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Data Center Liquid Cooling Market Size (2024 - 2029)

The Data Center Liquid Cooling Market is experiencing significant growth, driven by the increasing demand for data centers due to the expanding reliance on digital infrastructure and cloud computing solutions. This growth is further fueled by the proliferation of big data analytics and the development of IT infrastructure in emerging economies. Despite the potential benefits of new cooling technologies, the adoption is slowed by data center operators' concerns over downtime and the perceived risks of untested systems. The post-pandemic digital transformation and the trend towards hybrid IT environments are also contributing to the expansion of the market.

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Market Size of Data Center Liquid Cooling Industry

Data Center Liquid Cooling Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 4.48 Billion
Market Size (2029) USD 12.76 Billion
CAGR (2024 - 2029) 23.31 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Low

Major Players

Data Center Liquid Cooling Market Major Players

*Disclaimer: Major Players sorted in no particular order

Data Center Liquid Cooling Market Analysis

The Data Center Liquid Cooling Market size is estimated at USD 4.48 billion in 2024, and is expected to reach USD 12.76 billion by 2029, growing at a CAGR of 23.31% during the forecast period (2024-2029).

The need for data centers has grown as the population grows increasingly connected and dependent on digital infrastructure. Effective cooling solutions are urgently needed to ensure optimal performance and avoid expensive downtime due to the data center development and growth spike.

  • Data center growth has been significantly aided by the uptake of cloud computing solutions and the spread of big data analytics. Businesses increasingly rely on cloud-based services and storing enormous amounts of data for processing and research. For instance, to meet the rising demand, cloud industry giants like Amazon Web Services (AWB), Microsoft Azure, and Google Cloud Platform continuously extend their data center footprints.
  • Growing developments in IT infrastructure in emerging economies, such as India, Hong Kong, China, Indonesia, and other emerging countries, are likely to boost the demand for data centers. The demand for data centers is expected to increase due to the adoption of the cloud model, which has cost and operational benefits for the IT industry.
  • Data center operators are wary of potential downtime losses while shifting to new cooling systems. Hence, they overlook operational expenditures and continue using outdated cooling systems. This trend slows the adoption of new technologies that are perceived to be untested.
  • A new wave of post-pandemic digital transformation among businesses is expected to drive the market. Many companies have started to rely on third-party colocation facilities to house their data centers, and there’s a growing trend towards hybrid IT – combining the power of hosted centers with multi-cloud environments.

Data Center Liquid Cooling Industry Segmentation

Data center liquid cooling involves the installation of IT hardware, such as memory, drives, and CPUs, directly into non-conductive dielectric liquids, which cool the system. The heat generated from these systems is directly transferred to coolants, reducing the need for active cooling components, such as heat sinks, fans, and interface materials commonly used for air cooling.

The data center liquid cooling market is segmented by type (indirect or direct-to-chip cooling, direct cooling or immersion cooling, rare door heat exchanger), application (high-performance computing, edge computing, cryptocurrency mining), and geography (North America, Europe, Asia-Pacific, and Rest of the World). The market size and forecasts are provided in terms of value (USD) for all the above segments.

By Geography***
North America
Europe
Asia
Australia and New Zealand
Latin America
Middle East and Africa
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Data Center Liquid Cooling Market Size Summary

The data center liquid cooling market is poised for significant expansion, driven by the increasing demand for efficient cooling solutions in the rapidly growing data center industry. As digital infrastructure becomes more integral to daily life, the need for advanced cooling systems to maintain optimal performance and prevent costly downtime is critical. The market is experiencing a surge in demand due to the proliferation of cloud computing and big data analytics, with major players like Amazon Web Services, Microsoft Azure, and Google Cloud Platform expanding their data center operations. Emerging economies are also contributing to this growth, as advancements in IT infrastructure and the adoption of cloud models offer cost and operational benefits. Despite the potential advantages of new cooling technologies, data center operators often hesitate to transition from outdated systems due to concerns over downtime and untested solutions.

The market landscape is characterized by a fragmented and competitive environment, with key players such as Alfa Laval Corporate AB, LiquidStack Inc., and Asetek Inc. A/S leading the charge. While air cooling remains the dominant system, liquid cooling solutions are gaining traction, particularly in regions like North America, where early adoption of new technologies is prevalent. The emergence of 5G networks and the Internet of Things (IoT) is further propelling the demand for edge data centers, which benefit from immersive liquid cooling due to its energy-saving capabilities. The United States, in particular, is witnessing rapid growth in data center operations, supported by economic incentives and tax benefits that encourage the construction of new facilities. As the market evolves, collaborations and strategic partnerships, such as those between Intel and Submer, are expected to drive innovation and enhance the efficiency of cooling solutions.

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Data Center Liquid Cooling Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Evolution Of Data Center Cooling

      1. 1.1.1 Air Conditioners/Handlers

      2. 1.1.2 Chillers And Economizer Systems

      3. 1.1.3 Liquid Cooling Systems

      4. 1.1.4 Row/Rack/Ddoor/Over-head Cooling Systems

    2. 1.2 Overview of Data Center Cooling Market

    3. 1.3 Energy Consumption, Computing Density Metrics and Key Considerations For Liquid Cooling

    4. 1.4 Industry Stakeholder Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Buyers

      2. 1.5.2 Bargaining Power of Suppliers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Degree of Competition

      5. 1.5.5 Threat of Substitutes

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Geography***

      1. 2.1.1 North America

      2. 2.1.2 Europe

      3. 2.1.3 Asia

      4. 2.1.4 Australia and New Zealand

      5. 2.1.5 Latin America

      6. 2.1.6 Middle East and Africa

Data Center Liquid Cooling Market Size FAQs

The Data Center Liquid Cooling Market size is expected to reach USD 4.48 billion in 2024 and grow at a CAGR of 23.31% to reach USD 12.76 billion by 2029.

In 2024, the Data Center Liquid Cooling Market size is expected to reach USD 4.48 billion.

Data Center Liquid Cooling Market Report Snapshots

Data Center Liquid Cooling Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2024 - 2029)