Market Overview (2024-2032):

Global Data Centre Liquid Cooling Market size was valued at around 4.00 billion in 2023 and is expected to reach a value of USD 24.85 billion by 2032, at a CAGR of 22.5% over the forecast period (2024–2032).

The recent drastic growth of the global data centre liquid cooling market is due to the rapid growth of data centres and rising demand for high-performance computing as well as the strong necessity for efficient and sustainable cooling solutions. Conventional air-based cooling systems have been facing the problems of scalability and efficiency at data centre architecture, which gets highly complicated. Liquid cooling has gained prominence for larger heat densities as well as reduction in the general energy use since it boasts higher thermal management abilities.

Behind all this is the increasing pressure that data centres face to make their operations more energy-efficient and environmentally friendly. Data centres store an enormous number of servers and storage equipment, which produce a huge amount of heat. If not well managed, overheating may cause hardware failure or reduced performance. Generally, liquid cooling systems, which take into account such liquids as water or special coolants which absorb and dissipate heat, provide a more effective cooling solution insofar as they effectively directly target hot spots on equipment and improve performance while consuming less energy.

The main driver of the liquid cooling market is growing focus on energy efficiency and reducing environmental impact of data centres. Increasing dependence of organizations on digital transformation and cloud computing will lead to higher demand for powerful and densely packed servers, and traditional air conditioning systems may not be effective in cooling high-performance hardware with reduced operational costs. Liquid cooling does have the prospect of reducing power consumption and cutting down the associated operating costs for data centre owners who seek performance and sustainability on the same levels.

The emerging technologies also include AI and machine learning, which require large computational powers, giving off lots of heat, that further demands advancement in cooling techniques. Thus, the demand for this liquid cooling was further amplified through the increasing applications of sophisticated edge computing which was also found requiring high thermal load handling capacities to be accomplished from the system with the most innovative cooling mechanism to be established at the point.

Another driver of adoption of liquid cooling systems is innovative, modular designs. Many liquid cooling technologies now are easier to integrate and scale to allow data centres to adopt these systems incrementally without disrupting much from existing infrastructure. Further improvements in efficiency, reliability, and affordability will follow the maturity of the market due to the constant advancements in materials, techniques, and system designs.

Key Findings:

• In April 2024, Mitsubishi Electric also launched the MECH-IF series, featuring an air-cooled chiller with a patented single-screw compressor that ensures dependability and energy efficiency for extended operation. This series is rated between 345kW and 921kW and offers flexibility with the use of innovative screw variable-speed compressors and alternatively available refrigerant options including R1234ze (G04) or R513A (G05).
• In March 2024, The Navigator WW screw chiller with low global warming potential (GWP) R-513A refrigerant was introduced by Daikin Applied as a cooling solution offering a benefit to the environment. Clients can add the optional Templifier TW water heater that increases efficiency even further in order to provide a more affordable heat recovery option.
• In November 2023, Schneider Electric in collaboration with Intel introduced a liquid cooling system designed for the ground-breaking Intel Gaudi3 AI accelerator. Vertiv pumped two-phase (P2P) cooling infrastructure provides a creative solution for optimal performance in both liquid-cooled and air-cooled servers.

Market Drivers

Rising Data Centre Density and Demand for Efficient, Eco-Friendly Cooling Drive Liquid Cooling Adoption

• The rapid growth of cloud computing, artificial intelligence, and the Internet of Things has led to more traditional air-cooling techniques since the number of data centres grows. Overloaded servers and increasing processing needs require the best possible cooling solutions. Compared to other cooling techniques, liquid cooling offers the best temperature control and energy efficiency, hence becoming an essential technology that enables solution problems. This technology is one of the best methods available to handle high heat loads, but it also makes better overclocking possible, hence ensuring peak server performance. Liquid cooling is gaining popularity owing to technological and environmental benefits. With the emphasis on sustainability at present, data centres seek ways to reduce their energy and carbon footprint.

Market Opportunities

AI, blockchain, and other innovative technologies are gaining traction.

• The growth of artificial intelligence and blockchain is creating an opportunity in the data centre liquid cooling area. As data centres grow to support the advance of AI, so does the popularity of the liquid cooling techniques that reduce the effectiveness of traditional cooling for high-density computers. These technologies present better temperature control and energy efficiency. AI allows live cooling to be adjusted for optimal energy use. Blockchain enhances the integrity and security of data over resources. These innovations help to address thermal issues and contribute to sustainability, thereby incorporating liquid cooling into future data centres.

Market Restraining Factors

High Maintenance and Capital Costs

• Liquid cooling within data centres faces more challenges for its application owing to the large barriers, in particular, significant capital and running costs. Systems of liquid cooling were initially very expensive to erect compared to most air-cooling substitute systems because their installation required the use of infrastructure and equipment highly specialized. Further, because their components are periodically subject to potential leaks, complexities of such a system usually also translate to having higher maintenance expenses. Another factor affecting the operating costs is the cost of coolant. Some types do require frequent changes, further increasing the operating costs. Financial reservations thus throw the installation of liquid cooling against the benefits of heat management and energy efficiency in a data centre.

Segmentation Analysis

The market scope is segmented because of by Product, by Data Centre Type, by Cooling Technique.

• By Product

Based on the Product of the market is segmented into Air Conditioners, Precision Air Conditioners, Liquid Cooling, Air Handling Unit, Chillers, Others (Air Economizers, Heat Rejection).

Among the product types in the data centre cooling market, liquid cooling has emerged to be the major segment. It is mainly for the reason of its superior efficiency in handling increasing heat densities that are found within modern data centres. Consequently, increasing demand for high-performance computing transcended conventional air-based cooling’s such as air conditioners and precision air conditioners that became inadequate to efficiently dissipate heat from the densely packed servers with high power. Liquid-based cooling systems, including direct-to-chip cooling and immersion cooling, are currently gaining popularity since they absorb heat from the hardware directly, thus becoming a better source for thermal management and energy efficiency. These systems also provide a smaller footprint, which is very important in data centres where space is limited and operational costs are high.

Another reason lies in the energy consumption and overall system performance improvement of liquid cooling, which is becoming increasingly interesting for data centre operators who want to reduce operational costs and attain their sustainability goals. As data centres grow in size, with trends like hyperscale computing and AI boosting processing demand, liquid cooling solutions become ever more vital.

Although air conditioning, chillers, and air handling units still dominate the space in cooling solutions, especially traditional or less rigorous environments, with the ability of liquid cooling systems to handle bigger thermal loads far more efficiently and effectively in more modern data centres, it appears that liquid cooling will be more dominant in the long-term market. As such, the increased adoption of the technology is set to be way faster than those of other coolants.

• By Data Centre Type

Based on the Data Centre Type of the market is segmented into Large Scale, Medium Scale, Small Scale.

This market is dominated by large-scale data centre with high demand of cloud services, big data analytics, and hyperscale computing. It is the one primarily utilized by the biggies of tech, as well as the major players of the cloud services- AWS, Google, and Microsoft - which builds gigantic infrastructures serving gigantic data storages, high-performance computations, and ultra-high speed of computation and processing of data. These centres will process enormous amounts of data and will support the global operations of the organization; therefore, high-tech liquid cooling, efficient energy management systems, and robust cooling solutions are used to ensure smooth continuous operation with less heat generated by densely packed servers.

Another factor that drives the dominance of large-scale data centres is the fact that they can apply economies of scale, which means per-unit costs are minimized, energy consumption is optimized, and highly scalable solutions can be offered to the clients. Additionally, with artificial intelligence and machine learning continually growing in addition to cloud computing, big data centres are required to maintain the infrastructure behind these technologies.

While medium and small-size data centres are able to meet a variety of niche demands created by businesses processing smaller loads, they cannot come close to the scale and efficiency of large-size data centres. In the race for digital transformation and cloud offerings, the large-size data centre segment will remain leading, while operators increasingly invest in advanced technologies to optimize performance and ensure sustainability.

• Regional Snapshots

By region, Insights into the markets in North America, Europe, Asia-Pacific, Latin America and MEA are provided by the study. North America has dominated the global data centre liquid cooling market. The dominance in the market has been based on early adoption of advanced cooling technologies by the region and high concentrations of data centres, mainly in the United States. The biggest cloud service providers, tech giants, and hyperscale data centres that consider energy efficiency and sustainability have located some of their major data centres in North America. The reasons behind such a trend are factors demanding more efficient and scalable cooling systems such as liquid cooling. Current stringent regulatory frameworks around consumption of energy and environmental sustainability push data centres into liquid cooling solutions in an effort to reduce carbon footprints and low operation costs.

Asia-Pacific is likely to be the fastest-growing region in the data centre liquid cooling market. The growth is primarily driven by the region's expanding digital infrastructure, increasing data generation, and significant investments in cloud computing, AI, and IoT technologies. China, Japan, and India have enormous numbers of data centres with vast populations, growing internet penetration, and significant industrial growth. Liquid cooling technologies are adopted by Asia-Pacific with high pace, given the rapid demand for high-performance computing and energy-efficient solutions in solving heat challenges associated with high-density servers to ensure efficient operations in energy use. Additionally, growing in the region are aided favourable government initiatives along with the innovation in the solutions for cooling.

List of Companies Profiled

• Vertiv Group Corp.
• Green Revolution Cooling Inc.
• COOLIT SYSTEMSv
• Asperitas
• Submer

Key Industry Developments

In May 2024, Asperitas and STULZ Modular, a subsidiary of STULZ GmbH and supplier of modular data centre solutions, teamed up to research the possibilities of liquid cooling technology. The use of immersion cooling in high-density data centre environments was to offer innovative solutions for the sector's evolving needs through this collaboration. The partnership concentrated on a modular data centre concept that would include immersion cooling for both indoor and outdoor applications.

In April 2024, reaffirming its commitment to the nation with an investment of USD 438.4 million to make India a manufacturing hub, Schneider Electric further intensified its commitment to the nation. The company initially invested USD 130.0 million in opening a cutting-edge facility in Bengaluru and showcased its pledge of fulfilling the ever-growing demand of data centre cooling solutions. This manufacturing centre would focus on creating cool, top-class cooling solutions to maintain the expanding environment of the data centre in India.

Report Coverage

The report will cover the qualitative and quantitative data on the global Data Centre Liquid Cooling Market. The qualitative data includes latest trends, market players analysis, market drivers, market opportunity, and many others. Also, the report quantitative data includes market size for every region, country, and segments according to your requirements. We can also provide customize report in every industry vertical.

Report Scope and Segmentations

Global Data Center Liquid Cooling Market Regional Analysis

North America accounted for the highest xx% market share in terms of revenue in the Data Center Liquid Cooling market and is expected to expand at a CAGR of xx% during the forecast period. This growth can be attributed to the growing adoption of Data Center Liquid Cooling. The market in APAC is expected to witness significant growth and is expected to register a CAGR of xx% over upcoming years, because of the presence of key Data Center Liquid Cooling companies in economies such as Japan and China.

The objective of the report is to present comprehensive analysis of Global Data Center Liquid Cooling Market including all the stakeholders of the industry. The past and current status of the industry with forecasted market size and trends are presented in the report with the analysis of complicated data in simple language.

Data Center Liquid Cooling Market Report is also available for below Regions and Country Please Ask for that

North America

• U.S
• Canada

Europe

• Switzerland
• Belgium
• Germany
• France
• U.K
• Italy
• Spain
• Sweden
• Netherland
• Turkey
• Rest of Europe

Asia-Pacific

• India
• Australia
• Philippines
• Singapore
• South Korea
• Japan
• China
• Malaysia
• Thailand
• Indonesia
• Rest Of APAC

Latin America

• Mexico
• Argentina
• Peru
• Colombia
• Brazil
• Rest of South America

Middle East and Africa

• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest Of MEA

Points Covered in the Report:

• The points that are discussed within the report are the major market players that are involved in the market such as market players, raw material suppliers, equipment suppliers, end users, traders, distributors and etc.
• The complete profile of the companies is mentioned. And the capacity, production, price, revenue, cost, gross, gross margin, sales volume, sales revenue, consumption, growth rate, import, export, supply, future strategies, and the technological developments that they are making are also included within the report. This report analysed 5 years data history and forecast.
• The growth factors of the market are discussed in detail wherein the different end users of the market are explained in detail.
• Data and information by market player, by region, by type, by application and etc., and custom research can be added according to specific requirements.
• The report contains the SWOT analysis of the market. Finally, the report contains the conclusion part where the opinions of the industrial experts are included.

Key Questions:

• How much the global Data Center Liquid Cooling Market valued?
• Which region has the largest share in 2024 for the global Data Center Liquid Cooling Market?
• What are the driving factors for the market?
• Which is the leading segment in the global market?
• What are the major players in the market?

Research Scope of Data Center Liquid Cooling Market:

• Historic year: 2019-2022
• Base year: 2023
• Forecast: 2024 to 2032
• Representation of Market revenue in USD Million

Data Center Liquid Cooling Market Trends: Market key trends which include Increased Competition and Continuous Innovations Trends: