Global Data Center Liquid Cooling Market

Market Scope:

The global Data Center Liquid Cooling market is projected to grow significantly, registering a CAGR of 19.6% during the forecast period (2024 – 2032).

Data centers represent intricate and specialized structures designed to house crucial server equipment, enabling businesses to access and transfer vital data. These facilities play a pivotal role in executing search queries, facilitating data transfer, and delivering computing services to millions of users worldwide at any given moment. The storage of information is a fundamental function of data centers, making them indispensable for businesses. However, improper construction of data centers poses a risk of servers overheating and experiencing failures. As industries increasingly rely on digitally stored information, the risk associated with server overheating has grown over the past few decades. The number of servers within a specific area directly correlates with the potential temperature rise. Elevated temperatures beyond a critical threshold can result in the malfunctioning of processors or, in extreme cases, lead to burnouts.
Market Overview:
Driver: Growing high demand for cost-effective data center solutions is driving the market growth.

The expenses associated with cooling constitute a significant proportion of the overall energy consumption in data centers. Consequently, data center operators are actively seeking cost-effective and efficient cooling solutions to address this financial challenge. Larger data centers have successfully managed to mitigate both operational and capital cooling costs through the adoption of chiller-less data centers, relying on outside air for their cooling requirements. Moreover, cooling solutions like economizers leverage external climatic conditions to cool data centers, leading to decreased energy and cooling expenditures. This trend is anticipated to contribute to the increased adoption of data center cooling solutions in the forecast period. The adoption of next-generation technologies like autonomous vehicles, robotics, the Internet of Things (IoT), artificial intelligence, and streaming videos has accelerated, particularly in North America. This surge in technological advancements has led to a substantial increase in data traffic, imposing a significant power burden on regional data centers. The heightened demand for sustainable cooling solutions stems from the substantial energy consumption associated with these technological loads. In a bid to minimize power consumption and comply with the ambitious emission standards and environmental goals established by various governments, data center operators globally are swiftly embracing energy-efficient and economical liquid cooling technologies.

Opportunities: Increasing requirement for modular data center cooling approach is predicted to offers lucrative opportunities for market growth in the upcoming years.

The cooling modules for data centers present potential cost savings of up to 30% and operate 60% faster. They are gaining increased acceptance in data centers facing limitations in both space and budget. These cooling modules for data center facilities offer advantages like streamlined planning, enhanced reliability, increased agility, quicker deployment, and improved overall efficiency. Given these advantages, it is anticipated that data center cooling vendors will focus on the development and deployment of these data center cooling modules in the future.
Covid Impact:
The data center liquid cooling market experienced a moderate impact due to the COVID-19 crisis. The pandemic prompted a substantial transformation in business practices, marked by the swift adoption of a work-from-home culture. This shift accelerated digitalization, particularly evident in the thriving e-commerce sector and the heightened consumption of in-home data on various digital platforms. The imposition of lockdown restrictions further heightened reliance on digital technologies for work, education, and entertainment, creating an increased demand for energy-efficient cooling solutions. The post-pandemic emphasis on conducting data center operations in a more sustainable manner contributed to the heightened demand for advanced cooling systems.
Segmentation Analysis:
The solution segment is anticipated to grow significantly during the forecast period.

Direct-to-chip cooling, also referred to as indirect or liquid-to-chip cooling or cold plate cooling, represents the prevailing method of liquid cooling. This approach involves transferring heat from the server to the external environment through a chilled water loop and a coolant on a cold plate within the system. In the contemporary era, data centers are encountering applications characterized by unprecedented computation demands and core counts. As traditional air-cooling approaches reach their limits, data center operators and owners are compelled to reassess the escalating density and associated challenges.

The demand for high-performance, high-frequency, and intensive workload conditions, spanning multi-core computing, artificial intelligence (AI), machine learning (ML), and end-to-end data center solutions, is on the rise. Recent advancements in indirect or direct-on-chip liquid cooling, coupled with system integrator services, empower data center owners to address diverse company needs. Indirect or direct-to-chip cooling leverages liquid or phase-change heat-transfer mechanisms, delivering substantial power and heat dissipation at a minimal operating temperature. Additionally, this method enables efficient operation conditions, allowing processors to perform significantly faster than those cooled by conventional means. Numerous companies offer cold plate technology that can be seamlessly integrated into both new and existing servers. Notably, direct-to-chip cooling technology often exhibits a higher heat dissipation capacity compared to backplane heat exchangers. However, due to its typical removal of 70-75 % of the heat generated by the machinery in the frame, a hybrid cooling approach becomes essential.
Regional Analysis:
The North American region is set to witness significant growth during the forecast period.

North America has positioned itself as an early adopter of emerging technologies, experiencing a significant surge in the proliferation of connected devices. Investors in data centers are increasingly directing funds towards innovative cooling technologies like direct-to-chip and liquid immersion. The global rollout of 5G networks, with the United States at the forefront of adoption, has heightened the importance of edge data centers. In response, numerous American operators, including EdgePresence, EdgeMicro, and American Towers, have initiated investments in these facilities.

Mobile data traffic has exhibited substantial growth, escalating from 1.26 exabytes per month to 7.75 exabytes per month in 2021, as reported by Cisco Systems. Projections from Ericsson suggest a further tripling of data traffic by 2030. Consequently, the distributed cloud, capable of ensuring low latency and high bandwidth for seamless connectivity on such a scale, is anticipated to become increasingly prominent. Leading technology companies are grappling with the challenges posed by managing their server and computational needs, with the rapid surge in data processing for artificial intelligence being a significant contributing factor. The amount of time spent online by individuals and businesses in the United States is markedly on the rise. As the largest market for data center operations, the country continues to expand due to the escalating data consumption by end users. The burgeoning popularity of the Internet of Things (IoT) serves as a pivotal driver for the hyper-scale data center market in the U.S., amplifying the demand for liquid cooling solutions. Direct-to-chip liquid cooling is gaining traction in North America, where facilities employing water for cooling integrate on-site water treatment facilities with dual piping systems. Many vendors in the Southeastern and Western regions are transitioning to water-cooled chillers equipped with economizer modes, allowing partial facility cooling by utilizing outside air.
Competitive Analysis:
The global Data Center Liquid Cooling market is reasonably competitive with mergers, acquisitions, and product launches. See some of the major key players in the market.

Green Revolution Cooling (GRC)

• In July 2022, Green Revolution Cooling (GRC), a leading provider of single-phase immersion cooling solutions for data centers, has successfully concluded a $7 million series B investment round. This infusion of capital positions GRC to secure additional funding to bolster new product development initiatives and foster strategic partnerships. The funding will also facilitate the expansion of an original equipment manufacturer (OEM) agreement with Dell, providing warranty coverage for Dell servers integrated into GRC's immersion cooling systems.

Schneider Electric SE

• In May 2020, Schneider Electric has collaborated with EcoDataCenter to create an ultra-low-carbon-footprint data center at an HPC colocation facility in Falun, Sweden. Positioned as one of the most sustainable data centers in the Nordics, this project will integrate various solutions, including Schneider’s EcoStruxure Building Operation, Galaxy VX UPS with lithium-ion technology, and MasterPact MTZ.

Asetek A/S

Iceotope Technologies Limited

Avnet

Submer Technologies

Midas Green Technologies

Rittal

Vertive Holdings

Emerson

Fujitsu

Alfa Laval AB
Scope of the Report
By Component

• Solution
• Services

By Type of Cooling

• Cold Plate Liquid Cooling
• Immersion Liquid Cooling
• Spray Liquid Cooling

By End User

• Cloud Providers
• Colocation Providers
• Enterprises
• Hyperscale Data Centers

By Region

• North America (the United States & Canada)
• Europe (Germany, UK, France, Spain, Italy, and the Rest of Europe)
• Asia Pacific (China, Japan, India, and Rest of Asia Pacific)
• Rest of the World (the Middle East & Africa, and Latin America)

Key reason to purchase this report

It provides a technological development map over time to understand the industry’s growth rate and indicates how the data center liquid cooling market is evolving.

The report offers a dynamic method to various factors that drive or restrain the growth of the market and specifies which data center liquid cooling submarket will be the main driver of the overall market from 2024 to 2032.

It renders a definite analysis of changing competitive dynamics and stipulates the leading players and what are their prospects over the forecast period.

It builds a nine-year estimate based on how the market is predicted to grow and shows what will market shares of the global region change by 2032 and which country will lead the market in 2032.