Data Center Liquid Cooling Market by Type (Direct Liquid Cooling, Indirect Liquid Cooling), Service (Design & Consulting, Installation & Deployment, Support & Maintenance), Data Center Size, Application, Industry, End-Users - Global Forecast 2024-2030

[181 Pages Report] The Data Center Liquid Cooling Market size was estimated at USD 4.52 billion in 2023 and expected to reach USD 5.22 billion in 2024, at a CAGR 16.10% to reach USD 12.88 billion by 2030.

Data center liquid cooling is an advanced thermal management technique that utilizes liquid-based coolants to efficiently dissipate heat generated by high-performance computing equipment, such as servers and data storage devices. This liquid cooling solution uses a single-phase dielectric fluid and directly interacts with IT components. Rising IP traffic and the growing demand for computers in hyperscale data centers boost the demand for data center liquid cooling. The limitations associated with the AI-based cooling system must be addressed frequently, creating the need for data center liquid cooling. Similarly, the growing recent investments in the data center infrastructure and rising power consumption worldwide increases the need for cooling solutions for heat management. However, the lack of specialized infrastructure for cooling along with the significant risk of system's failure and high maintenance & installation cost hinder the expansion of data centers' liquid cooling. Companies are focused on developing customizable solutions catering to specific industry needs to overcome these challenges. Moreover, the penetration of advanced technologies in data centers and the use of portable liquid cooling systems for in-building server rooms improves the future demand for data center liquid cooling and allows data center operators to meet consumer needs.

In the Americas region, the United States and Canada are witnessing increased investments in data centers due to growing demand for cloud computing services and the digital transformation of industries. With the increasing automation and Industry 4.0, America has aggressively impacted the growth of data center liquid cooling. Similarly, the European Energy Efficiency Directive 2023 in the Europe region has increased the adoption of green technologies, such as liquid cooling solutions, to lower carbon emissions from data centers. Through this regulatory compliance, operators of large data centers set new advantages to publish information on their energy consumption. In the Middle East & Africa region, countries such as Saudi Arabia, United Arab Emirates, and South Africa are increasingly investing in their IT infrastructure to support growing economies. As a result, there is high potential for growth for data center liquid cooling solutions as customers look towards implementing advanced liquid cooling techniques to maintain optimum operating conditions. Furthermore, countries such as China and India hold a remarkable position in the APAC region due to their massive digital ecosystem expansion fuelled by government initiatives such as 'Internet Plus' and 'Make in India.' Data centers in China are rapidly adopting liquid cooling solutions to accommodate increased power densities and high-performance computing workloads. In addition, the Japanese data center industry is characterized by innovative technological advancements that address unique challenges like limited land availability and natural disasters. Liquid cooling solutions have emerged as a popular choice for Japanese customers, as they offer superior efficiency, high density, and reduced footprint compared to traditional air-cooled systems.

The market dynamics represent an ever-changing landscape of the Data Center Liquid Cooling Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

• Market Drivers
  • Increasing IP traffic and the demand for supercomputers and hyperscale data centers
  • Need to address the limitations associated with the air-based cooling system
  • Growing investments in data center infrastructure along with the increase in power consumption
• Market Restraints
  • Additional risk of failure in the system and high maintenance for liquid cooled systems in data centers
• Market Opportunities
  • Introduction of new data center cooling technologies
  • Emergence of portable liquid cooling system for in-building server rooms and data centers
• Market Challenges
  • Lack of specialized infrastructure

• Type: Utilization of direct liquid cooling (DLC) to minimize the energy consumption in data centers

  Data center liquid cooling technologies, such as Direct Liquid Cooling (DLC) and Indirect Liquid Cooling (ILC), efficiently manage thermal loads while minimizing energy consumption and environmental impact. DLC directly contacts heat-generating hardware surfaces with single-phase and two-phase immersion cooling, provide a superior cooling performance for high-density server infrastructures and stringent thermal management requirements. Both single-phase and two-phase immersion cooling offer ease of location for data centers, providing easy access, repair, and maintenance with plug-and-play configuration. Indirect liquid cooling (ILC) is another widely used method for managing thermal loads in data centers. Unlike DLC, ILC does not involve direct contact between the coolant and electronic components; instead, it uses rack and RoW-based air-to-liquid or liquid-to-air heat exchangers to effectively transfer heat away from the system. This technique simplifies maintenance procedures while offering reliable IT equipment temperature control.

• Data Center Size: Owing adoption of data center liquid cooling in enterprises to cater the consumer need

  Enterprise data centers typically cater to the specific needs of individual organizations and support a wide range of applications. These facilities have varying server densities, power requirements, and space constraints. The integration of liquid cooling solutions becomes crucial as they offer higher energy efficiency, lower operating costs, and improved performance over traditional air-based cooling methods for enterprise data centers. In large-scale or hyperscale data centers operated by cloud providers and colocation facilities, energy efficiency is a top priority as it directly impacts operational expenses (OPEX) and carbon footprint. Small to medium-sized data centers face unique challenges due to their limited space for infrastructure expansion and tighter budget constraints. Liquid cooling increases large, small & medium sized data centers' density and lowers the computer's and hyperscale's temperature.

The porter's five forces analysis offers a simple and powerful tool for understanding, identifying, and analyzing the position, situation, and power of the businesses in the Data Center Liquid Cooling Market. This model is helpful for companies to understand the strength of their current competitive position and the position they are considering repositioning into. With a clear understanding of where power lies, businesses can take advantage of a situation of strength, improve weaknesses, and avoid taking wrong steps. The tool identifies whether new products, services, or companies have the potential to be profitable. In addition, it can be very informative when used to understand the balance of power in exceptional use cases.

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Data Center Liquid Cooling Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Data Center Liquid Cooling Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

• Petronas Lubricants International partners with Iceotope to launch sustainable data center cooling solutions targeting efficiency and reduced carbon emissions

  Petronas Lubricants International (PLI) partners with Iceotope to launch Petronas Iona Tera, a specialized cooling fluid for data centers, to develop advanced thermal management solutions to enhance efficiency and sustainability. The partnership is expected to improve data center operations, reduce carbon emissions, and decrease water usage. The company aimed to solidify sustainability leadership by establishing a strong presence in data center cooling and fostering ongoing research and development in the sector. [Published On: June 18, 2024]

• King Street Capital's acquisition of Colovore to boost expansion of liquid-cooled data centers for AI and HPC

  King Street Capital Management acquired a majority stake in Colovore, a Silicon Valley data center operator specializing in liquid-cooling technology, to support its expansion and leverage the firm’s real estate platform. The acquisition addressed the increasing demand for liquid-cooled data centers driven by high-performance computing and artificial intelligence applications. [Published On: May 20, 2024]

• Aligned unveils DeltaFlow, a revolutionary liquid cooling system for high-density compute needs and supercomputers

  Aligned launches DeltaFlow, a liquid cooling system engineered for high-density compute needs and supercomputers, supporting up to 300 kilowatts per rack. The company aims to reduce cost and risk while utilizing advanced GPUs. DeltaFlow’s closed-loop architecture is expected to lower environmental impact. [Published On: January 16, 2024]

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Data Center Liquid Cooling Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

The report delves into recent significant developments in the Data Center Liquid Cooling Market, highlighting leading vendors and their innovative profiles. These include Alfa Laval, Asetek, Inc., Aspen Systems Inc. by Lockheed Martin Corporation, C&C Technology Group by Oceaneering International, Inc., Cisco Systems, Inc., CoolIT Systems Inc., Dell Inc., Emerson Electric Co., Exxon Mobil Corporation, Green Revolution Cooling Inc., Hewlett Packard Enterprise Development LP, Intel Coproration, International Business Machines Corporation, JETCOOL Technologies Inc, Liquidcool Solutions, Inc., Midas Green Technologies, LLC, Mikros Technologies, Munters Group, NVIDIA Corporation, Rittal GmbH & Co. KG, Schneider Electric SE, Silverback Data Center Solutions Inc., STULZ GmbH, The Dow Chemical Company, and Vertiv Group Corp..

This research report categorizes the Data Center Liquid Cooling Market to forecast the revenues and analyze trends in each of the following sub-markets:

• Type
  • Direct Liquid Cooling
    • Single-Phase Immersion Cooling
    • Two-Phase Immersion Cooling
  • Indirect Liquid Cooling
    • Rack-Based Liquid Cooling
    • RoW-Based Liquid Cooling
• Service
  • Design & Consulting
  • Installation & Deployment
  • Support & Maintenance
• Data Center Size
  • Enterprise Data Centers
  • Large Data Centers
  • Small & Medium- Size Data Center
• Application
  • Cloud Data Centers
  • Colocation Data Centers
  • Edge Data Centers
  • High-Performance Computing
• Industry
  • Aerospace & Defense
  • Automotive & Transportation
  • Banking, Financial Services & Insurance
  • Building, Construction & Real Estate
  • Consumer Goods & Retail
  • Education
  • Energy & Utilities
  • Government & Public Sector
  • Healthcare & Life Sciences
  • Information Technology
  • Manufacturing
  • Media & Entertainment
  • Telecommunication
  • Travel & Hospitality
• End-Users
  • Cloud Providers
  • Colocation Providers
  • Enterprises
  • Hyperscale Data Centers

• Region
  • Americas
    • Argentina
    • Brazil
    • Canada
    • Mexico
    • United States
      • California
      • Florida
      • Illinois
      • New York
      • Ohio
      • Pennsylvania
      • Texas
  • Asia-Pacific
    • Australia
    • China
    • India
    • Indonesia
    • Japan
    • Malaysia
    • Philippines
    • Singapore
    • South Korea
    • Taiwan
    • Thailand
    • Vietnam
  • Europe, Middle East & Africa
    • Denmark
    • Egypt
    • Finland
    • France
    • Germany
    • Israel
    • Italy
    • Netherlands
    • Nigeria
    • Norway
    • Poland
    • Qatar
    • Russia
    • Saudi Arabia
    • South Africa
    • Spain
    • Sweden
    • Switzerland
    • Turkey
    • United Arab Emirates
    • United Kingdom

1. Market Penetration: This section thoroughly overviews the current market landscape, incorporating detailed data from key industry players.
2. Market Development: The report examines potential growth prospects in emerging markets and assesses expansion opportunities in mature segments.
3. Market Diversification: This includes detailed information on recent product launches, untapped geographic regions, recent industry developments, and strategic investments.
4. Competitive Assessment & Intelligence: An in-depth analysis of the competitive landscape is conducted, covering market share, strategic approaches, product range, certifications, regulatory approvals, patent analysis, technology developments, and advancements in the manufacturing capabilities of leading market players.
5. Product Development & Innovation: This section offers insights into upcoming technologies, research and development efforts, and notable advancements in product innovation.

1. What is the current market size and projected growth?
2. Which products, segments, applications, and regions offer promising investment opportunities?
3. What are the prevailing technology trends and regulatory frameworks?
4. What is the market share and positioning of the leading vendors?
5. What revenue sources and strategic opportunities do vendors in the market consider when deciding to enter or exit?