# Data Center Waste Heat Recovery Market

> Data Center Waste Heat Recovery Market valued at USD 316.59 million in 2025, forecast to reach USD 1.76 billion by 2035 at 18.74% CAGR, led by EU rules.

Publisher: DC Market Insights  
Author: Satyabrat Rajawat, DC Market Insights  
Published: 2026-10-07  
Last updated: 2026-10-07  
Next review: Apr 2027  
Page: https://www.dcmarketinsights.com/report/data-center-waste-heat-recovery-market

## Key takeaways

- German Law Requires 10% Reused Energy in New Data Centers from July 2026
- Heat Pump Plants Grow to 180 MW
- Upgrading and Transporting Heat Costs About USD 2.09 Million per MWth
- Services Grow to USD 592.08 Million by 2035

**Frequently Asked Questions**

**What is the size of the Data Center Waste Heat Recovery Market in 2025 and 2035?**

USD 316.59 million in 2025, rising to USD 1.76 billion by 2035. DC Market Insights estimates the market at USD 101.75 million in 2020.

**How fast is the Data Center Waste Heat Recovery Market growing?**

18.74% a year from 2025 to 2035. Growth was faster, at 25.49% a year, between 2020 and 2025 as utility-scale heat pump plants were built.

**Which component leads the Data Center Waste Heat Recovery Market?**

Heat pumps, with USD 118.71 million or 37.5% of the market in 2025. Services grow fastest among components at 24.92% a year.

**How much does data center heat recovery cost per MW?**

About USD 2.09 million per MWth of recovered heat in 2025 for the full equipment chain, of which heat pumps account for about USD 0.98 million (DC Market Insights estimate).

**Which region leads the Data Center Waste Heat Recovery Market?**

Europe, with USD 216.55 million or 68.4% of 2025 value. Asia Pacific grows fastest at 23.97% a year.

**Which segment grows fastest in the Data Center Waste Heat Recovery Market?**

Liquid cooling systems, at 30.32% a year from USD 67.75 million in 2025 to USD 957.46 million by 2035, because warm-water loops need less temperature lift.

**Which rules require data centers to reuse waste heat?**

The EU Energy Efficiency Directive requires data centers above 1 MW to use waste heat unless not technically possible, and Germany requires new data centers to reuse at least 10% of energy from July 2026.

**Who are the leading companies in the Data Center Waste Heat Recovery Market?**

The five largest equipment suppliers hold about 38% of 2025 equipment value (DC Market Insights estimate). Danfoss, Johnson Controls, Trane Technologies, Vertiv, Schneider Electric, Alfa Laval, Kelvion, Oilon and Swegon compete.

## Market by region (USD million)

## Dataset

| Series | Value | Unit |
| --- | --- | --- |
| Market size 2025 | 316.59 | USD million |
| Revenue CAGR | 18.74 | % |
| Market size 2035 | 1,760 | USD million |

## Frequently asked questions

### What is the size of the Data Center Waste Heat Recovery Market in 2025 and 2035?

USD 316.59 million in 2025, rising to USD 1.76 billion by 2035. DC Market Insights estimates the market at USD 101.75 million in 2020.

### How fast is the Data Center Waste Heat Recovery Market growing?

18.74% a year from 2025 to 2035. Growth was faster, at 25.49% a year, between 2020 and 2025 as utility-scale heat pump plants were built.

### Which component leads the Data Center Waste Heat Recovery Market?

Heat pumps, with USD 118.71 million or 37.5% of the market in 2025. Services grow fastest among components at 24.92% a year.

### How much does data center heat recovery cost per MW?

About USD 2.09 million per MWth of recovered heat in 2025 for the full equipment chain, of which heat pumps account for about USD 0.98 million (DC Market Insights estimate).

### Which region leads the Data Center Waste Heat Recovery Market?

Europe, with USD 216.55 million or 68.4% of 2025 value. Asia Pacific grows fastest at 23.97% a year.

### Which segment grows fastest in the Data Center Waste Heat Recovery Market?

Liquid cooling systems, at 30.32% a year from USD 67.75 million in 2025 to USD 957.46 million by 2035, because warm-water loops need less temperature lift.

### Which rules require data centers to reuse waste heat?

The EU Energy Efficiency Directive requires data centers above 1 MW to use waste heat unless not technically possible, and Germany requires new data centers to reuse at least 10% of energy from July 2026.

### Who are the leading companies in the Data Center Waste Heat Recovery Market?

The five largest equipment suppliers hold about 38% of 2025 equipment value (DC Market Insights estimate). Danfoss, Johnson Controls, Trane Technologies, Vertiv, Schneider Electric, Alfa Laval, Kelvion, Oilon and Swegon compete.

## How to cite

Data Center Market Research & Consulting | DC Market Insights, "Data Center Waste Heat Recovery Market", updated 2026-10-07, https://www.dcmarketinsights.com/report/data-center-waste-heat-recovery-market