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What’s the Market Outlook for Data Center Liquid Cooling From 2024 to 2029?
The market size for data center liquid cooling has experienced exponential growth in recent years, growing from $4.18 billion in 2024 to an expected $5.17 billion in 2025, marking a compound annual growth rate (CAGR) of 23.7%. This historic growth can be traced back to the dramatic increase in data collection, the growth of data centers, the push for better energy efficiency, cloud computing advancements, and the development of hyperscale data centers.
Looking forward, the data center liquid cooling market is projected to continue its upward trajectory, reaching $13.22 billion in 2029 at a CAGR of 26.5%. Factors contributing to this anticipated growth include the growing need for data storage, developments in edge computing and micro data centers, concerns surrounding data security and privacy, regulatory compliance requirements, and the environmental sustainability push. The market is also expected to be influenced by upcoming trends such as edge computing and micro data centers, AI and machine learning workloads, 5G network expansion, technological innovations, as well as innovative solutions and strategic partnerships.
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What Are The Key Growth Drivers for The Data Center Liquid Cooling Market?
The surge in data centers and increasing server density are expected to fuel market growth. As enterprises heavily rely on data centers to support various aspects of their operations, including computation, data storage, networking, and business application management, the demand for upgraded and effective cooling systems is on the rise. This, in turn, drives market growth. For instance, the world witnessed a 75% increase in the global IoT-connected devices from 2019 to 2023, reaching 15.14 billion. This sharp increase in data-driven technologies has propelled data centers to adopt liquid cooling systems that now support rack densities of up to 200 kW, marking a significant shift from traditional air-cooled systems.
How Is The Data Center Liquid Cooling Market Segmented?
1) By Type: Single Phase Cooling, Two Phase Cooling
2) By Component: Solutions, Services
3) By Data Center Type: Hyperscale Centers, Enterprise type, Colocation Data Centers, Other Data Center Types
4) By Industry Type: Telecom and IT, BFSI, Research, Energy, Government and Academia, Healthcare, Other Industry Types
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Who Are The Major Players Operating In The Data Center Liquid Cooling Market?
Key companies operating in the data center liquid cooling market include Asetek Inc., Rittal GmbH & Co. KG, Fujitsu Limited, Vertiv Group Corp, Green Revolution Cooling Inc, Submer Technologies SL, Midas Green Technologies LLC, Schneider Electric SE, Alfa Laval AB, Chilldyne Inc, Iceotope Technologies Limited, CoolIT Systems Inc, 3M Company, Aspen Systems Inc, Mitsubishi Group, IBM Corporation, ExaScaler Inc, Stulz GmbH, Ebullient Inc, LiquidStack Inc, KyotoCooling BV, Asperitas B.V., Airedale International Air Conditioning Ltd, Motivair Corporation, Munters Group AB, and Delta Electronics Inc.
What Are The Emerging Trends In The Data Center Liquid Cooling Market?
Technological advancements are an emerging trend within the data center liquid cooling market. Huawei is a leading innovator in this space, having introduced the FusionModule2000 6.0, a state-of-the-art system that incorporates advanced liquid cooling solutions and modular design to optimize space and energy efficiency in data centers. In November 2022, Huawei introduced this solution to cater to the growing demands for power and cooling in high-density computing environments.
Which Region Is Dominating The Data Center Liquid Cooling Market?
In 2024, North America was the largest region in the data center liquid cooling market, with Asia-Pacific expected to be the fastest-growing region in the forecast period. The regions covered in this report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
What Does The Data Center Liquid Cooling Market Report 2025 Offer?
Data center liquid cooling refers to cooling technologies that are used to control the temperature of the data center. These data centers are cooled using a combination of air conditioning and immersion cooling to optimize energy consumption and allow the data center to operate at high availability and density. The liquid-cooled system can reduce overall power consumption and improve power usage effectiveness in a data center facility. The Data Center Liquid Cooling Market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.
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