Data Center Liquid Cooling Market

Data Center Liquid Cooling Market

The global data center liquid cooling market is projected to grow from USD 4.9 billion in 2024 to USD 21.3 billion by 2030, at a remarkable CAGR of 27.6% from 2024 to 2030.

Drivers for the growth of liquid cooling in data centers are the widespread construction of new data centers resulting from the snowballing demand for cloud services and AI applications. As the hyperscale data centers have been extending their capacity and the average rack densities have been growing, finding feasible cooling solutions has become paramount. Liquid cooling systems are beneficial because they can deal with the high amount of heat the high-density environment generates efficiently and sustainably. Moreover, the steady technological advances further make liquid cooling the most suitable choice for the smooth operation of modern data centers.

Promising Opportunities in the Data Center Liquid Cooling Market

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Data Center Liquid Cooling Market Dynamics:

Driver: Rising Data Center Density and Demand for Efficient, Eco-Friendly Cooling Drive Liquid Cooling Adoption

Due to the rapid development of cloud computing, AI, and IoT, the growing number of data centers puts more pressure on traditional air-cooling techniques. The densely packed servers and the increasing processing demands call for the most efficient cooling solutions. Liquid cooling has been discovered to be a critical technology that helps manage challenges by offering the best thermal management and energy efficiency compared to other cooling techniques. This technology is one of many effective ways to deal with high heat loads. Still, it is also the enabler of better overclocking potential, thus ensuring the servers work in the best condition.

In addition to its technical benefits, liquid cooling is becoming more preferred because of its environmental benefits. The current emphasis on sustainability is why data centers search for ways to reduce their carbon footprint and energy consumption.

Restraints: High Maintenance and Capital Costs

The use of liquid cooling in data centers is made more difficult by the many challenges, particularly the high maintenance and capital costs. Initially, the investment for liquid cooling systems was quite expensive as they required specialized equipment and infrastructure, which made them more costly than the traditional air cooling solutions. Moreover, these systems' intricacy often results in more maintenance as they consist of components that must be regularly serviced and monitored to prevent any issues like leaks. The price of coolant, especially in the case of specific types that may need to be changed frequently, can further increase operational costs. Economic factors can impede data center operators from adopting liquid cooling despite its merits in heat management and energy efficiency.

Opportunity: AI, blockchain, and other innovative technologies are gaining traction.

The rise of AI and blockchain is creating opportunities in data center liquid cooling. As data centers expand for AI, traditional cooling becomes less efficient for high-density servers, driving the adoption of liquid cooling systems. These systems offer better thermal management and energy efficiency. AI enables real-time cooling adjustments for optimized energy use. Blockchain enhances data integrity and security for resource management. These advancements position liquid cooling as key for future data centers, addressing thermal challenges while promoting sustainability.

Challenges: No Standardization

One of the main obstacles to deploying liquid cooling in data centers is the need for standards. Since this is a developing technology, no common standards or guidelines make installing cooling solutions difficult. Every data center may devise its techniques to suit the specific requirements, resulting in diverse outcomes in both performance and maintenance. Additionally, introducing the new cooling methods in bulk creates difficulties for the operations managers in developing the standard best practices that can be employed for all kinds of environments. It determines the power and dependence of the systems within and increases the difficulty of maintaining and integrating existing infrastructure, leading to no large-scale usage being possible.

Data Center Liquid Cooling Market: Ecosystem

The leading data center liquid cooling market participants are COOLIT SYSTEMS of Canada, Asperitas of the Netherlands, Vertiv Group Corp. of the United States, Green Revolution Cooling Inc. of the United States, Submer of Spain, and Midas Green Technologies of the US. These companies are ancient and have excellent brand identities and financial standing; they are also worldwide dispersed.

Components Segment: Services Expected to See Significant Growth

The services segment of the data center liquid cooling market is projected to experience substantial growth during the forecast period. The increasing demand for effective implementation and sustainability of liquid cooling solutions drives this surge. Services such as scheduling, installation, and configuration are tailored to meet specific customer needs, while support and maintenance services help resolve issues and optimize performance. As more data centers adopt liquid cooling to reduce costs and enhance efficiency, the demand for skilled engineers trained in maintaining these systems is expected to rise. Additionally, the expansion of data centers worldwide and rapid advancements in big data analytics, cloud computing, and IoT further fuel the demand for liquid cooling services.

Data Center Types: Growth Expected in Small and Mid-Sized Data Centers

The data center liquid cooling market is expected to grow significantly within the small and mid-sized data center segment. Key factors driving this growth include the ability of liquid cooling to extend the lifespan of server equipment by maintaining lower temperatures, which is particularly beneficial for smaller facilities with limited maintenance resources. Moreover, liquid cooling enhances energy efficiency, reducing cooling costs and long-term savings. As technology adoption rates for big data analytics, cloud computing, and IoT increase, the number of small and mid-sized data centers also rises, creating a greater demand for liquid cooling solutions. Liquid cooling also enables these facilities to maximize computational power within constrained spaces, addressing their unique challenges.

End-User Type: Hyperscale Data Centers to See Significant Growth

The hyperscale data center segment is expected to grow considerably in the liquid cooling market. The increasing need for large-scale data processing in cloud computing, big data analytics, and IoT drives this growth. Liquid solutions are gaining traction due to their higher efficiency than traditional air-based cooling methods. Additionally, the focus on energy efficiency and sustainable practices encourages the adoption of advanced cooling technologies in hyperscale environments. As data storage and processing demand rises, hyperscale data centers will be crucial in supporting digital transformation and emerging applications.

Enterprise Type: IT & Telecom Sector to Achieve Significant Growth

The IT and Telecom sector is anticipated to experience significant growth in the data center liquid cooling market, driven by the increasing need for efficient cooling solutions. With the expansion of cloud computing, big data analytics, and IoT, the demand for data processing and storage has surged, leading to higher operating costs. Advanced cooling systems are essential for managing heat generation and meeting strict environmental regulations. IT and telecom companies are increasingly adopting liquid cooling technologies to maintain performance levels, making this sector a significant contributor to market revenue during the forecast period.

Cooling Methods: The Cold Plate Liquid Cooling segment will likely grow in the coming years.

The cold plate liquid cooling segment is also growing and is expected to grow well for several reasons. Cloud computing, AI, and data analysis require high-performance computing with server heat density issues and some cooling solutions to control the temperatures. New developments in cold plate structures have enhanced their effectiveness in thermal management compared to past solutions. Further, they added that new market drivers include tightly restricted environmental legislations, and the emphasis on energy saving pushes data centers to use liquid cooling solutions. All these factors together help grow the cold plate liquid cooling market, thus propelling the development of the overall data center liquid cooling market.

Regional Growth: Asia Pacific Emerging as Prominent Regional Market  with a noteworthy CAGR

It is shown that the Asia-Pacific region would show a high growth rate in the global data center liquid cooling market due to several reasons. Cloud-based storage space and high-speed data processing are paramount to enhancing the region's technological development, especially in developing countries such as China and India. Thus, these advancements are pushing the need for improving and enhancing cooling to deliver results and durability. Further, the transition from conventional airflow-based cooling systems to interactive liquid cooling is fueled by enhanced power-saving provisions and global environmental consciousness. Increasing demand for data center construction and the tendency to concentrate IT equipment power demands fuel the market for liquid cooling systems. The Asia-Pacific region is leading this market.

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Data Center Liquid Cooling Market Players

Major companies in the data center liquid cooling market include Vertiv Group Corp. (US), Green Revolution Cooling Inc. (US), COOLIT SYSTEMSv (Canada), Asperitas (Netherlands), Submer (Spain), and others. More than 17 players have been covered. They lead the market through innovative offerings, enhanced production capacities, and efficient distribution channels.

Data Center Liquid Cooling Market Scope

This research report classifies the data center liquid cooling market according to various factors, including components, types of data centers, cooling methods, end users, enterprises, and geographical regions.

In terms of components, the liquid cooling segment of the data center market is divided as follows:

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

Based on end users, the data center liquid cooling market has been segmented as follows:

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

The liquid cooling market for data centers has been categorized according to the different types of cooling methods.

• Cold Plate Liquid Cooling
• Immersion Liquid Cooling
• Spray Liquid Cooling

The liquid cooling market for data centers has been classified based on various types of data centers, as detailed below:

• Small and Mid-Sized Data Centers
• Large Data Centers

The data center liquid cooling market is categorized by enterprises as follows:

• BFSI
• IT and Telecom
• Media and Entertainment
• Healthcare
• Government and Defense
• Retail
• Research and Academic
• Others (Energy and Manufacturing)

Based on regions, the data center liquid cooling market has been segmented as follows:

• Asia Pacific
• North America
• Europe
• Middle East & Africa
• South America

Recent Developments

• In January 2023, Submer announced an investment from Planet First Partners with the goal of providing a more comprehensive service to its consumers and expanding its geographic reach. This grant will be used to support R&D efforts for next-generation liquid coolants and data center automation.
• In November 2021, Vertiv Group Corp. has bought E&I Engineering Group. This acquisition enables Vertiv Group Corp. to provide a more comprehensive solution to its customers while also expanding its global reach.
• In August 2021, Submer announced its collaboration with Intel to establish and standardize immersion liquid cooling solutions adoption. Submer will provide immersion cooling solutions for all Intel platforms and servers in this collaboration.

Frequently Asked Questions (FAQ):

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