining the region’s role as a hotbed for thermal innovation.

Schneider Electric has partnered with Nvidia to deliver AI-optimized energy and cooling architectures in data centers, featuring rack solutions that support up to 132-kilowatt server clusters and integrate advanced liquid-cooling modules to reduce energy consumption by one-fifth while speeding deployment timelines. This collaboration underscores Schneider’s commitment to sustainable performance and demonstrates the value of co-engineering reference designs for AI workloads.

Amazon Web Services’ in-house In-Row Heat Exchanger has disrupted the market by offering an easily retrofittable liquid-cooling unit tailored for high-density GPU installations, signaling a growing trend of cloud providers entering the thermal hardware arena. Despite initial stock market reactions, industry analysts remain bullish on AWS’s capacity not only as a customer but also as a potential manufacturing partner for third-party cooling systems.

Emerson continues to innovate through its Liebert CRV and Challenger ITR platforms, which leverage variable-speed EC fans and digital-scroll compressors for precise thermal control, sustaining high efficiency in row-based deployments from 20 to 40 kilowatts. Recent product enhancements include compact footprints for network closets and self-contained design options that streamline integration and reduce energy usage by up to 40 percent.

STULZ’s CyberRow and Integrated Liquid Cooling System products offer modular solutions with electrically commutated fans and inverter-driven pumps, achieving partial power usage effectiveness as low as 1.02 and supporting loads of up to 100 kW per rack. The company’s expanded U.S. manufacturing presence is poised to improve lead times and support local supply chains amid evolving trade policies.

Airedale by Modine has secured significant orders for its free-cooling chillers, fan walls, and AI-driven control systems, delivering superior PUE performance through parametric designs and predictive analytics. With manufacturing hubs in Virginia and Mississippi, Airedale is scaling capacity to meet demand for sustainable, high-density cooling solutions in the enterprise and hyperscale segments.

Industry leaders should proactively engage in collaborative R&D initiatives to accelerate the adoption of environmentally sustainable refrigerants and closed-loop liquid systems. By partnering with component manufacturers and research institutions, organizations can influence the evolution of next-generation materials and digital controls that optimize thermal performance and minimize environmental impact.

To mitigate trade-policy risks, companies must diversify their supplier portfolios and consider onshore manufacturing partnerships, leveraging government incentives aimed at domestic production. Developing flexible procurement strategies will enable rapid adaptation to tariff fluctuations and ensure continuity of equipment supply to critical infrastructure projects.

Allocating capital toward AI-driven predictive maintenance platforms for in-row cooling units will enhance operational uptime and reduce lifecycle costs. Implementing advanced analytics and digital twins empowers data center operators to anticipate thermal anomalies, optimize coolant flow rates, and dynamically balance workloads across rows for maximum efficiency.

Finally, stakeholders should integrate in-row cooling considerations into holistic sustainability roadmaps, aligning thermal management practices with carbon reduction targets and regulatory compliance requirements. Through comprehensive life-cycle assessments and transparent reporting, businesses can quantify the environmental benefits of advanced cooling technologies and reinforce their commitments to responsible digital infrastructure development.

This research synthesizes primary interviews with thermal system engineers, data center operators, and sustainability officers, complemented by secondary analysis of industry whitepapers, regulatory filings, and technical specifications. Quantitative data were validated through cross-referencing tariff schedules and supplier pricing information, while qualitative insights were obtained via structured discussions with subject-matter experts across multiple regions.

The analytical framework integrates a combination of SWOT assessments, Porter’s Five Forces evaluation, and scenario modeling to gauge the potential impact of technology adoption, trade policies, and environmental regulations. Demand-side and supply-side factors were weighted based on proprietary scoring algorithms, ensuring a balanced perspective on market drivers, constraints, and emerging opportunities.

All data underwent rigorous quality checks, including peer reviews and consistency audits, before being incorporated into the final report. Forecasting accuracy was enhanced by iterative feedback loops with industry stakeholders and periodic recalibrations aligned with the latest policy updates and technology rollouts. This methodology guarantees robust and actionable insights tailored to decision-makers in the in-row cooling domain.

In summary, the in-row cooling market is at the forefront of data center innovation, driven by relentless power density demands, sustainability imperatives, and evolving trade landscapes. The convergence of advanced liquid and hybrid cooling systems, AI-enhanced controls, and strategic supplier realignments positions the sector for transformative growth.

While tariff-induced cost pressures present short-term challenges, they are catalyzing a shift toward localized production and diversified supply chains. Major technology vendors and specialized thermal equipment manufacturers are forging partnerships to deliver the integrated, high-efficiency solutions required by next-generation data center architectures.

Ultimately, organizations that embrace these developments and implement the recommendations outlined above will secure a competitive advantage. By prioritizing predictive maintenance, regulatory compliance, and sustainable design, data center operators can achieve optimal performance, cost-effectiveness, and environmental stewardship in an increasingly demanding digital ecosystem.

Unlock a deeper understanding of in-row cooling market dynamics, emerging technologies, and strategic considerations by securing the full report. Ketan Rohom, Associate Director of Sales & Marketing, stands ready to connect you with the comprehensive research package that will inform your organization’s next steps. Reach out to explore tailored insights, discuss licensing options, and initiate your journey toward data center cooling excellence.