Data Center Liquid Cooling Market Size, Share, Growth Trends & Forecast 2025–2034 | AI, HPC & Immersion Cooling Analysis

Data Center Liquid Cooling Market Report 2026–2034

Market Overview

The global data center liquid cooling market was valued at approximately USD 2.9 billion in 2025 and is expected to grow to nearly USD 36.8 billion by 2034, expanding at a strong CAGR of around 32.8% during the forecast period. Growth is driven by rising heat density inside modern data centers, increasing adoption of AI and high-performance computing (HPC), and the urgent need to reduce energy consumption and carbon footprint.

Liquid cooling technologies use liquids instead of air to absorb and remove heat from servers, GPUs, and processors. Compared to air cooling, liquid cooling supports higher rack densities, consumes less power, and enables sustainable data center operations. As workloads like AI training, cloud computing, and big data analytics generate extreme heat, liquid cooling is becoming a core part of data center design.

Key Market Statistics

• Market Size 2025: USD 2.9 Billion
• Forecast 2034: USD 36.8 Billion
• CAGR (2026–2034): 32.8%
• Largest Region: North America
• Fastest Growing Region: Asia Pacific

Industry Dynamics

Growth Drivers

• Rising demand for energy-efficient data center infrastructure
• Rapid growth of AI, machine learning, and HPC workloads
• Increasing server and rack density
• Government and corporate sustainability targets

Market Restraints

• High initial capital investment
• Complex installation and maintenance
• Limited technical expertise in some regions

Opportunities

• Expansion of hyperscale and colocation data centers
• Growth of edge and on-premise AI deployments
• Development of modular and scalable liquid cooling systems

Impact of AI on Data Center Liquid Cooling Market

Artificial intelligence is reshaping the liquid cooling market by pushing rack densities beyond the limits of air cooling. AI workloads require GPUs and accelerators that generate intense heat. Liquid cooling—especially direct-to-chip and immersion cooling—has become the preferred method to manage these temperatures efficiently.

AI-based control systems also optimize cooling using real-time thermal data, predictive maintenance, and automated coolant flow management. This improves power usage effectiveness (PUE) and reduces downtime.

Market Segmentation

By Component

• Solutions
  • Direct Liquid Cooling
  • Indirect Liquid Cooling
• Services
  • Design & Consulting
  • Installation & Deployment
  • Maintenance & Support

The solutions segment dominated in 2025 due to high demand for physical infrastructure such as pumps, cold plates, heat exchangers, and cooling fluids. However, services are expected to grow faster due to the complexity of installation and ongoing system optimization needs.

By Type of Cooling

• Immersion Cooling
• Cold Plate / Direct-to-Chip Cooling
• Spray Liquid Cooling

Immersion and direct-to-chip cooling are gaining popularity as they handle very high heat loads efficiently and support compact data center designs.

By Data Center Type

• Hyperscale
• Colocation
• Enterprise
• Wholesale

Hyperscale data centers held the largest share due to massive scale and high power density. Colocation data centers are growing rapidly as enterprises outsource infrastructure while demanding high-performance cooling.

By End-Use

• IT & Telecom
• BFSI
• Healthcare
• Media & Entertainment
• Retail
• Others

IT and telecom dominate due to cloud services, 5G, and heavy data processing. Healthcare is expected to grow fastest due to digital health records, AI-based diagnostics, and telemedicine.

Applications of Data Center Liquid Cooling

• AI and Machine Learning Data Centers
• High-Performance Computing (HPC)
• Cloud Computing Infrastructure
• Big Data Analytics
• Edge and On-Premise Computing
• Cryptocurrency and Blockchain Computing

Regional Analysis

North America

North America leads the market due to strong presence of hyperscale cloud providers, early adoption of advanced cooling technologies, and strict energy-efficiency standards.

Asia Pacific

Asia Pacific is the fastest-growing region driven by rapid digitalization, expansion of data centers in China and India, and increasing demand for cloud and AI services.

Europe

Europe shows strong growth due to green data center initiatives, sustainability regulations, and increasing investments in digital infrastructure.

Competitive Landscape

The market is highly competitive with global infrastructure providers and specialized cooling companies focusing on innovation, energy efficiency, and scalable designs.

Key Players

• Vertiv Co.
• Schneider Electric SE
• Rittal GmbH & Co. KG
• CoolIT Systems Inc.
• Asetek A/S
• LiquidStack Holding B.V.
• Green Revolution Cooling Inc.
• Stulz GmbH
• Alfa Laval Corporate AB
• Iceotope Technologies Limited

Recent Developments

• Feb 2025: Schneider Electric acquired controlling stake in Motivair to strengthen its liquid cooling portfolio for HPC and data centers.
• Nov 2024: Vertiv partnered with Compass Datacenters to develop hybrid cooling systems combining liquid and air cooling.
• 2024: Several hyperscale operators announced large-scale adoption of immersion cooling for AI data centers.

Future Outlook

The data center liquid cooling market will witness explosive growth as AI, cloud computing, and HPC continue to expand. Energy efficiency, sustainability, and high-density computing will make liquid cooling a standard design element in future data centers. Advancements in modular and plug-and-play liquid cooling systems will further accelerate adoption across hyperscale, colocation, and enterprise data centers worldwide.