Data Center Liquid Cooling Market Trends & Key Opportunities to 2031

The data center liquid cooling market size is projected to reach US$ 22,079.85 million by 2031, from US$ 4,241.25 million in 2024. The market is expected to register a CAGR of 26.7% during 2025–2031.

Data Center Liquid Cooling Market Analysis

The data center liquid cooling market is influenced by the need for efficient thermal management in high-performance computing (HPC), artificial intelligence (AI), and hyperscale data centers. As server densities increase and more heat is generated, conventional air cooling systems are reaching their limits; thus, the operators are turning to liquid cooling solutions, which offer better energy efficiency, accurate temperature control, and scalable performance. Moreover, the shrinking of IT hardware, the use of IoT, enabled monitoring systems, and AI-driven predictive management that facilitate real-time thermal management and cooling optimization are contributing to the market growth. In addition, the accelerated growth of cloud services, edge computing, and digital transformation initiatives across various industries is leading to an expansion of the market.

Data Center Liquid Cooling Market Overview

Liquid cooling, whether through direct, to-chip, chip, or immersion methods, takes away heat right from the source. This allows the equipment to operate at stable conditions even when under heavy workloads. Such approaches are aimed at high-density servers, thus achieving significant power savings for the data center and reducing its PUE (Power Usage Effectiveness). Thus, they are gaining popularity in hyperscale, enterprise, and modular data centers. Besides the modular structure, the AI-driven adaptive cooling and IoT, enabled connectivity, which allows scheduling of maintenance, optimization of energy consumption, and integration with the building management system (BMS), are fueling their adoption. As data centers continue to place greater emphasis on energy efficiency, operational reliability, and sustainability, the market for these cooling solutions has been expanding at a steady pace, making them indispensable in modern high-performance IT infrastructures.

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Data Center Liquid Cooling Market: Strategic Insights

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Data Center Liquid Cooling Market Drivers and Opportunities

Market Drivers:

• High-Density Server Cooling: Liquid cooling has become the preferred method for managing heat in high-performance computing (HPC), AI workloads, and hyperscale data centers, where traditional air cooling methods are no longer sufficient.
• Energy Efficiency and Sustainability: Rising energy costs and increasing sustainability requirements drive liquid cooling adoption, as these systems reduce electricity consumption and improve power usage effectiveness (PUE).
• Technological Advancements: A wide range of heat management techniques—including immersion cooling, direct-to-chip solutions, and modular designs—enable high-density, scalable infrastructure with precise thermal control.

Market Opportunities:

• IoT-Enabled and AI-Driven Cooling: The use of IoT sensors and AI-based adaptive cooling systems allows the integration of predictive maintenance, real-time performance optimization, and building management systems without any interruption.
• Energy Efficiency and Sustainability: Energy-efficient, low-power liquid cooling systems give data center operators the chance to comply with environmental regulations and be in line with sustainability and green data center initiatives.
• Customization and Modular Designs: Modular and configurable liquid cooling architectures offer the necessary flexibility and long-term scalability for hyperscale, edge, and enterprise data centers.

Data Center Liquid Cooling Market Report Segmentation Analysis

The data center liquid cooling market is segmented into distinct categories to provide a clearer understanding of its operation, growth potential, and current trends. Below is the standard segmentation approach used in most industry reports:

By Cooling Type:

• Room Based Cooling: Ideal to be used in small server rooms or enterprise facilities, these units offer accurate and energy-efficient thermal control of moderate heat loads.
• Row Based Cooling: These units are installed between server rows in medium- to large data centers to help balance the cooling capacity and energy efficiency for mid-density setups, along with IoT and AI-driven optimization.
• Rack Based Cooling: These units provide high-intensity cooling at racks to HPC, AI, or GPU-heavy workloads. These also support high, density servers, immersion and direct, to, chip solutions, and help in the reduction of PUE and scalable, reliable operations in hyperscale and enterprise data centers.

By Data Center Type:

• Hyperscale Data Center
• Colocation Data Center
• Wholesale Data Center
• Enterprise Data Center

By Industry Vertical:

• IT and Telecom
• BFSI
• Healthcare
• Manufacturing
• Government and Defense
• Media and Entertainment
• Retail
• Energy
• Others

By Geography:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

The data center liquid cooling market in Asia Pacific is expected to witness the fastest growth.

Market Report Scope

Data Center Liquid Cooling Market Share Analysis by Geography

Asia Pacific is witnessing the fastest growth. Emerging markets in Latin America, the Middle East, and Africa offer numerous untapped opportunities for data center liquid cooling providers.

The data center liquid cooling market experiences varying growth rates across different regions. Below is a summary of market share and trends by region:

1. North America

• The demand for hyperscale, enterprise, and AI-driven data centers dominates the North American market. Advanced IT infrastructure is highly adopted across the three countries. Energy efficiency regulations, along with the integration of IoT-enabled and AI-driven cooling systems, contribute to the market growth in the US, Canada, and Mexico.

2. Europe

• The market expansion in Europe is a result of energy efficiency regulations, sustainability initiatives, and a large-scale deployment of high-density servers. Germany, France, and the UK are examples of countries that focus on modular, precision, and immersion cooling not only to reduce PUE but also operational costs.

3. Asia Pacific

• APAC's market expansion is a result of the rapid digitalization, expansion of hyperscale data centers, and increasing AI and HPC workloads. Besides that, China, Japan, India, and South Korea are the major contributors to the market, which are promoting the use of advanced liquid cooling solutions to manage high-density servers efficiently.

4. South and Central America

• The region is experiencing an increasing demand for digital transformation, cloud adoption, and enterprise IT modernization. Brazil, Argentina, and Chile are the markets that have speed up the implementation of energy-efficient operations through the adoption of modular and rack-based liquid cooling systems.

5. Middle East and Africa

• Middle East & Africa The market growth is a result of investments in hyperscale data centers, cloud infrastructure, and edge computing. Apart from that, the UAE, Saudi Arabia, and South Africa are concentrating on energy-efficient liquid cooling not only to reduce operational costs but also to improve sustainability.

Data Center Liquid Cooling Market Players Density: Understanding Its Impact on Business Dynamics

High Market Density and Competition

The demand for data center cooling is typically characterized by intense competition. On a global scale; Asetek, Inc.; Rittal GmbH & Co KG; Stulz SpA; and Carrier Global Corp; among others, are key players dominating the market. Additionally, many regional and niche manufacturers offer specialized solutions tailored to specific industries or applications.

This high level of competition urges companies to stand out by offering:

• Advanced AI-driven and IoT-enabled cooling systems for real-time monitoring and predictive maintenance
• Modular, energy-efficient, and high-performance liquid cooling solutions
• Customized solutions, turnkey deployment, and strong customer support

Opportunities and Strategic Moves

• Forming partnerships, joint ventures, and strategic collaborations to expand market reach and penetration
• Investing in research and development to innovate advanced immersion, direct-to-chip, and modular cooling technologies
• Offering service-oriented models, including predictive maintenance, remote monitoring, and performance optimization, to add value and retain customers

Other companies analyzed during the course of research:

1. Schneider Electric SE
2. CoolIT Systems Inc.
3. Green Revolution Cooling Inc. (GRC)
4. Submer Technologies SL
5. LiquidStack Holding B.V.
6. Iceotope Technologies Limited
7. IBM Corporation
8. Dell Technologies
9. Super Micro Computer, Inc.
10. Lenovo Group Limited
11. Nortek Air Solutions
12. Huawei Technologies Co., Ltd.
13. 3M Company
14. Accelsius
15. Fujitsu Limited

Disclaimer: The companies listed above are not ranked in any particular order.

Data Center Liquid Cooling Market News and Recent Developments

• nVent Unveils New Liquid Cooling and Power Portfolio at SC25 : In November 2025, nVent Electric plc (NYSE: NVT) (“nVent”), a global leader in electrical connection and protection solutions, announced its new, modular data center liquid cooling solutions aligned to chip manufacturers’ current and future cooling requirements. The new solutions include enhanced coolant distribution unit (CDU) offerings with new row and rack-based CDUs alongside advanced technology cooling system manifolds. They also include updated racks based on leading reference designs and a new services program.
• Schneider Electric Unveils Liquid Cooling Portfolio with Motivair : In September 2025, Schneider Electric, the leader in the digital transformation of energy management and automation, unveiled its world-leading portfolio of end-to-end liquid cooling solutions for hyperscale, colocation, and high-density data center environments, engineered to enable the AI Factories of the Future.

Data Center Liquid Cooling Market Report Coverage and Deliverables

The "Data Center Liquid Cooling Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:

• Data Center Liquid Cooling Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Data Center Liquid Cooling Market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• Data Center Liquid Cooling Market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the Data Center Liquid Cooling Market
• Detailed company profiles