Data Center Liquid Cooling Global Market Report 2024

Data center liquid cooling involves the use of cooling technologies to regulate the temperature of data centers. These facilities employ a combination of air conditioning and immersion cooling to optimize energy consumption, enabling the data center to operate at high availability and density. Liquid cooling systems have the potential to reduce overall power consumption and enhance power usage effectiveness in data center facilities.

The two main types of data center liquid cooling are single-phase cooling and two-phase cooling. Single-phase cooling utilizes a one-phase cooling system to manage the temperature of the data center facility. In this system, the liquid exists in a single phase (liquid form) that comes into contact with system components, transferring heat and cooling through a heat exchanger in the cooling distribution. Various components of data center liquid cooling include solutions and services tailored for hyperscale centers, enterprise types, colocation data centers, and other data centers across industries such as telecom and IT, BFSI, research, energy, government and academia, healthcare, among others.

The data center liquid cooling market research report is one of a series of new reports that provides data center liquid cooling market statistics, including data center liquid cooling industry global market size, regional shares, competitors with a data center liquid cooling market share, detailed data center liquid cooling market segments, market trends and opportunities, and any further data you may need to thrive in the data center liquid cooling industry. This data center liquid cooling market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The data center liquid cooling market size has grown exponentially in recent years. It will grow from $3.41 billion in 2023 to $4.24 billion in 2024 at a compound annual growth rate (CAGR) of 24.5%. The growth observed in the historical period can be attributed to several factors, including the increased collection of data, the expansion of data centers, rising demands for energy efficiency, the growth of cloud computing, and the expansion of hyperscale data centers.

The data center liquid cooling market size is expected to see exponential growth in the next few years. It will grow to $10.61 billion in 2028 at a compound annual growth rate (CAGR) of 25.8%. The anticipated growth in the forecast period can be attributed to several factors, including the growing need for data storage, the rise of edge computing and micro data centers, increasing emphasis on environmental sustainability, rising concerns about data security and privacy, and compliance with regulatory standards. Key trends in the forecast period include the proliferation of edge computing and micro data centers, the integration of AI and machine learning workloads, the expansion of 5G networks, ongoing technological innovations, the emergence of innovative solutions, and the formation of strategic partnerships.

The anticipated increase in the number of data centers and server density is poised to drive the growth of the data center liquid cooling market. Data centers have become integral to enterprise operations, offering advantages in computation, data storage, network management, and other critical functions. The surge in data center adoption and higher server density has resulted in an elevated demand for liquid cooling systems. As highlighted in a September 2021 article published by phoenixNAP, technologies like cloud services, virtualization, artificial intelligence, machine learning, Internet of Things, blockchains, and edge computing require substantial processing power and high-density racks, exceeding traditional averages. The average server density has increased from 7.3 kW per rack in 2019 to 8.4 kW per rack in 2021. This increased demand for compute-intensive workloads is a significant driver behind the growth of the data center liquid cooling market.

The rise in spending on data centers is expected to further propel the growth of the data center liquid cooling market. Data centers, physical locations storing computing machines and related hardware, play a crucial role in computing infrastructure. Investments in data centers are fueling the demand for liquid cooling solutions, driven by the need for enhanced cooling efficiency, energy savings, scalability, sustainability, and higher performance. For example, in November 2021, CDC Data Centers, an Australia-based company, announced an increased investment in its Eastern Creek Sydney data center, reaching a total of $2.5 billion. This expansion project aims to add 150MW to the company's existing development initiatives, resulting in a total operational capacity of 700MW by 2023. The continued investment in new data centers underscores the growth trajectory of the data center liquid cooling market.

A prominent trend in the data center liquid cooling market is technological advancement. The insatiable demand for power in data centers, coupled with the need for energy efficiency, has led to innovations like the computer room air handler (CRAH), which combines air and liquid cooling. This design enables data centers to maintain optimal temperature, air distribution, and humidity levels. Major companies in the market are actively developing advanced solutions to reinforce their market positions. For instance, in May 2021, Super Micro Computer, Inc., a US-based IT company, introduced cost-effective liquid cooling solutions that enhance application performance, reduce jitter, and allow for higher CPU frequencies. This liquid cooling solution has the potential to decrease data center power usage effectiveness (PUE) and total cost of ownership (TCO) by over 40% on power costs. This exemplifies the industry's commitment to advancing technologies for more efficient and sustainable data center liquid cooling.

Prominent companies in the data center liquid cooling market are strategically focusing on product innovations, particularly water-efficient liquid cooling solutions, to gain a competitive advantage. Water-efficient liquid cooling involves solutions designed to reduce energy consumption and water usage in data centers, simultaneously improving performance. These innovations contribute to increased resource sustainability and a reduction in carbon emissions. For example, in November 2022, Vertiv, a US-based company specializing in manufacturing equipment and providing auxiliary services for data centers, introduced the Liebert XDU. This represents a new generation of thermal management systems supporting liquid-cooled servers and offering control over liquid quality, flow, and pressure. The Liebert XDU is specifically crafted to overcome obstacles to liquid cooling in air-cooled environments, delivering efficient and effective thermal management for high-density server applications. Its enhanced control features ensure optimal performance and reliability for liquid-cooled server systems.

In March 2021, Wiwynn, a Taiwan-based company operating in the data center liquid cooling sector, entered into a strategic partnership with LiquidStack. This collaboration is aimed at expanding Wiwynn's data center liquid cooling product portfolio and forming a strong alliance to advance next-generation cloud IT infrastructure. The focus is on two-phase immersion cooling in data centers and edge computing, particularly in the field of high-performance computing (HPC). LiquidStack, a US-based company specializing in data center liquid cooling, brings its expertise to this partnership, contributing to the development and advancement of innovative solutions in the industry. These strategic initiatives underscore the commitment of major players to pioneering water-efficient liquid cooling technologies, aligning with the increasing emphasis on sustainability and energy efficiency in data center operations.

Major companies operating in the data center liquid cooling market include Asetek Inc., Rittal GmbH & Co. KG, Fujitsu Limited, Vertiv Group Corp, Green Revolution Cooling Inc, Submer Technologies SL, Midas Green Technologies LLC, Schneider Electric SE, Alfa Laval AB, Chilldyne Inc, Iceotope Technologies Limited, CoolIT Systems Inc, 3M Company, Aspen Systems Inc, Mitsubishi Group, IBM Corporation, ExaScaler Inc, Stulz GmbH, Ebullient Inc, Aquila Group Holdings Limited, LiquidStack Inc, KyotoCooling BV, Asperitas B.V., Airedale International Air Conditioning Ltd, Motivair Corporation, Munters Group AB, Aegis Data Ltd, DownUnder GeoSolutions (DUG) Pty Ltd, Delta Electronics Inc.

North America was the largest region in the data center liquid cooling market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center liquid cooling market share report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the data center liquid cooling market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The data center liquid cooling market consists of revenues earned by entities by providing data center liquid cooling solutions such as direct-to-chip cooling, rear-door heat exchangers, and immersion cooling. The market value includes the value of related goods sold by the service provider or included within the service offering. The data center liquid cooling market also includes sales of cooling systems such as liquid-to-liquid, closed-loop dry systems, closed-loop dry systems with trim cooling, open-loop evaporative system, closed-loop evaporator system, and chilled water system. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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