Data Center Liquid Cooling Market - Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Component (Solution and Services), By Type of cooling (Cold Plate Liquid Cooling, Immersion Liquid Cooling and Spray Liquid Cooling), By End-User (BFSI, IT & Telecom, Media & Entertainment, Healthcare and Others), By Region, and By Competition, 2020-2030F

Market Overview

The Global Data Center Liquid Cooling Market will grow from USD 3.80 Billion in 2024 to USD 12.54 Billion by 2030 at a 22.01% CAGR. Data center liquid cooling refers to advanced thermal management techniques that utilize liquid coolants, such as water or dielectric fluids, to directly absorb and transfer heat from high-performance IT equipment. This method offers a more efficient alternative to conventional air-based cooling, particularly as modern data centers face escalating heat loads. Main market growth drivers include the continuous increase in computing power and rack density, driven by artificial intelligence and high-performance computing applications, which demand thermal management beyond air cooling's capabilities. Additionally, the growing imperative for enhanced energy efficiency and sustainability, coupled with the rising adoption of cloud and colocation services, further supports market expansion.

According to the Uptime Institute's 2024 Cooling Systems Survey, 22% of surveyed data center owner-operators reported using some form of direct liquid cooling in their facilities, with an additional 61% indicating future consideration. Despite these drivers, a significant challenge impeding market expansion is the substantial initial capital expenditure and the complexity associated with integrating liquid cooling infrastructure, particularly when retrofitting existing data center environments.

Key Market Drivers

The global data center liquid cooling market is significantly influenced by two primary factors: the continuous increase in server rack power densities and the growing imperative for energy-efficient data center operations. Modern computational demands, particularly from high-performance computing and artificial intelligence workloads, are pushing server rack power densities to unprecedented levels, rendering traditional air-cooling methods increasingly inadequate. Accommodating these higher thermal loads necessitates advanced cooling solutions capable of direct and efficient heat removal. According to AFCOM, in its December 2024 "Exploring Data Center Rack Density" article, average rack density now sits around 12 kW, with many deployments exceeding this considerably. This escalating power density directly correlates with the need for liquid cooling to maintain optimal operating temperatures and prevent thermal throttling.

Concurrently, the demand for energy-efficient data centers acts as a powerful catalyst for liquid cooling adoption. Data center operators are under increasing pressure to reduce operational expenses and meet stringent environmental regulations. Liquid cooling offers a more efficient alternative to air-based systems, consuming less energy for cooling and thereby lowering a facility's Power Usage Effectiveness (PUE). This efficiency translates into substantial energy savings and a reduced carbon footprint. For example, according to Google DeepMind, in its November 2025 "Building Sustainable Data Centers" article, their collaboration with Google Data Center Operations achieved a 40% reduction in cooling energy use through machine learning optimization, highlighting the significant efficiency gains possible. The widespread recognition of these benefits is driving substantial interest and investment across the industry. According to The Register, in April 2024, "Reg survey shows third of DCs plan to deploy liquid cooling", 38.3 percent of enterprises expect to employ some form of liquid cooling infrastructure in their data centers by 2026, indicating a clear market shift towards these advanced thermal management solutions.

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Key Market Challenges

The substantial initial capital expenditure and the inherent complexity of integrating liquid cooling infrastructure present a significant impediment to the growth of the global data center liquid cooling market. This challenge is particularly pronounced when retrofitting existing data center environments, where older facilities may not be designed to accommodate the necessary plumbing, containment, and power distribution changes. Such upgrades often require extensive planning, downtime, and specialized expertise, leading to considerable upfront financial outlays and operational disruption.

According to the Uptime Institute's 2024 Global Data Center Survey, 44% of respondents indicated being very concerned about the escalating costs associated with owning and operating data centers, which includes expenditures for equipment, labor, construction, and infrastructure upgrades. This financial barrier delays or deters many owner-operators from adopting advanced liquid cooling solutions. Consequently, this directly slows the overall market expansion by limiting the rate at which these essential cooling technologies are deployed across the vast installed base of existing data centers.

Key Market Trends

The market for data center liquid cooling is significantly influenced by the expansion of these advanced solutions into edge data centers. As computational demands shift closer to data sources to reduce latency and bandwidth use, edge computing environments increasingly require compact, high-density cooling. Traditional air-cooling methods in these often space-constrained and challenging remote locations are proving inadequate for the escalating heat loads. The Open Compute Project, a collaborative community focused on efficient hardware design, has seen contributions, such as Nokia's February 2024 white paper on "Open Edge Servers Meet Liquid Cooling," indicating a concerted industry effort to develop liquid cooling solutions specifically for these demanding edge scenarios. This trend signifies a geographical diversification of liquid cooling deployments, moving beyond large central data centers to support distributed computing infrastructures. According to AFCOM, in its May 2025 "State of the Data Center Report 2025," 36% of data center respondents planned to adopt liquid cooling within one to two years, up from 32% the previous year, highlighting an accelerating market shift towards these advanced thermal management solutions.

Another pivotal trend shaping the liquid cooling market is the integration of artificial intelligence for cooling system optimization and management. This development moves beyond the inherent efficiency of liquid cooling by applying intelligent control to enhance performance, predict maintenance needs, and further reduce energy consumption. AI algorithms analyze real-time operational data, allowing for dynamic adjustments to cooling parameters, workload distribution, and overall system efficiency, which results in more precise thermal management. For instance, Google DeepMind's collaboration with Google Data Center Operations achieved a 40% reduction in cooling energy use through machine learning optimization, as stated in its November 2025 "Building Sustainable Data Centers: Innovations in Materials and Energy Use" article. This strategic integration of AI represents a substantial advancement in operational intelligence, driving significant energy savings and operational reliability within the global data center liquid cooling market.

Segmental Insights

The "Solution" segment is experiencing rapid growth in the Global Data Center Liquid Cooling Market due to the escalating demand for efficient thermal management in high-density computing environments. Modern data centers increasingly deploy power-intensive artificial intelligence, high-performance computing, and machine learning workloads, generating heat beyond the capabilities of traditional air cooling systems. Liquid cooling solutions, including direct-to-chip and immersion cooling, offer superior thermal efficiency and space optimization, enabling data centers to accommodate higher rack densities while simultaneously improving energy efficiency and supporting sustainability objectives. This shift towards integrated, scalable solutions is critical for maintaining optimal performance and operational reliability.

Regional Insights

Asia Pacific stands as the leading region in the global data center liquid cooling market. This dominance is driven by the region's rapid digital transformation and an expanding internet user base, necessitating substantial investments in data center infrastructure. The proliferation of high-performance computing, artificial intelligence, and cloud services generates significant heat, making liquid cooling essential for efficient thermal management. Additionally, supportive governmental policies and increasing emphasis on energy efficiency and sustainability initiatives across the region encourage the adoption of advanced cooling solutions to reduce operational costs and environmental impact.

Recent Developments

• In November 2025, Gates Corporation introduced Data Master™ Eco, a new liquid cooling hose designed to enhance the sustainability and performance of data centers. This next-generation solution was developed to support hyperscale data centers and high-performance computing (HPC) environments, focusing on maximizing uptime and reducing environmental impact. The Data Master Eco featured a halogen-free design, offering a cleaner alternative that aimed to reduce carbon emissions and energy usage during its manufacturing process. It expanded Gates' Data Center Solutions portfolio, which includes Open Compute Project-aligned components for AI and HPC environments, emphasizing efficient and reliable thermal management for global digital infrastructure growth.

• In February 2025, Vertiv launched its global liquid cooling services portfolio, designed to support the escalating demands of artificial intelligence (AI) and high-density computing applications in data centers. This comprehensive portfolio encompassed various services, including design, installation, commissioning, and ongoing maintenance. The introduction of these services aimed to facilitate seamless integration, operational efficiency, and improved system availability for data center operators worldwide. Vertiv's experience from earlier regional deployments of these services provided a mature and proven approach, ensuring expert support based on real-world applications and successful implementations for its customers.

• In October 2024, KAYTUS debuted its comprehensive liquid cooling solutions at Data Centre World Asia, targeting the needs of AI-era data centers. The company introduced an innovative all-liquid cooling cabinet solution, engineered to provide 100% liquid cooling and eliminate the necessity for traditional air conditioning in high-density computing settings. This cabinet utilized advanced cold plates and a liquid cooling rear door, enabling natural cooling methods to dissipate server heat and achieve substantial energy savings compared to air-cooled alternatives. KAYTUS also presented a 450 kW Coolant Distribution Unit, designed for efficient and sustainable data center deployments.

• In October 2024, Flex and JetCool announced a strategic collaboration focused on advanced liquid cooling solutions for data centers. This partnership highlighted efforts to integrate JetCool's microconvective cooling technology with Flex's manufacturing capabilities. The objective was to deliver purpose-built solutions for artificial intelligence (AI) and high-performance computing (HPC) applications. This collaboration was showcased during the 2024 OCP Global Summit, emphasizing a focus on AI innovation within the data center liquid cooling market. The joint initiative aimed to enhance thermal management for increasingly dense and powerful computing infrastructure, addressing critical industry needs.

Key Market Players

• Alfa Laval Corporate AB
• Liquid Stack Inc.
• Asetek Inc. A/S
• Aecorsis BV
• Chilldyne, Inc.
• CoolIT Systems Inc.
• Fujitsu Limited
• Wakefield Thermal, Inc.
• Kaori Heat Treatment Co. Ltd
• Lenovo Group Limited

Report Scope:

In this report, the Global Data Center Liquid Cooling Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Data Center Liquid Cooling Market, By Component:

o   Solution

o   Services

• Data Center Liquid Cooling Market, By Type of cooling:

o   Cold Plate Liquid Cooling

o   Immersion Liquid Cooling

o   Spray Liquid Cooling

• Data Center Liquid Cooling Market, By End-User:

o   BFSI

o   IT & Telecom

o   Media & Entertainment

o   Healthcare

o   Others

• Data Center Liquid Cooling Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Data Center Liquid Cooling Market.

Available Customizations:

Global Data Center Liquid Cooling Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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