Data Center Liquid Cooling Market Report 2025

The data center liquid cooling market size has grown exponentially in recent years. It will grow from $4.18 billion in 2024 to $5.17 billion in 2025 at a compound annual growth rate (CAGR) of 23.7%. The growth in the historic period can be attributed to increased data collection, growth of data center, energy efficiency demands, cloud computing growth, 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 $13.22 billion in 2029 at a compound annual growth rate (CAGR) of 26.5%. The growth in the forecast period can be attributed to growing need for data storage, edge computing and micro data centers, environmental sustainability, data security and privacy concerns, and regulatory compliance. Major trends in the forecast period include edge computing and micro data centers, ai and machine learning workloads, 5g network expansion, technological innovations, innovative solutions, and strategic partnerships.

The growing number of data centers and increasing server density is anticipated to drive the growth of the data center liquid cooling market in the future. Data centers have become essential to business operations in enterprises, offering numerous advantages that support various aspects such as computation, data storage, networking, business applications, and other functions necessary for seamless operations. As a result of these benefits, there is a rise in the number of data centers and server density, which in turn elevates the demand for liquid cooling systems. Consequently, the expansion of data centers and server density is fueling the growth of the data center liquid cooling market. For instance, in March 2024, an article published by Stellarix, an Africa-based data center and cloud computing provider, reported that as of 2023, the number of global IoT-connected devices reached 15.14 billion, reflecting a 75% increase since 2019, with projections to double by 2030. This increase in IoT and data-driven technologies has prompted data centers to implement liquid cooling systems, with some facilities now accommodating rack densities of up to 200 kW, marking a significant shift from traditional air-cooled systems.

The growing investment in data centers is projected to drive the growth of the data center liquid cooling market in the future. A data center is a physical facility that houses computing machines and their associated hardware, containing the infrastructure necessary for computing, such as servers, data storage drives, and network equipment. Investments in data centers are propelling the data center liquid cooling market, primarily due to the increasing demand for improved cooling efficiency, energy savings, scalability, sustainability, and enhanced performance. For instance, in July 2023, ActiveBatch by Redwood, a U.S.-based company, offers automation solutions aimed at streamlining and managing complex business processes and IT workflows. As organizations become more reliant on data to inform their decisions, the data center market continues to exhibit a strong growth rate, reflecting the surge in both personal and corporate data generation. Revenue in the U.S. data center market is anticipated to rise from $99.97 billion in 2023 to $128.46 billion by 2028, driven by ongoing digital transformation and the increasing demand for cloud services.

Technological advancement is a key trend gaining traction in the data center liquid cooling market, with Huawei leading this transformation. The relentless demand for power in data centers, which require considerable energy to function and maintain ideal temperatures, has spurred significant innovations in cooling technologies. A prime example of these advancements is Huawei's launch of the FusionModule2000 6.0, which features sophisticated liquid cooling solutions and a modular design to enhance space and energy efficiency, setting new benchmarks for performance in data centers. For instance, in November 2022, Huawei, a multinational technology company based in China, unveiled the FusionModule2000 6.0, which incorporates advanced modular designs and integrated liquid cooling solutions designed to optimize energy efficiency and space utilization in contemporary data centers. This innovative offering reflects Huawei's dedication to delivering cutting-edge technologies that meet the increasing power and cooling demands of high-density computing environments.

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 January 2024, ZutaCore, a US-based company focused on liquid cooling technologies, announced a significant four-year commercial partnership with Valeo. This agreement aims to enhance data center cooling solutions through ZutaCore's innovative waterless two-phase direct-on-chip cooling system. The collaboration is intended to improve cooling efficiency for high-density servers while promoting sustainability by reusing heat and lowering carbon emissions. Valeo is an automotive technology company that specializes in the development and manufacturing of advanced systems.

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, LiquidStack Inc, KyotoCooling BV, Asperitas B.V., Airedale International Air Conditioning Ltd, Motivair Corporation, Munters Group AB, Delta Electronics Inc.

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.

North America was the largest region in the data center liquid cooling market in 2024. 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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