What is the global market size of Data Center Liquid Cooling Market?

Data Center Liquid Cooling Market size was valued at USD 1.82 billion in 2021 and is poised to grow from USD 2.37 billion in 2022 to USD 12.77 billion by 2030, at a CAGR of 23.43% during the forecast period (2023-2030).

Who are the key vendors in the Global Data Center Liquid Cooling Market?

The competitive landscape of the data center liquid cooling market is characterized by intense competition among key market players. Several prominent companies are actively engaged in providing innovative and efficient liquid cooling solutions for data centers. These companies focus on strategic initiatives such as partnerships, collaborations, mergers and acquisitions, and product developments to strengthen their market presence. They continuously invest in research and development activities to introduce advanced cooling technologies that offer improved efficiency, sustainability, and performance. 'Schneider Electric SE (France)', 'Vertiv Co. (US)', 'CoolIT Systems Inc. (Canada)', 'Asetek (Denmark)', 'Rittal GmbH & Co. KG (Germany)', 'Green Revolution Cooling Inc. (US)', 'LiquidCool Solutions Inc. (US)', 'Midas Green Technologies LLC (US)', 'Submer Technologies (Spain)', 'STULZ GmbH (Germany)', 'Fujitsu Limited (Japan)', 'Huawei Technologies Co., Ltd. (China)', 'Nortek Air Solutions, LLC (US)', 'Mitsubishi Electric Corporation (Japan)', 'Delta Electronics, Inc. (Taiwan)', 'Airedale International Air Conditioning Ltd (UK)', 'Munters Group AB (Sweden)', 'Aqua Cooling Solutions Ltd (UK)', 'Alfa Laval AB (Sweden)', 'Iceotope Technologies Limited (UK)'

What is the key driver of Global Data Center Liquid Cooling Market?

With the growing adoption of high-performance computing, artificial intelligence, and big data analytics, data centers are experiencing higher power densities, leading to increased heat dissipation requirements. Traditional air-based cooling methods are often insufficient to handle these thermal loads, resulting in operational inefficiencies and potential performance issues. Liquid cooling solutions offer superior heat dissipation capabilities, enabling more efficient cooling and ensuring optimal performance of data center equipment.

What is the key market trend for Global Data Center Liquid Cooling Market?

Rise of hyperscale data centers: Hyperscale data centers are large data centers that are used by cloud service providers and other large organizations. These data centers require a significant amount of cooling, which is driving the demand for more efficient and scalable cooling solutions. Liquid cooling is a scalable and efficient cooling solution that is well-suited for hyperscale data centers. Liquid cooling is a more efficient and scalable cooling solution that is well-suited for hyperscale data centers. Liquid cooling can help to reduce the power consumption of data centers by up to 50%, and it can also help to improve the reliability and uptime of data centers.

Which region accounted for the largest share in Data Center Liquid Cooling Market?

The largest market region in the data center liquid cooling market is North America. North America has a well-established data center infrastructure and is home to several major technology companies and cloud service providers. The region has witnessed significant growth in data center establishments, driven by the increasing demand for data-intensive applications and services. Additionally, North America has been at the forefront of adopting advanced technologies such as cloud computing, artificial intelligence, and Internet of Things (IoT), resulting in higher power densities and cooling requirements. To address these challenges, data center operators in North America are increasingly adopting liquid cooling solutions to improve energy efficiency, reduce operational costs, and enhance overall data center performance.

Data Center Liquid Cooling Market Size

Data Center Liquid Cooling Market Insights

Data Center Liquid Cooling Market size was valued at USD 2.93 Billion in 2023 and is poised to grow from USD 3.62 Billion in 2024 to USD 19.45 Billion by 2032, growing at a CAGR of 23.43% during the forecast period (2025-2032).

The increasing energy consumption of data center facilities has prompted businesses to explore and adopt advanced liquid cooling solutions. As data centers expand and operate at higher densities, conventional cooling methods become less efficient and more costly. To solve these problems, companies are using state-of-the-art liquid cooling technologies, which offer improved thermal management and energy efficiency.

Additionally, the growing cloud computing market is presenting numerous opportunities for data center providers. As more businesses use cloud-based solutions to benefit from their scalability, flexibility, and affordability, end users' demand for data center infrastructure to support these services has been growing. This expansion, which necessitates the building of new data centers and the renovation of existing facilities, will lead to innovation and the data center liquid cooling market growth.

To build new data centers in Australia and support massive generative AI workloads, Amazon Web Services announced in June 2025 that it would invest USD 20 billion (roughly USD 13 billion USD) over five years. This dedication reflects the growing demand for cloud services and AI computation globally and shows how enterprises' need for scalable and reasonably priced cloud solutions is directly driving large infrastructure buildouts.

What Role Does AI Play in Optimizing Data Center Cooling Efficiency?

By making it simpler to control heat and use energy more effectively, artificial intelligence is transforming the global data center liquid cooling market outlook. Since traditional air cooling is insufficient for AI applications that require more processing power, liquid cooling techniques are employed. Artificial intelligence (AI) algorithms are being used to forecast heat trends and make real-time adjustments to cooling systems to increase efficiency and reduce operating expenses. For demanding AI workloads, Hewlett Packard Enterprise (HPE) unveiled a fully fanless direct liquid cooling solution in October 2024. 90% less energy is used to cool this system. Similarly, in 2025, the neocloud company Crusoe announced that it would construct liquid-cooled AI servers in the US using over 13,000 AMD MI355X processors. This demonstrates the growing significance of AI and liquid cooling in the architecture of data centers of the future.

FAQs

Global Data Center Liquid Cooling Market size was valued at USD 2.93 Billion in 2023 and is poised to grow from USD 3.62 Billion in 2024 to USD 19.45 Billion by 2032, growing at a CAGR of 23.43% during the forecast period (2025-2032).

Rittal GmbH & Co. KG, 3M Company, and Schneider Electric hold a significant market share of over 20% in the data center liquid cooling industry. The main players are focusing on developing and deploying a range of liquid cooling solutions, including direct-to-chip and immersion cooling systems, to enhance thermal management and increase energy efficiency. These technologies reduce the need for traditional air-cooling methods by addressing the increasing heat loads generated by modern servers and other high-performance computing devices. 'ExxonMobil', 'Fujitsu', 'Aligned Data Centers', 'ABB Ltd', 'Rotork plc', 'SMC Corporation', 'Festo AG & Co. KG', 'Moog Inc.', 'Curtiss-Wright Corporation', 'IMI plc', 'AUMA Riester GmbH & Co. KG', 'Barksdale Inc.', 'Flowserve Corporation', 'Johnson Controls'

The power density of data centers is rising significantly due to the development of artificial intelligence (AI) and high-performance computing (HPC). Advanced CPUs and GPUs that produce more than 30kW of heat per rack no longer require traditional air cooling. By 2025, data centers all over the world are using liquid cooling more and more. This is due to the fact that hyperscalers such as Microsoft and Meta are handling demanding AI/ML workloads by utilizing immersion and direct-to-chip liquid cooling systems.

Growth of Edge Data Centers with Liquid Cooling: Compact edge data centers are growing in popularity as AI and IoT drive data processing closer to the edge. To maintain performance in constrained areas, Canada, India, and Southeast Asia implemented liquid cooling in edge installations in 2025. As edge facilities require high-density, quiet, and efficient computing, countries are increasingly choosing hybrid systems with modular immersion cooling.

How is North America Leading the Liquid Cooling Revolution in Data Centers?