Best 5 data center cooling system manufacturers

Best data center cooling system manufacturers

The data center cooling market is experiencing significant growth, driven by the increasing demand for data processing and storage solutions worldwide. This demand is mainly driven by the proliferation of cloud computing, artificial intelligence (AI), and the Internet of Things (IoT), all of which require robust data center infrastructures. Efficient cooling systems are essential to maintain optimal operating conditions within these facilities, ensuring reliability and performance.

Global data center cooling market

In 2023, the global data center cooling market was valued at approximately USD 15 billion and is expected to reach USD 17 billion in 2024 and will further escalate to USD 43 billion by 2032. This growth is mainly driven by the exponential increase in data generation that led to a surge in data center establishments, innovations in cooling technologies, such as liquid cooling and AI-driven optimization,

Indian data center cooling market

The data center cooling market in India is experiencing strong growth, driven by the escalating demand for digital services, cloud computing, and stringent data security regulations. In 2024, the market is estimated to reach approximately USD 2 billion, with expectations to surge to USD 7 billion by 2030. Rapid digitization, increased data center deployments, Government Initiatives, and significant investments from both domestic and international players are bolstering the data center ecosystem and hence increasing the demand for efficient cooling solutions.

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Best 5 Data Center Cooling System Manufacturers

Schneider Electric SE (Schneider) company insights

• Schneider Electric reported a 17.8% increase in revenue in FY2024, achieving INR 3,929.72 million compared to INR 3,336.36 million in FY2023. This growth reflects robust operational performance​
• The Profit After Tax (PAT) grew significantly by 79.6% YoY to INR 299.66 million in FY2024, supported by operational efficiency and cost management​.
• Return on Capital Employed (ROCE) increased to 22.57% in FY2024 from 14.59% in FY2023, showcasing enhanced operational efficiency.​
• Schneider’s tailored solutions for data centers, such as modular cooling systems and IT enclosures, are major growth drivers.​
• Over 80% of revenue is derived from India, with additional contributions from Asia-Pacific and Europe.​
• Introduction of integrated products like micro data centers that combine cooling, power, and environmental monitoring solutions, addressing specific data center needs
• The company acquired a controlling interest in Motivair Corporation (“Motivair”) in October 2024, a company specialized in liquid cooling and advanced thermal management solutions for high-performance computing systems, strengthened its leading position in the Data Centers market.
• It is one of the best data center cooling systems manufacturers globally as well as in India. However, the valuation metrics (P/E – 101, P/B – 50, Ind P/E – 87) are high within the sector.

Kirloskar Chillers Private Limited (KIRLOSBROS) company insights

• Kirloskar Chillers Pvt. Ltd., part of the Kirloskar group (The parent company is Kirloskar Brothers) plays a pivotal role in providing energy-efficient cooling solutions for data centers.
• KBL’s advancements in IoT-based remote monitoring solutions (KirloSmart®) enhance the efficiency and reliability of their cooling and pumping systems.
• KBL is a market leader in India for fluid management systems and has a growing presence in the data center cooling segment through its subsidiary
• KBL reported a 14% YoY increase in revenue for H1 FY2025, achieving INR 2,067 crore. Growth was driven by operational excellence and increased demand for fluid management systems.
• EBITDA increased by 33% YoY in H1 FY2025, with an EBITDA margin rising to 13.7% from 11.7% in H1 FY2024, highlighting better cost control and revenue mix
• PAT margins increased to 9.3% in Q2 FY2025 from 5.6% in Q2 FY2024, reflecting improved profitability​.
• It is one of the best data center cooling systems manufacturers globally as well as in India. Kirloskar is my favorite company in this segment. The valuation metrics (P/E – 46, P/B – 9.8, Ind P/E – 49, EPS – 50) are very competitive within the sector.
• Going ahead, if Kirloskar Chillers Private Ltd. is listed, it will give you a dual benefit.

Hitachi Energy Ltd. (POWERINDIA) company insights

• Provides a range of energy solutions, including data center cooling systems. The company supports data centers by offering transformers, automation systems, and grid integration solutions tailored to meet the needs of energy-intensive operations.
• Solutions like Lumada APM, which integrates asset health prediction and maintenance optimization, are pivotal in driving revenues.
• The company holds a strong market position in India’s power technology sector, with a particular focus on eco-efficient and renewable energy solutions.​
• Strategic partnerships with global technology leaders, like Google Cloud, enhance its competitive edge in digital energy management.​
• Expansion of its product portfolio to cater to the growing demand for reliable and eco-friendly cooling solutions in data centers​
• The company recorded a revenue of INR 5,246.8 crores in FY 2023-24, representing steady growth fueled by demand in energy transitions and infrastructure development.​
• Profit After Tax (PAT) for FY 2023-24 stood at INR 163.8 crores, with a Profit Before Tax (PBT) of INR 221.7 crores, reflecting operational efficiency.​
• It is one of the best data center cooling systems manufacturers globally as well as in India. POWERINDIA is my favorite company in this segment. However, the valuation metrics (P/E – 256, P/B – 36.5, Ind P/E – 87, EPS – 47) are very expensive within the sector.

Castrol India (CASTROLIND) company insights

• Castrol India has ventured into the data center cooling market with its Castrol ON range of immersion cooling fluids. These single-phase dielectric fluids are engineered to enhance thermal management in data centers, offering improved energy efficiency and sustainability.
• The company’s focus on reducing carbon emissions aligns with the global demand for sustainable data center operations​.
• Castrol India maintains a leading position in the lubricant and cooling fluids market, with a 38.7% market share in retail volume.​
• Partnerships with global automotive brands and OEMs bolster its competitive edge.
• Revenue increased by 6% YoY to INR 5,075 crores in FY2023, showcasing consistent growth despite volatile raw material markets.​
• Profit After Tax (PAT) increased by 6% YoY to INR 864 crores in FY2023. EBITDA stood at INR 1,198 crores, reflecting an 8% YoY growth​.
• The valuation metrics (P/E – 25, P/B – 9.4, Ind P/E – 21.4, EPS – 9, PEG – 9.4) are quite reasonable within the sector.

ABB India Limited (ABB) company insights

• ABB provides advanced variable speed drives (VSDs) and high-efficiency motors designed to optimize the performance of fans, pumps, and compressors within data center cooling systems.
• These technologies significantly enhance energy efficiency, addressing the substantial energy consumption associated with data center cooling, which accounts for approximately 40% of a data center’s total energy usage.
• Through ABB Ability™ Condition Monitoring and Predictive Maintenance, the company offers real-time insights into the operational status of cooling system components, including drives, motors, and pumps. This continuous monitoring facilitates early detection of potential issues, thereby reducing downtime and extending equipment lifespan.
• ABB India has consistently shown revenue growth. For instance, revenue increased by 28% year-over-year in Q1 CY2024, driven by strong backlog execution across all business divisions​
• Profit After Tax (PAT) grew by 87% YoY in Q1 CY2024, supported by capacity utilization and cost optimization.​
• Orders from the data center segment contributed significantly to growth, driven by demand for smart power distribution systems and energy-efficient solutions.​
• ABB India expanded its presence in Tier II and Tier III cities, capturing untapped markets​
• Launch of the ACH180 compact drive, specifically for HVAC and refrigeration systems, aligns with data center cooling requirements. ABB plans to expand its offerings in smart power and distribution solutions for data centers, a high-growth market driven by digital transformation​
• Key competitive advantage lies in ABB’s extensive portfolio and global expertise in smart power and cooling systems, crucial for data centers.
• ABB’s valuation metrics (P/E – 95, P/B – 23.6, Ind P/E – 87) are competitive within the sector, supported by strong financial performance.

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Conclusion

The data center cooling market is on an upward journey, driven by technological advancements, increasing data center deployments, and a global emphasis on energy efficiency. Regions like Asia-Pacific and countries such as India, Indonesia, and Malaysia are poised to play significant roles in this growth, offering substantial opportunities for investors in the industry. There are many data center cooling system manufacturers worldwide. In this article, my focus was to concentrate on Indian data center cooling system manufacturers. My best choice of data center cooling system manufacturers are Kirloskar, ABB, and Schneider Electric in this order.

Other cooling system for data center

Johnson Controls International plc company insights

• Overview: A multinational conglomerate providing HVAC and data center cooling solutions.
• Stock Information: Johnson Controls operates in India through its subsidiary, Johnson Controls-Hitachi Air Conditioning India Limited, listed on the NSE and BSE under the ticker symbol JCHAC.

Netweb Technologies India Limited

• Overview: Netweb Technologies specializes in high-performance computing solutions, including data center servers and cooling systems.
• Stock Information: The company is listed on the National Stock Exchange (NSE) under the ticker symbol NETWEB.

Mitsubishi Electric Corporation

• Overview: Offers a range of cooling solutions for data centers.
• Stock Information: Operates in India through Mitsubishi Electric India Pvt. Ltd., but does not have a separate listing on Indian stock exchanges.

Vertiv Group Corp.

• Overview: Provides critical infrastructure technologies, including thermal management solutions for data centers.
• Stock Information: Vertiv’s Indian operations are not separately listed on Indian stock exchanges.

Rittal GmbH & Co. KG

• Overview: Known for its enclosure systems and data center cooling solutions.
• Stock Information: Rittal’s Indian operations are not separately listed on Indian stock exchanges.

Stulz GmbH

• Overview: Specializes in precision air conditioning and data center cooling solutions.
• Stock Information: Stulz’s Indian operations are not separately listed on Indian stock exchanges.

Munters Group

• Overview: A global leader in energy-efficient air treatment and cooling solutions.
• Stock Information: Munters’ Indian operations are not separately listed on Indian stock exchanges.

Eaton Corporation PLC

• Overview: Offers energy-efficient solutions, including data center cooling systems.
• Stock Information: Eaton’s Indian operations are not separately listed on Indian stock exchanges.

Prasa Infocom & Power Solutions Pvt. Ltd.

• Overview: Specializes in data center infrastructure and liquid immersion cooling solutions.
• Stock Information: Not listed on Indian stock exchanges.

Systemair India

• Overview: Specializes in ventilation and cooling solutions for data centers.
• Stock Information: Systemair’s Indian operations are not separately listed on Indian stock exchanges.

Nortek

• Overview: Builds data center cooling solutions with a focus on energy and water efficiency.
• Stock Information: Nortek’s Indian operations are not separately listed on Indian stock exchanges.