The global data center liquid cooling market size reached USD 3.5 Billion in 2024. Looking forward, the market is projected to reach USD 16.5 Billion by 2033, exhibiting a growth rate (CAGR) of 18.56% during 2025-2033. The market is experiencing a positive outlook, owing to the rising data center density, the increasing focus on energy efficiency to mitigate environmental pollution and maintain sustainability, and the growing need for maintaining optimal operating temperatures to ensure enhanced performance and reliability.
Data Center Liquid Cooling Market Analysis:
Major Market Drivers: The market is witnessing robust growth, on account of the increasing demand for efficient cooling solutions, along with the rising focus on space constraints. The increasing number of data centers, surging power density, and the escalating need for energy-efficient solutions are also proliferating the growth of the market.
Key Market Trends: Rising Innovations, such as improved heat exchanger designs, more efficient cooling fluids, and advanced control systems, are making liquid cooling accessible to a broader range of data center operators. Moreover, the growing adoption of immersion cooling and the inflating inclination towards AI-powered cooling solutions are leading to an increase in market demand.
Competitive Landscape: Some of the leading data center liquid cooling market companies include Alfa Laval AB, Asetek A/S, Asperitas, Chilldyne, CoolIT Systems Inc., Fujitsu Limited, Green Revolution Cooling Inc., Iceotope, Lenovo Group Limited, Rittal GmbH & Co. KG, Schneider Electric SE, and Vertiv Group Corp., among many others.
Geographical Trends: North America leads the market, driven by the presence of cloud service providers and tech companies with well-established data center infrastructures. The increasing demand for computing power and storage capacity in the region is further fueling the need for more efficient and scalable cooling solutions.
Challenges and Opportunities: Implementing and managing liquid cooling solutions may require specialized skills and expertise that are not readily available in the workforce. This represents one of the key challenges hindering the data center liquid cooling market forecast. Moreover, data center operators may need to invest in training or hiring qualified personnel to design, deploy, and maintain liquid cooling systems effectively. However, continuous advancements in liquid cooling technologies reduce the environmental impact of data center operations by minimizing energy consumption and carbon emissions levels, which will continue to bolster the market growth over the forecasted period.
Data Center Liquid Cooling Market Trends:
Increasing Data Center Density
The growing demand for data center liquid cooling due to the rising number of data centers is offering a positive market outlook. Data centers are handling higher workloads, on account of the increasing utilization of cloud services, big data analytics, and artificial intelligence (AI) applications. Liquid cooling systems accommodate the higher density of servers and equipment in modern data centers by directly dissipating heat from hot spots. This capability is crucial for maintaining optimal operating conditions and preventing thermal issues that could compromise hardware performance and reliability. Apart from this, data center operators are focusing on maximizing the utilization of their infrastructure. According to the report published by the Observer Research Foundation in March 2024, India has more than 150 data centers, ranking 14th in the world. These data centers are stimulating the demand for data center liquid cooling systems, which is expected to propel the market growth over the forecasted period.
Growing Focus on Energy Efficiency
Traditional air-cooling methods in data centers are energy-intensive, as they require electricity requirements to power fans and air conditioning (AC) systems. In contrast, data center liquid cooling solutions offer a more energy-efficient alternative by directly transferring heat away from information technology (IT) equipment using liquid coolant. Additionally, data center liquid cooling solutions can achieve more precise temperature control and better heat dissipation by utilizing liquid coolant to absorb and transport heat away from hot spots. This improved cooling efficiency allows data centers to maintain optimal operating temperatures while consuming less energy. For instance, a Market Transformation Administrator (CalMTA) was established by the California Public Utilities Commission (CPUC) in order to increase the market's accessibility to energy-efficient practices and technologies. This program invested around US$ 320 Million to meet California's climate targets. Apart from this, data center liquid cooling solutions lower the overall footprint of cooling infrastructure and minimize energy consumption associated with fan operation and air circulation by eliminating the need for large air ducts, raised floors, and other components.
New Market Entrants
The wide presence of prominent players, such as Asetek AS, Liquid Cool Solutions, Alfa Laval AB, Vertiv Co, etc., is augmenting the global market. These players are focusing on growing their clientele internationally. These businesses use strategic joint ventures to raise their market share and profitability. Besides this, new competitors intensify the competition by entering into strategic collaborations and investing in advanced technologies. For instance, in May 2022, Intel launched a new initiative to address data center sustainability by investing US$ 700 Million into a new research facility specializing in liquid and immersion cooling. In line with this, Intel also introduced the first immersion cooling reference design in the market to promote the use of the technology in data centers across the globe.
Data Center Liquid Cooling Market Segmentation:
The research provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on component, data center type, end use, and application.
Breakup by Component:
- Solution
- Direct Liquid Cooling
- Indirect Liquid Cooling
- Services
- Design and Consulting
- Installation and Deployment
- Support and Maintenance
Solution accounts for the majority of the market share
The report has provided a detailed breakup and analysis of the market based on the component. This includes solution (direct liquid cooling and indirect liquid cooling) and services (design and consulting, installation and deployment, and support and maintenance). According to the report, solution represented the largest segment.
Solution includes the selection and integration of cooling units, infrastructure, and control systems tailored to meet the specific requirements of the data center environment. It may vary based on factors, such as data center size, workload density, environmental considerations, etc., with customization options available to optimize performance and energy efficiency.
Breakup by Data Center Type:
- Large Data Centers
- Small and Medium-sized Data Centers
- Enterprise Data Centers
Large data centers hold the largest market share
A detailed breakup and analysis of the market based on the data center type have also been provided in the report. This includes large data centers, small and medium-sized data centers, and enterprise data centers. According to the report, large data centers accounted for the largest market share.
Large data centers usually belong to hyperscale cloud providers, colocation facilities, or enterprises with extensive IT infrastructure requirements. These data centers are equipped with numerous servers and high-density equipment, generating heat that requires efficient cooling solutions. Liquid cooling systems in large data centers are characterized by their scalability, high capacity, advanced control features to manage complex cooling demands effectively, etc.
Breakup by End Use:
- Cloud Providers
- Colocation Providers
- Enterprises
- Hyperscale Data Centers
Enterprises represent the leading market segment
The report has provided a detailed breakup and analysis of the market based on the end use. This includes cloud providers, colocation providers, enterprises, and hyperscale data centers. According to the report, enterprises represented the largest segment.
Enterprises use data centers to support their internal IT operations and services. These organizations include corporations, government agencies, educational institutions, and healthcare providers. Liquid cooling solutions for enterprises focus on providing efficient and reliable cooling for their IT infrastructure, ensuring optimal performance and uptime while minimizing operational costs and environmental impact.
Breakup by Application:
- BFSI
- IT and Telecom
- Media and Entertainment
- Healthcare
- Government and Defense
- Retail
- Research and Academic
- Others
IT and telecom dominate the market share
The report has provided a detailed breakup and analysis of the market based on the application. This includes BFSI, IT and telecom, media and entertainment, healthcare, government and defense, retail, research and academic, and others. According to the report, IT and telecom represented the largest segment.
In the IT and telecom sector, data centers are essential for hosting and managing network infrastructure, telecommunications equipment, and digital services. Liquid cooling solutions in this sector focus on optimizing the performance and reliability of IT equipment, reducing downtime, and enhancing energy efficiency to support the high demands of network operations and communication services.
- North America
- United States
- Canada
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Indonesia
- Others
- Europe
- Germany
- France
- United Kingdom
- Italy
- Spain
- Russia
- Others
- Latin America
- Brazil
- Mexico
- Others
- Middle East and Africa
North America leads the market, accounting for the largest data center liquid cooling market share
The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.
The increasing popularity of direct-to-chip liquid cooling in North America is augmenting the regional market. Several vendors in the Southeastern and Western parts of the region are shifting to water-cooled chillers, which have an economizer mode that enables partial facility cooling by using outside air. Besides this, the data center infrastructure solutions in Canada are growing, owing to the escalating demand for efficient data centers and the launch of initiatives for ecological data center solutions, thereby acting as another significant growth-inducing factor. According to Natural Resources Canada, around half of the energy consumed in a data center is utilized by computing servers, with a further 40% being attributed to cooling these servers. Apart from this, the climatic conditions of the cities in Canada are recorded with an annual temperature of 42.8 °F. This, in turn, eliminates the need for cooling systems in the data centers, thereby minimizing operational costs.
Leading Key Players in the Data Center Liquid Cooling Industry:
The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:
- Alfa Laval AB
- Asetek A/S
- Asperitas
- Chilldyne
- CoolIT Systems Inc.
- Fujitsu Limited
- Green Revolution Cooling Inc.
- Iceotope
- Lenovo Group Limited
- Rittal GmbH & Co. KG
- Schneider Electric SE
- Vertiv Group Corp.
Data Center Liquid Cooling Market News:
February 2024: Aligned, a data center firm, has launched a new liquid cooling system, which is specifically designed to support high-density compute requirements and supercomputers.
February 2024: SK Enmove announced it had signed a Memorandum of Understanding (MOU) on cooperation of next-generation cooling and solutions with SK Telecom and Precision Liquid Cooling Iceotope Technologies.
January 2024: Modine, a global leader in innovative thermal management solutions, announced that it purchased the intellectual property and other specific assets of TMG Core, a specialist in single- and two-phase liquid immersion cooling technology for data centers with high-density computing requirements.
Key Questions Answered in This Report:
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Table of Contents
Companies Mentioned
- Alfa Laval AB
- Asetek A/S
- Asperitas
- Chilldyne
- CoolIT Systems Inc.
- Fujitsu Limited
- Green Revolution Cooling Inc.
- Iceotope
- Lenovo Group Limited
- Rittal GmbH & Co. KG
- Schneider Electric SE
- Vertiv Group Corp.
Methodology
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