Data Center Liquid Cooling

Global Data Center Liquid Cooling Market to Reach US$9.5 Billion by 2030

The global market for Data Center Liquid Cooling estimated at US$3.1 Billion in the year 2024, is expected to reach US$9.5 Billion by 2030, growing at a CAGR of 20.3% over the analysis period 2024-2030. Telecom Application, one of the segments analyzed in the report, is expected to record a 21.1% CAGR and reach US$2.9 Billion by the end of the analysis period. Growth in the Retail Application segment is estimated at 13.9% CAGR over the analysis period.

The U.S. Market is Estimated at US$853.3 Million While China is Forecast to Grow at 18.8% CAGR

The Data Center Liquid Cooling market in the U.S. is estimated at US$853.3 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$1.4 Billion by the year 2030 trailing a CAGR of 18.8% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 18.5% and 17.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 14.3% CAGR.

Global Data Center Liquid Cooling Market - Key Trends and Drivers Summarized

What Is Data Center Liquid Cooling and How Does It Transform Cooling Solutions?

Data center liquid cooling is a cutting-edge technology designed to enhance the efficiency and effectiveness of heat management systems in data centers. Unlike traditional air cooling, liquid cooling uses conductive cooling fluids to directly absorb and dissipate heat from critical components such as CPUs, GPUs, and memory modules. This method is significantly more efficient at transferring heat than air, allowing for closer component packing and higher performance densities without the risk of overheating. Liquid cooling systems can be implemented in several forms, including direct-to-chip cooling, where coolant is circulated directly over the heat-generating components, and full immersion cooling, where entire servers are submerged in non-conductive liquids. These systems not only provide superior cooling capabilities but also significantly reduce the energy consumption associated with large-scale cooling operations, thereby supporting the sustainability goals of modern data centers.

Why Are Traditional Cooling Methods Inadequate for Today`s Data Centers?

As data centers grow in size and complexity, traditional air-based cooling methods are becoming increasingly inadequate. The limitations of air cooling are particularly evident as the heat generated by modern high-density servers and networking equipment surpasses the heat removal capabilities of air alone. Air systems require significant amounts of space for ductwork and airflow, which can limit the physical density of data center installations. Additionally, the energy cost of powering large air conditioning units and the associated ventilation systems can be prohibitively expensive. These factors contribute to a growing interest in liquid cooling solutions, which can more efficiently manage the thermal load with a smaller physical footprint and lower energy consumption.

How Does Liquid Cooling Contribute to Data Center Innovation and Efficiency?

Liquid cooling is at the forefront of innovations designed to tackle the thermal management challenges in next-generation data centers. By directly absorbing heat from components before it disperses into the air, liquid cooling minimizes the thermal resistance and maximizes heat transfer efficiency. This direct cooling approach allows data centers to operate at higher densities without the risk of thermal throttling, which can degrade performance and lead to hardware failure. Moreover, the implementation of liquid cooling systems can lead to a dramatic reduction in the reliance on traditional HVAC systems, which are among the largest consumers of power in data centers. The energy saved translates not only to lower operational costs but also to a much-reduced carbon footprint, making liquid cooling a key component in the push towards more sustainable data center operations.

What Drives the Growth in the Data Center Liquid Cooling Market?

The growth in the data center liquid cooling market is driven by several factors, crucially the escalating demand for greater data processing capabilities and increased energy efficiency in data centers. As enterprises and service providers continue to scale up their data operations to support growing demands for cloud services, artificial intelligence, and big data analytics, the need for high-density configurations that can operate efficiently at elevated temperatures becomes imperative. Liquid cooling solutions address these requirements directly by enabling more efficient heat management and allowing for closer component spacing without thermal compromise. Additionally, the shift towards sustainability in IT operations is prompting data centers to adopt greener technologies that reduce energy consumption and environmental impact. Consumer expectations for uninterrupted, high-speed digital services also necessitate the deployment of more efficient cooling technologies to ensure system reliability and uptime. These technological, economic, and environmental drivers collectively fuel the expansion of the liquid cooling market, underscoring its essential role in the evolution of modern data centers.

SCOPE OF STUDY:

The report analyzes the Data Center Liquid Cooling market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Application (Telecom, Retail, IT, BFSI, Healthcare, Energy, Other Applications)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 12 Featured) -

• Allied Control Ltd.
• Asetek A/S
• Emerson Electric Company
• Green Revolution Cooling Inc. (GRC)
• Horizon Computing Solutions
• IBM Corporation
• Midas Green Technologies, LLC.
• Rittal GmbH & Co. KG
• Schneider Electric SA

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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