AI is Rewriting the Data Center Cooling Playbook

AI is fundamentally reshaping data center cooling architectures as rising compute intensity pushes conventional air-cooling systems towards their limits. UBS estimates that approximately $570 billion of investment in the US AI infrastructure buildout during 2023–2026 YTD is directed towards physical infrastructure, including power, buildings, cooling and construction, highlighting the scale of investment in the supporting ecosystem. The transition to direct liquid cooling and emerging immersion technologies is changing equipment requirements across the server, room and facility levels, creating new competitive dynamics across the cooling value chain. 

For industrial equipment OEMs, the opportunity is increasingly shifting from supplying individual components to building broader capabilities, integrated solutions and strategic partnerships to capture value in the evolving AI infrastructure ecosystem.

Global data-center capacity is projected to grow at approximately 14% CAGR through 2030. Meanwhile, AI rack power densities are rising reaching upto 120+ kW in current and next-generation AI racks. This is accelerating the shift from conventional air cooling to liquid cooling and advanced thermal-management solutions.

The commercial momentum is already visible. Schneider Electric reported record Q3 2026 revenue of $12.9 bn, with triple-digit growth in data-center demand. ABB reported record quarterly orders of approximately $12.1 billion, alongside a triple-digit increase in its data-center segment. These results highlight the strength of demand across the broader data-center infrastructure market.

For equipment OEMs, the opportunity extends well beyond higher component demand. The evolution of AI data center cooling is creating new opportunities across:

• Fluid handling: Pumps, valves, piping and fluid-distribution systems
• Thermal management: Heat exchangers, cooling distribution units (CDUs) and heat-rejection solutions
• Technology and portfolio expansion: Direct liquid cooling, advanced components and integrated cooling architectures
• Strategic growth: Partnerships, acquisitions and entry into adjacent markets

As the competitive landscape evolves, a critical question emerges: Where should equipment OEMs compete, which capabilities should they develop, and where should they partner or acquire to capture the next wave of growth?

Aranca’s latest Industry Perspective, AI Is Rewriting the Data Center Cooling Playbook, explores the technology shifts, competitive moves and growth opportunities shaping the data center cooling market.

Explore the report to understand the implications for industrial equipment manufacturers and their growth strategies.