Data Center Liquid Cooling Market

Data Center Liquid Cooling Market Summary

The global data center liquid cooling market size was estimated at USD 6.65 billion in 2025 and is projected to reach USD 29.46 billion by 2033, growing at a CAGR of 20.1% from 2026 to 2033. The rapid escalation of computing density, driven by AI, machine learning, and high-performance computing workloads, is fueling the growth of the market.

Modern processors, especially GPUs and AI accelerators, operate at extremely high power levels and generate far more heat per rack than traditional enterprise servers. Conventional air-based cooling systems struggle to dissipate this concentrated thermal load efficiently, resulting in hotspots, reduced performance, and increased failure risks. Liquid cooling technologies, including direct-to-chip and immersion cooling, offer superior heat transfer capabilities, enabling data centers to support higher rack densities while maintaining thermal stability.

The rapid growth of hyperscale and colocation data centers is driving the market growth. Hyperscale facilities, operated by cloud giants and major digital service providers, are proliferating rapidly across North America, Europe, and the Asia-Pacific region to support AI, big data, and cloud-native applications. Similarly, colocation providers are expanding their footprints to accommodate enterprises seeking secure, scalable infrastructure without owning their facilities. Both segments feature extreme rack densities and continuous high utilization, particularly in AI model training, GPU-accelerated compute clusters, and intensive storage workloads, resulting in thermal loads that traditional air-cooling systems struggle to manage efficiently. As power densities per rack often exceed 30-50 kW and, in some cases, reach 100 kW or more, the limitations of air cooling become apparent: lower heat transfer rates, significant energy costs, and difficulty maintaining uniform temperatures across densely populated compute zones. This performance gap drives operators to adopt liquid cooling, which transfers heat more effectively and can sustain high, consistent thermal loads, enabling hyperscale and colocation facilities to maximize throughput while maintaining reliability and uptime.

The increasing specialization of AI and HPC hardware is further driving the adoption of liquid cooling in data centers. As AI workloads become more sophisticated, data centers are deploying GPUs, tensor processing units (TPUs), and AI accelerators that generate concentrated heat in specific regions of the server. These components require highly localized thermal management that conventional air cooling cannot provide effectively. Liquid cooling systems, such as direct-to-chip or immersion solutions, are capable of targeting these hotspots directly, maintaining optimal thermal conditions even under prolonged high-intensity workloads. This precise heat management allows operators to safely integrate next-generation hardware into existing infrastructure without redesigning the facility or compromising performance, making liquid cooling a key enabler for AI and HPC innovation.

Global Data Center Liquid Cooling Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the data center liquid cooling market report based on component, solution, service, type of cooling, data center, end use, and region.

• Component Outlook (Revenue, USD Billion, 2021 - 2033)
• Solution
• Service
• Solution Outlook (Revenue, USD Billion, 2021 - 2033)
• Direct Liquid Cooling
• Indirect Liquid Cooling
• Service Outlook (Revenue, USD Billion, 2021 - 2033)
• Design and Consulting
• Installation and Deployment
• Maintenance and Support
• Type of Cooling Outlook (Revenue, USD Billion, 2021 - 2033)
• Immersion Cooling
• Cold Plate Cooling
• Spray Liquid Cooling
• Data Center Outlook (Revenue, USD Billion, 2021 - 2033)
• Hyperscale Data Centers
• Enterprise Data Centers
• Colocation Data Centers
• Edge Data Centers
• High-Performance Computing (HPC) Data Centers
• End Use Outlook (Revenue, USD Billion, 2021 - 2033)
• IT
• Telecom
• Healthcare
• BFSI
• Retail & E-commerce
• Entertainment & Media
• Energy
• Others
• Regional Outlook (Revenue, USD Billion, 2021 - 2033)
• North America
• U.S.
• Canada
• Mexico
• Europe
• UK
• Germany
• France
• Asia Pacific
• China
• India
• Japan
• South Korea
• Australia
• Latin America
• Brazil
• Middle East & Africa
• UAE
• Saudi Arabia
• South Africa

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