London – October 15, 2026 -- The global data center precision air conditioning market will grow from USD 4.88 billion in 2025 to USD 10.00 billion by 2035, a 7.43% CAGR, according to a new DC Market Insights report. Rising AI rack density is shifting spending toward fan walls, in-row coolers, rear-door heat exchangers and retrofit services.
New-build capacity of 12.0 GW a year supports USD 2.75 billion in equipment spending
New data center capacity of about 12.0 GW a year supports roughly USD 2.75 billion of new-build precision air-conditioning spending, the report states. The analysis covers four product types: perimeter CRAC and CRAH units, in-row and rack-based coolers, fan walls and thermal walls, and rear-door heat exchangers.
It also segments the market by cooling medium (chilled water, direct expansion, pumped refrigerant and hybrid economizer), by data center type (colocation, hyperscale, enterprise, edge) and by sales type (new-build equipment, replacement and retrofit, service and maintenance).
Fan walls reach USD 2.73 billion and service hits USD 2.35 billion by 2035
Fan and thermal walls are projected to reach USD 2.73 billion by 2035 as operators seek higher airflow efficiency at scale. The systems deliver high airflow with efficient variable-speed operation and suit hyperscale rooms where heat loads remain partly air-cooled.
Service and maintenance is projected to reach USD 2.35 billion by 2035, which the report describes as a large recurring aftermarket opportunity.
In-row and rear-door systems provide targeted cooling for denser racks. They can bridge the gap between conventional room cooling and full direct liquid cooling.
Direct liquid cooling erodes air-cooling content per AI megawatt
Air-cooling content per AI MW is projected to decline as direct liquid cooling absorbs more high-heat loads. That raises the importance of hybrid air-liquid thermal architectures, the report says. Precision air nonetheless remains a core part of data center thermal management.
Schneider Electric and Vertiv move into hybrid cooling
Schneider Electric completed the acquisition of a controlling interest in Motivair in February 2025. Motivair supplies liquid-cooling and rear-door heat-exchanger technology. In March 2025, Vertiv announced the global launch of a chilled-water rear-door heat exchanger for AI and HPC applications.
The report profiles 15 suppliers: Vertiv, Schneider Electric, STULZ, Carrier, Trane Technologies, Johnson Controls, Daikin Applied, Modine (Airedale), Munters, Shenzhen Envicool, Mitsubishi Electric, Nortek Air Solutions, Data Aire, Petra Engineering and Canovate.
North America holds 40.5% of 2025 market value
North America led 2025 market value with a 40.5% share, followed by Asia Pacific at 27.5% and Europe at 23.5%. The Middle East and Africa accounted for 4.3% and Latin America for 4.2%.
The report attributes regional differences to hyperscale investment, AI adoption, installed capacity, power availability, local supply chains and the timing of new construction or retrofit projects.