AI Data Center Liquid Cooling Market to Reach US$ 23.23 billion by 2035 as Hyperscale Facilities Shift Toward Advanced Thermal Management

The AI Data Center Liquid Cooling Market size was at US$ 3.39 billion in 2025 and is expected to reach US$ 23.23 billion by 2035, growing at a CAGR of 21.21% during 2026-2035.

This more than 6x market expansion represents a major infrastructure transformation as hyperscale data center operators, cloud service providers, AI infrastructure developers, and technology enterprises accelerate investments in high-density computing environments. Driven by the rapid deployment of AI workloads, increasing GPU and accelerator power densities, rising data center energy consumption, and the limitations of conventional air-cooling systems, liquid cooling is transitioning from a specialized thermal-management solution into a critical component of next-generation AI data center infrastructure.

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United States: Recent Industry Developments

✅ July 2026: Supermicro expanded its DCBBS liquid-cooling portfolio with rear-door heat exchangers supporting 10 kW-120 kW cooling capacities, targeting both legacy and new high-density AI/HPC facilities. The modular architecture enables lower-disruption deployment while integrating rack-scale liquid cooling, intelligent management and deployment services for increasingly dense AI infrastructure.

✅ July 2026: Vertiv announced deployment of integrated power, liquid cooling and rack infrastructure supporting the Naval Postgraduate School's NVIDIA DGX GB300 system. The deployment demonstrates commercial-grade thermal infrastructure for next-generation GPU clusters, reinforcing the shift toward integrated liquid-cooling architectures as AI rack densities increase.

✅ June 2026: NVIDIA advanced its liquid-cooling architecture with 45°C coolant operation for its Rubin-generation AI infrastructure. Rubin is designed around 100% liquid cooling, including liquid-cooled compute and networking components in a closed-loop architecture, enabling higher-temperature heat rejection, lower cooling energy requirements and improved suitability for hyperscale AI factories.

Japan: Recent Industry Developments

✅ June 2026: NTT DATA and Daikin began a joint validation project for an AI-driven cooling optimization system that predicts server-internal thermal conditions from indirect power and temperature data. The technology is designed to coordinate air-conditioning, heat-source equipment and liquid-cooling systems, targeting automated cooling optimization and commercial deployment from FY2027.

✅ June 2026: Nidec developed a prototype In-Rack CDU with up to 300 kW cooling capacity, its highest-capacity in-rack solution, responding to rapidly increasing rack heat density from advanced generative-AI workloads. The CDU is designed for high-density GPU servers and represents a major capacity step for rack-level direct liquid-cooling infrastructure.

✅ June 2026: Nidec developed the STC 1.0 prototype, an OCP-compliant stacked CDU architecture allowing up to five CDU units to be vertically configured according to server heat-load requirements. The scalable design gives AI data-center operators greater flexibility to match cooling capacity with changing rack deployments and thermal densities.

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Key Mergers & Acquisitions:

✅ LITEON Technology agreed to acquire approximately 25% of DCX Polska / DCX Liquid Cooling Systems in a transaction valued at approximately US$176 million. Announced September 3, 2026, the investment gives Taiwan-based LITEON a significant position in the Warsaw-based liquid-cooling specialist, strengthening its exposure to AI data-center thermal infrastructure and complementing its power-electronics capabilities.

✅ HydraSpecma expanded its existing partnership with Danfoss Power Solutions on September 1, 2026, becoming a Nordic distributor for Danfoss' Data Center Liquid Cooling portfolio. The arrangement combines Danfoss' more than 30 years of liquid-cooling expertise with HydraSpecma's local engineering, inventory, assembly and logistics capabilities across Sweden, Denmark, Norway and Finland, improving regional access to liquid-cooling infrastructure for high-density AI data centers.

✅ SLB agreed to acquire Kelvion for approximately US$4.1 billion including debt on August 31, 2026. The transaction comprises roughly $3.4 billion of cash consideration plus about $700 million of assumed debt. Kelvion is a global heat-exchange and thermal-management company whose data-center business has become one of its fastest-growing segments; SLB expects the combination to more than double its revenue opportunity per gigawatt of delivered data-center capacity and forecasts $4.5-$5 billion of data-center solutions revenue by 2028. Closing is expected in H1 2027.

✅ ChronoScale announced a strategic partnership with Microsoft on August 27, 2026, for a 50 MW AI compute deployment in North America. The deployment is designed around NVIDIA GB300 NVL72 systems and advanced liquid-cooling infrastructure, combining ChronoScale's purpose-built AI infrastructure capabilities with Microsoft's cloud and AI ecosystem.

Key Players:

Schneider Electric SE | Vertiv Group Corporation | Asetek A/S | LiquidStack Inc. | Submer Technologies SL | CoolIT Systems Inc. | Midas Green Technologies LLC | Iceotope Technologies Limited | Chilldyne Inc. | Asperitas BV

Strategic Profiles: How Market Leaders Are Positioning for 2026

-Schneider Electric SE: Strengthening its position through integrated data center power and liquid cooling solutions. Its portfolio combines thermal management, energy efficiency, and digital infrastructure capabilities to support high-density AI workloads and resilient data center operations.

-Vertiv Group Corporation: Expanding its liquid cooling capabilities to address the rising thermal demands of AI and high-performance computing infrastructure. Its solutions emphasize scalable thermal management, efficient heat removal, and reliable operation of high-density data centers.

-LiquidStack Inc.: Advancing two-phase immersion cooling technologies designed for increasingly dense AI computing environments. Its cooling systems focus on efficient heat transfer, reduced energy consumption, and supporting high-performance computing at scale.

-Submer Technologies SL: Accelerating adoption of immersion cooling for AI and high-density computing applications. The company combines advanced cooling infrastructure with data center optimization capabilities to improve thermal performance, energy efficiency, and operational scalability.

-CoolIT Systems Inc.: Strengthening its position in direct liquid cooling for high-performance computing and AI infrastructure. Its technology portfolio focuses on efficient heat removal from processors and other high-density components while enabling scalable data center deployments.

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AI Data Center Liquid Cooling Market Opportunities

-Powering High-Density AI Infrastructure: Enabling liquid-cooling solutions to manage the substantially higher heat loads generated by AI accelerators, GPUs, and high-performance computing systems.

-Accelerating Hyperscale & AI Data Center Deployment: Supporting hyperscale cloud providers, colocation operators, and enterprises as AI workloads drive demand for higher-density racks and more efficient thermal management.

-Advancing Direct-to-Chip Cooling: Expanding adoption of direct-to-chip liquid-cooling technologies for efficient heat removal from high-performance processors while supporting greater rack density and computational performance.

-Unlocking Energy & Water Efficiency: Helping data center operators reduce cooling-related energy consumption and improve thermal efficiency as sustainability and power availability become increasingly important infrastructure considerations.

-Scaling Immersion Cooling: Creating opportunities for single-phase and two-phase immersion cooling as operators explore alternative thermal-management architectures for increasingly demanding AI and HPC workloads.

How We Build Trusted Market Research Reports:

Our analysis of the global AI Data Center Liquid Cooling Market draws on a blend of primary research including expert interviews and industry surveys and secondary sources such as company filings, trade data, and regulatory records. The report examines the forces shaping the market today, from rising AI workloads and data center infrastructure demands to competitive dynamics and historical performance trends, while also tracking technological progress, cooling system innovation, and developments in AI computing infrastructure. Beyond current conditions, we assess where the market is headed, mapping growth opportunities, operational risks, and emerging challenges likely to influence its trajectory over the forecast period.

Regional Insights:

-North America: 38.5% (Largest share, driven by concentrated hyperscale AI infrastructure, rapid GPU deployment, major cloud-provider investments, and early adoption of liquid cooling for high-density AI workloads).

-Asia Pacific: 31.2% (Fastest-growing region, fueled by rapid AI and cloud data-center expansion across China, India, Japan, South Korea, and Australia, alongside rising rack densities and government-backed digital infrastructure investments).

-Europe: 18.7% (Growing steadily, supported by stringent energy-efficiency requirements, sustainability targets, expanding hyperscale facilities, and increasing adoption of liquid cooling for AI and HPC workloads).

-Latin America: 7.0% (Emerging market, driven by expanding cloud infrastructure, AI adoption, and new data-center investments requiring more energy-efficient thermal management).

-Middle East & Africa: 4.6% (Early-stage but accelerating, supported by AI-focused mega-projects, hyperscale data-center investments, extreme operating temperatures, and demand for energy-efficient cooling).

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Market Segmentation Analysis:

-By Cooling Technology: Direct-to-Chip Cooling Leads AI Infrastructure Adoption
Direct-to-chip cooling is increasingly favored for AI data centers because it efficiently removes heat directly from high-density processors. Immersion cooling, rear-door heat exchangers, hybrid air-liquid systems, and spray/jet cooling support demanding workloads where conventional air cooling becomes less effective.

-By Component: Coolant Distribution Units Enable Efficient Thermal Management
Coolant distribution units (CDUs), cold plates, heat exchangers, pumps, valves, manifolds, sensors, leak detection systems, and specialized coolants form the core ecosystem, with services supporting installation, maintenance, and system optimization.

-By Data Center Type: Hyperscale AI Data Centers Drive Demand
Hyperscale facilities require advanced liquid cooling to manage dense AI servers, GPUs, and accelerated computing infrastructure, while colocation, enterprise, edge, and HPC facilities increasingly adopt liquid-based solutions.

-By Workload: Generative AI Training Creates High Cooling Requirements
Generative AI training and inference require substantial computational power and thermal management, alongside HPC, cloud AI, semiconductor simulation, defense, research computing, and enterprise analytics.

-By End User: Cloud Service Providers Accelerate Deployment
Cloud service providers and hyperscalers are major adopters, followed by colocation providers, server OEMs, enterprises, government and defense organizations, BFSI, healthcare, telecom, and manufacturing.

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