Italy Data Center Cooling Market

Italy Data Center Cooling Market Analysis

The Italy Data Center Cooling Market size is estimated at USD 182.51 million in 2025, and is expected to reach USD 798.95 million by 2031, at a CAGR of 27.9% during the forecast period (2025-2031).

• The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.
• The upcoming IT load capacity of the Italy data center market is expected to reach more than 600 MW by 2030. The country's construction of raised floor area is expected to increase above 5.3 million sq. ft by 2030. The country's total number of racks to be installed is expected to reach above 268K units by 2030. Greater Milan is expected to house the maximum number of racks by 2030.
• The average winter temperature is between 0 °C (32 °F) in the Alps and 12 °C (54 °F) in Sicily, so the average summer temperature is between 20 °C (68 °F) to over 25 °C (77 °F). Winters can vary widely across the country, with frequent cold, fog, and snow periods in the north and more pleasant weather in the south. Depending upon climatic conditions, the DC cooling is done in the DC facilities.
• New data centers across the country focus on implementing state-of-the-art monitoring systems to mitigate the risks associated with extreme weather events, and many would use the latest, more energy-efficient cooling technologies, such as redundant cooling systems, smart monitoring technologies, and backup power generators to ensure consistency of temperature in the event of power interruptions. Another example is direct liquid cooling, which uses a higher thermal transfer of water to a more efficient cooling device.
• There are close to 31 submarine cable systems connecting Italy, and many are under construction. One such submarine cable that is estimated to start service in 2024 is Blue, which stretches over 4,696 Kilometers with landing points from Genoa-, Golfo Aranci-, Palermo-, and Rome-Italy.

Italy Data Center Cooling Market Trends

IT & Telecommunication Segment Holds the Major Share

• Cloud infrastructure enables companies to efficiently manage fluctuating demands while simultaneously reducing IT expenditures. This infrastructure offers the flexibility for employees across diverse geographical locations to access their files directly from the cloud. Key features driving businesses to adopt cloud services include enhanced scalability, flexibility, and the ability to manage website traffic fluctuations. Both businesses and government entities have increasingly turned to cloud services to bolster the country's digitization efforts. To further these efforts, the Italian government has earmarked a budget of approximately EUR 1.9 billion (USD 2 billion) over the next five years. Notably, with the Italian government's shift to cloud systems, taxpayers have reaped annual savings of about EUR 87 million (USD 92.25 million).
• Telecom companies are leveraging a hybrid cloud infrastructure, seamlessly integrating both public and private cloud services at different stages. This strategic approach enables them to adeptly manage traffic fluctuations and ensure peak performance. As a result, cloud services have empowered telecoms to enhance service deployment efficiency and minimize downtime.
• Between 2014 and 2023, the percentage of the Italian population with 4G mobile broadband coverage rose from 90% to 99.9%. Following the rollout of 5G technology in 2023, 99.5% of Italians had access to 5G broadband. Additionally, a memorandum of understanding has been signed by the Italian government, municipal authorities, and network operators TIM, Vodafone, INWIT, and Open Fiber. This agreement aims to expedite the deployment of fiber and 5G infrastructure nationwide and is set to remain effective until June 30, 2026, fostering enhanced collaboration among the parties. The surge in data consumption can be attributed to advancing 5G technology, online gaming, banking services, over-the-top (OTT) content, online shopping, and more. Such market dynamics are poised to boost demand for data center cooling infrastructure manufacturers in the years ahead.

Liquid-based Cooling is the Fastest Growing Cooling Technology

• Data centers are increasingly turning to liquid cooling as a preferred method for cooling high-performance computing environments. Compared to traditional air conditioning, liquid cooling proves to be more energy-efficient. By offering precise temperature control, it not only minimizes the need for overcooling but also enhances the overall energy efficiency of data centers.
• Thanks to technological advancements, data centers have reduced water consumption by over 15% in tropical climates and a staggering 80% in greener regions. This progress has made liquid cooling easier to maintain, scale, and afford. Moreover, energy harnessed from liquid cooling can be repurposed to heat buildings and provide drinking water. Additionally, the use of advanced artificial refrigerants significantly diminishes the carbon footprint of air conditioning units.
• Liquid cooling leverages the superior heat transfer properties of water and other liquids, efficiently cooling high-density racks up to 3000 times better than air, all while addressing space constraints. Once a staple in mainframe and gaming applications, liquid cooling is now gaining traction in regional data centers, safeguarding their rack servers.
• Moreover, the rise of online shopping is fueling the generation of data and the need for processing facilities. As consumers are drawn to online shopping, especially with enticing deals, there's a corresponding surge in digital payment services and website traffic, leading to heightened data consumption. In Italy, approximately 50 million people, accounting for 85% of the population, are internet users, with nearly 40 million engaging in online shopping. These dynamics are poised to drive a substantial uptick in data consumption, subsequently amplifying the demand for data centers.

Italy Data Center Cooling Industry Overview

The Italy data center cooling market exhibits a moderate level of consolidation among key industry players, having sharpened their competitive edge in recent years. Notable market leaders in this segment include Rittal GMBH & Co.KG, STULZ GmbH, Schneider Electric SE, Vertiv Group Corp., Alfa Laval AB. and others. These industry giants, boasting significant market shares, are actively engaged in expanding their customer base throughout the region. Their growth strategies primarily hinge on strategic collaborative efforts aimed at enhancing market share and overall profitability. Moreover, companies such as Schneider Electric SE, Vertiv Group Corp., offer both liquid and air based cooling products.

Italy Data Center Cooling Market Leaders

Italy Data Center Cooling Market News

• April 2024: Carrier Ventures Invests in Strategic Thermal Labs to Pioneer Innovative Cooling Technology for Data Centers.
• July 2024: Munters has inked a deal to purchase Geoclima, an Italian producer specializing in air- and water-cooled chillers.