Top Data Center Cooling Companies to Consider Investing In

The demand for data centers is experiencing unprecedented growth, primarily driven by significant investments in artificial intelligence (AI) infrastructure. According to various research reports, the global data center infrastructure market could reach a staggering $1 trillion by 2030. This surge in demand has prompted companies to explore innovative cooling solutions to support their operations.

During a recent appearance on CNBC, Jacobs Solutions CEO Robert Pragada emphasized that the industry is operating at full capacity. He noted that future growth will likely be fueled by advancements in quantum computing and life sciences. Pragada commented, “It’s the synthesis of even more complex energy usage around the next form of computing. So, think AI data centers, and then if there’s a next phase of that, it would be in quantum.” This complexity underscores the critical need for improved cooling technologies as companies adapt to evolving energy demands.

On December 9, Supermicro announced the expansion of its Nvidia Blackwell portfolio, introducing new liquid cooling systems that capture 98% of system heat through direct-liquid-cooling technology. Innovations like these are prompting investors to focus on leading data center cooling companies, which are well-positioned to capitalize on the growing market.

Investment Methodology

To identify the top ten data center cooling companies for investment, extensive research was conducted. The process began with an online search for companies specializing in data center cooling solutions. This was supplemented by a review of data center exchange-traded funds (ETFs) that manufacture cooling products. The stocks were then evaluated based on potential upside, utilizing data from CNN, and ranked accordingly. Additionally, insights into hedge fund holdings from the third quarter of 2025 were incorporated to gauge investor interest.

The rationale for focusing on hedge fund stocks stems from research indicating that mirroring the selections of top hedge funds can lead to market outperformance. A quarterly newsletter strategy that selects small-cap and large-cap stocks has yielded a noteworthy 427.7% return since May 2014, surpassing its benchmark by 264 percentage points.

Top 10 Data Center Cooling Companies to Invest In

10. Vertiv Holdings Co. (NYSE:VRT)
Potential Upside: 7.75%
Number of Hedge Fund Holders: 61
On December 8, Citigroup raised its price target for Vertiv from $198 to $220, maintaining a Buy rating. The recent acquisition of PurgeRite for approximately $1 billion aims to enhance Vertiv’s thermal management services, particularly for AI and high-density computing data centers.

9. SPX Technologies, Inc. (NYSE:SPXC)
Potential Upside: 9.14%
Number of Hedge Fund Holders: 37
On December 8, SPX Technologies announced plans to acquire Crawford United Corporation for about $300 million. This acquisition will bolster SPX’s HVAC capabilities, tapping into a segment that reported $22.8 million in operating profits over the past year.

8. Comfort Systems USA, Inc. (NYSE:FIX)
Potential Upside: 15.21%
Number of Hedge Fund Holders: 67
On December 5, Comfort Systems was selected for inclusion in the S&P 500 index, with a forecasted stock price momentum leading up to the change. The company also received upgrades from UBS and Stifel following an earnings beat in the third quarter.

7. Trane Technologies Plc (NYSE:TT)
Potential Upside: 18.31%
Number of Hedge Fund Holders: 58
Following its acquisition of Stellar Energy Digital, Trane Technologies aims to enhance its thermal management offerings. Barclays raised its price target to $506, reinforcing the company’s growth potential in the data center market.

6. Modine Manufacturing Co. (NYSE:MOD)
Potential Upside: 20.22%
Number of Hedge Fund Holders: 49
Analyst updates have positioned Modine positively, with a target price of $200 set by D.A. Davidson. The firm anticipates a robust average annual revenue growth of 15% by FY2029, driven by its focus on cooling systems for data centers.

5. nVent Electric plc (NYSE:NVT)
Potential Upside: 21.37%
Number of Hedge Fund Holders: 58
After presenting at the Goldman Sachs Industrials and Materials Conference, nVent’s management expressed optimism about its modular cooling solutions. Barclays has set a price target of $140, indicating strong growth potential.

4. Eaton Corp. Plc (NYSE:ETN)
Potential Upside: 22.09%
Number of Hedge Fund Holders: 72
Eaton’s acquisition of Boyd Corporation’s thermal business unit for $9.5 billion aims to enhance its cooling solutions for data centers. Wolfe Research has responded positively, upgrading its rating and setting a target price of $413.

3. Regal Rexnord Corp. (NYSE:RRX)
Potential Upside: 23.2%
Number of Hedge Fund Holders: 39
With a new credit facility in place, Regal Rexnord is positioned to finance its capital expenditures and working capital needs. Barclays maintains a Buy rating with a price target of $165.

2. Super Micro Computer Inc. (NASDAQ:SMCI)
Potential Upside: 31.47%
Number of Hedge Fund Holders: 42
The recent launch of new liquid-cooled systems aims to enhance efficiency in data centers. CEO Charles Liang highlighted the importance of these developments in meeting the increasing demand for AI infrastructure.

1. Carrier Global Corp. (NYSE:CARR)
Potential Upside: 35.77%
Number of Hedge Fund Holders: 48
Despite recent challenges, Carrier Global remains a strong contender for investment. Analysts anticipate moderate growth in 2026, although the company has faced headwinds in its residential HVAC segment.

In conclusion, the data center cooling industry presents numerous investment opportunities. As demand continues to rise, companies that innovate and adapt to the evolving landscape are likely to see significant returns. Investors are encouraged to consider these ten companies as they navigate the growing data center market.