Data centers, cloud infrastructure, healthcare facilities, and high density commercial spaces are reshaping the upper end of the commercial HVAC market. These buildings demand:

  • Precision cooling
  • Redundancy
  • Measurable performance.

They are less price sensitive and far more performance focused which aligns perfectly with High Performance HVAC principles.

The International Association of Plumbing and Mechanical Officials (IAPMO) concurs. In fact, in the AHRI Trends report, John Mullen, director of technical services and research for IAPMO says that “Among the most immediate challenges the industry faces are the surge in data center construction to support AI, quantum computing, and other high computing technologies.

Image of data centers which play a large role in the commercial HVAC market outlook for 2026 and beyond.
Data Centers, Artificial Intelligence, & other high-end
commercial spaces are key to the commercial
HVAC market growth in 2026 and beyond.

“These facilities require enormous amounts of cooling, and without smart solutions, they risk overwhelming local grids and driving up energy costs,” he adds.

Speaking of controls, artificial intelligence (AI), and Internet of Things (IoT) based optimization, they continue to improve and evolve but adoption in the U.S. commercial building universe remains uneven. Field studies show real energy savings — often in the 10 to 15% rangewhen systems are properly designed and implemented.

The key words here are properly designed and implemented.

In their 2025 Smart Building Trends & Technology Adoption Report, the ASHB Smart Building Council says that “Operational cost reduction and energy efficiency remain the primary motivators, but sustainability as a standalone driver saw reduced emphasis in 2025.”

This report says that today, energy efficiency is considered part of reducing operating costs. The focus has shifted more onto things like enhanced safety and security, improved tenant health and comfort, and system lifespan extension and resiliency.

The report adds that in terms of smart controls adoption, HVAC/Climate control lead all other areas. However, not every Smart system is created equal, and the more sophisticated systems DO NOT lead the pack.

Plus, from a commercial contractor perspective, advanced controls don’t sell themselves. Contractors who can explain the value, verify performance, and support systems long term will win. Everyone else will struggle to justify the cost to building owner and manager clients.

We also see even more movement toward service-centric business models. In commercial HVAC, this looks like bundled offerings that combine:

  • Equipment
  • Controls
  • Monitoring
  • Maintenance and performance guarantees.

This won’t replace traditional contracting overnight, but it’s another sign that the market is shifting from installation only thinking to lifecycle accountability.