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Future of Data Center Liquid Cooling Market: Key Breakthroughs, Growth Pathways & Revenue Forecast to 2034
Data Center Liquid Cooling Market
The data center liquid cooling market report by Polaris Market Research offers an in-depth comprehension of the rapidly evolving sector. It covers all the key market aspects, including market share, size, trends, and recent developments. In addition, top segments, key regions, and competitive landscape have been assessed.
The data center liquid cooling market size was valued at USD 2,181.42 million in 2024. With a CAGR of 32.6% during 2025-2034, the market is projected to grow to USD 36,589.23 million by 2034.
Market Introduction
Data center liquid cooling is an advanced method used to dissipate the heat generated by servers and other computing equipment in data centers. Unlike traditional air cooling that make use of fans and HVAC systems to move cool air across serve racks, liquid cooling uses fluids to absorb and transfer heat away from the hardware more efficiently. There are various types of liquid cooling systems, including direct-to-chip cooling, immersion cooling, and rear-door heat exchangers. The use of liquid cooling offers several benefits, including higher thermal efficiency and reduced energy consumption. In addition, data center liquid cooling has the ability to handle higher-density compute environments.
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Market Dynamics
Rising Energy Efficiency Demands: The rising data center power densities have made traditional air-cooling methods less effective and more energy-intensive. Liquid cooling systems offer a more efficient alternative to traditional cooling. These systems are capable of removing heat more effectively with less energy input. This improved energy efficiency translates to lower operating costs and a minimized environmental impact, which aligns with sustainability goals. Thus, the growing energy efficiency demands are driving the data center liquid cooling market expansion.
Growing Deployment of High-Performance Computing and AI: High-performance computing (HPC) and artificial intelligence (AI) involve processors and hardware that generate significantly more heat as compared to traditional IT equipment. Air cooling is often inadequate for dissipating the high heat generated by these devices. As a result, advanced cooling technologies like liquid cooling are required.
Key Market Participants
The competitive landscape of the market is characterized by the presence of established infrastructure providers and specialized cooling technology vendors. A few of the leading market participants are:
• Asetek A/S
• Alfa Laval Corporate AB
• CoolIT Systems Inc.
• Green Revolution Cooling Inc.
• Iceotope Technologies Limited
• LiquidStack Holding B.V.
• Rittal GmbH & Co. KG
• Schneider Electric SE
• Stulz GmbH
• Vertiv Co.
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Data Center Liquid Cooling Market Report Highlights:
o By Component, the solution segment holds the largest market share due to the fundamental requirement for the physical hardware and technologies that constitute liquid cooling systems, including cooling units and heat exchangers, which are essential for initial setup and ongoing operations in response to increasing thermal management needs.
o By data center type, the hyperscale data center segment presently accounts for the largest market share, primarily due to the massive scale and high power densities inherent in these facilities operated by major cloud service providers and internet companies, which necessitate advanced cooling solutions to manage immense heat and maintain operational efficiency.
o By end-use, the it & telecom sector holds the largest share of the data center liquid cooling market, driven by the extensive data processing and storage demands of telecommunication companies and it service providers, where the continuous growth in data traffic and reliance on cloud services necessitate advanced cooling for their critical infrastructure.
o By region, North America holds the largest share of the data center liquid cooling market. The Asia Pacific region is projected to witness the highest growth rate in the data center liquid cooling market over the forecast period.
Segmental Analysis
The market is primarily segmented on the basis of component, data center type, and end-use.
Based on component, the solution segment leads the market. The segment's leading market position is primarily driven by the fundamental need for physical infrastructure and technologies that constitute liquid cooling systems. This includes various hardware components such as heat exchangers, coolants, and pumps. These components are essential for the initial setup and ongoing operations of liquid cooling within data centers.
By data center type, the colocation data center segment is expected to register the highest growth rate. The segment's robust growth is attributed to the increasing adoption of colocation services by various enterprises looking to outsource their data center infrastructure. Colocation data centers are increasingly implementing liquid cooling systems to meet diverse client requirements and offer competitive advantages.
By Component Outlook (Revenue - USD Million, 2020-2034)
• Solution
• Services
By Data Center Type Outlook (Revenue - USD Million, 2020-2034)
• Wholesale
• Enterprise
• Hyperscale
• Colocation
• Others
By End-Use Outlook (Revenue - USD Million, 2020-2034)
• IT & Telecom
• Retail
• Healthcare
• BFSI
• Media & Entertainment
• Others
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Regional Overview
By Regional Outlook (Revenue - USD Million, 2020-2034)
• North America
o US
o Canada
• Europe
o Germany
o France
o UK
o Italy
o Spain
o Netherlands
o Russia
o Rest of Europe
• Asia-Pacific
o China
o Japan
o India
o Malaysia
o South Korea
o Indonesia
o Australia
o Vietnam
o Rest of Asia-Pacific
• Middle East & Africa
o Saudi Arabia
o UAE
o Israel
o South Africa
o Rest of Middle East & Africa
• Latin America
o Mexico
o Brazil
o Argentina
o Rest of Latin America
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