Europe Data Center Cooling Market is Segmented by Data Center Type (Hyperscalers (owned and Leased), Enterprise and Edge, Colocation), Tier Type (Tier 1 and 2, Tier 3, Tier 4), Cooling Technology (Air Based Cooling, Liquid Based Cooling), Component (Service, Equipment), and by Country. The Market Forecasts are Provided in Terms of Value (USD).

The European data center cooling market, valued at €7.5 billion in 2025, is experiencing robust growth, projected to expand at a Compound Annual Growth Rate (CAGR) of 16.5% from 2025 to 2033. This surge is primarily driven by the increasing adoption of high-performance computing (HPC), the proliferation of cloud-based services, and the expanding digital economy across the region. The rising demand for energy-efficient cooling solutions, coupled with stringent environmental regulations, is further propelling market growth. Air-based cooling systems, including Computer Room Air Handlers (CRAHs), chillers, and economizers, currently dominate the market due to their established technology and relatively lower initial investment costs. However, liquid-based cooling technologies, such as immersion and direct-to-chip cooling, are gaining traction owing to their superior cooling efficiency and ability to handle higher heat densities generated by advanced computing infrastructure. The IT & Telecom sector is the largest end-user vertical, followed by the rapidly growing Retail & Consumer Goods and Healthcare sectors. Key players like Vertiv, Stulz, Schneider Electric, and Rittal are actively investing in research and development to enhance their cooling solutions' efficiency and sustainability, while also expanding their market presence through strategic partnerships and acquisitions. The UK, Germany, France, and other major European economies are witnessing significant growth due to their strong IT infrastructure and high concentration of data centers. The market's growth is not without challenges. Increasing energy costs and the complexity of implementing advanced cooling technologies can act as restraints. However, innovation in areas such as AI-powered cooling management systems and the development of more sustainable refrigerants are expected to mitigate these challenges. Furthermore, the growing awareness of data center sustainability initiatives is likely to drive demand for eco-friendly cooling solutions, creating lucrative opportunities for manufacturers to invest in greener technologies and cater to the evolving needs of a responsible and sustainable data center ecosystem. The forecast period will see intensified competition among market players, encouraging innovation and further propelling market expansion in the European region. Recent developments include: May 2024: Stulz unveiled its latest innovation, the CyberCool Coolant Management and Distribution Unit (CDU), specifically engineered to optimize heat exchange efficiency in liquid cooling solutions. The product line comprises four models, available in two distinct sizes. These units boast an impressive heat exchange capacity, ranging from 345 kW to 1,380 kW. Stulz set the rated water supply temperature for the facility water system at 32°C (89.6°F), with the liquid supply temperature for the technology cooling system marked at 36°C (96.8°F)., October 2023: Mitsubishi Heavy Industries Ltd introduced a new 40 kVA-class 12 ft container-type data center with an immersion/air-cooled hybrid cooling system capable of simultaneously housing servers utilizing three types of cooling methods: air cooling (8 kVA), immersion cooling (25 kVA), and water cooling (8 kVA).. Notable trends are: The Retail Segment is Expected to Hold a Significant Market Share.

Europe Water Consumption Market is Segments by Source of Water Procurement (Potable, Non-Potable, and More), Data-Centre Type (Enterprise, Colocation, and More), Data-Centre Size (Mega, Massive, and More), Cooling Technology (Indirect Evaporative Cooling, Direct Liquid Cooling, and More), Water-Treatment Method (Filtration and Softening, and More). The Market Forecasts are Provided in Terms of Volume (Liters).

The Data Center Cooling Market is booming, projected to hit $16.56B in 2025 with a 15.82% CAGR. Explore key trends, technologies (air & liquid cooling), and leading companies shaping this rapidly expanding sector. Discover market insights & future projections for 2025-2033. Recent developments include: January 2024: Aligned Data Centers, the technology infrastructure company providing sustainable, innovative, and adaptive scale data centers and build-to-scale solutions for global hyperscale and enterprise customers, introduced its DeltaFlow liquid cooling technology. DeltaFlow is a patent-pending solution built to support the high-density computing requirements of next-generation applications and high-performance computing, including artificial intelligence, machine learning, and supercomputers. DeltaFlow extends Aligned's ExpandOnDemand capabilities, providing customers the flexibility to seamlessly scale and pivot to support shifting computing environments., November 2023: Vertiv, a worldwide provider of critical digital infrastructure and continuity solutions, introduced a prefabricated modular data center, Vertiv SmartMod Max CW. It was built to address the increasing demand for rapid deployment of computing. This configurable and scalable solution supports up to 200 kW of total IT load in a single system and utilizes chilled water cooling for reduced environmental impact and energy efficiency.. Key drivers for this market are: Increasing Trend of High-Performance Computing across Europe, Growing Rack Power Density. Potential restraints include: High Initial Investments. Notable trends are: The Information Technology Segment is Expected to Witness the Highest Growth.

Data Center Liquid Cooling Market Outlook

The global data center liquid cooling market size is projected to reach $15.2 billion by 2032, up from $3.5 billion in 2023, growing at a robust CAGR of 18.5% from 2024 to 2032. This remarkable growth is driven by the rapid expansion of data centers globally and the increasing need for efficient cooling solutions to manage heat generated by high-performance computing systems. The market size reflects the growing adoption of liquid cooling technologies as data centers seek to enhance energy efficiency and reduce operational costs.

The primary growth factor fueling the data center liquid cooling market is the exponential increase in data generation and processing demands. With the proliferation of internet services, cloud computing, and IoT devices, data centers are experiencing unprecedented workloads. This necessitates advanced cooling solutions to prevent overheating, ensure optimal performance, and maintain the reliability of servers and other critical infrastructure. Additionally, the rising adoption of artificial intelligence (AI) and machine learning (ML) applications, which require high computational power, further emphasizes the need for effective cooling systems.

Another significant growth driver is the escalating awareness and importance of energy efficiency and sustainability in data center operations. Traditional air cooling methods are increasingly being viewed as insufficient and energy-intensive, prompting a shift towards liquid cooling systems that offer superior thermal management. Liquid cooling not only minimizes energy consumption but also reduces carbon footprint, aligning with the global push towards greener and more sustainable technological solutions. Governments and regulatory bodies are also imposing stricter regulations on energy consumption, further accelerating the adoption of liquid cooling technologies in data centers.

Technological advancements in liquid cooling solutions are also propelling market growth. Innovations such as direct liquid cooling (DLC) and immersion cooling are gaining traction due to their higher efficiency and effectiveness compared to conventional cooling methods. These technologies provide precise temperature control, reduce the risk of hardware failure, and extend the lifespan of data center equipment. The integration of IoT and AI in liquid cooling systems for real-time monitoring and predictive maintenance is also enhancing the overall efficiency and reliability of data centers, contributing to market expansion.

The Direct Liquid Cooling System is emerging as a pivotal technology in the realm of data center cooling solutions. Unlike traditional methods, direct liquid cooling involves the direct application of cooling liquid to the heat-generating components, such as CPUs and GPUs. This approach not only enhances cooling efficiency but also allows for higher density configurations, which are essential in modern data centers handling intensive computational tasks. The ability of direct liquid cooling systems to manage heat at the source significantly reduces the reliance on air conditioning, leading to substantial energy savings and a reduced carbon footprint. As data centers strive to optimize performance while minimizing environmental impact, the adoption of direct liquid cooling systems is becoming increasingly attractive.

Regionally, North America holds the largest share in the data center liquid cooling market, followed by Europe and the Asia Pacific. The dominance of North America can be attributed to the presence of major technology companies and data center operators in the region, coupled with significant investments in advanced cooling technologies. Europe is also a significant market, driven by stringent energy efficiency regulations and the growing focus on sustainable data center operations. Meanwhile, the Asia Pacific is poised for substantial growth, supported by the rapid digital transformation, increased internet penetration, and the burgeoning cloud computing industry in countries like China, India, and Japan.

Component Analysis

The data center liquid cooling market is segmented by component into solutions and services. Solution components encompass a wide range of products, including cooling units, heat exchangers, pumps, and other essential hardware required for liquid cooling systems. The demand for these solutions is driven by the need for efficient and reliable cooling mechanisms that can handle the increasing heat loads

Snapshot img

Data Center Liquid Immersion Cooling Market Size 2024-2028

The data center liquid immersion cooling market size is forecast to increase by USD 1.05 billion, at a CAGR of 31.06% between 2023 and 2028.

The market is experiencing significant growth, driven by the increasing construction of data centers worldwide. This trend is fueled by the ever-expanding digital economy and the resulting demand for more data processing capacity. A key factor propelling market expansion is the growing need to reduce carbon footprint. Traditional air cooling methods contribute significantly to greenhouse gas emissions, making liquid immersion cooling an attractive alternative. This technology submerges servers in non-conductive liquid, allowing for more efficient cooling and increased power density. However, challenges remain. Implementing liquid immersion cooling requires substantial upfront investment and specialized expertise. Additionally, potential issues such as contamination risks and the need for regular maintenance must be addressed. Despite these obstacles, the availability of alternative cooling methods offers potential solutions, including the use of biocides and advanced filtration systems. Companies seeking to capitalize on this market's opportunities must navigate these challenges effectively, ensuring they have the necessary resources and expertise to deploy and maintain liquid immersion cooling systems. By doing so, they can reap the rewards of increased energy efficiency, reduced carbon emissions, and enhanced data center performance.

What will be the Size of the Data Center Liquid Immersion Cooling Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2018-2022 and forecasts 2024-2028 - in the full report.
Request Free SampleThe market continues to evolve, driven by the increasing demand for more efficient and sustainable cooling solutions. Modular design and edge computing are key trends shaping the market, enabling better thermal management and reducing water consumption. Leak detection and pumping systems ensure safety and reliability, while dielectric fluids offer superior heat transfer capabilities. Liquid immersion cooling's integration with data center infrastructure, including server cooling, heat exchangers, and network infrastructure, enhances data center efficiency and reduces energy consumption. The application of machine learning and artificial intelligence (AI) in cooling system design further optimizes cooling performance and lowers operational costs. However, the market's dynamics are not without challenges. Carbon footprint and environmental impact remain critical concerns, necessitating the use of eco-friendly immersion cooling fluids. The ongoing research and development in two-phase cooling, direct-to-chip cooling, and single-phase immersion cooling aim to address these concerns while maintaining high-performance computing (HPC) capabilities. The market's evolution is also influenced by IT infrastructure demands in various sectors, including big data, cloud computing, and high-performance computing. As the market unfolds, the focus on thermal management and capital expenditure (capex) vs. Operating expenditure (opex) continues to shape the competitive landscape. The integration of liquid immersion cooling into data center infrastructure is an ongoing process, with continuous innovation and advancements in fluid dynamics, heat transfer, and safety systems shaping the future of this dynamic market.

How is this Data Center Liquid Immersion Cooling Industry segmented?

The data center liquid immersion cooling industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments. TypeLarge data centersSmall and mid-sized data centersComponentSolutionServicesGeographyNorth AmericaUSEuropeGermanyUKAPACChinaJapanRest of World (ROW)

By Type Insights

The large data centers segment is estimated to witness significant growth during the forecast period.In the realm of data center cooling, liquid immersion cooling has emerged as an innovative solution for large-scale facilities and hyperscale data centers. This approach involves submerging servers and other IT components in dielectric fluids for cooling, offering advantages such as increased data center efficiency and reduced water consumption. Liquid immersion cooling systems utilize pumping systems and heat exchangers for heat transfer, ensuring optimal thermal management. Modular designs enable easy implementation and maintenance of these systems, while edge computing enhances their efficiency by bringing processing closer to the data source. Leak detection systems ensure safety, and artificial intelligence and machine learning optimize fluid dynamics for maximum performance. However

Snapshot img

Liquid Cooling For AI Data Centers Market Size 2025-2029

The liquid cooling for ai data centers market size is valued to increase by USD 1.88 billion, at a CAGR of 31.4% from 2024 to 2029. Escalating thermal design power and compute density of AI accelerators will drive the liquid cooling for ai data centers market.

Major Market Trends & Insights

North America dominated the market and accounted for a 33% growth during the forecast period.
By Type - Cold plate cooling segment was valued at USD 86.50 billion in 2023
By End-user - Hyperscale data centers segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 1.00 million
Market Future Opportunities: USD 1876.60 million
CAGR from 2024 to 2029 : 31.4%

Market Summary

In the realm of AI data centers, the demand for advanced cooling solutions has escalated, driven by the increasing thermal design power and compute density of artificial intelligence (AI) accelerators. Liquid cooling, a sophisticated approach to managing heat, has emerged as a viable alternative to traditional air cooling. The market for liquid cooling in AI data centers is projected to reach USD10 billion by 2026, underscoring its growing significance. Hybrid cooling architectures, which combine liquid and air cooling, have gained traction due to their pragmatic deployment in managing the complex thermal requirements of AI systems. However, the high initial capital expenditure and retrofitting complexity associated with liquid cooling implementation pose challenges for businesses. Despite these hurdles, the benefits of enhanced cooling efficiency, increased power density, and improved reliability make liquid cooling an attractive investment for AI data centers. The future direction of this market lies in the continuous innovation of cooling technologies, ensuring the uninterrupted operation of AI systems and driving business growth.

What will be the Size of the Liquid Cooling For AI Data Centers Market during the forecast period?

Get Key Insights on Market Forecast (PDF) Request Free Sample

How is the Liquid Cooling For AI Data Centers Market Segmented ?

The liquid cooling for ai data centers industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. TypeCold plate coolingImmersion coolingSpray liquid coolingEnd-userHyperscale data centersColocation data centersOthersComponentSolutionsServicesGeographyNorth AmericaUSCanadaEuropeFranceGermanyThe NetherlandsUKAPACAustraliaChinaIndiaJapanRest of World (ROW)

By Type Insights

The cold plate cooling segment is estimated to witness significant growth during the forecast period.

In the dynamic landscape of AI data centers, liquid cooling infrastructure continues to gain traction as an effective solution for managing the heat dissipation rates of high-density server racks. Liquid cooling for AI data centers encompasses various techniques, including cold plate cooling, immersion cooling, and two-phase immersion cooling. Among these, cold plate cooling, also known as direct-to-chip or D2C liquid cooling, is currently the fastest growing segment. This technology employs a cold plate, which is a metal plate affixed directly onto the primary heat-generating components of a server, such as GPUs or CPUs. The cold plate, containing microchannels filled with a liquid coolant, absorbs heat directly from the source and transports it away via a closed loop system to a coolant distribution unit for heat rejection. This closed loop system integrates leak detection systems, redundancy design, and filtration systems to ensure fault tolerance and scalability. Predictive maintenance and thermal modeling software optimize cooling capacity and energy efficiency metrics. Liquid cooling pumps, refrigeration cycles, and airflow management further enhance thermal runaway prevention and waste heat recovery. The market for liquid cooling in AI data centers is expected to grow significantly, with a projected Compound Annual Growth Rate (CAGR) of 18.5% from 2021 to 2028.

Request Free Sample

The Cold plate cooling segment was valued at USD 86.50 billion in 2019 and showed a gradual increase during the forecast period.

Request Free Sample

Regional Analysis

North America is estimated to contribute 33% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

See How Liquid Cooling For AI Data Centers Market Demand is Rising in North America Request Free Sample

The market is witnessing significant advancements, with North America leading the charge. Comprising prima

Data Center Liquid Cooling Plate Market Outlook

According to our latest research, the global Data Center Liquid Cooling Plate market size reached USD 1.32 billion in 2024, reflecting robust growth driven by the escalating demand for efficient thermal management solutions in modern data centers. The market is projected to expand at a CAGR of 22.7% during the forecast period, propelling the market to an estimated USD 9.18 billion by 2033. This remarkable growth is primarily fueled by the surging adoption of high-performance computing, the proliferation of hyperscale data centers, and the increasing need for sustainable and energy-efficient cooling technologies.

The primary growth factor for the Data Center Liquid Cooling Plate market is the exponential increase in data generation and processing requirements, which is compelling data center operators to seek advanced cooling solutions. As workloads intensify due to artificial intelligence, machine learning, and big data analytics, traditional air-based cooling systems are struggling to keep pace with the heat output of modern, high-density server racks. Liquid cooling plates, particularly direct-to-chip and immersion variants, offer superior thermal performance and energy efficiency, making them indispensable for next-generation data centers. Moreover, the growing emphasis on sustainability and the need to reduce the environmental impact of data center operations are driving the transition from conventional cooling methods to liquid-based alternatives.

Another significant driver is the rapid expansion of cloud computing and the proliferation of hyperscale data centers globally. Leading cloud service providers and colocation facilities are investing heavily in advanced liquid cooling technologies to ensure optimal performance, reliability, and uptime for their critical infrastructure. The increasing complexity and density of server architectures are necessitating innovative cooling solutions that can efficiently dissipate heat while minimizing power consumption and operational costs. Liquid cooling plates, with their ability to provide targeted cooling to heat-generating components, are emerging as the preferred choice for data center operators aiming to achieve higher computing densities and lower total cost of ownership.

As data centers evolve, the implementation of Data Center Liquid Cooling has become increasingly vital. This technology not only addresses the challenges of heat management in densely packed server environments but also significantly reduces energy consumption. By directly cooling the components that generate the most heat, data centers can achieve higher efficiency and reliability. The adoption of liquid cooling systems is particularly beneficial in regions with stringent energy regulations, as it aligns with sustainability goals and reduces the overall carbon footprint. As a result, data center operators are increasingly considering liquid cooling as a strategic investment to enhance performance and sustainability.

Furthermore, technological advancements in cooling plate design and materials are enhancing the efficiency, durability, and scalability of liquid cooling systems. The integration of smart controllers, advanced pumps, and high-performance heat exchangers is enabling real-time monitoring and precise thermal management, further boosting the adoption of liquid cooling plates in data centers. The increasing collaboration between hardware manufacturers, data center operators, and cooling solution providers is fostering innovation and accelerating the deployment of cutting-edge liquid cooling technologies across various industry verticals.

From a regional perspective, North America currently dominates the Data Center Liquid Cooling Plate market, accounting for the largest share in 2024, followed closely by Asia Pacific and Europe. The strong presence of leading cloud service providers, high investments in data center infrastructure, and favorable regulatory policies supporting energy-efficient technologies are key factors contributing to the region's leadership. Asia Pacific is expected to witness the highest growth rate during the forecast period, driven by rapid digital transformation, increasing internet penetration, and the emergence of new hyperscale data centers in countries such as China, India, and Singapore. Europe is also experiencing significant growth,

In Europe Data Center Liquid Cooling Market, Data center liquid cooling involves the use of liquid or coolant to manage the heat generated by IT.

The global data center liquid cooling market size is projected to grow from USD 5.34 billion in 2025 to USD 27.72 billion by 2033, exhibiting a CAGR of 22.87%.
Report Scope:

Snapshot img

Europe Data Center Market Size 2025-2029

The europe data center market size is forecast to increase by USD 411 billion at a CAGR of 29.7% between 2024 and 2029.

The European data center market is experiencing significant shifts driven by the increasing adoption of cloud services and the growing importance of data protection regulations. Businesses are increasingly turning to hybrid and multi-cloud environments to optimize their IT infrastructure and improve agility. This trend is expected to continue, as cloud services offer scalability, flexibility, and cost savings. However, the implementation of stringent data protection regulations, such as the General Data Protection Regulation (GDPR), poses a challenge for data center operators. Compliance with these regulations requires robust security measures and significant investments in technology and personnel. Another major challenge for the European data center market is the increasing threat of cyber attacks. With the growing amount of sensitive data being stored and processed in data centers, cyber security has become a top priority. Data centers must invest in advanced security solutions to protect against cyber threats and ensure the confidentiality, integrity, and availability of their clients' data. Despite these challenges, the European data center market offers significant opportunities for growth. Companies that can effectively navigate these challenges and provide secure, reliable, and cost-effective data center solutions will be well-positioned to capitalize on the growing demand for cloud services and data protection compliance.

What will be the size of the Europe Data Center Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free Sample

The European data center market is witnessing significant advancements, with the adoption of micro data centers and software-defined data centers (SDDCs) gaining traction. Data center investment continues to flow in, with Real Estate Investment Trusts (REITs) playing a pivotal role. Liquid cooling and immersion cooling are revolutionizing cooling systems, enhancing efficiency and reducing energy consumption. Data center innovation is at the forefront, with trends such as data center interoperability, compliance, and audit gaining importance. Hyperscale data centers and edge data centers are shaping the future of the industry, while data center orchestration is streamlining operations. Data center standards are evolving to address these trends, ensuring seamless integration and optimal performance.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. End-userMedium and small enterprisesLarge enterprisesComponentIT infrastructurePower managementCooling solutionsGeneral constructionOthersTypeHyperscaleRetailWholesaleSectorBFSICloudE-commerceGovernmentOthersGeographyEuropeFranceGermanyThe NetherlandsUK

By End-user Insights

The medium and small enterprises segment is estimated to witness significant growth during the forecast period.

The European data center market is experiencing significant growth due to the increasing adoption of artificial intelligence and IT outsourcing. As businesses increasingly rely on data to drive decision-making and remain competitive, there is a rising demand for advanced data center infrastructure. Cooling systems, fiber optic cables, server racks, and other essential components are in high demand. Data center services, including disaster recovery and business continuity solutions, are crucial for organizations seeking to ensure data availability and minimize downtime. Data analytics and machine learning are also driving demand for data center upgrades and expansions. Data center staffing and operations are becoming more complex, necessitating specialized skills and expertise. Uptime Institute's tier certification is a recognized standard for measuring a data center's reliability and performance. Energy efficiency and green data centers are becoming increasingly important, with providers investing in precision cooling and capacity planning to reduce energy consumption and carbon emissions. Data center design and optimization are also key areas of focus, with providers offering managed services and network switches to help businesses maximize their IT infrastructure's potential. Modular data centers and data center interconnection are also gaining popularity, enabling businesses to scale their operations and improve network connectivity. Data center construction and decommissioning are ongoing processes, with providers offering solutions for both new builds and end-of-life data center disposal. Pow

The data center liquid cooling market is experiencing significant growth, driven by the increasing demand for high-density computing and the need for energy-efficient cooling solutions. The market, estimated at $2.5 billion in 2025, is projected to achieve a robust Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033, reaching an estimated $8 billion by 2033. This expansion is fueled by several key factors. The burgeoning hyperscale data center sector, characterized by massive computing infrastructure and power consumption, is a primary driver, demanding advanced cooling technologies like direct spray and immersion cooling to manage escalating heat loads effectively. Furthermore, growing environmental concerns and rising energy costs are compelling data center operators to adopt more sustainable cooling solutions, boosting the adoption of liquid cooling. The enterprise sector is also increasingly adopting liquid cooling solutions, driven by the need for higher server densities and improved operational efficiency. Key segments within the market include direct spray cooling, which offers a balance of cost and efficiency, and immersion cooling, providing superior cooling capabilities for high-performance computing applications. Geographic growth is expected to be robust across regions, with North America and Asia Pacific anticipated to lead the market due to the concentration of hyperscale data centers and significant investments in digital infrastructure. However, the adoption of liquid cooling is also gaining traction in Europe and other regions as data center operations mature. While the initial investment costs for liquid cooling systems can be higher, the long-term operational benefits, including reduced energy consumption and improved system reliability, make it a compelling investment for data center operators. Competition in the data center liquid cooling market is intense, with established players like Vertiv, Schneider Electric, and Rittal competing against specialized immersion cooling providers such as Midas Immersion Cooling, Submer, and Green Revolution Cooling. The market is characterized by ongoing innovation, with companies constantly developing more efficient and effective liquid cooling technologies to meet the evolving needs of the data center industry. The market is further segmented by application (cloud providers, colocation providers, enterprise, hyperscale data centers) and type (direct spray cooling, immersion cooling). While challenges exist, such as the initial high capital expenditure and the need for specialized expertise in implementation and maintenance, the compelling benefits of reduced energy costs, improved reliability, and increased server density are overcoming these barriers, driving substantial market growth.

The Data Center Liquid Cooling market is booming, projected to hit $1357.5 million in 2025 with a 15.8% CAGR. Learn about market drivers, trends, and leading companies shaping this crucial technology for energy-efficient data centers. Explore regional growth and key segments like single/two-phase cooling and data center size.

The Netherlands data center cooling market is projected to experience robust growth, driven by the escalating demand for advanced cooling solutions to manage the heat generated by increasingly powerful IT infrastructure. With a current market size of approximately $556.10 million and a projected Compound Annual Growth Rate (CAGR) of 5.30% from 2025 to 2033, the market is poised for significant expansion. This growth is fueled by the relentless digital transformation across various sectors, including IT & Telecommunication and BFSI, necessitating more efficient and sustainable data center operations. The adoption of liquid-based cooling technologies, such as immersion cooling and direct-to-chip cooling, is gaining traction as a response to the limitations of traditional air-based cooling in handling high-density computing environments. Energy efficiency remains a paramount concern, encouraging investments in solutions like economizers and advanced cooling towers, reflecting a strong commitment to reducing operational costs and environmental impact. The Netherlands, a key player in the European digital landscape, presents a dynamic market for data center cooling solutions. The market’s expansion is further supported by government initiatives promoting digital infrastructure and innovation. While air-based cooling technologies like CRAH units and chillers continue to hold a significant share, the increasing power densities within modern data centers are creating a strong imperative for more sophisticated liquid cooling methods. Companies are actively investing in research and development to offer cutting-edge solutions that balance performance, reliability, and sustainability. Key players like Johnson Controls International PLC, Schneider Electric SE, and Vertiv Group Corp are at the forefront, introducing innovative cooling technologies to meet the evolving needs of hyperscale, colocation, and enterprise data centers. The focus on operational expenditure (OPEX) reduction and the growing emphasis on green data center practices are expected to steer market dynamics towards more energy-efficient and environmentally friendly cooling systems. Key drivers for this market are: Increasing Trend of High-Performance Computing across Europe, Growing Rack Power Density. Potential restraints include: High Initial Investments. Notable trends are: IT & Telecommunication Segment holds the Major Share.

The Data Center CDU market is booming, projected to reach $4.5 Billion by 2033 with a CAGR of 20.5%. This report analyzes market drivers, trends, restraints, and key players like Vertiv and Schneider Electric, covering segments like liquid-to-liquid and liquid-to-air CDUs across major regions. Discover key insights and growth opportunities in this vital sector.

The data center liquid cooling market is experiencing robust growth, driven by the escalating demand for high-performance computing and the increasing need for energy-efficient cooling solutions in data centers. The market's expansion is fueled by the rising adoption of cloud computing, the proliferation of hyperscale data centers, and the growing concerns surrounding carbon emissions associated with traditional air cooling methods. Direct spray cooling and immersion cooling techniques are gaining significant traction, offering superior cooling capabilities compared to conventional methods. While the precise market size for 2025 is unavailable, a reasonable estimation, considering a global data center market valued in the hundreds of billions and the rapid adoption of liquid cooling technologies, places the 2025 market size for data center liquid cooling at approximately $5 billion. A conservative Compound Annual Growth Rate (CAGR) of 15% from 2025-2033 projects a market value exceeding $15 billion by 2033. This growth trajectory reflects ongoing technological advancements, the increasing affordability of liquid cooling systems, and stringent environmental regulations promoting energy efficiency. Key market segments include cloud providers, colocation facilities, enterprises, and hyperscale data centers. Among cooling types, immersion cooling is showing rapid adoption due to its high efficiency and scalability, while direct spray cooling continues to hold a substantial share due to its established presence and suitability for various applications. Geographic distribution reveals strong growth across North America and Europe, driven by early adoption and established technological infrastructure. However, Asia-Pacific, particularly China and India, presents a substantial growth opportunity given the region’s booming data center construction and increasing focus on sustainability. While the initial investment costs for liquid cooling may be higher, the long-term cost savings in energy consumption and reduced operational expenses make it a compelling solution for data center operators prioritizing both performance and sustainability. Competition is intense among established players and emerging innovators, leading to continuous improvements in technology and cost reduction.

The U.S. Data Center Cooling Market size was valued at USD 5.02 billion in 2023 and is projected to reach USD 9.30 billion by 2032, exhibiting a CAGR of 9.2 % during the forecasts period. Recent developments include: In February 2023, Green Revolution Cooling, Inc. announced that SK Enmove, a lubricants company based in South Korea, is joining its ElectroSafe Fluid Partner Program, thereby making SK Enmove's patented immersion cooling fluids available to its data center clients worldwide. The two companies would also be able to work together to develop, innovate, and enhance novel fluid compositions , In March 2023, Rittal GmBH & Co. KG and STULZ GMBH entered into a global partnership in 2021 and have now begun following the partnership in the U.S.A. Consequently, the two recognized leaders will possess enhanced capabilities to provide clients with comprehensive, customized solutions. Rittal's extensive range of IT infrastructure will profit from Stulz's enlarged line of high-end IT and precision cooling systems. Rittal provides installation services, cooling units, power supply solutions, enclosures, and data center monitoring. Through this relationship, a wide range of cooling choices are combined with the flexibility and speed to build and expand complex IT assets , In May 2023, In Europe, Vertiv Group Corp. unveiled a liquid cooling distribution unit. In air-cooled data centers, methods such as direct-to-chip liquid cooling can be implemented thanks to the Liebert XDU, which was introduced in the US in 2019. Europe, the Middle East, and Africa can now purchase it. Water efficiency and support for high-density data centers running analytics and machine learning applications are key architectural features of the XDU. There are two capacities available: 450kW and a variant with a maximum capacity of 1368kW , In June 2022, Schneider Electric unveiled the Easy Modular Data Center Solution. For enterprise and IT organizations wanting to deploy an edge computing strategy, the Easy Modular Data Centers offer outstanding value by combining all cooling, power, and IT equipment into a single, pre-configured system. With extra customizable choices, they come in four standard form factors .

Green Data Center Liquid Immersion Cooling Market Outlook

According to our latest research, the global Green Data Center Liquid Immersion Cooling market size reached USD 780 million in 2024, driven by the mounting pressure on data centers to minimize energy consumption and carbon footprint. The market is experiencing a robust growth trajectory, with a CAGR of 22.6% projected from 2025 to 2033. By 2033, the market is anticipated to attain a value of USD 6.1 billion as organizations across industries accelerate their adoption of sustainable cooling technologies to support high-density computing and comply with stringent environmental regulations.

The primary growth driver for the Green Data Center Liquid Immersion Cooling market is the explosive increase in data generation and processing needs, fueled by the proliferation of cloud computing, artificial intelligence, and the Internet of Things (IoT). Traditional air-cooling systems are increasingly inadequate for managing the heat generated by high-performance computing (HPC) workloads, leading data center operators to seek more efficient and sustainable alternatives. Liquid immersion cooling, which submerges servers in thermally conductive dielectric liquids, delivers superior heat dissipation, allowing for higher rack densities, reduced energy consumption, and lower operational costs. This transition is further accelerated by the growing emphasis on green data center initiatives and the rising cost of electricity, particularly in regions with hot climates or limited access to renewable energy.

Another crucial factor propelling market expansion is the regulatory landscape, as governments worldwide implement stricter guidelines for energy efficiency and carbon emissions in data center operations. These regulations are particularly pronounced in Europe and North America, where data centers are significant contributors to national energy consumption. The adoption of liquid immersion cooling technologies not only helps operators comply with these mandates but also enhances their reputation as environmentally responsible organizations. Additionally, advances in coolant chemistry, tank design, and heat exchanger efficiency are making immersion cooling systems more reliable, scalable, and cost-effective, thereby lowering the barriers to entry for both large enterprises and colocation providers.

The increasing integration of edge computing and hyperscale data centers is also reshaping the market landscape. As more organizations deploy distributed data centers closer to end-users, the need for compact, efficient, and low-maintenance cooling solutions becomes paramount. Liquid immersion cooling systems, with their ability to operate in confined spaces and harsh environments, are uniquely suited to support these emerging architectures. Furthermore, the growing focus on total cost of ownership (TCO) and return on investment (ROI) is prompting data center operators to reevaluate their cooling strategies, with immersion cooling offering significant savings in both energy and maintenance over traditional methods.

The evolution of data center infrastructure is also seeing the integration of Open-Compute Immersion Rack systems. These systems are designed to enhance the efficiency of liquid immersion cooling by optimizing the space and thermal management of server racks. Open-Compute Immersion Racks allow for more flexible configurations and can accommodate a variety of hardware setups, making them an attractive option for data centers looking to upgrade their cooling capabilities without overhauling their entire infrastructure. By utilizing open standards, these racks promote interoperability and ease of maintenance, which are crucial for large-scale data center operations. This innovation is particularly beneficial for operators seeking to maximize their return on investment while adhering to sustainability goals.

From a regional perspective, North America currently dominates the Green Data Center Liquid Immersion Cooling market, accounting for over 38% of global revenue in 2024, followed closely by Europe and Asia Pacific. The United States, in particular, is home to a large number of hyperscale data centers and cloud service providers, driving early adoption of advanced cooling technologies. However, Asia Pacific is expected to exhibit the fastest growth rate, wi