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Data Center Liquid Cooling Market
Data Center Liquid Cooling Market Size, Share, Trend, Forecast, Competitive Analysis, and Growth Opportunity: 2025-2031
“The global data center liquid cooling market size was US$ 1.3 billion in 2024 and is likely to grow at an impressive CAGR of 23.2% in the long run to surpass US$ 7.8 billion in 2031.”
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Liquid cooling technology is employed in data centers to efficiently manage and dissipate the heat produced by servers, networking devices, and other hardware. While traditional air cooling effectively transfers heat away from the CPU, it raises the overall system temperature as the heat is dispersed within the enclosure. In contrast, liquid cooling excels at transferring heat outside the system, utilizing radiator fans for effective dissipation. As data centers have expanded in size and density, the increasing heat output has posed a significant challenge for traditional cooling methods, making liquid cooling a more efficient alternative.
Liquid cooling servers rely on five key components: coolant solution (specialized liquids with additives for thermal efficiency), pump (circulates coolant with a strong flow rate), radiator (dissipates heat using single, dual, or triple-fan setups), water block (transfers heat to the coolant), and tubes with fittings (transport coolant through the loop). This method efficiently absorbs and removes heat from electronic components using water or specialized coolants. Over the past decade, the data center liquid cooling market has grown significantly, with notable players such as CoolIT Systems, Vertiv Group Corp., Green Revolution Cooling, Inc., and Boyd Corporation.
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Data Center Liquid Cooling Market Report Scope |
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Market Size in 2024 |
USD 1.3 Billion |
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Market Size in 2031 |
USD 7.8 Billion |
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CAGR (2025-2031) |
23.2% |
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Base Year of Study |
2024 |
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Trend Period |
2019-2023 |
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Forecast Period |
2025-2031 |
The growing demand for data center liquid cooling systems is driven by key factors:
Rising data center density, increasing thermal efficiency requirements, and rapid advancements in cooling technologies. Average server rack density in data centers has nearly doubled, from around 5 kW in 2017 to 8-10 kW in 2022, with significant growth in recent years. Projections indicate this trend will continue, with rack densities expected to reach 15-20 kW per rack by 2025. These developments have intensified the need for more effective cooling solutions, leading to the industry's accelerated adoption of liquid cooling.
Technological advancements have made liquid cooling more maintainable, scalable, and cost-effective, reducing liquid usage by over 15% in hot, humid climates and up to 80% in cooler regions. Additionally, energy used for cooling can be recycled to heat buildings or water, significantly lowering the carbon footprint of air conditioning through advanced engineering coolants.
Several critical factors are anticipated to hinder the growth of the data center liquid cooling market. Chief among these challenges are high initial investment costs, intricate maintenance requirements, and limited compatibility with existing data center infrastructure. For small to medium-sized data centers, the substantial upfront costs associated with installing liquid cooling systems present a significant barrier to adoption. Additionally, integrating liquid cooling solutions into legacy data centers poses compatibility issues due to the older hardware and infrastructure still prevalent in many facilities.
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Segmentations |
List of Sub-Segments |
Segments with High Growth Opportunity |
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Product-Type Analysis |
Direct-to-chip, Immersion, and Other Product Types |
Direct-to-chip is expected to be the dominating product type, whereas Immersion is expected to grow at the fastest pace in the market. |
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End-Use Industry Type Analysis |
IT & Telecom, Retail, Healthcare, Banking, Financial Services & Insurance (BFSI), Media & Entertainment, and Other End-Use Industries |
IT & Telecom is expected to be the leading category in the market, whereas retail is expected to grow at the fastest pace. |
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Regional Analysis |
North America, Europe, Asia-Pacific, and The Rest of the World |
North America is expected to dominate the market, and Asia-Pacific will likely grow at the fastest pace during the period. |
"Direct-to-chip segment accounted for the largest market share."
The data center liquid cooling market is segmented into direct-to-chip, immersion, and other product types. Direct-to-chip type is expected to dominate the market during the forecast period. Direct-to-chip cooling dominates the data center liquid cooling market, accounting for nearly three-fourths of the market share. It efficiently targets heat sources, requiring less energy than traditional systems, and is easier to implement compared to immersion cooling. Other systems, primarily rear door heat exchangers, are expected to play a significant role in the future market. These systems draw warm air from the equipment, cool it, and expel the chilled air through the rear door. They can be installed directly alongside the rack.
"Information technology & telecom segment accounted for the largest market share."
The market is segmented into IT & telecom, retail, healthcare, banking, financial services & insurance (BFSI), media & entertainment, and other end-use industries. Information technology & telecom is expected to remain the dominant end-use industry type, whereas retail industry is expected to grow at the fastest rate in the market during the forecast period. The IT & Telecom industry generates high computing demand from AI, machine learning, cloud services, and big data, resulting in significant heat generation that requires liquid cooling. As mobile networks and cloud computing grow, the number of data centers and their cooling needs have surged. The retail industry today depends heavily on e-commerce, digital transactions, and customer analytics, driving the need for high data processing power and, consequently, significant heat generation. Additionally, the industry prioritizes sustainability and cost reduction, goals that can be achieved by adopting liquid cooling systems.
“North America is expected to remain the largest market, and Asia-Pacific is likely to be the fastest-growing market during the forecast period.”
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The market is moderately fragmented, with over 20 players. Most of the major players compete on some of the governing factors, including price, service offerings, regional presence, etc. The following are the key players in the data center liquid cooling market.
Here is the list of the Top Players (Based on Dominance)
Note: The above list does not necessarily include all the top players in the market.
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A growing number of product developments have been happening in the market in the last few years:
Recent Market JVs and Acquisitions:
An increasing number of strategic alliances, including M&As, JVs, etc., have been performed over the past few years:
This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:
Market Segmentation
The data center liquid cooling market is segmented into the following categories:
By Product Type
By End-Use Industry Type
By Region
This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s data center liquid cooling market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.
This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:
Company Profiling
Competitive Benchmarking
Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com
Liquid cooling technology in data centers manages heat from servers and hardware through five key components: coolant solution (with additives for thermal efficiency), pump (circulates coolant), radiator (dissipates heat), water block (transfers heat), and tubes with fittings (transport coolant).
The market was valued at US$ 1.3 billion in 2024 and is expected to reach US$ 7.8 billion in 2031.
The data center liquid cooling market is estimated to grow at a CAGR of 23.2% by 2031, driven by rising data center density, increasing thermal efficiency requirements, and rapid advancements in cooling technologies.
North America is set to remain the largest market, driven by early adoption of new technologies, rising connected devices, and increased investment in direct-to-chip and liquid immersion cooling. The growth of 5G networks and edge data centers, with U.S. operators like EdgePresence and EdgeMicro investing, along with Canada's infrastructure expansion, further fuel market growth.
Asia-Pacific has experienced steady growth and a rapidly increasing demand for cloud applications driven by social media, gaming, and entertainment. China's large market plays a significant role in this regional growth. Additionally, the rising adoption of AI, machine learning, and the Internet of Things (IoT) across various industries in the region has created a need for advanced cooling systems to manage the heat generated by high-performance computing workloads.
CoolIT Systems, Motivair Corporation, Boyd Corporation, Stulz GMBH, Submer Technologies & Submer Inc., Vertiv Group Corp., nVent, Rittal GmbH & Co. KG, Laird Thermal Systems, Inc., and Green Revolution Cooling, Inc. are the leading players in the data center liquid cooling market.
IT & Telecom is the leading segment in the market. The industry generates high computing demand from AI, machine learning, cloud services, and big data, resulting in significant heat generation that requires liquid cooling. As mobile networks and cloud computing grow, the number of data centers and their cooling needs have surged.
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