Data Center Liquid Cooling Market - Global Outlook & Forecast 2025-2030

The global data center liquid cooling market size by investment is expected to grow at a CAGR of 51.93% from 2024 to 2030.

DATA CENTER LIQUID COOLING MARKET KEY HIGHLIGHTS

• Liquid cooling solutions are becoming increasingly essential in data centers due to rising rack power densities. Data center operators actively invest in advanced liquid cooling technologies by collaborating with liquid cooling infrastructure providers. This integration occurs during the early stages of data center planning, enabling facilities to handle high-density workloads effectively.
• The data center liquid cooling market is projected to witness an absolute growth rate of over 1129% from 2024 to 2030. This growth is driven by the ongoing increase in high-density workloads, advancements in computing, sustainability initiatives, and improvements in liquid cooling technologies.
• In 2024, direct liquid cooling accounted for major percentage of total liquid cooling investments. Most data center operators continue to focus on this type of technology to align with global sustainability targets and meet the requirements for advanced cooling solutions. Meanwhile, immersion cooling technology plays a vital role in AI-ready data centers, supporting high rack densities. It represented around 17% of liquid cooling investments in 2024.
• Hyperscale data centers dominated the investment share in the liquid cooling market in 2024 due to their significant computing and cooling needs. These facilities require advanced cooling technologies to continuously process artificial intelligence and cloud workloads. In 2024, hyperscale companies contributed for major share of liquid cooling investments, while colocation facilities accounted for roughly 36%. However, the adoption of these technologies in enterprise data centers is still in its early stages.
• The US and China are at the forefront of advanced liquid cooling technologies adoption in their data centers, specifically in green field data centers, and the regions with hot climates or high electricity prices, such as, Middle East region and Latin America, continue to invest in liquid cooling technologies because of their efficient thermal management and reduced energy consumption.
• The supply chain disruptions and high costs of liquid cooling infrastructure are hampering the adoption of advanced liquid cooling technologies in data centers. While liquid cooling offers energy savings, upfront integration costs are challenging for data center operators to adopt such expensive technologies.

DATA CENTER LIQUID COOLING MARKET TRENDS & DRIVERS

Rise in Rack Power Density

The steady rise in rack power density is optimizing data center designs, becoming one of the primary factors for the adoption of liquid cooling technologies. As workloads driven by artificial intelligence, HPC, and GPU clusters demand higher processing power, traditional air-cooling systems struggle to dissipate the escalating heat loads efficiently.

Liquid cooling technologies like direct-to-chip and immersion cooling continue to emerge as one of the most effective solutions, offering superior thermal management, higher rack power density utilization, and lower energy consumption. This trend not only enhances operational performance but also aligns with global sustainability goals, enabling data centers to achieve greater computing efficiency within smaller physical footprints.

Advancements in Liquid Cooling

As data centers support growing digital demands, innovative cooling techniques are becoming essential to ensure operational efficiency. Traditional air-based cooling methods are becoming insufficient for modern high-density environments.

Data center operators continue to seek advanced solutions that offer improved thermal management and reduced energy consumption. The best example of such advanced solutions is immersion cooling and direct-to-chip liquid cooling. These methods involve transferring heat more efficiently by bringing the cooling medium closer to the heat-generating components

In immersion cooling, entire servers in data centers are submerged in a thermally conductive dielectric fluid that efficiently dissipates heat compared to traditional cooling. Direct-to-chip liquid cooling uses cold plates attached to CPUs/GPUs, with liquid circulating through them to absorb heat directly from the components.

Sustainability Initiatives Driving Liquid Cooling Adoption

Data centers are the backbone of the digital world, and they are also large energy consumers. As companies, investors, and regulators transition toward lower carbon footprints, resource efficiency, and advanced liquid cooling technologies have gained momentum. Modern computing systems, especially GPUs used for AI, ML, and HPC, generate more heat. Traditional air cooling becomes inefficient and expensive as rack power density rises. They consume lots of electricity and often require excessive water or refrigerant use. Sustainability initiatives aim to reduce water and energy consumption to reduce carbon emissions.

Many hyperscalers and large enterprises are making substantial efforts to achieve carbon neutrality, and these targets force data center companies to reduce operational emissions. As liquid cooling can reduce energy consumption for cooling purposes and enable higher rack density in data centers, it has become an attractive initiative to adopt in data centers.

DATA CENTER LIQUID COOLING MARKET SEGMENTATION INSIGHTS

• The adoption of liquid cooling varies across hyperscale, colocation, and enterprise data centers based on their operational scale and workload intensity. Hyperscale data centers are at present the largest adopters of liquid cooling, driven by their need to support HPC and AI workloads that demand massive power capacities exceeding 100 MW. The hyperscale companies such as AWS, Microsoft, Google, and Meta continue to invest heavily in direct-to-chip and immersion cooling technologies to enhance efficiency and sustainability.
• Colocation data centers are rapidly transitioning to liquid cooling as enterprise clients deploy GPU clusters and AI infrastructure within these facilities. Liquid cooling helps colocation providers maintain high rack densities while meeting customer sustainability goals.
• Enterprise data centers, though slower to adopt, are beginning to integrate liquid cooling to handle growing AI and edge workloads, especially in financial, healthcare, and research industries. As hardware densities increase, enterprises are expected to move toward hybrid cooling systems combining liquid and air-based methods.
• Direct-to-chip cooling dominates current deployments due to its compatibility with existing rack architectures and efficient heat removal at the processor level. It enables improved performance, reduces fan usage, and better PUE. Meanwhile, immersion cooling is gaining rapid momentum, particularly in facilities supporting AI training, HPC, and large-scale GPU deployments. This method, which submerges servers in dielectric fluids, allows extreme rack densities and reduces mechanical cooling needs. In the coming years, DLC and immersion cooling are expected to witness faster growth as hyperscalers, and colocation operators build new AI-optimized campuses designed specifically for these technologies.
• Rear door heat exchangers continue to play an important role in data center facilities, as they efficiently remove heat at the rack level without major infrastructure changes.
• Coolant distribution units are becoming critical for managing and circulating liquid flow between IT equipment and heat rejection systems, ensuring stable thermal performance.
• Coolants and fluids are a vital part of the cooling mechanism that witnesses growing demand for non-conductive, environmentally safe, and long-lasting liquids that can operate efficiently in high-temperature conditions.
• The other components, including cold plates, control systems, and piping networks, continue to evolve with smart monitoring features that help optimize fluid flow and temperature in real time.

DATA CENTER LIQUID COOLING MARKET GEOGRAPHICAL ANALYSIS

In North America, the adoption of liquid cooling is comparatively higher in the US, with many data centers adopting liquid cooling technologies compared to others. The data center operators are increasingly investing in advanced liquid cooling technologies in the US. Canada is still growing in terms of data center liquid cooling adoption. However, the adoption of these technologies is likely to witness a significant surge in the Canadian market over the next three years. In Latin America, the data centers across Brazil witness a gradual rise in advanced liquid cooling adoption compared to other Latin American countries like Mexico, Chile, and others.

In Europe, data centers across established nations like the UK, Germany, and France continue to witness a significant surge in liquid cooling adoption, compared to other countries. The data centers across Nordic nations like Norway and Sweden are also investing in such solutions. Meanwhile, in nations like Ireland, the Netherlands, Denmark, Finland, Austria, Poland, and others, the adoption of liquid cooling is still in early stages. However, the adoption of such cooling techniques is likely to witness a continuous surge across all European countries over the next three to five years.

In APAC, China is leading in terms of liquid cooling adoption in its data centers. Several companies in the country have already installed advanced cooling technologies like direct-to-chip cooling and immersion cooling in their data centers across China. However, this adoption is still in its growing stages across Australia, Japan, India, and South Korea. The data centers across these countries are slated to adopt such technologies over the next three to five years. Countries like New Zealand, the Philippines, Indonesia, and others are still in early stages in terms of liquid cooling adoption in data centers.

The data centers across countries like the UAE and Saudi Arabia are at the forefront of advanced liquid cooling technologies adoption in the Middle East region. The region is still in the growing stage in terms of liquid cooling adoption, indicating a limited number of data center facilities across the region have installed such technologies in their data centers. The data centers across the Middle Eastern nations like Israel, Oman, Qatar, Kuwait, Turkey, and others are expected to witness a gradual surge in the adoption of advanced liquid cooling technologies over the next three to five years.

DATA CENTER LIQUID COOLING MARKET VENDOR LANDSCAPE

• The data center liquid cooling market continues to witness strong competition among global and regional liquid cooling infrastructure providers that offer a wide range of cooling technologies like direct-to-chip cooling and immersion cooling, as well as components like rear door heat exchangers and coolant distribution units.
• The vendors focus heavily on innovation, energy efficiency, and sustainability to address the growing thermal management requirements that are driven by increasing AI, cloud computing, and HPC workloads.
• Companies like Asetek, Submer, CoolIT Systems, Iceotope, and LiquidStack are leading in terms of offering immersion and direct-to-chip cooling technologies to hyperscale, colocation, and enterprise data center facilities. These companies are focusing on the development of advanced, modular solutions that support high rack densities and deliver optimal PUE. Meanwhile, firms like Vertiv, Schneider Electric, STULZ, Alfa Laval, and Johnson Controls are expanding their portfolios by offering advanced liquid cooling systems that enhance thermal management in data centers.
• In addition, firms like Boyd, Castrol, Dow, and Lubrizol are introducing high-performance coolants, fluids, and thermal interface materials that ensure system reliability and corrosion protection. The equipment manufacturers like Delta Electronics and Ebm-papst continue to advance efficient pumps and control technologies to improve fluid circulation and reduce energy consumption.
• Collaborations between IT infrastructure providers like Dell Technologies, Hewlett Packard Enterprise, Lenovo, and NVIDIA and liquid cooling vendors are accelerating the adoption of standardized, liquid-ready server designs.
• In the coming years, vendors that prioritize investments in introducing advanced liquid cooling solutions are likely to stay more competitive, and the market differentiation will increasingly depend on vendors’ ability to deliver high-efficiency, scalable, and environmentally friendly cooling solutions that align with global net-zero and green data center initiatives.
• Several companies acquire major liquid cooling companies to enter the market and have a competitive advantage over other companies. For instance, in November 2025, Eaton announced it to acquire the Boyd Thermal business of Boyd Corporation for $9.5 billion.

Liquid Cooling Infrastructure Providers

• 3M
• ABB
• Accelsius
• Airedale by Modine
• AIRSYS
• Alfa Laval
• Aqua Cooling
• Asetek
• Asperitas
• Baltimore Aircoil Company (BAC)
• Belimo
• Boyd
• Canovate
• Carrier
• Castrol
• CITEC International
• ClimateWorx International
• Coolcentric
• Cooler Master
• CoolIT Systems
• Curtiss-Wright
• Daikin Applied
• Danfoss
• DCX Liquid Cooling Systems
• Dell Technologies
• Delta Electronics
• Dow
• Dug
• ebm-papst
• EMICON
• ENGIE Refrigeration
• Envicool
• EVAPCO
• ExxonMobil
• FläktGroup
• Flex
• Flowserve
• Fourier Cooling
• Fujitsu
• GIGABYTE
• Green Revolution Cooling (GRC)
• Guntner
• Hewlett Packard Enterprise
• HiRef S.p.A
• Hitachi
• Huawei Technologies
• IBM
• Iceotope
• Inspur
• Johnson Controls
• Kaori Heat Treatment
• Kelvion
• Koolance
• KSTAR
• Legrand
• Lenovo
• LiquidCool Solutions
• LiquidStack
• Midas Immersion Cooling
• Mikros Technologies
• Mitsubishi Electric
• Moog
• Motivair
• Munters
• Nidec Corporation
• Nortek Data Center Cooling
• nVent
• OptiCool Technologies
• Renovo Zhuhai
• Shanghai Shenglin M&E Technology
• SMC
• SPX Technologies
• Stellar Energy
• STULZ
• Submer
• Supermicro
• Swegon
• The Lubrizol Corporation
• Trane
• Valvoline
• Vertiv
• Wakefield Thermal
• ZutaCore

Segmentation by Facility Type

• Hyperscale Data Centers
• Colocation Data Centers
• Enterprise Data Centers

Segmentation by Cooling Type

• Direct-to-Chip Liquid Cooling
• Immersion Cooling

Segmentation by Cooling Components

• Coolant Distribution Units (CDUs)
• Rear Door Heat Exchangers (RDHx)
• Coolants & Fluids, and Other Components

Segmentation by Geography

• North America
• US
• CANADA
• Latin America
• BRAZIL
• Europe
• UK
• GERMANY
• FRANCE
• IRELAND
• SPAIN
• SWEDEN
• NORWAY
• FINLAND
• ICELAND
• OTHER EUROPEAN COUNTRIES
• APAC
• CHINA
• INDIA
• AUSTRALIA
• SOUTH KOREA
• MALAYSIA
• THAILAND
• Middle East
• SAUDI ARABIA
• UAE

KEY QUESTIONS ANSWERED:

1. What is the growth rate of the global data center liquid cooling market?

2. How big is the global data center liquid cooling market?

3. What are the key trends in the global data center liquid cooling market? Show more