Data Center Liquid Cooling Market Size
| Study Period | 2022 - 2029 |
| Market Size (2024) | USD 4.77 Billion |
| Market Size (2029) | USD 14.81 Billion |
| CAGR (2024 - 2029) | 25.44 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Data Center Liquid Cooling Market Analysis
The Data Center Liquid Cooling Market size is estimated at USD 4.77 billion in 2024, and is expected to reach USD 14.81 billion by 2029, growing at a CAGR of 25.44% during the forecast period (2024-2029).
Technological advancements have made liquid cooling simple to maintain, easily scalable, and affordable and have reduced liquid usage by more than 15% for data centers in built-in hot and humid climates and 80% in more excellent areas. The energy dedicated to liquid cooling can be recycled to heat buildings or water, effectively shrinking the carbon footprint of air conditioning due to the application of advanced engineering coolants.
- Other benefits of liquid cooling include higher capacity than air cooling, providing the same cooling with a much larger volume, reduced overall capacity requirement due to applying high-power density components directly, and efficient heat rejection. The dielectric liquid used in the direct liquid cooling method effectively absorbs heat. Hence, more hardware can be inserted into a smaller space, lowering the need for additional space to accommodate the hardware.
- A green data center is where data is stored, managed, and distributed. The mechanical, lighting, electrical, and computer systems are planned to be as energy-efficient as possible while minimizing their adverse environmental effects. Innovative techniques and technologies are used in building and running green data centers. With the exponential growth and usage of the Internet, power consumption in data centers has increased significantly. Companies are under more pressure to adopt a green policy due to the environmental impact, rise in public awareness, higher cost of energy, and governmental action. These factors have made the development of sustainable data centers directly drive the data center liquid cooling market.
- On the other hand, Operators of data centers wishing to employ cooling systems face substantial challenges due to the requirements for adaptability. Data centers are complex, with a vast server array, and they carry the uncertainty of quantity, timing, and location. When cooling at such a high density, many extra expenses are incurred. To satisfy the demands of the data center, it must be adaptable and scalable. Companies are worried if their current cooling systems can support the increased server load in the future. This makes infrastructure changes frequent and pushes companies unwilling to invest much in newer cooling systems.
- Furthermore, the COVID-19 epidemic has significantly increased the demand for data centers. As more employees work from home, video calls and VPN usage are rising. The use of telehealth applications by allied health practitioners is expanding.
- In New York, telehealth visits have increased by 312%, as per Amwell. To keep entertained and in touch with loved ones, consumers are also heavily utilizing streaming services, which are becoming more readily available due to service providers like Verizon, who enhance their bandwidth capacity. Such industry changes have fueled the desire for cloud-based solutions, fueling demand for data centers and their related sectors.
Data Center Liquid Cooling Market Trends
This section covers the major market trends shaping the Data Center Liquid Cooling Market according to our research experts:
Indirect Cooling is Anticipated to Account for a Significant Market Share
- Direct-to-chip cooling, also known as indirect or liquid-to-chip cooling or cold plate cooling, is the most common liquid cooling method which transfers heat from the server to the outside using a chilled water loop and a coolant on a cold plate inside. Data centers are entering applications with unprecedented computation and core count demands in the modern era. These days, as traditional air cooling hits its limits, data center operators and owners must reconsider the growing density and the challenge offered.
- High-performance, high-frequency, and intensive workload conditions, multi-core computing, including artificial intelligence (AI) and machine learning (ML), and end-to-end data center solutions are in high demand in data centers. Data center owners could meet various needs across the company due to the most recent advancements in indirect or direct-on-chip liquid cooling and system integrator services.
- Indirect or direct-to-chip cooling utilizes liquid or phase-change heat-transfer mechanisms. It offers extensive power and heat dissipation at a minimum operating temperature. Furthermore, it allows it to work under operating conditions, and a processor can perform significantly faster than a processor cooled by other conventional means.
- Many firms offer cold plate technology that can be implemented into new and existing servers. Direct-to-chip cooling technology often has a higher heat dissipation capability than backplane heat exchangers. A hybrid cooling approach is necessary because direct-to-chip cooling typically only removes 70-75 percent of the heat produced by the machinery in the frame.
- The direct-to-chip-cooling trend is expected to continue in 2022 and increase significantly over the forecast period. The IT industry is researching new cooling technologies for heat sources directly contacting the processor. ZutaCore's direct-on-chip dielectric solutions enable efficient and sustainable cooling of increasingly powerful CPUs and GPUs. With this high-performance computing, power grows with new microprocessors and SoC (system on chip) architectures. This growth allows for more advanced processing, such as large-scale data analysis and immersive virtual reality experiences.
North America is Anticipated to Hold a Dominant Market Share
- North America is an early adopter of newer technologies. The region saw a tremendous increase in the penetration of linked devices. Investors in data centers are increasingly funding direct-to-chip and liquid immersion cooling technologies. The worldwide development of 5G networks, of which the United States is one of the early adopters, has boosted the significance of edge data centers. Many American operators have begun investing in these centers, including EdgePresence, EdgeMicro, and American Towers.
- The mobile data traffic has increased considerably over the years, from 1.26 exabytes per month of data traffic to 7.75 exabytes per month in 2021, as reported by Cisco Systems. According to Ericsson, the data traffic is expected to triple further by 2030. Thus, the distributed cloud that can secure the low latency and high bandwidth required to connect to such a scale quickly is expected to come into action. Several technology giants address critical challenges while managing their server and computational needs. A major factor responsible for the rising densities is the rapid rise in data-crunching for AI.
- The time people and businesses spend online is dramatically increasing in the United States. The country is the largest market for data center operations, and it is still expanding due to the increased data consumption by end users. There are now more facilities that can support exabytes of data created by commercial users and consumers due to the growing popularity of the Internet of Things (IoT), which is a significant driver for the US hyper-scale data center and enhances the need for a liquid cooling market.
- Direct-to-chip liquid cooling is growing in popularity in North America. On-site water treatment facilities with dual piping systems are included in the facilities that use water for cooling. Many vendors in the Southeastern and Western regions of the country are switching to water-cooled chillers, which have an economizer mode that enables partial facility cooling by using outside air.
- Additionally, Canada is continuously growing and providing more data center infrastructure solutions due to increased demand for efficient data centers, initiatives for ecological data center solutions, and substantial growth of power density across the region. According to Natural Resources Canada, around half of the energy consumed in a data center is utilized by computing servers, with a further 40% being attributable to cooling these servers. Furthermore, the climatic conditions of the cities in Canada are recorded with an annual temperature of 42.8 °F. This eliminates the need for extensive cooling systems in the data centers and, in turn, helps to reduce operational costs.
Data Center Liquid Cooling Industry Overview
The data center liquid cooling market is highly competitive and consists of several significant players like Alfa Laval AB, Asetek AS, Liquid Cool Solutions, Vertiv Co, etc. In terms of market share, few important players currently dominate the market. These leading firms have significant market shares and are concentrating on growing their clientele internationally. These businesses use strategic joint ventures to raise their market shares and profitability. Companies want specially developed fluids for their systems. For instance, Submer, a recent market entrant, created a coolant, especially for its technology. New competitors intensify the competition, which may induce them to make strategic and technological investments, expanding the market for highly effective technologies.
- In May 2022, Intel launched a new initiative to address data center sustainability with a $700 million investment into a new research facility specializing in liquid and immersion cooling. Along with this, Intel unveiled the first immersion cooling reference design in the market to promote the use of the technology in data centers worldwide.
Data Center Liquid Cooling Market Leaders
Rittal GmbH & Co. KG
Alfa Laval
Vertiv Group Corp.
Schneider Electric
Asetek, Inc.
*Disclaimer: Major Players sorted in no particular order
Data Center Liquid Cooling Market News
- April 2022 - LiquidStack, the leader in liquid immersion cooling for data centers, teamed up with colocation data center provider Standard Power to build the first large-scale colocation data center in the United States using 2-phase immersion cooling, which has quickly gained attention and market share as an alternative to transitionary liquid cooling technologies like direct-to-chip (cold plates) and 1-phase immersion cooling
- February 2022 - Gigabyte introduced its first AMD EPYC and Nvidia A100-based high-performance computing servers with a direct liquid cooling system by CoolIT. The new machines feature one or two AMD EPYC 7003-series 'Milan' processors with up to 128 cores and 4 or 8 Nvidia A100 80GB SXM4 modules. Meanwhile, CoolIT will develop a proprietary direct liquid cooling system that cools down CPU(s) and GPUs separately to ensure peak performance.
Data Center Liquid Cooling Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Development of IT Infrastructure in the Region
4.2.2 Emergence of Green Data Centers
4.3 Market Restraints
4.3.1 Costs, Adaptability Requirements, and Power Outages
4.4 Industry Value Chain Analysis
4.5 Industry Attractiveness Porters Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of COVID-19 Impact on the market
5. MARKET SEGMENTATION
5.1 By Solution
5.1.1 Direct Cooling or Immersion Cooling
5.1.2 Indirect Cooling or Direct-to-chip Cooling
5.2 Geography
5.2.1 North America
5.2.2 Europe
5.2.3 Asia-Pacific
5.2.4 Rest of the World
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Alfa Laval AB
6.1.2 Liquid Stack Inc.
6.1.3 Asetek AS
6.1.4 Asperitas Company
6.1.5 Chilldyne Inc
6.1.6 CoolIT Systems Inc.
6.1.7 Fujitsu Limited
6.1.8 Mikros Technologies
6.1.9 Kaori Heat Treatment Co. Ltd
6.1.10 Lenovo Group Limited
6.1.11 Liquid Cool Solutions
6.1.12 Midas Green Technologies
6.1.13 Iceotope Technologies Ltd
6.1.14 USystems Ltd
6.1.15 Rittal GmbH & Co. KG
6.1.16 Schneider Electric
6.1.17 Submer Technologies
6.1.18 Vertiv Co.
6.1.19 Wakefield-Vette Inc.
6.1.20 Wiwynn Corporation
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Data Center Liquid Cooling Industry Segmentation
Liquid cooling is used in data centers for more than just mainframes and supercomputers. Water and other liquids are significantly more effective at transporting heat than air. They can also eliminate some of the issues associated with air cooling systems, particularly as computer density rises, leading to increased data centers. The data center liquid cooling market is segmented by type of liquid cooling solution (indirect cooling and direct cooling) and geography.
The Data Center Liquid Cooling Market is segmented by Type of Liquid Cooling Solution (Indirect Cooling and Direct Cooling) and Geography (North America, Europe, Asia-Pacific, and Rest of the World).
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| By Solution | |
| Direct Cooling or Immersion Cooling | |
| Indirect Cooling or Direct-to-chip Cooling |
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Rest of the World |
Data Center Liquid Cooling Market Research FAQs
How big is the Data Center Liquid Cooling Market?
The Data Center Liquid Cooling Market size is expected to reach USD 4.77 billion in 2024 and grow at a CAGR of 25.44% to reach USD 14.81 billion by 2029.
What is the current Data Center Liquid Cooling Market size?
In 2024, the Data Center Liquid Cooling Market size is expected to reach USD 4.77 billion.
Who are the key players in Data Center Liquid Cooling Market?
Rittal GmbH & Co. KG, Alfa Laval, Vertiv Group Corp., Schneider Electric and Asetek, Inc. are the major companies operating in the Data Center Liquid Cooling Market.
Which is the fastest growing region in Data Center Liquid Cooling Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Data Center Liquid Cooling Market?
In 2024, the North America accounts for the largest market share in Data Center Liquid Cooling Market.
What years does this Data Center Liquid Cooling Market cover, and what was the market size in 2023?
In 2023, the Data Center Liquid Cooling Market size was estimated at USD 3.80 billion. The report covers the Data Center Liquid Cooling Market historical market size for years: 2022 and 2023. The report also forecasts the Data Center Liquid Cooling Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Data Center Liquid Cooling Industry Report
Statistics for the 2024 Data Center Liquid Cooling market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Data Center Liquid Cooling analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
