Data Center Liquid Cooling Market by Type (Direct Liquid Cooling, Indirect Liquid Cooling), Service (Design & Consulting, Installation & Deployment, Support & Maintenance), Data Center Size, Application, Industry, End-Users - Global Forecast 2024-2030

Data Center Liquid Cooling Market by Type (Direct Liquid Cooling, Indirect Liquid Cooling), Service (Design & Consulting, Installation & Deployment, Support & Maintenance), Data Center Size, Application, Industry, End-Users - Global Forecast 2024-2030

The Data Center Liquid Cooling Market size was estimated at USD 3.10 billion in 2023 and expected to reach USD 3.75 billion in 2024, at a CAGR 20.86% to reach USD 11.69 billion by 2030.

Data center liquid cooling is an advanced thermal management technique that utilizes liquid-based coolants to efficiently dissipate heat generated by high-performance computing equipment, such as servers and data storage devices. This liquid cooling solution uses a single-phase dielectric fluid and directly interacts with IT components. Rising IP traffic and the growing demand for computers in hyperscale data centers boost the demand for data center liquid cooling. The limitations associated with the AI-based cooling system must be addressed frequently, creating the need for data center liquid cooling. Similarly, the growing recent investments in the data center infrastructure and rising power consumption worldwide increases the need for cooling solutions for heat management. However, the lack of specialized infrastructure for cooling along with the significant risk of system's failure and high maintenance & installation cost hinder the expansion of data centers' liquid cooling. Companies are focused on developing customizable solutions catering to specific industry needs to overcome these challenges. Moreover, the penetration of advanced technologies in data centers and the use of portable liquid cooling systems for in-building server rooms improves the future demand for data center liquid cooling and allows data center operators to meet consumer needs.

Regional Insights

In the Americas region, the United States and Canada are witnessing increased investments in data centers due to growing demand for cloud computing services and the digital transformation of industries. With the increasing automation and Industry 4.0, America has aggressively impacted the growth of data center liquid cooling. Similarly, the European Energy Efficiency Directive 2023 in the Europe region has increased the adoption of green technologies, such as liquid cooling solutions, to lower carbon emissions from data centers. Through this regulatory compliance, operators of large data centers set new advantages to publish information on their energy consumption. In the Middle East & Africa region, countries such as Saudi Arabia, United Arab Emirates, and South Africa are increasingly investing in their IT infrastructure to support growing economies. As a result, there is high potential for growth for data center liquid cooling solutions as customers look towards implementing advanced liquid cooling techniques to maintain optimum operating conditions. Furthermore, countries such as China and India hold a remarkable position in the APAC region due to their massive digital ecosystem expansion fuelled by government initiatives such as 'Internet Plus' and 'Make in India.' Data centers in China are rapidly adopting liquid cooling solutions to accommodate increased power densities and high-performance computing workloads. In addition, the Japanese data center industry is characterized by innovative technological advancements that address unique challenges like limited land availability and natural disasters. Liquid cooling solutions have emerged as a popular choice for Japanese customers, as they offer superior efficiency, high density, and reduced footprint compared to traditional air-cooled systems.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Data Center Liquid Cooling Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers

Increasing IP traffic and the demand for supercomputers and hyperscale data centers
Need to address the limitations associated with the air-based cooling system
Growing investments in data center infrastructure along with the increase in power consumption

Market Restraints

Additional risk of failure in the system and high maintenance for liquid cooled systems in data centers

Market Opportunities

Introduction of new data center cooling technologies
Emergence of portable liquid cooling system for in-building server rooms and data centers

Market Challenges

Lack of specialized infrastructure

Market Segmentation Analysis

Type: Utilization of direct liquid cooling (DLC) to minimize the energy consumption in data centers
Data Center Size: Owing adoption of data center liquid cooling in enterprises to cater the consumer need
Application: Increasing use of data center liquid cooling for heat management
Industry: Rising demand of data centers liquid cooling in industrial and commercial applications

Market Disruption Analysis

Porter’s Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Data Center Liquid Cooling Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Data Center Liquid Cooling Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

LiquidStack Brings Liquid Immersion Cooling to the Edge with the Release of New MicroModular and MegaModular Turnkey Data Center Solutions

LiquidStack, a major player in liquid immersion cooling solutions for data centers, has recently launched its new Prefabricated Modular Solutions, MicroModular and MegaModular. The MicroModular solution comprises a single 48U DataTank, making it an ideal choice for local edge applications. On the other hand, the MegaModular solution consists of up to six 48U DataTanks designed for regional edge applications. These modular solutions are compact, high-density, and engineered to operate efficiently even in extreme conditions. By leveraging LiquidStack's modular solutions, businesses can rapidly deploy computing capabilities at both local and regional levels while reaping the benefits of energy efficiency, effective heat rejection, and water-saving advantages.

Chatsworth, ZutaCore Partner on Liquid Cooling Solution

Chatsworth Products (CPI) partnered with ZutaCore in the context of Data Center Liquid Cooling. This partnership aims to leverage ZutaCore's direct-on-chip dielectric liquid technology, efficiently absorbing heat from high-powered processors. By combining ZutaCore's liquid cooling solution with CPI's data center ZetaFrame Cabinet System, data center owners and operators can expect improved energy efficiency. This collaboration promises enhanced performance and sustainability to the data center industry.

KKR Acquires Liquid Cooling Firm CoolIT

KKR, an investment firm, acquired CoolIT Systems, a leading provider of liquid cooling solutions for data centers. Since its establishment in 2001, CoolIT has focused on developing advanced liquid cooling technology, catering to the data center and desktop markets. Their expertise lies in split-flow direct liquid cooling, ensuring efficient and effective cooling solutions. This acquisition marks a significant milestone for both KKR and CoolIT, further strengthening their positions in the industry.

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Data Center Liquid Cooling Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Data Center Liquid Cooling Market, highlighting leading vendors and their innovative profiles. These include Alfa Laval, Asetek, Inc., Aspen Systems Inc, C&C Technology Group, Cisco Systems, Inc., CoolIT Systems Inc., Dell Inc., Emerson Electric Co., Exxon Mobil Corporation, Green Revolution Cooling Inc., Hewlett Packard Enterprise Development LP, Intel Coproration, International Business Machines Corporation, JETCOOL Technologies Inc, Liquidcool Solutions, Inc., Midas Green Technologies, LLC, Mikros Technologies, Munters Group, NVIDIA Corporation, Rittal GmbH & Co. KG, Schneider Electric SE, Silverback Data Center Solutions Inc., STULZ GmbH, The Dow Chemical Company, and Vertiv Group Corp..

Market Segmentation & Coverage

This research report categorizes the Data Center Liquid Cooling Market to forecast the revenues and analyze trends in each of the following sub-markets:

Type
Direct Liquid Cooling
Single-Phase Immersion Cooling
Two-Phase Immersion Cooling
Indirect Liquid Cooling
Rack-Based Liquid Cooling
RoW-Based Liquid Cooling
Service
Design & Consulting
Installation & Deployment
Support & Maintenance
Data Center Size
Enterprise Data Centers
Large Data Centers
Small & Medium- Size Data Center
Application
Cloud Data Centers
Colocation Data Centers
Edge Data Centers
High-Performance Computing
Industry
Aerospace & Defense
Automotive & Transportation
Banking, Financial Services & Insurance
Building, Construction & Real Estate
Consumer Goods & Retail
Education
Energy & Utilities
Government & Public Sector
Healthcare & Life Sciences
Information Technology
Manufacturing
Media & Entertainment
Telecommunication
Travel & Hospitality
End-Users
Cloud Providers
Colocation Providers
Enterprises
Hyperscale Data Centers
Region
Americas
Argentina
Brazil
Canada
Mexico
United States
California
Florida
Illinois
New York
Ohio
Pennsylvania
Texas
Asia-Pacific
Australia
China
India
Indonesia
Japan
Malaysia
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
Europe, Middle East & Africa
Denmark
Egypt
Finland
France
Germany
Israel
Italy
Netherlands
Nigeria
Norway
Poland
Qatar
Russia
Saudi Arabia
South Africa
Spain
Sweden
Switzerland
Turkey
United Arab Emirates
United Kingdom

Please Note: PDF & Excel + Online Access - 1 Year