Press release
Data Center Liquid Cooling Market Estimated to Grow at 25.3% CAGR by 2032
Data Center Liquid Cooling Market
Among the cooling solutions, cold-plate and immersion cooling systems dominate due to their superior heat dissipation capabilities and ability to maintain lower power usage effectiveness (PUE 1.02-1.2). North America leads the market geographically, driven by its early adoption of cutting-edge data center infrastructure, stringent sustainability mandates, and the presence of major cloud service providers and hyperscale data center operators in the region.
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Key Highlights from the Report
The market is projected to reach US$21.8 billion by 2032.
CAGR of 25.3% is expected from 2025 to 2032.
Cold-plate and immersion cooling systems lead the product segment.
North America dominates the market due to hyperscale data center expansion.
Rising rack densities and energy efficiency regulations are key growth drivers.
AI and HPC workloads are increasing the demand for liquid cooling solutions.
Market Segmentation
The Data Center Liquid Cooling Market can be segmented based on product type, including cold-plate cooling, immersion cooling, and rear-door heat exchangers. Cold-plate cooling remains the largest segment due to its high compatibility with existing rack infrastructure and effective heat dissipation for high-performance servers. Immersion cooling, on the other hand, is gaining traction in hyperscale data centers that require extremely dense compute power and energy efficiency.
In terms of end-users, the market caters primarily to cloud service providers, colocation data centers, and enterprise IT infrastructure. Cloud and hyperscale data centers are leading the adoption curve as they face immense heat management challenges due to increasing workloads and dense server configurations. Enterprise data centers are gradually transitioning toward liquid cooling to reduce operational costs and meet sustainability goals.
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Regional Insights
North America is the largest market for data center liquid cooling solutions, primarily due to the presence of major hyperscale cloud operators like Amazon Web Services, Microsoft Azure, and Google Cloud. Early adoption of energy-efficient technologies and stringent carbon emission regulations further boost the market in the region.
Europe is witnessing steady growth, driven by government initiatives for greener data centers and rising investments in HPC facilities. Countries like Germany, the UK, and France are actively upgrading legacy data centers with advanced liquid cooling solutions to improve efficiency and sustainability.
Market Drivers
The primary driver for the data center liquid cooling market is the exponential growth of AI, machine learning, and cloud computing workloads, which generate significant heat that traditional air-cooling systems cannot handle efficiently. Rising rack densities, power consumption concerns, and sustainability mandates are also pushing data center operators toward liquid cooling systems.
Market Restraints
High initial capital investment and infrastructure complexity act as significant restraints in market adoption. Many enterprises and mid-sized data centers remain hesitant due to concerns over maintenance costs and compatibility with existing IT infrastructure.
Market Opportunities
The increasing focus on green data centers, energy-efficient computing, and rising deployment of edge computing facilities offer substantial growth opportunities. Technological advancements, such as hybrid liquid-air cooling systems and AI-driven cooling management, are creating new avenues for market expansion.
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Reasons to Buy the Report
✔ Comprehensive analysis of the global Data Center Liquid Cooling Market with growth forecasts.
✔ Insight into key trends, drivers, and restraints shaping the market.
✔ Detailed segmentation by product type and end-user for strategic planning.
✔ Regional market analysis to identify emerging opportunities.
✔ Profiles of leading players and recent market developments.
Frequently Asked Questions (FAQs)
How Big is the Data Center Liquid Cooling Market?
Who are the Key Players in the Global Data Center Liquid Cooling Market?
What is the Projected Growth Rate of the Data Center Liquid Cooling Market?
What is the Market Forecast for Data Center Liquid Cooling for 2032?
Which Region is Estimated to Dominate the Industry through the Forecast Period?
Company Insights
Key players in the Data Center Liquid Cooling Market include:
Schneider Electric
Vertiv Co.
Asetek A/S
CoolIT Systems
Iceotope Technologies
Green Revolution Cooling
Recent Developments:
Schneider Electric launched advanced liquid cooling modules designed to reduce PUE below 1.1 in hyperscale data centers.
Vertiv expanded its liquid cooling product line to support high-density AI and HPC workloads, targeting North America and Europe.
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