China Data Center Thermal Management Market Size, Share & Forecast to 2035
Market at a glance
The China Data Center Thermal Management market was worth USD 3,740.0 million in 2025 and is forecast to reach USD 11.72 billion by 2035, growing at a 12.1% CAGR.
By Amit Jain, Senior Consultant, ICT & Emerging Technologies
Reviewed by Deepti Agrawal
Last updated 29 Oct 2026
Base year 2025 PDF + Excel
Key findings
The 2024 Special Action Plan Sets PUE 1.25 for New Large Sites
Immersion Sales at Sugon Shuchuang Rose 370.58% in 2025
Domestic Price Pressure: Envicool Growth Fell From 32.23% to 17.24%
USD 1.97 Billion of PUE Retrofits From 2026 to 2030
What is inside the report
- 01Introduction
- 02Executive Summary
- 03Market Scope and Estimate Comparison
- 04Market Drivers
- 05Market Trends
- 06Market Challenges
- 07Market Opportunities
- 08Pricing Analysis
- 09Standards and Regulation
- 10Market Segmentation
- 17chapters
- 2020-2024Historical period
- 2026-2035Forecast period
- —Companies profiled
Segmentation
Recent developments
Shenzhen Envicool reported first-half revenue of RMB 3.02 billion, up 17.24%, with room-level cooling at RMB 1.70 billion, up 25.84% (Source: Envicool half-year report).
Guangdong Shenling reported data-service revenue up 30.68% and new orders about 2.3 times the prior-year half (Source: Shenling half-year report).
the State Council Information Office reported intelligent compute of 2,185 EFLOPS, up 177%, and rack utilization of 71.4% (Source: State Council Information Office).
the NEA said computing centers used 170 billion kWh in 2025, 1.6% of national electricity use (Source: National Energy Administration).
Sugon Shuchuang reported 2025 revenue of RMB 882.34 million, up 74.29%, with immersion products up 370.58% (Source: Sugon Shuchuang annual report).
Vertiv reported Asia Pacific net sales of USD 2.02 billion for 2025, up 17.5% (Source: Vertiv Form 10-K).
Full analysis
The China Data Center Thermal Management Market is valued at USD 4.61 billion in 2026 and is projected to reach USD 11.72 billion by 2035, up from USD 3.74 billion in 2025, a CAGR of 12.10% from 2025 to 2035 (DC Market Insights estimate). What moves the money in China is a compliance clock rather than a weather map: the July 2024 Special Action Plan for green and low-carbon data centers, issued by the National Development and Reform Commission (NDRC), the Ministry of Industry and Information Technology (MIIT), the National Energy Administration (NEA) and the National Data Administration, required new large sites to reach a power usage effectiveness (PUE) of 1.25 or lower by the end of 2025, and 1.2 inside national hub nodes (Source: NDRC, July 2024). Beijing then added a price signal: from 2026, sites above PUE 1.35 pay a surcharge of 0.2 or 0.5 yuan per kWh, according to the Beijing Municipal Government. At the same time, China’s intelligent compute reached 2,185 EFLOPS by June 2026, up 177% in a year (Source: State Council Information Office, July 2026), so the heat each new rack sheds keeps rising.
The market covers the facility thermal layer of Chinese data centers: precision air and chilled-water cooling, indirect evaporative and free cooling, cold-plate and immersion liquid cooling, aisle containment and sensors, PUE retrofit projects and thermal controls software and maintenance. The 2025 receipt is 2,600 MW of new IT capacity × USD 1.04 million of cooling equipment per MW = USD 2.70 billion, plus 2,600 MW × USD 0.09 million of containment and sensors = USD 234.00 million, plus 900 MW of PUE retrofits × USD 0.45 million = USD 405.00 million, plus 18,147 MW of installed capacity × USD 22,000 a year of controls and maintenance = USD 399.23 million. Immersion liquid cooling is the fastest cooling approach at 22.01% a year, and the Western Hub Provinces are the fastest region at 18.55% a year, because the East Data West Computing hubs in Inner Mongolia, Guizhou, Gansu and Ningxia take a growing share of new AI halls.
Key Market Statistics: How Big Is the China Data Center Thermal Management Market in 2026?
The China data center thermal management market is worth USD 4.61 billion in 2026, 23.27% more than the USD 3.74 billion of 2025, by DC Market Insights estimates.
- Market size 2025: USD 3.74 billion.
- Market size 2026: USD 4.61 billion.
- Market size 2030: USD 8.25 billion.
- Market size 2035: USD 11.72 billion.
- CAGR 2025-2035: 12.10% in the base case, 8.47% in the low case and 15.08% in the high case.
- Largest component: Cooling Equipment, 72.26% of 2025 value.
- Fastest cooling approach: Immersion Liquid Cooling, 22.01% a year.
- Leading region: Yangtze River Delta, 30.00% of 2025 value; fastest region: Western Hub Provinces, 18.55% a year.
- Largest province: Guangdong, USD 636.18 million in 2025; fastest province: Ningxia (Zhongwei), 21.57% a year.
- Largest supplier by China data center cooling revenue: Shenzhen Envicool Technology, RMB 3.45 billion of room-level cooling sales in 2025 (company annual report).
Key Takeaways: What Matters Most in China Data Center Thermal Management?
Four findings explain where China data center thermal management value of USD 3.74 billion in 2025 sits and where it moves.
- Cooling Equipment holds 72.26% of 2025 value because every new MW of Chinese IT capacity carries about USD 1.04 million of cooling plant.
- PUE Retrofit Projects peak at USD 455.00 million in 2026 because the 2025 PUE deadline and the Beijing tariff push older halls to upgrade.
- Cold-plate and immersion liquid cooling rise from 26% to 52% of value by 2035 because racks above 40 kW grow 23.65% a year.
- The Western Hub Provinces gain 9 points of share because hub-node rules (PUE 1.2 or lower) favour cold, dry sites with cheap green power.
Executive Summary: How Fast Is China Data Center Thermal Management Growing?
The China Data Center Thermal Management Market size was valued at USD 1.57 billion in 2020, reached USD 3.74 billion in 2025, and is anticipated to reach USD 11.72 billion by 2035, at a CAGR of 12.10% during the forecast period. Growth from 2020 to 2025 ran at 19.03% a year as new IT capacity rose from 1,400 MW to 2,600 MW a year.
| Attribute | Detail |
|---|---|
| Historical period | 2020-2024 |
| Base year | 2025 |
| Forecast period | 2026-2035 |
| Market size 2025 | USD 3.74 billion |
| Market size 2026 | USD 4.61 billion |
| CAGR 2025-2035 | 12.10% |
| Market size 2035 | USD 11.72 billion |
China data center thermal management spending grows by USD 7.98 billion between 2025 and 2035. About 82% of that gain comes from cooling equipment for new halls, whose value per MW rises from USD 1.04 million to USD 1.55 million as liquid loops replace room air in AI halls. Controls software and maintenance grow from 10.67% to 12.49% of value as the installed base passes 61 GW of IT capacity.
Market Scope: What Does China Data Center Thermal Management Include?
China data center thermal management, as sized here, is USD 3.74 billion of 2025 spending on the equipment, projects and services that remove heat from Chinese data halls.
Included: computer-room air handlers and precision air units, chillers and dry coolers bought for data centers, indirect evaporative and pumped-refrigerant (fluorine pump) units, heat pipes, coolant distribution units, cold plates sold as facility kits, immersion tanks and fluids, aisle containment, temperature and humidity sensors, thermal controls software, maintenance contracts and PUE retrofit projects.
Excluded: server fans and chip heat sinks, uninterruptible power supply and electrical gear, the electricity that cooling consumes, building shells and IT equipment.
How the segments fit: the four component lines sum to the total each year; cooling approach, data center type and rack density are three other cuts of the same total. The thermal market is the cooling, containment and service slice of the China Data Center Market; its cooling-equipment line equals that report’s cooling systems line in 2025.
Why Do China Data Center Thermal Management Market Estimates Differ?
Public estimates for China data center thermal management differ by more than 2 times because of scope; DC Market Insights values the market at USD 4.61 billion in 2026 on the facility thermal layer alone.
Broader definitions add the electricity used by cooling (about a fifth of China’s 170 billion kWh of data center use in 2025 at a PUE near 1.42), server-level heat sinks and fans, or the full HVAC plant of mixed-use buildings. Narrower ones count only precision air units and miss liquid cooling, retrofits and services. The earlier DC Market Insights edition put 2025 at USD 1.54 billion because it counted equipment shipments only; this edition adds containment, retrofits and maintenance and ties the cooling line to China’s 2,600 MW of new IT capacity in 2025.
| Element | In this estimate | Why |
|---|---|---|
| Cooling equipment for new halls | Yes, 72.26% of 2025 value | Core of the thermal layer |
| Containment and sensors | Yes, USD 234.00 million | Required by PUE targets |
| PUE retrofit projects | Yes, USD 405.00 million | Driven by the 2025 PUE deadline |
| Controls software and maintenance | Yes, USD 399.23 million | Recurring spend on the installed base |
| Cooling electricity | No | Operating cost, not equipment |
| Server fans and heat sinks | No | Part of IT hardware |
Small and medium enterprise server rooms, provincial government halls and telecom edge rooms are in scope through the Enterprise and Government and Telecom Operator IDC segments; heat-reuse district heating networks and industrial chillers outside data centers are out of scope.
Market Drivers: What Is Pushing China Data Center Cooling Spend Up?
Three policy and density forces lift China data center thermal management from USD 3.74 billion in 2025 to USD 4.61 billion in 2026, by DC Market Insights estimates.
The 2024 Special Action Plan Sets PUE 1.25 for New Large Sites
The 2024 Special Action Plan issued by the NDRC, MIIT, NEA and the National Data Administration in July 2024 set a national average PUE below 1.5 by the end of 2025, a cap of 1.25 for new and expanded large data centers and 1.2 for national hub-node projects, with more than 80% green power for new hub sites. A hall that meets PUE 1.25 needs indirect evaporative, free cooling or liquid loops instead of room air alone, which is why cooling value per new MW rises from USD 0.92 million in 2020 to USD 1.04 million in 2025 in the DC Market Insights model.
Beijing’s PUE 1.35 Surcharge Starts in 2026
From 2026, Beijing charges data centers above PUE 1.35 an extra 0.2 or 0.5 yuan per kWh, depending on how far they exceed the limit, and targets an average PUE below 1.35 by 2027, according to the Beijing Municipal Government (November 2024). GDS Holdings flagged the same rule in its 2025 annual report on Form 20-F. The DC Market Insights model counts 1,000 MW of PUE retrofits in 2026, worth USD 455.00 million, the peak year for retrofit spend.
Intelligent Compute Up 177% Pushes Racks Above 40 kW
China’s intelligent compute reached 2,185 EFLOPS (FP16) at the end of June 2026, up 177% in a year, with overall rack utilization at 71.4%, according to the State Council Information Office (July 2026). Accelerator racks shed 40 kW to over 100 kW each, beyond what room air removes, so the Above 40 kW density segment grows 23.65% a year, from 18% to 48% of value.
Market Trends: Which Cooling Technologies Are Chinese Operators Adopting?
Liquid cooling and climate-led site choice are the two trends that move China data center thermal management value, lifting the liquid share of China data center thermal management from 26% of 2025 value to 52% by 2035, by DC Market Insights estimates.
Immersion Sales at Sugon Shuchuang Rose 370.58% in 2025
Sugon Shuchuang, the liquid-cooling unit of Sugon, reported 2025 revenue of RMB 882.34 million, up 74.29%, with immersion products at RMB 457.93 million (up 370.58%) and cold-plate products at RMB 298.64 million (up 40.01%), according to its 2025 annual report. Immersion Liquid Cooling is the fastest cooling approach in this model at 22.01% a year, from 6% to 14% of value.
Western Hubs Lean on Indirect Evaporative and Free Cooling
According to the NDRC, its East Data West Computing plan (March 2022) set hub nodes below PUE 1.25 and the Gui’an cluster in Guizhou below 1.2, and asked western sites to lift utilization from 30% to above 50%. Cold, dry air in Inner Mongolia, Ningxia and Gansu lets indirect evaporative and free cooling carry most hours, so this approach keeps 22% of 2025 value and still grows 9.87% a year to USD 2.11 billion in 2035.
Chinese Cooling Suppliers Turn to Export Orders
Shenzhen Envicool said growth in its data center cooling business slowed in the second half of 2025 while overseas revenue rose sharply, and Guangdong Shenling Environmental Systems reported data-service orders up about 72% in 2025 with progress in overseas business and liquid cooling, according to their 2025 annual reports. Export demand supports factory scale and keeps domestic price levels in check.
Market Challenges: What Could Slow China Data Center Thermal Management?
Slower domestic growth and idle capacity are the two risks for China data center thermal management, and together they explain the gap between the USD 8.44 billion low case and the USD 11.72 billion base case for 2035.
Domestic Price Pressure: Envicool Growth Fell From 32.23% to 17.24%
According to Envicool’s annual and half-year reports, its revenue grew 32.23% in 2025 to RMB 6.07 billion, but only 17.24% in the first half of 2026 to RMB 3.02 billion (Source: Envicool half-year report, August 2026). Room-level cooling still grew 25.84% in that half, which points to price competition among domestic suppliers rather than weak demand; this model lets cooling value per MW rise 49% by 2035, not faster.
Idle Racks Delay New Cooling Orders
China had 15.56 million standard racks in use by June 2026, and national rack utilization stood at 71.4%, according to State Council and conference figures. Where utilization is low, operators fill existing halls before buying new cooling plant; the low case cuts 2035 spend by 28% to USD 8.44 billion for this reason.
Market Opportunities: Where Is the New Money in Chinese Data Center Cooling?
PUE retrofits and liquid-cooled AI halls are the two largest openings in China data center thermal management, worth about USD 1.97 billion and USD 6.10 billion respectively, by DC Market Insights estimates.
USD 1.97 Billion of PUE Retrofits From 2026 to 2030
The national average PUE of computing centers in use was 1.42 in June 2025, according to MIIT figures, well above the 1.25 required of new sites. The DC Market Insights model counts 4,150 MW of retrofits from 2026 to 2030 at USD 0.45-0.48 million per MW, a pool of USD 1.97 billion led by Beijing, Shanghai and Guangdong halls built before 2020.
Liquid Cooling for AI Halls Reaches USD 6.10 Billion by 2035
Cold-plate liquid cooling grows from USD 748.45 million in 2025 to USD 4.46 billion in 2035 (19.53% a year) and immersion from USD 224.53 million to USD 1.64 billion. Coolant distribution units, manifolds and immersion tanks are the products that capture this spend; see the Data Center Coolant Distribution Units Market for the CDU slice worldwide.
Pricing: How Much Does Data Center Cooling Cost per MW in China?
China data center thermal management value per new MW of IT capacity rises from USD 0.92 million in 2020 to USD 1.13 million in 2025 and USD 1.66 million in 2035, by DC Market Insights estimates (cooling equipment plus containment and sensors).
| Year | Cooling equipment (USD million per new MW) | Containment and sensors (USD million per new MW) | Retrofit (USD million per MW) | Controls and maintenance (USD per installed MW-year) |
|---|---|---|---|---|
| 2020 | 0.85 | 0.07 | 0.40 | 18,000 |
| 2025 | 1.04 | 0.09 | 0.45 | 22,000 |
| 2030 | 1.35 | 0.10 | 0.48 | 24,000 |
| 2035 | 1.55 | 0.11 | 0.50 | 26,000 |
Public anchors: Envicool sold RMB 3.45 billion of room-level cooling in 2025, Shenling RMB 2.34 billion of data-service products and Sugon Shuchuang RMB 0.88 billion of liquid cooling (company annual reports, April 2026). Huawei Digital Power states its FusionModule2000 reaches 50 kW per rack with air cooling (October 2025), which sets the density point where liquid loops become the cheaper option per MW.
Standards and Regulation: Which Rules Set PUE Limits for Chinese Data Centers?
Five rules shape China data center thermal management spending, and together they cover the PUE limits for every new hall worth USD 2.94 billion of cooling, containment and sensors in 2025.
- GB 40879-2021, the mandatory national standard on data center energy efficiency limits, published 11 October 2021 and in force since 1 November 2022 (State Administration for Market Regulation, standard record).
- Special Action Plan for Green and Low-Carbon Development of Data Centers (NDRC, MIIT, NEA, National Data Administration, July 2024): average PUE below 1.5 by end-2025, 1.25 for new large sites, 1.2 for hub-node projects, rack utilization of at least 60% (Source: NDRC).
- East Data West Computing (NDRC, March 2022): hub nodes below PUE 1.25, Gui’an below 1.2 (Source: NDRC).
- Shanghai Municipal Commission of Economy and Informatization opinion (June 2022): new large sites in clusters near PUE 1.25, about 280,000 racks by 2025, small sites above PUE 1.7 listed for exit (Source: Shanghai Municipal Commission of Economy and Informatization).
- Beijing energy-review rules (2021) with PUE entry levels of 1.3, 1.25, 1.2 and 1.15 by scale, and the differential tariff above PUE 1.35 from 2026 (Source: Beijing Municipal Government).
Market Segmentation: Which Thermal Segment Carries the Value in China?
Cooling Equipment carries 72.26% of China data center thermal management value in 2025, and racks above 40 kW are the fastest density band at 23.65% a year.
By Component
| Segment | 2025 (USD million) | Share 2025 | 2035 (USD million) | CAGR 2025-2035 |
|---|---|---|---|---|
| Cooling Equipment | 2,704.00 | 72.26% | 9,300.00 | 13.15% |
| Containment and Sensors | 234.00 | 6.25% | 660.00 | 10.93% |
| PUE Retrofit Projects | 405.00 | 10.82% | 300.00 | -2.96% |
| Thermal Controls Software and Maintenance | 399.23 | 10.67% | 1,463.75 | 13.87% |
PUE Retrofit Projects shrink by 2.96% a year after the 2026 peak as the stock of pre-2020 halls is upgraded.
By Cooling Approach
| Segment | 2025 (USD million) | Share 2025 | 2035 (USD million) | CAGR 2025-2035 |
|---|---|---|---|---|
| Precision Air and Chilled-Water Cooling | 1,945.96 | 52.00% | 3,517.12 | 6.10% |
| Indirect Evaporative and Free Cooling | 823.29 | 22.00% | 2,110.28 | 9.87% |
| Cold-Plate Liquid Cooling | 748.45 | 20.00% | 4,455.02 | 19.53% |
| Immersion Liquid Cooling | 224.53 | 6.00% | 1,641.33 | 22.01% |
By Data Center Type
| Segment | 2025 (USD million) | Share 2025 | 2035 (USD million) | CAGR 2025-2035 |
|---|---|---|---|---|
| Hyperscale and Cloud Self-Build | 1,272.36 | 34.00% | 4,806.74 | 14.22% |
| Telecom Operator IDC | 1,010.40 | 27.00% | 2,813.70 | 10.78% |
| Third-Party Colocation and Wholesale | 785.87 | 21.00% | 2,696.46 | 13.12% |
| Enterprise and Government | 673.60 | 18.00% | 1,406.85 | 7.64% |
Hyperscale and Cloud Self-Build grows fastest among data center types at 14.22% a year because cloud groups build the largest AI halls in hub provinces.
By Rack Density
| Segment | 2025 (USD million) | Share 2025 | 2035 (USD million) | CAGR 2025-2035 |
|---|---|---|---|---|
| Below 15 kW | 1,796.27 | 48.00% | 2,579.22 | 3.68% |
| 15 to 40 kW | 1,272.36 | 34.00% | 3,517.12 | 10.70% |
| Above 40 kW | 673.60 | 18.00% | 5,627.40 | 23.65% |
DC Exclusive: The Beijing PUE Penalty Payback Ladder
In China data center thermal management, the clearest retrofit case is Beijing: a 10 MW hall running at PUE 1.45 pays about USD 2.47 million a year in surcharges from 2026, so a USD 4.50 million retrofit to PUE 1.30 pays back in about 1.3 years. This ladder is a DC Market Insights model built on 8 inputs: 10 MW of IT load, 70% average load (61,320 MWh of IT energy a year), the 0.2 and 0.5 yuan per kWh surcharge tiers, an assumed base tariff of 0.8 yuan per kWh, a retrofit cost of USD 0.45 million per MW, the PUE 1.35 threshold and 7.2 yuan per US dollar.
| Hall PUE | Facility energy (MWh a year) | Surcharge tier (yuan per kWh) | Surcharge (USD million a year) | Extra energy cost vs PUE 1.25 (USD million a year) | Payback of a retrofit to PUE 1.30 |
|---|---|---|---|---|---|
| 1.25 | 76,650 | 0 | 0.00 | 0.00 | not needed |
| 1.30 | 79,716 | 0 | 0.00 | 0.34 | not needed |
| 1.35 | 82,782 | 0 | 0.00 | 0.68 | not needed |
| 1.45 | 88,914 | 0.2 | 2.47 | 1.36 | about 1.3 years |
| 1.60 | 98,112 | 0.5 | 6.81 | 2.38 | about 0.5 years |
The ladder explains the 2026 retrofit peak in the model: the surcharge alone covers a retrofit within two years for any Beijing hall above PUE 1.35, and halls on the 0.5 yuan tier recover the cost within a year.
Regional Insights: Which Region of China Spends Most on Data Center Cooling?
The Yangtze River Delta leads China data center thermal management with 30.00% of 2025 value , and the Western Hub Provinces grow fastest at 18.55% a year to USD 2.46 billion in 2035.
| Region | 2025 (USD million) | Share 2025 | 2035 (USD million) | CAGR 2025-2035 |
|---|---|---|---|---|
| Beijing-Tianjin-Hebei and North China | 1,010.40 | 27.00% | 2,813.70 | 10.78% |
| Yangtze River Delta | 1,122.67 | 30.00% | 3,048.18 | 10.50% |
| Guangdong-Hong Kong-Macao Greater Bay Area | 711.02 | 19.00% | 1,875.80 | 10.19% |
| Chengdu-Chongqing and Central China | 449.07 | 12.00% | 1,524.09 | 13.00% |
| Western Hub Provinces | 449.07 | 12.00% | 2,461.99 | 18.55% |
Yangtze River Delta
Shanghai’s 2022 opinion targets PUE near 1.25 for new large sites and lists small sites above PUE 1.7 for exit, so retrofit and replacement work keeps the delta’s share at 26% in 2035 even as new builds move west.
Beijing-Tianjin-Hebei and North China
The Beijing PUE 1.35 surcharge from 2026 makes this region the largest retrofit market, while Zhangjiakou and Langfang in Hebei take the new halls; Hebei grows 13.17% a year against Beijing’s 7.64%.
Guangdong-Hong Kong-Macao Greater Bay Area
Guangdong is the largest province at USD 636.18 million in 2025; hot, humid summers limit free-cooling hours, which favours chilled-water and liquid systems and gives the Shaoguan cluster most new capacity.
Chengdu-Chongqing and Central China
The Tianfu and Chongqing clusters grow 13.00% a year to USD 1.52 billion in 2035, with Sichuan hydropower supporting the green-power share that hub rules require.
Western Hub Provinces
Inner Mongolia, Guizhou, Gansu and Ningxia rise from 12% to 21% of value because the Gui’an cluster must stay below PUE 1.2 and dry, cold air allows free cooling for most of the year; Ningxia (Zhongwei) is the fastest province at 21.57% a year.
Province Analysis: Which Chinese Provinces Lead Data Center Thermal Spending?
Guangdong leads China data center thermal management spending with USD 636.18 million in 2025, and Ningxia (Zhongwei) is the fastest-growing province at 21.57% a year, by DC Market Insights estimates.
| Rank | Province | Region | 2025 (USD million) | 2035 (USD million) | CAGR 2025-2035 |
|---|---|---|---|---|---|
| 1 | Guangdong | Guangdong-Hong Kong-Macao Greater Bay Area | 636.18 | 1,641.33 | 9.94% |
| 2 | Beijing | Beijing-Tianjin-Hebei and North China | 449.07 | 937.90 | 7.64% |
| 3 | Hebei (Zhangjiakou and Langfang) | Beijing-Tianjin-Hebei and North China | 374.22 | 1,289.61 | 13.17% |
| 4 | Shanghai | Yangtze River Delta | 355.51 | 879.28 | 9.48% |
| 5 | Jiangsu | Yangtze River Delta | 318.09 | 820.66 | 9.94% |
| 6 | Zhejiang | Yangtze River Delta | 243.24 | 644.81 | 10.24% |
| 7 | Sichuan | Chengdu-Chongqing and Central China | 168.40 | 586.19 | 13.28% |
| 8 | Inner Mongolia (Horinger) | Western Hub Provinces | 168.40 | 996.52 | 19.46% |
| 9 | Guizhou (Gui’an) | Western Hub Provinces | 149.69 | 644.81 | 15.72% |
| 10 | Chongqing | Chengdu-Chongqing and Central China | 112.27 | 410.33 | 13.84% |
| 11 | Anhui (Wuhu) | Yangtze River Delta | 74.84 | 468.95 | 20.14% |
| 12 | Ningxia (Zhongwei) | Western Hub Provinces | 74.84 | 527.57 | 21.57% |
Inner Mongolia (Horinger) is the fastest large province, from USD 168.40 million to USD 996.52 million (19.46% a year), because the Horinger cluster hosts cloud AI campuses designed for free cooling.
Forecast Scenarios: What Could China Data Center Thermal Management Be Worth in 2035?
China data center thermal management reaches USD 11.72 billion in 2035 in the base case, within a range of USD 8.44 billion to USD 15.24 billion, by DC Market Insights estimates.
| Scenario | 2035 (USD million) | CAGR 2025-2035 | Assumption |
|---|---|---|---|
| Low | 8,441.10 | 8.47% | New IT capacity stays near 4,300 MW a year and liquid cooling reaches 35% of value |
| Base | 11,723.75 | 12.10% | New IT capacity 6,000 MW in 2035, liquid cooling 52% of value |
| High | 15,240.88 | 15.08% | AI halls take 75% of new capacity and hub rules tighten to PUE 1.15 |
Key Players and Market Share: Who Supplies Data Center Cooling in China?
The five largest suppliers hold about 45% of China data center thermal management value in 2025, by DC Market Insights estimates, led by Shenzhen Envicool Technology and Huawei Digital Power.
- Shenzhen Envicool Technology
- Huawei Digital Power
- Guangdong Shenling Environmental Systems
- Vertiv
- Sugon Shuchuang (Sugon Data Energy)
- Schneider Electric
- Gree Electric Appliances
- Midea Group (Midea Building Technologies)
- Daikin (McQuay)
- Johnson Controls
- Inspur Information
- Guangzhou Goaland Energy Conservation Technology
- Delta Electronics
- Kehua Data
- STULZ
- Trane Technologies
Envicool reported 2025 revenue of RMB 6.07 billion, up 32.23%, of which room-level data center cooling was RMB 3.45 billion (56.83%, up 41.28%), according to its 2025 annual report. Shenling’s data-service segment earned RMB 2.34 billion in 2025, up 51.42%, and its new orders in that segment in the first half of 2026 were about 2.3 times the prior-year level (Source: Shenling half-year report, August 2026). Vertiv’s Asia Pacific net sales were USD 2.02 billion in 2025, up 17.5%, according to its 2025 Form 10-K; China is one part of that region. Goaland Energy Conservation reported 2025 revenue of RMB 989.12 million, up 43.09% (company annual report). VNET Group lists liquid cooling among its patent focus areas, with 249 patents in China (Form 20-F, April 2026). The concentration figure is based on these disclosed revenues converted at 7.2 yuan per US dollar against the 2025 market of USD 3.74 billion.
Recent Developments: What Changed in Chinese Data Center Cooling in 2026?
Six dated events from 2026 shaped the China data center thermal management outlook, from a 177% jump in intelligent compute to a 2.3-times rise in liquid-cooling orders at Shenling.
- In August 2026, Shenzhen Envicool reported first-half revenue of RMB 3.02 billion, up 17.24%, with room-level cooling at RMB 1.70 billion, up 25.84% (Source: Envicool half-year report).
- In August 2026, Guangdong Shenling reported data-service revenue up 30.68% and new orders about 2.3 times the prior-year half (Source: Shenling half-year report).
- In July 2026, the State Council Information Office reported intelligent compute of 2,185 EFLOPS, up 177%, and rack utilization of 71.4% (Source: State Council Information Office).
- In May 2026, the NEA said computing centers used 170 billion kWh in 2025, 1.6% of national electricity use (Source: National Energy Administration).
- In April 2026, Sugon Shuchuang reported 2025 revenue of RMB 882.34 million, up 74.29%, with immersion products up 370.58% (Source: Sugon Shuchuang annual report).
- In February 2026, Vertiv reported Asia Pacific net sales of USD 2.02 billion for 2025, up 17.5% (Source: Vertiv Form 10-K).
Research Methodology: How Was the China Data Center Thermal Management Market Sized?
DC Market Insights sized China data center thermal management bottom-up at USD 3.74 billion in 2025 from four lines: new IT capacity (1,400 MW in 2020, 2,600 MW in 2025, 4,900 MW in 2030, 6,000 MW in 2035) × cooling equipment per MW (USD 0.85 million, 1.04 million, 1.35 million, 1.55 million) and containment per MW (USD 0.07-0.11 million); PUE retrofits (200 MW in 2020, 900 MW in 2025, 1,000 MW in 2026, 600 MW in 2035) × USD 0.40-0.50 million per MW; and controls and maintenance of USD 18,000-26,000 per installed MW-year on a base that grows from 11,000 MW at the end of 2019 to 20,384 MW at the end of 2025 (2% retired each year). Segment, regional and provincial splits are shares that sum to the total each year.
Three bound checks hold. Ceiling 1: the market is 5.14% of the USD 72.77 billion China Data Center Market in 2025. Ceiling 2: the NEA’s 170 billion kWh for 2025 equals about 19.4 GW of average facility load, or 13.7 GW of IT load at PUE 1.42, 67% of the 20.4 GW modelled base, close to the 71.4% rack utilization reported in 2026. Floor: Envicool room-level cooling (RMB 3.45 billion), Shenling data-service (RMB 2.34 billion) and Sugon Shuchuang (RMB 0.88 billion) add up to about USD 0.93 billion, 24.8% of the 2025 estimate, from three suppliers that also sell abroad. The cooling slice of other markets is covered in the China Data Center Cooling Market and the Asia Pacific Data Center Thermal Management Market. Full method: research methodology.
Table of contents
- 01Introduction
- 1.1Market Definition and Scope
- 1.2Research Methodology
- 02Executive Summary
- 2.1Market Snapshot, 2025, 2026 and 2035
- 2.2Key Market Statistics
- 2.3Key Takeaways
- 03Market Scope and Estimate Comparison
- 3.1Included and Excluded
- 3.2Why Estimates Differ
- 04Market Drivers
- 4.1The 2024 Special Action Plan Sets PUE 1.25 for New Large Sites
- 4.2Beijing's PUE 1.35 Surcharge Starts in 2026
- 4.3Intelligent Compute Up 177% Pushes Racks Above 40 kW
- 05Market Trends
- 5.1Immersion Sales at Sugon Shuchuang Rose 370.58% in 2025
- 5.2Western Hubs Lean on Indirect Evaporative and Free Cooling
- 5.3Chinese Cooling Suppliers Turn to Export Orders
- 06Market Challenges
- 6.1Domestic Price Pressure: Envicool Growth Fell From 32.23% to 17.24%
- 6.2Idle Racks Delay New Cooling Orders
- 07Market Opportunities
- 7.1USD 1.97 Billion of PUE Retrofits From 2026 to 2030
- 7.2Liquid Cooling for AI Halls Reaches USD 6.10 Billion by 2035
- 08Pricing Analysis
- 8.1Thermal Value per MW, 2020, 2025, 2030 and 2035
- 8.2Public Price Anchors
- 09Standards and Regulation
- 9.1GB 40879-2021
- 9.22024 Special Action Plan
- 9.3East Data West Computing
- 9.4Shanghai and Beijing PUE Rules
- 10Market Segmentation
- 10.1By Component: Cooling Equipment, Containment and Sensors, PUE Retrofit Projects, Thermal Controls Software and Maintenance
- 10.2By Cooling Approach: Precision Air and Chilled-Water Cooling, Indirect Evaporative and Free Cooling, Cold-Plate Liquid Cooling, Immersion Liquid Cooling
- 10.3By Data Center Type: Hyperscale and Cloud Self-Build, Telecom Operator IDC, Third-Party Colocation and Wholesale, Enterprise and Government
- 10.4By Rack Density: Below 15 kW, 15 to 40 kW, Above 40 kW
- 11DC Exclusive: The Beijing PUE Penalty Payback Ladder
- 11.1Surcharge and Payback by Hall PUE
- 12Regional Insights
- 12.1Beijing-Tianjin-Hebei and North China
- 12.2Yangtze River Delta
- 12.3Guangdong-Hong Kong-Macao Greater Bay Area
- 12.4Chengdu-Chongqing and Central China
- 12.5Western Hub Provinces
- 13Province Analysis
- 13.1Guangdong
- 13.2Beijing
- 13.3Hebei (Zhangjiakou and Langfang)
- 13.4Shanghai
- 13.5Jiangsu
- 13.6Zhejiang
- 13.7Sichuan
- 13.8Inner Mongolia (Horinger)
- 13.9Guizhou (Gui'an)
- 13.10Chongqing
- 13.11Anhui (Wuhu)
- 13.12Ningxia (Zhongwei)
- 14Forecast Scenarios
- 14.1Low Scenario
- 14.2Base Scenario
- 14.3High Scenario
- 15Key Players and Market Share
- 15.1Shenzhen Envicool Technology
- 15.2Huawei Digital Power
- 15.3Guangdong Shenling Environmental Systems
- 15.4Vertiv
- 15.5Sugon Shuchuang (Sugon Data Energy)
- 15.6Schneider Electric
- 15.7Gree Electric Appliances
- 15.8Midea Group (Midea Building Technologies)
- 15.9Daikin (McQuay)
- 15.10Johnson Controls
- 15.11Inspur Information
- 15.12Guangzhou Goaland Energy Conservation Technology
- 15.13Delta Electronics
- 15.14Kehua Data
- 15.15STULZ
- 15.16Trane Technologies
- 16Recent Developments
- 16.1Developments in 2026
- 17Research Methodology
- 17.1Bottom-Up Model
- 17.2Bound Checks
- Fig. 1China Data Center Thermal Management Market Size, 2020-2035 (USD million)
- Table 1Market Snapshot
- Table 2Scope Comparison
- Table 3Thermal Value per MW
- Table 4Market by Component
- Table 5Market by Cooling Approach
- Table 6Market by Data Center Type
- Table 7Market by Rack Density
- Table 8Beijing PUE Penalty Payback Ladder
- Table 9Market by Region
- Table 10Top 12 Provinces
- Table 11Forecast Scenarios
About this report
Written by Amit Jain and reviewed by Deepti Agrawal, Senior Editor, Research. Figures are built top-down and bottom-up and reconciled before publication, with 2025 as the base year.
Read our methodologyHow we built this
- Historical period2020-2024
- Base year2025
- Forecast period2026-2035
- Sizing approachTop-down + bottom-up
Need more than the report?
Advisory on this market
Due diligence, site selection and market entry work, by the analysts who wrote this report.
See consulting servicesFrequently asked questions
USD 4.61 billion in 2026, up 23.27% from USD 3.74 billion in 2025, according to DC Market Insights estimates. The market is projected to reach USD 11.72 billion by 2035, a CAGR of 12.10% from 2025, as AI racks and PUE caps raise cooling value per MW.
12.10% a year from 2025 to 2035, after 19.03% a year from 2020 to 2025, by DC Market Insights estimates. New IT capacity rises from 2,600 MW to 6,000 MW a year and cooling value per new MW from USD 1.04 million to USD 1.55 million.
1.25 or lower for new and expanded large data centers by the end of 2025, and 1.2 for national hub-node projects, under the July 2024 Special Action Plan of the NDRC, MIIT, NEA and National Data Administration. The national average target is below 1.5.
0.2 or 0.5 yuan per kWh on top of the power price, from 2026, for data centers above PUE 1.35, according to the Beijing Municipal Government. For a 10 MW hall at PUE 1.45 that is about USD 2.47 million a year, so a USD 4.50 million retrofit pays back in about 1.3 years.
Immersion liquid cooling, at 22.01% a year, rising from 6% of 2025 value to 14% by 2035, by DC Market Insights estimates. Cold-plate liquid cooling grows 19.53% a year and becomes the largest approach by 2035 with 38% of value.
The Yangtze River Delta, with 30.00% of 2025 value or USD 1.12 billion. The Western Hub Provinces grow fastest at 18.55% a year, and Ningxia (Zhongwei) is the fastest province at 21.57%, by DC Market Insights estimates.
About 45% of 2025 value sits with the five largest suppliers, by DC Market Insights estimates, led by Shenzhen Envicool Technology (RMB 3.45 billion of room-level cooling sales in 2025) and Huawei Digital Power, followed by Shenling, Vertiv and Sugon Shuchuang.
About USD 1.13 million of thermal equipment per new MW of IT capacity in 2025 (USD 1.04 million cooling plus USD 0.09 million containment and sensors), rising to USD 1.66 million by 2035, by DC Market Insights estimates. Retrofits cost USD 0.45 million per MW.
USD 1.97 billion from 2026 to 2030, covering about 4,150 MW of older halls, by DC Market Insights estimates. The national average PUE of computing centers in use was 1.42 in June 2025, against 1.25 required of new large sites.
USD 4.61 billion is the 2026 DC Market Insights value for the facility thermal layer only. Wider estimates add cooling electricity, server fans and heat sinks or whole-building HVAC; narrower ones count precision air units and leave out liquid cooling, retrofits and services.
Get this report
How do I get the full report?
Request a quote; we reply by email within one business day.
How and when will I receive the report?
By email, within 24-48 business hours of payment.
How can I pay?
Once you accept the quote, we email you a secure payment link.
Can I see a sample first?
Yes. Request a free sample and we will email it to you.
Can the report be tailored to my needs?
Yes. We can add countries, segments or data cuts. Talk to an analyst about the scope you need.
Can I get an invoice or pay against a purchase order?
Write to sales@dcmarketinsights.com and our team will help.