Data Center Liquid Cooling Market Size - By Component (Solution, Service), By Data Center Size (Small, Medium, Large), By Application (Server Cooling, Storage Cooling, Networking Cooling), By End Use & Forecast, 2024 – 2032

Data Center Liquid Cooling Market Size

Data Center Liquid Cooling Market was valued at USD 3.2 billion in 2023 and is estimated to register a CAGR of over 19% between 2024 and 2032. The increasing energy consumption in data center facilities is driving companies to explore and implement innovative liquid cooling solutions. As data centers expand and operate at higher densities, traditional cooling methods become less efficient and more costly. To address these challenges, companies are shifting towards innovative liquid cooling technologies, which offer improved thermal management and energy efficiency.
 

In addition, the growth of the cloud computing market is creating significant opportunities for data center providers. As businesses increasingly migrate to cloud-based solutions to leverage scalability, flexibility, and cost-efficiency, the demand for data center infrastructure to support these services has been growing among end-users. This expansion necessitates the development of more data centers and the enhancement of existing facilities, driving growth and innovation in the data center sector.
 

The data center liquid cooling market faces numerous challenges including high expenditure & maintenance cost and need for specialized infrastructure. The upfront investment required for liquid cooling technology is a barrier for many data center operators, especially smaller ones, making it difficult to justify the costs compared to traditional air-cooling solutions. Additionally, liquid cooling systems require specialized infrastructure that may not be readily available in existing data centers. This includes the need for custom-built facilities, specialized plumbing, and cooling distribution units, all of which add to the complexity and cost of deployment, thus hindering market growth.
 

Data Center Liquid Cooling Market Trends

The market growth is driven by the increasing usage of immersion cooling as a cutting-edge method for managing heat in data centers. This technology involves submerging electronic components directly in a non-conductive liquid that efficiently dissipates heat. Moreover, with the increasing density of data center hardware and the need for more efficient cooling solutions, immersion cooling provides a viable alternative to traditional methods. It reduces cooling energy consumption and enhances hardware performance by maintaining optimal operating temperatures.
 

Data Center Liquid Cooling Market Analysis

Based on component, the solution segment was worth over USD 2 billion in 2023. The increasing demand for advanced cooling solutions that can efficiently manage the heat generated by high-density computing environments is driving the segment growth. Unlike traditional air-cooling methods, immersive cooling directly addresses the heat generated by densely packed components by submerging them in a cooling fluid. This method significantly reduces the need for additional cooling infrastructure, lowers operational costs, and improves energy efficiency by minimizing the reliance on air conditioning systems.
 

Immersive cooling extends the lifespan of hardware and enhances performance, making it a preferred choice for modern, high-performance computing environments. Its ability to handle increasing thermal loads effectively positions it as a leading solution in the data center cooling market. As a result, immersive cooling is poised to become a cornerstone technology, driving advancements and setting new standards in data center cooling solutions.
 

Based on end-use, the enterprise segment is anticipated to register a CAGR of over 16% from 2024 to 2032. Businesses including BFSI, retail, healthcare, and manufacturing require substantial data processing and storage capabilities to support their operations, customer interactions, and data analytics. These organizations are investing heavily in advanced data center solutions to handle large volumes of data, ensure high availability, and maintain operational efficiency. The increasing adoption of digital transformation strategies and the need for secure, reliable computing environments drive the demand within this segment.
 

North America dominated the global data center liquid cooling market with a major share of over 35% in 2023, due to its highly developed IT infrastructure and significant investment in advanced technologies. The region's robust cloud computing and tech industries drive demand for high-performance data center solutions. Additionally, its favorable regulatory environment and incentives for technology investments support market growth. The presence of major technology firms and a high concentration of data centers in the U.S. and Canada further contribute to the region's market leadership.
 

Rapid digital transformation and the rise of cloud computing are driving data center growth in the Asia Pacific region. Economic expansion is leading to increased investments in IT infrastructure to support emerging technologies such as AI and IoT. Consequently, the region is experiencing a surge in data center development, positioning itself as a critical hub for technological innovation and infrastructure advancement.
 

In Europe, stringent data privacy regulations such as GDPR are fueling demand for data centers to ensure compliance. The region's commitment to sustainability is promoting the adoption of green data center technologies. Expanding cloud services and government-backed digital infrastructure projects further drive market growth. As a result, these dynamics are shaping the future of the EU data center industry, fostering a commitment to both regulatory adherence and sustainable practices.
 

Data Center Liquid Cooling Market Share

Schneider Electric, 3M Company, and Rittal GmbH & Co. KG hold a significant market share of over 20% in the data center liquid cooling. The major players are focusing on developing and deploying a range of liquid cooling solutions, including direct-to-chip and immersion cooling systems, to improve thermal management and enhance energy efficiency. These technologies are designed to handle the increasing heat loads generated by modern servers and other high-performance computing equipment, reducing reliance on traditional air-cooling methods.
 

Additionally, there is a strong emphasis on integrating sustainability into these solutions. Companies such as Schneider and Vertiv are innovating to create cooling systems that not only optimize performance but also align with environmental goals by reducing energy consumption and minimizing carbon footprints. As the demand for data centers grows and regulatory pressures increase, these advancements in liquid cooling are becoming crucial for maintaining operational efficiency and meeting sustainability targets.
 

Data Center Liquid Cooling Market Companies

Major players operating in the data center liquid cooling industry are

• 3M Company
• Alfa Laval AB
• CoolIT Systems Inc.
• IBM Corporation
• Mitsubishi Electric Corporation
• Rittal GmbH & Co. KG
• Schneider Electric SE
• STULZ GmbH
• Submer Technologies
• Vertiv Group
   

Data Center Liquid Cooling Industry News

• In January 2024, Aligned Data Centers introduced its DeltaFlow liquid cooling system, designed for high-density workloads up to 300kW per rack. This turnkey solution supports various liquid cooling technologies, including direct-to-chip, rear-door heat exchangers, and immersion cooling, and integrates with Aligned’s existing air-cooled Delta³ system without requiring changes to power delivery or data hall temperatures.

• In April 2024, ExxonMobil and Intel announced a collaboration to develop and test new energy-efficient liquid cooling fluids for data centers. The partnership aims to create cooling solutions compatible with Intel's x86 architecture, enhancing energy and water savings for data center operations.
   

This data center liquid cooling market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) from 2021 to 2032, for the following segments:

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Market, By Component

• Solution
  • Direct to chip
  • Immersive
    • IT Chassis
    • Tub/Open bath
• Service
  • Managed service
  • Professional service

Market, By Data Center Size

• Small data center
• Medium data center
• Large data center

Market, By Application

• Server cooling
• Storage cooling
• Networking cooling
• Others

Market, By End user

• Enterprise
  • BFSI
  • Retail & e-commerce
  • Government
  • Healthcare
  • Manufacturing
  • IT enabled Services (ITeS)
  • Others
• Telecom service provider
• Cloud service provider

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Poland
  • Benelux
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Colombia
  • Argentina
  • Chile
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA