Direct-to-chip Liquid Cooling and Immersion Cooling Market, Opportunity, Growth Drivers, Industry Trend Analysis and Forecast, 2025-2034

The Global Direct-to-Chip Liquid Cooling and Immersion Cooling Market was valued at USD 2.38 billion in 2024 and is estimated to grow at a CAGR of 21.0%, to reach USD 15.69 billion by 2034, driven by escalating demand for energy-efficient thermal management solutions, rising data center densities, and the expanding deployment of high-performance computing systems. As traditional air-based cooling systems fall short in handling modern computational loads, liquid cooling is emerging as the most effective alternative. D2C and immersion cooling technologies enhanced heat dissipation at the source, significantly improving thermal efficiency and reducing operational costs.

Immersion cooling is gaining significant traction for ultra-high-density workloads, especially in hyperscale and AI-specific data centers, due to its unique ability to fully submerge servers in thermally conductive, electrically non-conductive dielectric fluids. This enables highly efficient heat transfer and allows for the elimination of traditional air-based cooling components, such as fans and heat sinks. The result is not only improved thermal regulation and reduced energy consumption, but also greater hardware reliability and increased server lifespan. These advantages make immersion cooling suitable for compute-intensive environments, such as those running large language models, real-time analytics, and simulation workloads in scientific computing.

In 2024, CPU cooling segment accounted for the highest revenue of USD 959.0 million reflecting the central role of processors in managing thermal loads across AI, cloud computing, and high-performance computing (HPC) applications. Maintaining optimal performance in multi-core, high-TDP (thermal design power) CPUs has spurred the adoption of precision-engineered cooling solutions that can directly and efficiently extract heat.

By infrastructure, CSP/Hyperscaler data centers segment led the market, generating USD 1.04 billion million, driven by the increasing deployment of large-scale data farms designed to support billions of user interactions and massive AI workloads. These facilities are under growing pressure to minimize energy usage and optimize performance per watt, making them early adopters of liquid cooling technologies that deliver both environmental and economic benefits.

North America Direct-to-Chip Liquid Cooling and Immersion Cooling Market held 39.5% share in 2024, fueled by an advanced digital infrastructure, favorable regulatory policies promoting energy-efficient operations, and the presence of tech giants such as Google, Microsoft, and Amazon. These companies invest heavily in next-generation cooling systems as part of their net-zero carbon commitments. Additionally, government-backed green data center initiatives and robust R&D funding further bolster the region’s leadership in adopting cutting-edge thermal management technologies.

To strengthen their foothold in the Direct-to-Chip Liquid Cooling and Immersion Cooling Market, companies like Vertiv, Supermicro, Fujitsu, Asetek, Submer, and ZutaCore are adopting aggressive R&D investments, strategic alliances, and pilot projects with hyperscalers and edge data center operators. Key strategies include developing modular and scalable cooling systems, enhancing interoperability through standardized components, and innovating in biodegradable and low-GWP coolants to meet sustainability mandates. Firms expand geographically, targeting emerging data center hubs in Asia-Pacific and Latin America. Many are partnering with OEMs and IT architects to co-design infrastructure optimized for liquid cooling. By integrating IoT and AI for real-time thermal analytics, these companies are positioning themselves as end-to-end solution providers in the next-generation data center ecosystem.