District Cooling: Europe‘s heatwaves are testing the network - and reinforcing its growth potential

Research evidence excerpt

District Cooling: Europe‘s heatwaves are testing the network - and reinforcing its growth potential

21 July 2026

European Utilities & Clean Energy

District Cooling: Europe's heatwaves are testing the network - and

reinforcing its growth potential

As Western Europe faces its third heatwave since May, demand for cooling solutions has Bartlomiej Kubicki

+49 69 717 4418 come into sharp focus, with sales of fans and air conditioners surging. Less obvious, however,

bartlomiej.kubicki@bernsteinsg.com is the pressure extreme temperatures are placing on district cooling infrastructure. Against

this backdrop, we take a closer look at the district cooling sector - how these systems work,

Thibault Dujardin, CFA their key advantages and limitations, and their long-term growth prospects. We also examine

+33 1 58 98 59 16

thibault.dujardin@bernsteinsg.com the positioning of two leading French utilities active in this market, Engie and Veolia.

A rapidly growing global market. According to Fortune Business insights, the global Abdessamad Raghibi, Ph.D.

+212 5 22 86 79 41 district cooling market was valued at $31.2bn in 2025 and is expected to expand at an

abdessamad.raghibi@bernsteinsg.com 8.0% CAGR between 2026 and 2034. The Middle East and Africa currently represent

the largest market, accounting for 42% of global market. North America and Asia-Pacific

Jorge Alonso Suils account for 26% and 25% of the market respectively, while Europe remains significantly +34 915 893 913

jorge.alonso@bernsteinsg.com underpenetrated at just 7%.

Rory Graham-Watson French district cooling output is expected to more than double by 2030. France

+44 20 7676 7093 currently delivers approximately 0.9TWh of district cooling annually, but national targets

rory.graham-watson@bernsteinsg.com