Data Center Liquid Cooling Market: Rising Power Density, Advanced Cooling & Growth Outlook

Rising data center densities, growth of AI and high-performance computing, and limits of air cooling are driving expansion of the data center liquid cooling market. Increasing energy efficiency requirements and sustainability goals encourage adoption. According to IMARC Group's latest research publication, The global data center liquid cooling market size reached USD 3.5 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 16.5 Billion by 2033, exhibiting a growth rate (CAGR) of 18.56% during 2025-2033

How AI is Reshaping the Future of Data Center Liquid Cooling Market

• Smart Thermal Management Systems: AI-powered predictive algorithms continuously monitor temperature fluctuations, optimizing coolant flow rates and distribution across high-density server racks, reducing energy waste by up to 30% while maintaining optimal operating conditions.
• Automated Fault Detection and Prevention: Machine learning models analyze sensor data from cooling infrastructure, identifying equipment degradation patterns and predicting failures before they occur, minimizing downtime risks and extending system lifespan significantly.
• Dynamic Load Balancing Optimization: AI systems automatically adjust cooling capacity based on real-time computational workload demands, redistributing thermal resources efficiently across data center zones and eliminating overcooling in underutilized areas.

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Data Center Liquid Cooling Industry Overview:

The sector is transforming rapidly as power densities explode beyond traditional air cooling capabilities. Rack densities that once maxed at 15kW now push 80-120kW in AI clusters, with NVIDIA's Blackwell Ultra racks consuming up to 140kW. Liquid-based cooling captured 46% of the entire cooling market in 2024. North America dominates with 39% market share, driven by hyperscale deployments and sophisticated technological infrastructure.

Data Center Liquid Cooling Market Trends & Drivers:

AI workload intensity is fundamentally reshaping thermal management requirements across the industry. Modern AI chips like NVIDIA H100s and AMD MI300X generate heat loads exceeding 700W per GPU. The Uptime Institute reports average rack power density increased 38% from 2022 to 2024, with steepest growth in AI and hyperscale deployments. Microsoft's advanced AI supercomputer unveiled in 2025 features exclusively liquid-cooled racks supporting GPT-Next training workloads. CoreWeave operates 33 data centers with all new facilities from 2025 onwards designed with liquid cooling, supporting rack densities up to 130kW.

Sustainability mandates and energy efficiency goals are accelerating adoption across global markets. Regions like the EU, California, and Singapore implement stricter regulations around data center energy and water consumption. Liquid cooling enables compliance with emerging standards while delivering measurable operational benefits. AWS developed a custom liquid cooling solution achieving up to 46% reduction in mechanical energy consumption during peak cooling, reporting a global PUE of 1.15. In Scandinavia, data center heat reuse has become a policy requirement in urban zones, with waste heat captured and reused in district heating grids.

Hyperscale operators and colocation providers are investing billions in liquid cooling infrastructure. Digital Realty announced a $7 billion joint venture with Blackstone to develop AI-focused hyperscale facilities, with a planned $2 billion UK mega-campus. Aligned raised $925 million in debt financing specifically for liquid-cooled data centers. Lambda partnered with Aligned for its newest Dallas-Fort Worth facility, a liquid-cooled AI and cloud data center in Plano, Texas. Server manufacturers now offer liquid-cooled SKUs as standard options, with NVIDIA and AMD designing flagship GPUs with liquid cooling as preferred thermal management.

Leading Companies Operating in the Global Data Center Liquid Cooling Industry:

• Alfa Laval AB
• Asetek A/S
• Asperitas
• Chilldyne
• CoolIT Systems Inc.
• Fujitsu Limited
• Green Revolution Cooling Inc.
• Iceotope
• Lenovo Group Limited
• Rittal GmbH & Co. KG
• Schneider Electric SE
• Vertiv Group Corp.

Data Center Liquid Cooling Market Report Segmentation:

By Component:

• Solution
• Direct Liquid Cooling
• Indirect Liquid Cooling
• Services
• Design and Consulting
• Installation and Deployment
• Support and Maintenance

Solution accounts for the majority of the market share due to exceptional effectiveness in heat removal, surpassing traditional air cooling in efficiency and providing improved thermal management for high-density workloads.

By Data Center Type:

• Large Data Centers
• Small and Medium-sized Data Centers
• Enterprise Data Centers

Large data centers hold the largest market share due to their ability to facilitate high-density computing, extensive data storage, and scalability with effective resource management and improved dependability.

By End Use:

• Cloud Providers
• Colocation Providers
• Enterprises
• Hyperscale Data Centers

Enterprises represent the leading market segment due to their growing demand for robust, scalable IT infrastructure to facilitate operations, data storage, and security during digital transformation.

By Application:

• BFSI
• IT and Telecom
• Media and Entertainment
• Healthcare
• Government and Defense
• Retail
• Research and Academic
• Others

IT and telecom dominate the market share owing to their significant need for dependable, scalable infrastructure accommodating extensive data processing, network traffic, and communication systems.

Regional Insights:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

North America leads the market, accounting for the largest share owing to its strong technological infrastructure, significant investments in advanced solutions, and an increasing need for energy-efficient systems.

Recent News and Developments in Data Center Liquid Cooling Market

• June 2025: Shell launched DLC Fluid S3, a direct liquid cooling solution for AI and high-performance computing, claiming up to 27% improvement in power usage effectiveness over air cooling. The glycol-based fluid offers long-term corrosion protection and over six years of service life, supporting next-gen data center systems aligned with OCP standards.
• June 2025: Trane Technologies enhanced its liquid cooling systems for data centers with scalable Coolant Distribution Units ranging from 2.5MW to 10MW. The upgrades support high-density AI workloads while improving energy efficiency and sustainability, offering lifecycle services and smart monitoring to optimize performance and reduce operational costs.
• June 2025: KDDI and HPE announced a new AI data center in Osaka, set to launch in early 2026, powered by Nvidia's GB200 NVL72 platform with direct liquid cooling. The facility will support startups and enterprises through KDDI's WAKONX platform for low-latency, energy-efficient AI computing, driving Japan's AI innovation with sustainable infrastructure.
• February 2024: Aligned, a data center firm, launched a new liquid cooling system specifically designed to support high-density compute requirements and supercomputers, addressing the escalating thermal demands of modern AI workloads.
• February 2024: SK Enmove announced it signed a Memorandum of Understanding on cooperation of next-generation cooling and solutions with SK Telecom and Precision Liquid Cooling Iceotope Technologies, advancing collaborative innovation in thermal management technologies.

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