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Thermal Energy Storage For Artificial Intelligence (AI) Data Centers Market Size And Revenue Outlook Through 2030
The market for thermal energy storage for artificial intelligence (AI) data centres has demonstrated rapid expansion in recent years. It is forecast to increase from $1.88 billion in 2025 to $2.24 billion in 2026, registering a compound annual growth rate (CAGR) of 19.5%. The historical growth of this market is attributable to the rising need for efficient data centre cooling, increasing energy consumption driven by AI workloads, the growing adoption of chilled water and ice storage systems, the expansion of hyperscale data centres, and an increased focus on reducing operational cooling costs.
The thermal energy storage for artificial intelligence (AI) data centres market size is anticipated to expand significantly over the coming years. It is projected to reach $4.54 billion in 2030, demonstrating a compound annual growth rate (CAGR) of 19.3%. This growth during the forecast period can be attributed to the increasing deployment of phase change materials and thermal batteries, a rising demand for sustainable and carbon-neutral cooling solutions, growing investments in AI-powered energy management platforms, the global expansion of edge and colocation data centres, and increased pressure to shift cooling demand to off-peak energy hours. Noteworthy trends in the forecast period encompass advancements in smart thermal storage optimization software, innovations in high-density liquid and immersion cooling integration, the development of modular and distributed thermal storage units for edge sites, ongoing research and development in next-generation storage media including composite PCM, and technological progress in automated load balancing between thermal storage and HVAC systems.
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Thermal Energy Storage For Artificial Intelligence (AI) Data Centers Market Growth Catalysts And Demand Drivers
The increasing adoption of AI workloads is anticipated to drive expansion in the thermal energy storage for artificial intelligence (AI) data centers market moving forward. AI workloads encompass demanding computational activities such as training, inference, and data processing, executed on specialized high-performance servers for artificial intelligence and machine learning. This adoption is surging as various entities, including organizations, cloud providers, and hyperscalers, rapidly develop AI-optimized infrastructure for generative AI and large-model training. Thermal energy storage for artificial intelligence (AI) data centers improves AI workload adoption by offering effective cooling, lowering energy expenses, and facilitating high-performance computing. It guarantees consistent operation, handles intense AI processing, and enhances overall data center sustainability. For example, the International Energy Agency (IEA) stated in April 2025 that global data center electricity usage is predicted to more than double from approximately 415 TWh in 2024 to around 945 TWh by 2030, primarily due to AI-optimized workloads. Consequently, the growing adoption of AI workloads is a key factor driving the thermal energy storage for artificial intelligence (AI) data centers market. The expanding uptake of cloud computing is projected to spur growth in the thermal energy storage for artificial intelligence (AI) data centers market moving forward. Cloud computing involves providing computing resources such as servers, storage, databases, networking, software, and analytics via the internet, promoting quicker innovation, adaptable resources, and cost efficiencies. Its adoption is propelled by its inherent scalability, enabling businesses to effortlessly adjust computing resources according to demand and decrease infrastructure expenditures. Thermal energy storage for artificial intelligence (AI) data centers aids cloud computing by guaranteeing effective cooling, decreasing energy use, and preserving ideal operational settings for servers. This boosts the reliability, performance, and scalability of cloud-based offerings. As an illustration, in December 2023, Eurostat, a government organization based in Luxembourg, reported that 45.2% of businesses throughout the European Union acquired cloud computing services, with 77.6% of large companies, 59% of medium-sized companies, and 41.7% of small businesses using these services. Consequently, the increasing embrace of cloud computing is a significant driver for the thermal energy storage for artificial intelligence (AI) data centers market.
Thermal Energy Storage For Artificial Intelligence (AI) Data Centers Market Segment Landscape: Which Areas Lead Development?
The thermal energy storage for artificial intelligence (AI) data centers market covered in this report is segmented –
1) By Technology: Sensible Heat Storage, Latent Heat Storage, Thermochemical Storage
2) By Cooling Type: Liquid Cooling, Air Cooling
3) By Deployment: On-Premises Data Centers, Colocation Data Centers, Hyperscale Data Centers, Micro Data Centers
4) By Storage: Water, Phase Change Materials, Ice
5) By End-User: Cloud Service Providers, Enterprises And Corporate Data Centers, Artificial Intelligence (AI) Research And High-Performance Computing (HPC) Facilities, Government And Defense Data Centers, Banking, Financial Services, And Insurance (BFSI) Data Centers, Telecom And Information Technology (IT) Infrastructure Operators
Subsegments:
1) By Sensible Heat Storage: Water Based Storage, Molten Salt Storage, Concrete Storage, Brick Storage, Phase Change Material Based Storage
2) By Latent Heat Storage: Organic Phase Change Material Storage, Inorganic Phase Change Material Storage, Eutectic Salt Storage, Paraffin Wax Storage, Hydrated Salt Storage
3) By Thermochemical Storage: Adsorption Based Storage, Absorption Based Storage, Chemical Reaction Based Storage, Reversible Hydration Storage, Metal Hydride Storage
Thermal Energy Storage For Artificial Intelligence (AI) Data Centers Market Trends Shaping Long-Term Demand
Leading companies active in the thermal energy storage for artificial intelligence (AI) data centers market are concentrating on creating advanced offerings, such as non-flammable cold thermal energy storage (CTES) systems, to accelerate grid connectivity, boost computing capacity, and lessen deployment duration and risks. Non-flammable CTES systems are defined as energy storage solutions that utilize water as a medium to store and release cooling energy, offering a secure substitute for chemical batteries. As an illustration, in November 2025, Nostromo Energy, a US-based energy storage firm, introduced IceBrick360, a patented CTES system specifically engineered for data centers with high demand. It is intended to relocate a substantial portion of cooling energy requirements (10-30% of a data center’s peak electrical load) to off-peak periods by accumulating energy when power is inexpensive and releasing the stored cold energy during peak demand, thereby enabling prompt load reduction for the grid. The system incorporates a considerable 360TRh capacity per unit for significant cooling loads, a 10-year warranty, over 20 years of daily usage with almost no degradation, and automatic compatibility with utility signals for demand-response markets.
Thermal Energy Storage For Artificial Intelligence (AI) Data Centers Market Competitive Overview And Top Companies
Major companies operating in the thermal energy storage for artificial intelligence (AI) data centers market are Siemens Energy AG, Johnson Controls International plc, Carrier Global Corporation, Trane Technologies plc, Energy Vault Holdings Inc., Antora Energy Inc., PLUSS Advanced Technologies Pvt Ltd., Steffes Corporation, MGA Thermal Pty Ltd., Electrified Thermal Solutions Inc., Sunamp Ltd., Exowatt Inc., Rondo Energy Inc., Malta Inc., Knode Pty Ltd., Nostromo Energy Ltd., EnergyNest AS, Advanced Cooling Technologies Inc., Kraftblock GmbH, Fourth Power Inc.
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Thermal Energy Storage For Artificial Intelligence (AI) Data Centers Market Leading Geography: Which Region Contributes The Most Revenue?
North America was the largest region in the thermal energy storage for AI data centers market in 2025. Asia–Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the thermal energy storage for artificial intelligence (AI) data centers market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
