Global Data Center Liquid Cooling Market Segmentation, By Component (Solutions and Services), Type of Cooling (Cold Plate Liquid Cooling, Immersion Liquid Cooling, and Spray Liquid Cooling), Data Center Types (Small and Mid-Sized Data Centers and Large Data Centers), Enterprise (BFSI, IT and Telecom, Media and Entertainment, Healthcare, Government and Defence, Retail, Research and Academic, and Others ), End-User (Cloud Providers, Colocation Providers, Enterprises, and Hyper scale Data Centres) – Industry Trends and Forecast to 2031
Data Center Liquid Cooling Market Analysis
The data center liquid cooling market is experiencing significant growth driven by advancements in technology and a surge in data consumption. Traditional air cooling methods are becoming less effective as servers become more powerful and dense. In response, innovative liquid cooling solutions, such as immersion cooling and direct-to-chip cooling, are gaining traction.
Immersion cooling, where entire servers are submerged in a thermally conductive liquid, enhances heat dissipation and improves energy efficiency. This method reduces energy consumption by up to 45%, significantly lowering operational costs. Direct-to-chip cooling involves using liquid to cool individual components, providing precise temperature management that enhances performance and reliability.
The rise of artificial intelligence (AI) and machine learning (ML) applications is driving the demand for efficient cooling solutions, as these technologies generate substantial heat. In addition, the push for sustainability and energy-efficient operations has led companies to adopt liquid cooling systems, further fueling market growth.
Data Center Liquid Cooling Market Size
The global data center liquid cooling market size was valued at USD 2.82 billion in 2023 and is projected to reach USD 16.79 billion by 2031, with a CAGR of 24.96% during the forecast period of 2024 to 2031. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.
Data Center Liquid Cooling Market Trends
“Increasing Demand for Energy Efficiency”
One specific trend driving growth in the data center liquid cooling market is the increasing demand for energy efficiency. As data centers expand, the need to manage heat generated by high-density servers becomes critical. Liquid cooling systems are more effective than traditional air cooling, offering superior thermal management, which helps lower energy consumption and operational costs. For instance, In January 2024, Aligned Data Centers introduced its DeltaFlow liquid cooling system, engineered to accommodate high-density workloads of up to 300 kW per rack. This turnkey solution supports various liquid cooling technologies, including direct-to-chip, rear-door heat exchangers, and immersion cooling, seamlessly integrating with Aligned’s existing air-cooled Delta system. It requires no alterations to power delivery or data hall temperatures, ensuring efficient and effective cooling solutions for modern data centers.
Report Scope and Data Center Liquid Cooling Market Segmentation
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Attributes
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Data Center Liquid Cooling Key Market Insights
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Segments Covered
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Countries Covered
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U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America
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Key Market Players
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ALFA LAVAL (Sweden), Asetek, Inc. (U.S.), Asperitas (U.S.), BlackBox (U.S.), Boyd (U.S.), Chilldyne, Inc. (U.S.), COOLIT SYSTEMS (Canada), DCX (Poland), Fujitsu (Japan), Green Revolution Cooling, Inc (U.S.), Iceotope Technologies Limited (U.K.), LiquidStack and Allied Control (U.S.), Motivair Corporation (U.S.), Nortek Air Solutions, LLC (U.S.), Rittal GmbH & Co. KG (Germany), Schneider Electric (U.S.), Submer (Spain), Wiwynn Corporation (Taiwan), ZutaCore, Inc. (U.S.), JETCOOL Technologies Inc (U.S.)
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Market Opportunities
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Value Added Data Infosets
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In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.
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Data Center Liquid Cooling Market Definition
Data center liquid cooling is an advanced thermal management technique that uses liquids, typically water or specialized coolant, to dissipate heat generated by servers and other IT equipment. Different from traditional air cooling, which relies on airflow, liquid cooling can efficiently transfer heat away from components, reducing overall temperatures and improving performance. This method can involve direct-to-chip cooling, where liquid circulates close to heat sources, or immersion cooling, where entire servers are submerged in coolant. Liquid cooling enhances energy efficiency, minimizes the risk of overheating, and supports higher-density deployments, making it increasingly popular in modern data center designs.
Data Center Liquid Cooling Market Dynamics
Drivers
- Growing Demand for High-Performance Computing (HPC)
The increasing reliance on high-performance computing (HPC) applications, particularly in artificial intelligence (AI) and machine learning (ML), significantly drives the data center liquid cooling market. These applications generate substantial heat due to their intensive processing requirements, often exceeding the capabilities of traditional air cooling systems. For instance, In January 2024, Modine, a leader in innovative thermal management solutions, announced its acquisition of intellectual property and specific assets from TMG Core, a specialist in single- and two-phase liquid immersion cooling technologies. This strategic acquisition aims to bolster Modine's offerings for data centers with high-density computing needs, enhancing their capabilities to provide effective thermal management solutions tailored for modern data center environments and optimizing operational efficiency.
- Increased Focus on Edge Computing
The rise of edge computing is significantly driving the data center liquid cooling market. As organizations deploy computing resources closer to data sources to reduce latency, efficient cooling solutions become essential. Liquid cooling systems are particularly well-suited for smaller facilities, offering higher cooling efficiency in a compact form factor compared to traditional air cooling. For instance, In February 2024, Aligned, a prominent data center firm, unveiled a cutting-edge liquid cooling system designed specifically to support high-density compute requirements and supercomputers. This system integrates advanced technology to effectively manage heat in high-performance environments, ensuring reliability and optimal performance for intensive computational workloads, making it a vital addition to the evolving landscape of data center infrastructure and cooling solutions.
Opportunities
- Advancements in Cooling Technologies
Innovations in liquid cooling technologies, particularly immersion cooling and direct-to-chip cooling, significantly enhance efficiency and ease of implementation in data centers. Immersion cooling involves submerging servers in a thermally conductive liquid, effectively dissipating heat without requiring traditional air conditioning systems. Companies such as Microsoft have successfully implemented immersion cooling in their data centers, achieving up to 95% energy savings compared to conventional methods. Meanwhile, direct-to-chip cooling, which delivers coolant directly to CPU and GPU components, maximizes heat transfer efficiency. For instance, In April 2024, Mitsubishi Electric launched the MECH-iF range, featuring an advanced air-cooled chiller equipped with a proprietary single-screw compressor designed to enhance energy efficiency and reliability. This innovative range offers flexibility in capacities ranging from 345 kW to 921 kW and utilizes either R1234ze (G04) or R513A (G05) refrigerants, along with patented screw variable-speed compressors, ensuring an extended operational lifespan for optimal performance. These advancements are driving adoption as data centers seek effective solutions to manage increasing heat densities and improve overall energy efficiency.
- Increased Heat Density
The trend toward compact and powerful data centers has led to a significant rise in heat density, creating a pressing need for efficient cooling solutions. Liquid cooling effectively addresses this challenge by dissipating heat more efficiently than traditional air cooling methods. For instance, In March 2024, Daikin Applied introduced the Navigator WW water-cooled screw chiller, utilizing low-global warming potential (GWP) R-513A refrigerant, providing an eco-friendly cooling solution for customers. This innovative chiller enhances energy efficiency and can be paired with the optional Templifier TW water heater for effective heat recovery solutions, ensuring cost-effectiveness and sustainability for various cooling applications within data centers and industrial settings.
Restraints/Challenges
- High Initial Investment
High initial investment is a significant restraint in the data center liquid cooling market. Implementing these systems demands substantial capital for infrastructure, equipment, and installation, which can deter organizations from making the switch. Many companies are hesitant to allocate such funds, particularly when their existing air cooling solutions are still functioning adequately. This reluctance limits the market's growth potential, as businesses weigh the costs against the perceived benefits of liquid cooling. Consequently, the financial burden associated with transitioning to liquid cooling technologies acts as a barrier, preventing broader adoption and stalling advancements in this segment of the cooling market.
- Risk of Leaks and Equipment Damage
The risk of leaks and equipment damage significantly hinders the data center liquid cooling market. The introduction of liquids for cooling raises concerns about potential leaks, which can lead to catastrophic failures in cooling systems. A leak can cause substantial damage to critical IT infrastructure, resulting in costly repairs and potential data loss. This risk creates a climate of hesitation among organizations, making them reluctant to transition from traditional air cooling systems to liquid cooling technologies. The fear of significant operational disruptions and financial losses associated with leaks discourages investment in liquid cooling solutions, thus limiting market growth and adoption.
This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
Data Center Liquid Cooling Market Scope
The market is segmented on the basis of component, type of cooling, data center types, enterprise and end-user. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Component
- Solutions
- Indirect Cooling
- Single Phase
- Two Phase
- Direct Cooling
- Single Phase
- Two Phase
- Services
- Design and Consulting
- Installation and Deployment
- Support and Maintenance
Type of Cooling
- Cold Plate Liquid Cooling
- Immersion Liquid Cooling
- Spray Liquid Cooling
Data Center Types
- Small and Mid-Sized Data Centers
- Large Data Centers
Enterprise
- BFSI
- IT and Telecom
- Media and Entertainment
- Healthcare
- Government and Defence
- Retail
- Research and Academic
- Others
End-User
- Cloud Providers
- Colocation Providers
- Enterprises
- Hyper scale Data Centres
Data Center Liquid Cooling Market Regional Analysis
The market is analyzed and market size insights and trends are provided by component, type of cooling, data center types, enterprise and end-user as referenced above.
The countries covered in the market report are U.S., Canada, Mexico in North America, Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, Netherland, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, New Zealand, Vietnam, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in Asia-Pacific (APAC), Brazil, Argentina, Rest of South America as a part of South America, U.A.E, Saudi Arabia, Oman, Qatar, Kuwait, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA).
North America is expected to dominate the data center liquid cooling market because the end users consume more data within the region. Along with this, the high demand for cloud applications because of social media, gaming and entertainment further boosts the growth of the market.
Asia-Pacific is expected to witness significant growth during the forecast period due to steady growth and rapidly expanding demand for cloud applications due to social media, gaming and entertainment in the region. The large base of China is a major contributor in the growth of the regional market.
The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Data Center Liquid Cooling Market Share
The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.
Data Center Liquid Cooling Market Leaders Operating in the Market Are:
- ALFA LAVAL (Sweden)
- Asetek, Inc. (U.S.)
- Asperitas (U.S.)
- BlackBox (U.S.)
- Boyd (U.S.)
- Chilldyne, Inc. (U.S.)
- COOLIT SYSTEMS (Canada)
- DCX (Poland)
- Fujitsu (Japan)
- Green Revolution Cooling, Inc. (U.S.)
- Iceotope Technologies Limited (U.K.)
- LiquidStack and Allied Control (U.S.)
- Motivair Corporation (U.S.)
- Nortek Air Solutions, LLC (U.S.)
- Rittal GmbH & Co. KG (Germany)
- Schneider Electric (U.S.)
- Submer (Spain)
- Wiwynn Corporation (Taiwan)
- ZutaCore, Inc. (U.S.)
- JETCOOL Technologies, Inc. (U.S.)
Latest Developments in Data Center Liquid Cooling Market
- In June 2024, Perstorp, a prominent specialty chemicals company under PETRONAS Chemicals Group Berhad (PCG), partnered with Intel's Open IP Advanced Liquid Cooling team to develop a groundbreaking synthetic thermal management fluid tailored for immersion cooling in data centers. Utilizing Intel's SuperFluid technology, which innovatively employs air as a lubricant, this advanced solution significantly enhances cooling capabilities, increasing management capacity from 500 W to an impressive 800 W per chip
- In May 2024, STULZ Modular, a leading provider of modular data center solutions and a subsidiary of STULZ GmbH, collaborated with Asperitas to investigate the potential of liquid cooling technologies. This strategic partnership aims to leverage immersion cooling to optimize performance in high-density data center environments. Their focus is on a modular data center concept, incorporating innovative immersion cooling solutions that can be deployed in both indoor and outdoor installations
- In April 2024, Schneider Electric reaffirmed its commitment to India by announcing a significant investment of USD 438.4 million, establishing the country as a key manufacturing hub. The inauguration of a state-of-the-art facility in Bengaluru, initiated with an investment of USD 130 million, highlights the company’s goal to address the increasing demand for data center cooling solutions, catering to India's rapidly evolving data center ecosystem
- In March 2024, Daikin Applied introduced the Navigator WW water-cooled screw chiller, utilizing low-global warming potential (GWP) R-513A refrigerant, providing an eco-friendly cooling solution for customers. This innovative chiller enhances energy efficiency and can be paired with the optional Templifier TW water heater for effective heat recovery solutions, ensuring cost-effectiveness and sustainability for various cooling applications within data centers and industrial settings
- In February 2024, SK Enmove announced a Memorandum of Understanding (MOU) aimed at fostering cooperation on next-generation cooling solutions. This partnership involves collaboration with SK Telecom and Precision Liquid Cooling Iceotope Technologies, focusing on the development of innovative liquid cooling technologies. The initiative seeks to enhance the efficiency and sustainability of cooling solutions in various applications, addressing the growing demands for advanced thermal management in data centers
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