Top Data Center Cooling Companies to Watch for Investment Growth

The surge in demand for data centers, fueled by significant investments in artificial intelligence (AI) infrastructure, has created an opportunity for investors in the cooling solutions sector. Major players in the industry are responding to this increasing demand, with projections indicating that the total data center infrastructure market could reach $1 trillion by 2030. The landscape of data center cooling is evolving rapidly, driven by technological advancements and the need for efficient energy management.

During a recent interview on CNBC, Robert Pragada, CEO of Jacobs Solutions, noted that current demand is exceeding capacity, with future growth likely to be spurred by innovations in quantum computing and life sciences. “It’s the synthesis of even more complex energy usage around the next form of computing. Think AI data centers, and then if there’s a next phase, it would be in quantum,” Pragada stated. This shift in technology will necessitate enhanced cooling solutions to manage the intricate energy requirements of future data centers.

The latest developments in cooling technology highlight this trend. On December 9, 2025, Supermicro unveiled its expanded Nvidia Blackwell portfolio, introducing new liquid cooling systems that capture up to 98% of system heat through innovative direct-liquid-cooling technology. Such advancements are prompting investors to consider the leading data center cooling companies for potential investment.

Identifying Top Investment Opportunities

To compile a list of the top data center cooling companies for investment, research focused on organizations specializing in cooling solutions and those manufacturing their own products. An analysis of data center exchange-traded funds (ETFs) was conducted, and the stocks with the highest upside potential were ranked based on data from CNN. Additionally, hedge fund holdings as of Q3 2025 were included for added insight into investor interest.

Investors often seek stocks that hedge funds favor, as past research indicates this strategy can lead to market outperformance. A quarterly newsletter utilizing this approach has returned 427.7% since May 2014, significantly outperforming its benchmark.

Top Data Center Cooling Companies to Consider

10. **Vertiv Holdings Co. (NYSE:VRT)**
– **Potential Upside:** 7.75%
– **Hedge Fund Holders:** 61
– On December 8, Citigroup raised its price target for Vertiv from $198 to $220, indicating an 11.11% upside. The company recently acquired PurgeRite for approximately $1 billion, enhancing its capabilities in thermal management for high-density computing.

9. **SPX Technologies, Inc. (NYSE:SPXC)**
– **Potential Upside:** 9.14%
– **Hedge Fund Holders:** 37
– SPX announced a definitive agreement to acquire Crawford United Corporation for about $300 million. This will strengthen its HVAC capabilities, which are crucial for data center cooling solutions.

8. **Comfort Systems USA, Inc. (NYSE:FIX)**
– **Potential Upside:** 15.21%
– **Hedge Fund Holders:** 67
– Following its selection for the S&P 500 index, Comfort Systems has seen increased stock interest. The company recently exceeded earnings expectations, prompting upgrades from multiple financial institutions.

7. **Trane Technologies Plc (NYSE:TT)**
– **Potential Upside:** 18.31%
– **Hedge Fund Holders:** 58
– On December 4, Barclays raised Trane’s price target to $506 after the company acquired Stellar Energy Digital, enhancing its cooling solutions for data centers.

6. **Modine Manufacturing Co. (NYSE:MOD)**
– **Potential Upside:** 20.22%
– **Hedge Fund Holders:** 49
– Analysts predict a robust future for Modine, with a median price target of $185. The company specializes in cooling systems for various data center applications.

5. **nVent Electric plc (NYSE:NVT)**
– **Potential Upside:** 21.37%
– **Hedge Fund Holders:** 58
– nVent’s new modular cooling solutions are designed to meet the rising demand for AI and data center capabilities, reflecting a strategic pivot toward this growing market.

4. **Eaton Corp. Plc (NYSE:ETN)**
– **Potential Upside:** 22.09%
– **Hedge Fund Holders:** 72
– Eaton is set to enhance its cooling capabilities following its acquisition of Boyd Corporation’s thermal business for $9.5 billion, aimed at bolstering data center and liquid cooling technologies.

3. **Regal Rexnord Corp. (NYSE:RRX)**
– **Potential Upside:** 23.2%
– **Hedge Fund Holders:** 39
– Analysts see a positive outlook for Regal Rexnord following its new credit facilities, which will support its growth and operational needs.

2. **Super Micro Computer Inc. (NASDAQ:SMCI)**
– **Potential Upside:** 31.47%
– **Hedge Fund Holders:** 42
– The recent launch of new liquid-cooled systems positions Supermicro at the forefront of cooling technology for AI and hyperscale data centers, promising significant operational efficiencies.

1. **Carrier Global Corp. (NYSE:CARR)**
– **Potential Upside:** 35.77%
– **Hedge Fund Holders:** 48
– Despite recent challenges, analysts maintain optimism for Carrier’s future growth, bolstered by its strong revenue momentum in the latter half of 2025.

As the data center cooling market continues to expand, these companies represent promising investment opportunities. Their innovative strategies and responses to increasing demand position them well for future growth in a rapidly evolving technology landscape. Investors should consider these stocks as they navigate the lucrative but competitive realm of data center cooling solutions.