# China Data Center Thermal Management Market

> China Data Center Thermal Management Market: USD 4.61 billion in 2026, USD 11.72 billion by 2035, a 12.10% CAGR from 2025, as PUE caps tighten.

Publisher: DC Market Insights  
Author: Amit Jain, DC Market Insights  
Published: 2026-01-28  
Last updated: 2026-10-29  
Next review: Apr 2027  
Page: https://www.dcmarketinsights.com/report/china-data-center-thermal-management-market

## Key takeaways

- 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

**Frequently Asked Questions**

**What is the size of the China Data Center Thermal Management Market in 2026?**

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.

**How fast is the China data center thermal management market growing?**

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.

**What PUE must new data centers in China meet?**

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.

**What is Beijing's data center PUE surcharge?**

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.

**Which cooling approach grows fastest in Chinese data centers?**

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.

**Which region of China spends most on data center cooling?**

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.

**Who are the leading data center cooling suppliers in China?**

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.

**How much does data center cooling cost per MW in China?**

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.

**How large is the PUE retrofit opportunity in China?**

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.

**Why do China data center thermal management market estimates differ?**

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.

## Dataset

| Series | Value | Unit |
| --- | --- | --- |
| Market size 2025 | 3,740 | USD million |
| Revenue CAGR | 12.1 | % |
| Market size 2035 | 11,720 | USD million |

## Frequently asked questions

### What is the size of the China Data Center Thermal Management Market in 2026?

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.

### How fast is the China data center thermal management market growing?

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.

### What PUE must new data centers in China meet?

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.

### What is Beijing's data center PUE surcharge?

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.

### Which cooling approach grows fastest in Chinese data centers?

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.

### Which region of China spends most on data center cooling?

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.

### Who are the leading data center cooling suppliers in China?

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.

### How much does data center cooling cost per MW in China?

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.

### How large is the PUE retrofit opportunity in China?

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.

### Why do China data center thermal management market estimates differ?

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.

## How to cite

Data Center Market Research & Consulting | DC Market Insights, "China Data Center Thermal Management Market", updated 2026-10-29, https://www.dcmarketinsights.com/report/china-data-center-thermal-management-market