Data Centre Cooling Market

Opportunities and Market Trends

According to MarketsandMarkets, the global data center cooling market was valued at USD 12.7 Billion in 2023 and is expected to grow at 12.8% CAGR during the next six years to become a USD 30 Billion opportunity by 2030. The demand is fueled by the continued growth in the global data center market, rising adoption and development of technologies, such as Generative Artificial Intelligence (Gen AI), Specialized Artificial Intelligence, High-Performance Computing, Cryptocurrency Mining, and a rapid shift towards high-efficiency liquid cooling technology.

Data Centre Cooling Market Value Chain:

Growth in the global data centre market presents abundant opportunities for growth and innovation:

The demand for data centers is expected to explode during the next six to seven years, driven by digital transformation. The global data center market is expected to reach 40 GW (IT Load) in 2024 and grow at more than 15% CAGR (2024 – 2030) to achieve the 100 GW mark by 2030, mainly driven by the investment in Hyperscalers and AI-based mega data centers in the US, Middle East, and Asian region.

Generative AI, Specialized AI, and HPCs to drive demand for liquid cooling technologies within data centres:

According to MarketsandMarkets, the generative AI-based data center market is expected to grow from 4.3 GW of IT Load in 2023 to 50+ GW of IT Load by 2030, growing at a CAGR of more than 40% during the next six years, so does the demand for high-performance computing which is anticipated to grow at more than 15% CAGR during the same time frame to become USD 20 Billion market, offering multi-trillion-dollar opportunities in economic value at a global level.

The specialized chips and dense architectures at the heart of AI and HPC to support compute-heavy workloads drive the demand for increasingly dense servers and racks, which cannot be supported by conventional air-cooling technology, which has already reached its limits. Thus, the demand for next-generation liquid cooling technology, such as direct-to-chip / cold plate cooling and immersion cooling, is driving.

Environmental Impact and Sustainability:

There is ever-increasing regulatory pressure to reduce the overall carbon footprint of the data center, generated mainly by massive power consumption by data centers globally to run the critical network and IT equipment. The cooling infrastructure consumes >40% of the total power used in the data center. The power demand is likely to grow multifold with increasing data center installation and rising adoption of energy-intensive, compute-heavy GEN AI and HPC technologies; this has created the need for an efficient cooling technology that not only reduces power usage but also improves the data center profitability by cutting down the emission. Liquid cooling technology is a clear choice for data center owners and operators.

Growth in the demand for liquid cooling technologies in the data centre market:

According to MarketsandMarkets, the global data center liquid cooling market was valued at USD 4.9 Billion in 2024 and is expected to grow at 27.6% CAGR during the next six years to become USD 21.3 Billion opportunities by 2030. The current penetration of liquid cooling technology within the data center cooling market is between 20% and 22%, which is likely to grow considerably during the next six to seven years to more than 50%. Efficient cooling is, therefore, a crucial driver of a data center’s profitability. Cooling accounts for some 40 percent of a data center’s energy consumption

Conclusion:

In conclusion, the data center liquid cooling market is poised for continued growth and innovation. The data center liquid cooling market represents a significant step towards a more sustainable and efficient future and way of cooling. While challenges remain, continued innovation and focus on building a more efficient cooling technology offering better PUE (Power Usage Effectiveness) will remain crucial as the AI and HPC technologies evolve. The sector addresses the pressing issue of reducing power consumption and carbon footprint, presents enormous economic opportunities, and supports environmental stewardship. As stakeholders collaborate to overcome challenges and capitalize on emerging trends, the liquid cooling technologies market is expected to play a pivotal role in shaping a more sustainable data center.

MNM coverage and capabilities in the data centre market:

Relevant and Adjacent Market Reports:

1. Data Center Cooling Market https://www.marketsandmarkets.com/Market-Reports/data-center-cooling-solutions-market-1038.html
2. Data Center Liquid Cooling Market https://www.marketsandmarkets.com/Market-Reports/data-center-liquid-cooling-market-84374345.html
3. Data Center Immersion Cooling Market https://www.marketsandmarkets.com/Market-Reports/immersion-cooling-market-107040948.html
4. Immersion Cooling Fluids Market https://www.marketsandmarkets.com/Market-Reports/immersion-cooling-fluids-market-107755859.html