Direct-to-chip Liquid Cooling Market – By Cooling Solution Type, By Component Cooling, By Liquid Coolant Type, By Application, By End Use – Global Forecast, 2025 – 2034

Direct-to-chip Liquid Cooling Market Size

The global direct-to-chip liquid cooling market size was valued at USD 1.85 billion in 2024 and is estimated to grow at CAGR of 20.5% to reach USD 11.89 billion by 2034. The growth of market is attributed to rising demand for high-performance computing (HPC) and a growing focus on energy efficiency and sustainability in data centers.
 

The rising requirements for high-performance computing (HPC) and Artificial Intelligence (AI) for different applications continue to have an impact on the implementation of direct-to-chip (DTC) liquid cooling methods within data centers. The pre-existing forms of air cooling have and still are, becoming increasingly more difficult in managing the power densities and thermal loads of advanced modern-day processors used in AI and HPC-related tasks. This problem has forced many data centers to opt for direct-to-chip (DTC) liquid cooling, to cool the systems more effectively while saving on energy costs. Moreover, major players are widely adopting DTC liquid cooling solutions for cooling their on-premises micro and large data centers.
 

For instance, in August 2024, NVIDIA rolled out new liquid-cooled server racks, which are integrated into conventional air-cooled data centers. Such liquid cooling adoption emphasizes the importance of DTC liquid cooling systems to fulfill the rising thermoregulation requirements generated by the wide adoption of AI and HPC applications. 
 

Sustainability and energy efficiency are emerging as fundamental requirements for data centers are increasing, thereby accelerating the implementation of direct-to-chip (DTC) liquid cooling systems. With the continuous expansion of data centers to support an unprecedented level of data generated from computing and the integration of advanced technologies in different applications, traditional air-cooling systems are quickly becoming insufficient as these systems use a significant amount of energy and their limited ability to manage heat. The data center operators and service providers are focusing on efficient alternatives to counter this issue and opt for liquid cooling technologies.
 

To take advantage of direct-to-chip liquid cooling market expansion in the coming years, concentrate on creating direct-to-chip liquid (DTC) cooling solutions specifically for high-performance computing (HPC) and dense data centers. Highlight energy efficiency, sustainability, and the utilization of environmentally friendly materials. Target industries such as HPC, AI, and cloud computing, where performance and energy efficiency are paramount, making your client a leader in green, high-performance cooling technologies.
 

Direct-to-chip Liquid Cooling Market Trends

• The key trend in direct-to-chip (DTC) liquid cooling is to achieve outstanding thermal management by moving the heat generated from a computer’s processor directly to liquid coolant for heat dissipation, which improves heat dissipation efficiency and reduces energy consumption. For example, CyrusOne claims that deploying liquid cooling systems could lower energy consumption in data centers by as much as 25%, leading to less carbon emissions.
   
• Data centers can increase operational scale more effectively due to meeting regulatory and corporate sustainability requirements because this cooling method allows higher compute density to be achieved without the risk of thermal throttling.
   
• Cloud and AI services have driven the expansion of data centers which has increased the need for liquid cooling solutions, such as DTC, to counter the power density increase. To reduce energy spending while achieving greater rack capacities, DTC liquid cooling is being implemented by industry-leading companies including Google and Microsoft. This trend is likely to grow with the increase in demand for high-performance computing applications.
   
• In advanced packaging, various semiconductor devices are combined in a single package for enhanced performance, minimized size, and increased functionality. These processes, including 2.5D/3D packaging, chip stacking, and system-in-package (SiP) concepts, include closely packed arrangements of integrated circuits (ICs) that generates heat, for which efficient thermal management solutions need to be in place. Direct-to-chip liquid cooling is emerging as a key driver of future advanced packaging by delivering best-in-class thermal management for tightly coupled, high-performance chips to enable efficient and reliable operation of these systems.
   

Direct-to-chip Liquid Cooling Market Analysis

Based on component cooling, the market is segmented into CPU cooling, GPU cooling, ASIC cooling, memory cooling, and other component cooling.
 

• The CPU cooling market is expected to reach over USD 3.9 billion by 2034. Advancing AI, HPC, and cloud computing are increasing the power consumption of high-performance CPUs, thus requiring new cooling solutions such as liquid cooling. The performance of CPUs in sophisticated systems already approaches the thermal design limits. These systems require more efficient cooling techniques, such as liquid cooling directly to the chip.
   
• The GPU cooling is expected to increase to over 33.5% in 2034 as compared to over 30% in 2024. The adoption of liquid cooling technologies for GPUs has greatly increased due to the increasing applications in AI and gaming. Such applications require large GPUs in order to handle the top-tier gaming performance and AI workloads. However, liquid cooling is being adopted for large-scale data centers and supercomputers because of the high GPU heat output.
   
• The memory cooling segment is projected to reach USD 1.3 billion by 2034. As modern computing, especially machine learning (ML), and AI, becomes more reliant on memory chips, their cooling becomes vital to maintain speed and reliability. Advanced memory systems in data centers have high thermal loads that create demand for targeted cooling, like liquid cooling, which is currently in high demand.
   

Based on cooling solution type, the direct-to-chip liquid cooling market is segmented into single-phase liquid cooling and two-phase liquid cooling.
 

• The single-phase liquid cooling market is valued at 1 billion in 2024. The single-phase liquid cooling system is widely adopted in most applications owing to their simplicity and cost-effectiveness. These systems provide piecemeal cooling by circulating a single liquid that assumes a single phase and moves directly from the components into a coolant. Single-phase cooling is widely adopted due to its efficient heat dissipation and cost-effectiveness for high-performance computing and data centers.
   
• The two-phase liquid cooling held a significant market share of over 45.5% in 2024. The efficiency of heat transfer in the two-phase cooling system makes it gain popularity with high-density heat loads especially in AI and HPC systems. With the increased demand for AI workloads as well as high-performance computing, data centers have started employing two phase cooling solutions to combat the extreme heat outputs from modern processors.
   

Based on liquid coolant type, the direct-to-chip liquid cooling market is segmented into water-based coolants, dielectric fluids, mineral oils and engineered fluids.
 

• The water-based coolants segment held a market share of 31.1% in 2024. The water-based coolants are commonly used, due to their economic advantages, and the high thermal conductivity. As data centers focus on energy saving and sustainability, water-based coolant solutions are preferred due to their great heat transfer and relatively low operational costs.
   
• The dielectric fluids is expected to reach over USD 4.1 billion by 2034. Due to their electrical insulating properties, the dielectric fluids witnessed a widespread demand for electronic components. These fluids manage thermal loads by avoiding electric shocks and hence, are adopted for electronic components.
   
• The mineral oils segment is projected to reach USD 2.3 billion by 2034. Mineral oils are becoming an easy-to-go solution in industries that require non-conductive cooling fluids. Their use in supercomputers and even in the most advanced HPC systems is notable due to their ability to dissipate heat evenly.
   
• The engineered fluids accounted for 16.7% market share in 2024. Engineered fluids are produced by combining chemicals and materials, which reduces toxicity, optimize heat transfer and also improves operational stability. This fluid is ideally used for high-performance applications such as specialized industrial machinery, military-grade electronics, and in aerospace.
   

Based on application, the direct-to-chip liquid cooling market is segmented into servers, workstations, edge computing devices, supercomputers, gaming PCs and others.
 

• The datacenter segment held a market share of over 29.2% in 2024. The segment growth is attributed to increasing compute density and heat loads along with shift toward sustainable and green data centers is resulting in adoption of direct to chip cooling solution as they aid in managing the heat and reduce power consumption.
   
• Edge computing devices is likely to grow at a CAGR of 16% by 2034. Edge computing is mostly deployed in remote locations where power and space is limited. However, the demand for compact, and efficient cooling technology for remote distributed environments has increased due to the expansion of Edge Computing, leading to the wider adoption of liquid cooling.
   

Based on end user, the direct-to-chip liquid cooling market is segmented into data centers, high-performance computing (HPC), artificial intelligence/machine learning systems, gaming and esports, telecommunications, financial services, healthcare and life sciences, oil and gas, automotive (for electric vehicle batteries), aerospace & defense and others.
 

• Telecommunication market was valued at USD 578.9 Mn in 2024. The segment growth can be attributed to increasing video streaming and massive data generation from 5G in increasing the thermal load on data centers which calls for energy efficient solution that lowers the OPEX and improve sustainability.
   
• The financial services segment held a market share of over 7.7% in 2024. In financial services, data reliability and processing speed is required for real-time financial transactions, high-frequency trading, robust computing, and risk management. However, by using liquid cooling solutions, the system performs efficiently, thereby, enabling rapid data processing with low latency and accelerated transactions.
   

The North America direct-to-chip liquid cooling market is projected to grow significantly, reaching over USD 3.6 billion by 2034. Data centers are widely adopted in North America because of the quick growth in combination with cloud computing, AI, and high-performance computing (HPC) applications. Such applications require high-performance hardware, which dissipates large amounts of heat, and hence, the demand for liquid cooling is increasing in the North America market.
 

• The U.S. direct-to-chip liquid cooling market is dominated by the United States with a share of 78.4% in 2024. This is due to unprecedented growth in cloud services and data centers, which require higher levels of cooling owing to the greater concentration of heat densities.
   
• Canada market is expected to witness robust growth, with a CAGR of over 16.8% by 2034. The market in Canada is driven by the demand for cloud computing and data storage services, Canada is simultaneously witnessing an improvement in its data center infrastructure. Additionally, the country's focus on energy efficiency and sustainability accelerates the adoption of liquid cooling technologies to further reduce energy use and carbon emissions.
   

The direct-to-chip liquid cooling market in Europe is expected to experience significant growth with a CAGR of 19.6% by 2034. Efficient energy usage as well as the drive for carbon neutrality are the main factors, due to which the demand for liquid cooling systems is increasing in Europe. The continuously growing infrastructure of data centers particularly in Germany, UK and France is ensuring market growth. High-performance AI and machine learning workloads are on the rise and, consequently, so do the need for sophisticated cooling systems.
 

• Germany direct-to-chip liquid cooling market is set to grow significantly, with projections indicating it will exceed USD 615.3 million by 2034. Persistent sustainability and energy efficiency focus of Germany has resulted in the application of liquid cooling technologies in the data centers. Also, with the existence of large data center hubs in the country, the need for advanced cooling systems is reliably high.
   
• The UK direct-to-chip liquid cooling market is anticipated to grow at a CAGR of over 18.3% by 2034. The growing adoption of digital technologies and cloud services in the UK has resulted in increased investment into data centers. This expansion require advanced cooling systems to cater to the heat produced by high density computing equipment.
   
• Spain direct-to-chip liquid cooling market is forecast to see substantial growth, with expectations to reach over USD 333.9 million by 2034. Spain is exhibiting an increase in the number of data center initiatives, with the upsurge in demand for cloud services and digital transformation being notable. The liquid cooling technology adoption rate is increasing owing to the need for efficient thermal management solutions within these facilities.
   

The Asia Pacific direct-to-chip liquid cooling market is anticipated to witness lucrative growth and is expected to reach over USD 3.8 billion by 2034. Growth in this region is primarily driven by the rapid digital change in the region, the increasing workloads from AI, ML, infrastructure investments in cloud computing as well as the expansion of data centers supported by governments in China, Japan and India. The increasing need for Edge computing which further increase the growth of the sophisticated cooling systems.
 

• China direct-to-chip liquid cooling market is expected to dominate the global landscape, accounting for over 25.8% of the market share in 2024. China's rapid digital transformation is fueled by significant investment into data center infrastructure. The fast-growing adoption of advanced technologies like AI and machine learning drives the need for efficient cooling solutions and will accelerate the growth of the market.
   
• Japan direct-to-chip liquid cooling market is anticipated to witness lucrative growth between 2025 to 2034 with a CAGR of over 23.2%. The spread of high-performance computing applications and Japan’s technology development increases the need for effective cooling solutions. Innovation in the country supports the use of direct-to-chip liquid cooling systems.
   
• The direct-to-chip liquid cooling market in India is anticipated to grow at a CAGR of 23.9% by 2034. The growth of the IT industry along with the increase in data center construction in India is driving the need for efficient cooling systems. The focus on energy efficiency and sustainability also enables the use of liquid cooling systems in the country.
   
• South Korea market is poised for significant growth, projected to reach over USD 506.8 million by 2034. The demand for advanced cooling solutions due to increased innovation in computing technology in South Korea creates need for liquid cooling solutions.
   

The direct-to-chip liquid cooling market in Latin America is expected to experience significant and promising growth from 2025 to 2034 with a CAGR of over 16.9%. The demand for high-performance cooling solutions in Mexico and Brazil is driven by the growing investment in cloud technology and the construction of new data centers. Government programs aimed at boosting the region’s digital transformation also promote high-density computing infrastructure. Sustainability initiatives and energy efficiency concerns compel liquid cooling technologies. The growth of the financial services and video gaming industries also helps further expand the market.
 

• Brazil direct-to-chip liquid cooling market is expected to expand rapidly, with a CAGR of over 17.7% by 2034. The adoption of new digital technologies and the construction and growth of new cooling centers in Brazil will increase the demand for new effective cooling solutions. The energy-focused policies of the region will further aid in developing the direct-to-chip liquid cooling boom.
   
• Mexico direct-to-chip liquid cooling market is anticipated to grow at a strong rate, projected to account for over 42.8% of the global market share by 2024. The expansion on the IT market and the corresponding investment into new data centers in Mexico require the advancement of cooling systems. The increase of new liquid cooled servers enables adequate cooling for the more powerful computing equipment, which drives the market growth.
   

The direct-to-chip liquid cooling market in MEA is expected to reach over 1.2 billion by 2034. The construction of new data centers in the United Arab Emirates, Saudi Arabia, and South Africa, coupled with harsh climatic conditions, serve as the primary drivers for liquid cooling adoption. AI, IoT, and smart city solutions elevate the need for high-performance computers along with sophisticated cooling systems. The deployment of government-sponsored digital transformation programs boosts the construction of data center facilities. Stricter regulations on energy efficiency push enterprises toward adopting liquid cooling principles.
 

• South Africa direct-to-chip liquid cooling market is anticipated to see steady growth, expected to reach over USD 522 million by 2034. The expansion of South Africa’s IT infrastructure alongside the growing need for data centers require the construction of advanced cooling systems. The government’s effort towards energy efficiency further help in adopting the use of liquid-cooled systems.
   
• Saudi Arabia direct-to-chip liquid cooling industry is expected to see impressive growth, projected to account for 21.9% of the global market share in 2024. These investments are parallel to Saudi Arabia’s ongoing expansion of data centers and their new technological investments. These shifts in markets are also supported by the country’s efforts to be more environmentally friendly.
   

Direct-to-chip Liquid Cooling Market Share

The Direct-to-chip liquid cooling market is highly competitive. CoolIT Systems, Asetek, and ZutaCore are the top 3 companies accounting for a significant share of 24% in the market.  The market participants in Direct-to-Chip Liquid Cooling compete essentially on technological development, price management, and territorial expansion. Increased demand for computing performance, artificial intelligence workloads, and efficient cooling strengthens competition.
 

Firms are investing heavily in R&D to create next-generation liquid cooling technologies that offer better thermal management, improved energy efficiency, and the ability to power high-density data centers. The growing demand for sustainable and high-performance cooling solutions necessitates ongoing innovation. Strategic alliances and mergers and acquisitions are frequent tactics employed by market leaders to strengthen their technological capabilities, widen their market coverage, and serve the unique needs of sectors like data centers, AI, and high-performance computing.
 

Direct-to-chip Liquid Cooling Market Companies

List of prominent players operating in the Direct-to-chip liquid cooling industry include:

• ZutaCore
• JetCool Technologies
• LiquidStack
• CoolIT Systems
• Asetek
• Fujitsu
   

As data centers need more advanced cooling solutions, Vertiv strategically expanded its thermal cooling portfolio. In October 2024, Vertiv launched Vertiv™ CoolPhase CDU and Vertiv™ CoolChip Fluid Network pivotal to the company's efforts to enhance the cooling functionality for high-capacity computing environments. These new offerings were introduced successfully and became available in North America, offering efficient, modular solutions for next-generation data centers at affordable costs.
 

To meet the growing need for sophisticated cooling solutions in high-performance data centers, In December 2024, Castrol introduced the Castrol ON Direct Liquid Cooling PG 25. This propylene glycol fluid was engineered to meet the thermal management needs of direct-to-chip cooling applications. The pre-formulated product delivered consistent performance while providing added benefits, including corrosion and bacterial growth protection.
 

Direct-to-chip Liquid Cooling Industry News

• In December 2023, Equinix, Inc. announced the expansion support for advanced liquid cooling technologies like direct-to-chip to more than 100 of its International Business Exchange® (IBX®) data centers in more than 45 cities globally. This builds on Equinix's existing offering that supports liquid-to-air cooling, through in-rack heat exchangers, at nearly every IBX.
   

The Direct-to-chip liquid cooling market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue (USD Million) from 2021 – 2034 for the following segments:

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Market, By Cooling Solution Type

• Single-phase liquid cooling
• Two-phase liquid cooling

Market, By Component Cooling

• CPU cooling
• GPU cooling
• ASIC cooling
• Memory cooling
• Other

Market, By Liquid Coolant Type

• Water-based coolants
• Dielectric fluids
• Mineral oils
• Engineered fluids

Market, By Application

• Datacenter
• Workstations
• Artificial Intelligence/Machine Learning systems
• High-performance computing (HPC)
• Edge computing devices
• Supercomputers
• Others

Market, By End Use

• Telecommunications
• Financial services
• Healthcare and life sciences
• Oil and gas
• Aerospace and defense
• Others  

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

• North America 
  • U.S.
  • Canada
• Europe 
  • Germany
  • UK
  • France
  • Spain
  • Italy
• Asia Pacific 
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America 
  • Brazil
  • Mexico
• Middle East and Africa 
  • Saudi Arabia
  • South Africa
  • UAE