Data Centre Liquid Cooling Market - Forecasts from 2024 to 2029

Data Centre Liquid Cooling Market - Forecasts from 2024 to 2029

The data centre liquid cooling market is projected to grow at a CAGR of 22.88%, reaching US$6,979.693 million in 2029 from US$1,649.604 million in 2022.

The data centre liquid cooling market refers to using liquid-based cooling systems to manage the temperature of data centres. As data centres have become increasingly important for businesses and organizations, the demand for more efficient cooling solutions has grown. As a result, liquid cooling has emerged as a viable alternative to traditional air-based cooling systems due to its higher efficiency, lower energy consumption, and greater capacity to manage heat.

This technology uses liquid coolants such as water, refrigerants, or dielectric fluids to absorb and remove heat from IT equipment. The liquid is then circulated through a heat exchanger or chiller, cooled, and returned to the IT equipment, completing the cooling cycle. The liquid cooling approach can enable data centres to operate more efficiently, reduce their carbon footprint, and improve IT equipment's overall performance and lifespan. As a result, the data centre liquid cooling market is expected to grow as more data centres are built and businesses seek to optimize their operations.

The data centre liquid cooling market is driven by the rising demand due to increasing heat generation, server density, and demand for colocation services.

Rising demand due to increasing heat generation - With the rise of high-density computing and processing, data centres are generating more heat than ever. Traditional air-cooling systems are struggling to keep up with the cooling demands of modern IT equipment, leading to the adoption of liquid cooling systems. The US Department of Energy's (DOE) Lawrence Berkeley National Laboratory found that liquid cooling can reduce cooling energy consumption by up to 90% compared to air cooling systems. The study also found that liquid cooling can enable data centres to operate at higher temperatures, leading to additional energy savings.
Increasing server density and demand for colocation services - As data centre operators look to maximize their floor space, they are increasing server density. This means more servers are being packed into smaller areas, which can generate more heat. Liquid cooling systems can help to manage this heat more effectively than traditional air-cooling systems. The increasing demand for colocation services also drives the adoption of liquid cooling systems. Colocation providers are looking for ways to differentiate themselves from their competitors, and offering more efficient and sustainable cooling solutions is one way to do this.

Market Developments:

In December 2022, Vertiv, a company that provides essential digital infrastructure and business continuity solutions, launched the Liebert XDU, an advanced generation of thermal management systems that facilitate liquid-cooled servers while allowing the control of liquid quality, flow, and pressure. High-density computing applications surpass the cooling capacity of traditional air-cooled units. As such, more effective and sustainable solutions are used, such as the Liebert XDU, which allows liquid-cooled server applications to be deployed in any data centre environment. The Liebert XDU is a closed water loop system that captures heat and utilizes it to warm nearby offices, homes, or farms, promoting the circular economy. The system uses integrated controls to optimize supply water temperature and provide intelligent flow monitoring and alarms. The Liebert XDU comes in two sizes, 450 kW and 1368 kW, and is suitable for colocation providers who host applications with higher power processors that require more effective heat management solutions, such as liquid cooling.
In January 2023, NTT announced major enhancements for Indian data centres by deploying Liquid Immersion Cooling (LIC) and Direct Contact Liquid Cooling (DCLC) technologies in one of its global data centres for the first time. As a result, the Navi Mumbai Data Centre has become the biggest APAC data centre to implement these cooling solutions, resulting in up to 30% more energy efficient than conventional cooling systems. The project was a collaborative effort between the client, NTT, PhonePe, and NTT's key partners, including Sudlows and Dell. According to the company, deploying green data centre technologies can significantly reduce power consumption in future data centres and build a sustainable and responsible connected future globally.

Based on the industry vertical, the communication and technology segment will witness robust growth over the projected period.

The adoption of liquid cooling technology in communication and technology data centers is driven by the need to manage the high heat generated by high-performance computing infrastructure. Liquid cooling solutions, such as immersion and direct contact liquid cooling, enable efficient and sustainable management of this heat, resulting in improved energy efficiency, reduced power consumption, and lower operating costs.

Asia Pacific accounted for a significant share of the global data centre liquid cooling market.

Based on geography, the data centre liquid cooling market is segmented into North America, South America, Europe, Middle East and Africa, and Asia Pacific. The Asia Pacific data centre liquid cooling market is expected to grow quickly during the projected period, driven by the increasing demand for cloud-based services, digitalization, and e-commerce. The region is witnessing significant growth in countries such as China, India, and Japan. China, the region's largest data center market, has a high demand for liquid cooling solutions due to the country's strict energy consumption regulations. Japan is also a significant market due to its high adoption of IoT, artificial intelligence, and big data technologies. Additionally, the region is witnessing increased investments in renewable energy sources, expected to drive the market growth.

Market Segmentation:

BY SOLUTIONS
Software
Services
BY ENTERPRISE SIZE
Small Enterprises
Medium Enterprises
Large Enterprises
BY COOLING TECHNOLOGY
Immersion Cooling
Cold-Plates Method
Others
BY END-USER
Colocation Service Providers
Cloud Service Providers
Enterprise
Others
BY INDUSTRY VERTICAL
Banking and Financial Services
Manufacturing
Healthcare
Communication and Technology
Education
Government
Media and Entertainment
Others
BY GEOGRAPHY

o North America
USA
Canada
Mexico

o South America
Brazil
Argentina
Others

o Europe
Germany
France
United Kingdom
Spain
Others

o Middle East And Africa
Saudi Arabia
UAE
Israel
Others

o Asia Pacific
China
Japan
India
South Korea
Indonesia
Taiwan
Others