The Data Center Liquid Cooling Market Report is Segmented by Cooling Technology (Immersion Cooling, Direct-To-Chip Liquid Cooling, and More), Coolant Type (Single-Phase Hydrocarbon Fluids, Two-Phase Fluorocarbon Fluids, and More), Data Center Type (Hyperscale, Colocation, Enterprise, and More), Application (HPC, AI/ML, and More), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

The data center direct liquid cooling market was expected to grow to *** billion U.S. dollars by 2029, up from just *** billion in 2024. Direct liquid cooling involves running cold liquid across plates mounted directly on hardware components such as GPUs and CPUs in order to absorb heat. Direct liquid cooling is far more effective than air cooling, and as such, it is being increasingly employed to cool advanced GPUs designed for intensive AI workloads.

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 16.50% from 2025 to 2033. This surge is driven by several key factors. The increasing adoption of cloud computing and big data analytics necessitates higher computing power, leading to a corresponding rise in heat generation within data centers. This necessitates sophisticated cooling solutions to maintain optimal operational temperatures and prevent costly equipment failures. Furthermore, the growing emphasis on energy efficiency and sustainability within the IT sector is fueling demand for advanced cooling technologies, such as liquid immersion cooling and direct-to-chip cooling, which offer superior performance and reduced energy consumption compared to traditional air-based systems. The expansion of the IT & Telecom sector across Europe, particularly in countries like the United Kingdom and Germany, serves as a significant market driver. Government initiatives promoting digital infrastructure development further contribute to this positive market outlook. Market segmentation reveals that air-based cooling currently holds a larger market share, but liquid-based cooling is gaining traction due to its enhanced efficiency and scalability advantages. The European market’s growth is not uniform across all segments. While air-based cooling (CRAH units, chillers, economizers, etc.) will remain dominant in the near term, liquid-based cooling (immersion cooling, direct-to-chip, rear-door heat exchangers) is poised for significant growth, driven by its higher efficiency in handling the increasing heat density of modern data centers. The IT & Telecom sector remains the leading end-user, but increasing digitalization across sectors like retail, healthcare, and media & entertainment is expanding the market's addressable base. The competitive landscape is characterized by a mix of established players and innovative startups, indicating a dynamic market with ample opportunities for both large corporations and specialized niche providers. Competitive pressures will likely drive innovation and cost optimization, further shaping the market's trajectory in the coming years. Factors such as high initial investment costs associated with advanced cooling technologies and the need for skilled workforce to maintain these systems could act as potential restraints to market growth, but these factors are expected to be outweighed by the overall growth drivers discussed. This report provides a comprehensive analysis of the Europe Data Center Cooling Market, offering invaluable insights for stakeholders across the industry value chain. The study covers the period from 2019 to 2033, with 2025 serving as the base year and estimations extending to 2033. This detailed examination leverages historical data (2019-2024) to forecast market trends and dynamics, providing a robust foundation for strategic decision-making. The report analyzes key market segments including air-based cooling (CRAH, chiller and economizer, cooling towers, others) and liquid-based cooling (immersion cooling, direct-to-chip cooling, rear-door heat exchangers), alongside major end-user verticals like IT & Telecom, retail, healthcare, media & entertainment, and government. 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).. Key drivers for this market are: Rising Adoption of Mega Data Centers and Cloud Computing, Increasing Demand to Reduce Operational Costs. Potential restraints include: Data Security Concerns will Remain a Challenge to the Growth of the Market. Notable trends are: The Retail Segment is Expected to Hold a Significant Market Share.

Data Center Liquid Cooling Market to grow from USD 2,181.42 million in 2024 to USD 36,589.23 million by 2034 at 32.6% CAGR, driven by immersion cooling and direct-to-chip innovations transforming AI infrastructure.

The Middle East Data Center Cooling Market Report is Segmented Into Cooling Technology (Air-Based Cooling (CRAH, Chillers and Economizers, and Cooling Towers), Liquid-Based Cooling (Immersion Cooling and Direct-To-Chip Cooling), and End-User Industry (IT and Telecommunication, BFSI, Government, and Media and Entertainment), and Country. The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

Data center liquid cooling market, valued at $5,654.8 million in 2024, is expected to reach $48,427.0 million by 2034, exhibiting a robust CAGR of 23.96%.

The Data Center Liquid Cooling market is experiencing robust growth, projected to reach $4.48 billion in 2025 and exhibiting a Compound Annual Growth Rate (CAGR) of 23.31% from 2025 to 2033. This significant expansion is driven by the increasing demand for higher computing power and energy efficiency in data centers. The rising heat density generated by advanced computing technologies like AI and high-performance computing (HPC) necessitates innovative cooling solutions. Liquid cooling offers a superior alternative to traditional air cooling by providing significantly improved heat dissipation capabilities, leading to reduced energy consumption and operational costs. Further fueling market growth are advancements in liquid cooling technologies, including immersion cooling, direct-to-chip cooling, and two-phase immersion cooling, each offering unique advantages depending on specific data center requirements. The adoption of sustainable practices within the data center industry also contributes to the market's upward trajectory, as liquid cooling aligns with environmental sustainability goals by reducing energy waste and carbon footprint. Key players in the market, including Submer Technologies, Asperitas, LiquidStack, and others, are continuously innovating and expanding their product portfolios to meet the evolving needs of the industry. The market segmentation within Data Center Liquid Cooling is diverse, encompassing various cooling techniques, deployment models, and end-user industries. The competitive landscape is characterized by both established players and emerging companies, each vying for market share through technological advancements, strategic partnerships, and geographical expansion. While precise regional breakdowns are unavailable, it's reasonable to assume a distribution reflecting global data center infrastructure concentration, with North America and Europe holding significant shares. The market's future growth will likely be influenced by factors such as technological breakthroughs in liquid cooling technologies, government regulations promoting energy efficiency, and the continued expansion of cloud computing and data center infrastructure globally. The ongoing emphasis on sustainability and the need for reliable, efficient cooling systems will further drive demand for liquid cooling solutions in the coming years. Key drivers for this market are: Development of IT Infrastructure in the Region, Emergence of Green Data Centers. Potential restraints include: Costs, Adaptability Requirements, and Power Outages. Notable trends are: Edge Computing to Witness Significant Growth.

The Brazil data center cooling market presents a compelling investment opportunity, exhibiting robust growth driven by the expanding digital economy and increasing data center deployments across various sectors. With a current market size exceeding $110.5 million (2025 estimated value) and a projected compound annual growth rate (CAGR) of 9.10% from 2025 to 2033, the market is poised for significant expansion. Key drivers include the rising adoption of cloud computing, the proliferation of IoT devices generating massive data volumes, and the increasing demand for high-performance computing (HPC) resources in sectors like finance, telecommunications, and government. The market is segmented by cooling technology (air-based and liquid-based), deployment type (hyperscalers, enterprise, colocation), and end-user industry. Liquid-based cooling solutions, particularly immersion cooling and direct-to-chip cooling, are gaining traction due to their superior cooling efficiency and ability to support higher power densities. The hyperscaler segment is expected to dominate market share, driven by large-scale data center deployments by major cloud providers. However, the enterprise and colocation segments also represent substantial growth opportunities. Challenges include the relatively high initial investment costs associated with advanced cooling technologies and the need for skilled workforce to manage and maintain these systems. Nevertheless, the long-term prospects for the Brazil data center cooling market remain positive, fueled by ongoing digital transformation and increasing data center density. The competitive landscape is characterized by a mix of global and local players, including Johnson Controls, Schneider Electric, Vertiv, and others. These companies are actively engaged in developing innovative cooling solutions to meet the evolving needs of the market. While precise regional breakdowns for Brazil are not explicitly provided, leveraging the overall market growth and considering Brazil's growing digital infrastructure, a logical estimation suggests a significant portion of the overall market is concentrated in major metropolitan areas with substantial data center activity. Future growth will likely be influenced by government initiatives promoting digital infrastructure development and investment in renewable energy sources for sustainable data center operations. Continued focus on energy efficiency, reduced operational costs, and improved cooling reliability will be critical for success in this dynamic market. This in-depth report provides a comprehensive analysis of the burgeoning Brazil data center cooling market, offering valuable insights for stakeholders seeking to navigate this dynamic landscape. Using data from 2019 to 2024 (historical period), 2025 (base and estimated year), and projecting to 2033 (forecast period), this report meticulously examines market size, growth drivers, challenges, and key trends, enabling informed decision-making for businesses operating in or planning to enter the Brazilian market. The report covers various cooling technologies, deployment types, and end-user industries, presenting a granular understanding of the market's complexities. Recent developments include: March 2024: German heat exchanger manufacturer Kelvion and US immersion cooling company Rosseau announced a partnership to deliver enhanced immersion cooling solutions for the high-performance computing (HPC) market., January 2024: Data center firm Aligned launched a new liquid cooling system called DeltaFlow. The liquid cooling technology is designed to support high-density compute requirements and supercomputers and can cool densities up to 300 kW per rack. The new DeltaFlow system works simultaneously with Aligned’s air-cooled Delta technology, enabling no change in power delivery or existing data hall temperatures.. 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 and Telecom to Have Significant Market Share.

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

Discover the booming market for liquid cooling solutions in data centers. Learn about the drivers, trends, and restraints shaping this $15 billion (2025 est.) industry, with a projected 15% CAGR through 2033. Explore key players and regional market shares.

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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?

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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.

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

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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.

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

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EMEA Data Center Cooling Solutions Market Size 2024-2028

The emea data center cooling solutions market size is forecast to increase by USD 3.87 billion, at a CAGR of 12.49% between 2023 and 2028.

Major Market Trends & Insights

By Technology - Liquid-based cooling segment was valued at USD 1.79 billion in 2022
By Component - Air conditioning segment accounted for the largest market revenue share in 2022

Market Size & Forecast

Market Opportunities: USD 179.46 million
Market Future Opportunities: USD 3870.40 million
CAGR : 12.49%

Market Summary

The market (Europe, Middle East, and Africa) is witnessing significant growth, with an increasing number of organizations investing in advanced cooling technologies to maintain optimal data center performance. Containment cooling solutions, which enclose IT equipment and condition the air before it enters the room, are gaining popularity due to their energy efficiency and ability to reduce cooling costs. According to recent market studies, the adoption rate of containment cooling solutions in EMEA is projected to increase by 15% year-on-year. This trend is driven by the consolidation of data centers, as companies seek to optimize their IT infrastructure and minimize operational expenses. Despite this growth, challenges persist, including the need for customized cooling solutions to accommodate diverse IT loads and the high upfront investment costs. Nonetheless, the market's continuous evolution is expected to bring forth innovative cooling technologies and business models that cater to the evolving needs of data center operators in EMEA.

What will be the size of the EMEA Data Center Cooling Solutions Market during the forecast period?

Get Key Insights on Market Forecast (PDF) Request Free SampleThe market continues to evolve, with a focus on enhancing cooling efficiency and capacity planning. Sensor technology and remote monitoring systems enable real-time monitoring, fault tolerance, and performance analysis, ensuring system reliability and reducing operational costs. Cooling system design incorporates redundancy levels and thermal mapping for optimal capacity optimization. Energy consumption is a key concern, with sustainability initiatives driving the adoption of water conservation and thermal simulation. Lifecycle costs are a significant factor in decision-making, with automation systems and alert systems streamlining maintenance schedules. Data analytics provide valuable insights for capacity planning and performance analysis. The market prioritizes system reliability and sustainability, with a growing emphasis on control systems and environmental impact reduction. Cooling efficiency improvements have led to a 15% reduction in energy consumption over the past five years, while capacity planning strategies have enabled a 20% increase in data center capacity.

How is this EMEA Data Center Cooling Solutions Market segmented?

The data center cooling solutions in emea 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. TechnologyLiquid-based coolingAir-based coolingComponentAir conditioningEconomizersCooling towersChillersOthersEnd UserIT and TelecomHealthcareRetail and Consumer GoodsMedia and EntertainmentFederal and Institutional AgenciesOthersIT and TelecomHealthcareRetail and Consumer GoodsMedia and EntertainmentFederal and Institutional AgenciesOthersGeography

By Technology Insights

The liquid-based cooling segment is estimated to witness significant growth during the forecast period.

In the dynamic and evolving the market, liquid-based cooling techniques, specifically chilled water systems, hold a significant market share. This dominance is attributed to the increasing adoption of immersive cooling technologies in various applications, such as air conditioning and chillers. Among liquid-based cooling, water-based cooling, a sub-segment, is the most widely used, prevalent in chillers, condensers, and economizers. Advancements in liquid-based cooling have led to the emergence of immersion-based cooling technologies and direct-to-chip cooling. Data center operators increasingly prefer chilled water-based cooling due to its effectiveness in managing the heat generated in data centers with more than 5 kW per rack. Critical cooling infrastructure, such as precision cooling units, hvac system optimization, and cooling tower efficiency, are integral components of these systems. Moreover, energy efficiency metrics, including water consumption reduction, waste heat recovery, and evaporative cooling, are gaining traction in the market. Free cooling systems, direct expansion cooling, and rack-level cooling are other emerging trends in the data center cooling landscape. Computa

Learn more about the Data Center Liquid Cooling Market Report by Market Research Intellect, which stood at USD 4.5 billion in 2024 and is forecast to expand to USD 12.0 billion by 2033, growing at a CAGR of 14.5%.Discover how new strategies, rising investments, and top players are shaping the future.

Liquid Cooling Data Center Market Outlook

According to our latest research, the global liquid cooling data center market size reached USD 3.9 billion in 2024, demonstrating robust momentum driven by escalating data processing demands and the rise of high-density computing environments. The market is expected to expand at a CAGR of 23.7% over the forecast period, projecting a valuation of approximately USD 32.6 billion by 2033. This impressive growth trajectory is primarily fueled by the increasing adoption of artificial intelligence (AI), machine learning (ML), and high-performance computing (HPC) applications, all of which generate significant heat loads that require efficient thermal management solutions. As per our latest research, the market’s exponential expansion is also supported by the ongoing shift toward sustainable and energy-efficient data center operations globally.

One of the primary growth factors underpinning the liquid cooling data center market is the relentless surge in global data traffic and the proliferation of cloud-based services. The explosion of digital transformation initiatives across diverse industry verticals has led to a dramatic increase in the deployment of high-density servers, which, in turn, produce substantial heat. Traditional air-cooling solutions are increasingly proving inadequate for these modern workloads, particularly as rack densities climb above 20 kW. Liquid cooling technologies, such as direct-to-chip and immersion cooling, offer superior heat dissipation and energy efficiency, making them the preferred choice for hyperscale and enterprise data centers seeking to optimize performance while reducing operational costs. Furthermore, the growing emphasis on reducing carbon footprints and achieving sustainability targets is compelling data center operators to transition toward liquid cooling solutions, which can offer up to 40% energy savings compared to conventional cooling methods.

Another significant driver of the liquid cooling data center market is the rapid adoption of advanced computing technologies, including AI, ML, and big data analytics, across sectors like BFSI, healthcare, and government. These applications demand powerful processing capabilities, often delivered by GPU-accelerated servers that generate intense heat loads. Liquid cooling not only ensures reliable thermal management but also enables higher server densities within the same physical footprint, thereby maximizing data center resource utilization. Additionally, regulatory pressures and industry standards are increasingly mandating enhanced energy efficiency and environmental responsibility, further accelerating the adoption of liquid cooling systems. The integration of edge computing and the expansion of 5G networks are also contributing to market growth, as decentralized data centers require compact, efficient cooling solutions to support real-time processing needs.

The evolving landscape of data center infrastructure is also fostering innovation and investment in liquid cooling technologies. Major cloud service providers, colocation operators, and enterprises are actively exploring and deploying liquid cooling solutions to address challenges related to scalability, reliability, and total cost of ownership. The influx of capital into research and development is resulting in the introduction of next-generation cooling systems that are more modular, scalable, and easier to integrate with existing data center architectures. This trend is particularly evident in regions with stringent environmental regulations and high electricity costs, where the operational and sustainability benefits of liquid cooling are most pronounced. Furthermore, partnerships between technology vendors, system integrators, and data center operators are accelerating the commercialization and adoption of liquid cooling across both developed and emerging markets.

From a regional perspective, North America currently dominates the liquid cooling data center market, accounting for the largest share in 2024, owing to its concentration of hyperscale data centers, technological innovation, and early adoption of advanced cooling solutions. Europe follows closely, driven by regulatory mandates for energy efficiency and a strong focus on green data centers. Meanwhile, the Asia Pacific region is witnessing the fastest growth, propelled by rapid digitalization, increasing investments in cloud infrastructure, and the emergence of data center hubs in countries like China, India, and Singapore. Latin America and the

India 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). The Market Forecasts are Provided in Terms of Value (USD).

Discover the booming data center liquid cooling market! This in-depth analysis reveals key trends, growth drivers, and leading companies shaping this $2 billion industry, projected to reach $6.1 billion by 2033 with a 15% CAGR. Learn about immersion cooling, direct-to-chip solutions, and regional market shares.

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 .

Direct-to-Chip Liquid Cooling Market Outlook

According to our latest research, the Global Direct-to-Chip Liquid Cooling market size was valued at $1.3 billion in 2024 and is projected to reach $7.9 billion by 2033, expanding at a CAGR of 22.3% during the forecast period of 2025–2033. The primary driver fueling this robust growth is the exponential increase in data center density and the corresponding need for advanced thermal management solutions. As organizations worldwide continue to deploy increasingly powerful servers and high-performance computing systems, traditional air-cooling methods are proving insufficient, thereby accelerating the adoption of direct-to-chip liquid cooling technologies. This market is also benefiting from the rising demand for energy efficiency and sustainability in IT infrastructure, as liquid cooling solutions offer significant reductions in power consumption and carbon footprint compared to legacy cooling techniques.

Regional Outlook

North America currently dominates the global Direct-to-Chip Liquid Cooling market, commanding over 38% of the total market share in 2024. This leadership is attributed to the region’s mature data center ecosystem, advanced IT infrastructure, and early adoption of innovative cooling technologies. The presence of major hyperscale data center operators and cloud service providers, especially in the United States, has accelerated the deployment of direct-to-chip liquid cooling solutions. Additionally, strong government policies supporting energy efficiency, combined with significant investments in research and development, have further solidified North America’s position as the largest regional market. The region’s robust regulatory framework and focus on sustainability continue to drive market expansion, with several initiatives aimed at reducing the carbon footprint of data centers and promoting green computing practices.

In contrast, Asia Pacific is emerging as the fastest-growing region, projected to register a remarkable CAGR of 27.1% from 2025 to 2033. The rapid growth is fueled by surging investments in digital infrastructure, the proliferation of cloud computing, and the expansion of hyperscale and edge data centers across countries such as China, India, Japan, and Singapore. The increasing adoption of artificial intelligence and high-performance computing in sectors like fintech, healthcare, and smart cities is further catalyzing demand for advanced cooling solutions. Regional governments are actively promoting digital transformation and energy-efficient data center operations through favorable policies and incentives, attracting significant foreign direct investment and technology partnerships. This dynamic environment is positioning Asia Pacific as a critical growth engine for the global Direct-to-Chip Liquid Cooling market.

Meanwhile, emerging economies in Latin America, the Middle East, and Africa are witnessing gradual adoption of direct-to-chip liquid cooling solutions, albeit at a slower pace due to infrastructural and economic challenges. Limited access to high-quality components, lack of skilled personnel, and budget constraints have hindered widespread implementation. However, increasing awareness of the long-term cost savings and sustainability benefits provided by liquid cooling is gradually shifting market dynamics. Governments in these regions are beginning to prioritize digital infrastructure development and energy efficiency, introducing policies and incentives to support next-generation data center technologies. As localization of manufacturing improves and global vendors establish partnerships with regional players, adoption rates are expected to accelerate, presenting untapped opportunities for market expansion in the medium to long term.

Report Scope