Data Center Liquid Cooling Market Size, Share, Growth, and Industry Analysis, By Type (Single Phase Cooling, Two Phase Cooling), By Application (Small and Medium-Sized Data Centers, Enterprise Data Centers, Large Data Centers), and Regional Insights and Forecast to 2033

DATA CENTER LIQUID COOLING MARKET OVERVIEW

The global data center liquid cooling market size is predicted to reach USD XX billion by 2033 from USD XX billion in 2025, registering a CAGR of XX% during the forecast period.

Liquid cooling in data centers is an advanced cooling mode wherein a cooling agent like water or a special liquid absorbs the heat generated in the data center components. It can be better than air-cooled systems in thermal management, energy savings potential, and performance scalability. It can include direct immersion cooling, cold plate technology, and rear door heat exchangers that better accommodate high-performance computing workload. Liquid cooling is highly practical regarding efficiency and life expectancy, which makes this a valid option since modern data centers rely primarily on heat-generating powerful servers and processors. This method is also the ultimate solution to minimize the total cost of cooling in a facility by saving energy and maximizing efficiency in heat transfer.

Liquid cooling across data center markets significantly grew due to the growing demand for AI workloads, increased cloud services, and growing demand for supercomputing HPC. As firms align their IT infrastructures to solve data-heavy applications, such liquid systems boost the organizations' operational efficiencies. Currently, North America is the undisputed leader on the availability of hyperscale data centers in the region, followed closely by Europe and Asia-Pacific. The fondness of students toward modular data centers and advanced ideas in cooling technology will also further support market growth.

RUSSIA-UKRAINE WAR IMPACT

"Data Center Liquid Cooling Market Had a Negative Effect Due to Hindered Smooth Sourcing and Availability of Components During the Russia-Ukraine War"

As much as it has been hastened in its growth by the recent war between Russia and Ukraine, indirectly this market for datacenter liquid cooling has been influenced in the last couple of years. Supply chain complications have also hindered smooth sourcing and availability of components such as specialized heat exchangers, pumps, and coolant materials comprising the cooling system. On the operational front, however, rising energy costs staying high owing to geopolitical instability would further put pressure on datacenter operators to look out for energy-efficient systems for cooling. The discussions on saving energy have seen liquid cooling technology mentioned heavily, and with energy costs becoming economically unfeasible, the industry has embraced this technology. Additional cybersecurity threats have arisen with the war, which underlines the need for secure and robust data centers. Indirectly, it contributes to the acceptance and growth of liquid cooling technologies as organizations look to upgrade infrastructure with better resilience.

LATEST TREND

"Increasing Adoption of The Technique of Immersion Cooling to Drive Market Growth"

Recent trends in the cooling market for liquid coolants installed in a data center include the increasing adoption of the technique of immersion cooling-nearly all server components of immersion cooling are submerged directly into a non-conductive coolant that cools the components and does consume less energy. The approach is one adopted by data center operators in the effort to make PUE optimization and equipment density better. There have also been advancing developments on two crucial aspects of liquid coolant: thermal conductivity and corrosion resistance, as well as environmentally friendly compositions. Nevertheless, the most exciting feature of the present day is the incorporation of artificial intelligence and machine learning into these cooling systems, making them enter into a phase of real-time monitoring and adaptive cooling modes handling energy performance optimization. Considering the future trend of increased adoption of edge computing and modular data centers, liquid cooling transforms performance environments into small shell high-performing, thereby managing thermal loads.

DATA CENTER LIQUID COOLING MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Single Phase Cooling, Two Phase Cooling.

• Single-Phase Cooling: Single-phase cooling systems are those in which the coolant is circulated in a closed-loop system in which liquid remains in its liquid state all through the cooling cycle. Such systems are simple to operate, reliable, and inexpensive, resulting in their widespread application. Hence, single-phase cooling is one of the most cost-effective choices for enterprise data centers looking for affordable solutions.

• Two-Phase Cooling: In this method, intensive heat transfer is absorbed and rejected during evaporating and condensing of the coolant. Thus, it has an innovative design that meets the thermal requirements of high-density data centers as AI-type workloads deliver optimum thermal advantages. Installation costs may be more apparent than with single-phase systems, but two-phase cooling is still on the rise, thanks to its very clear ability to handle very high heat loads.

By Application

Based on application, the global market can be categorized into Small and Medium-Sized Data Centers, Enterprise Data Centers, Large Data Centers.

• Small and Medium Data Centers: Liquid cooling solutions in small and medium-sized data centers are adopted for improving cooling efficiency and cutting down operational expenditures. These installations have a significant advantage when the system is kept simple with minimal modifications in existing infrastructure."

• Enterprise Data Centers: Increasingly, enterprise data centers use liquid cooling systems for challenging workloads and better performance of the servers in these enterprises. As large masses of data get processed, avoiding hardware heating and enhancing stability by liquid-cooling systems becomes attractive.

• Large Data Centers: Liquid cooling techniques are increasingly being adopted by hyperscale data centers that move enormous computations. These centers have been able to absorb immersion cooling and cold plate technology to gather energy efficiencies and reduce downtimes during peak operating periods.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

"HPC And AI Workloads to Boost the Market"

The data center liquid cooling market growth benefits from HPC and AI workloads, with less but increasing applicability for cloud computing. Increasingly, the more data that companies generate, the more they will seek out liquid cooling options for their data centers. Liquid cooling systems are proving useful for addressing problems of severely hot servers, with special reference to applications in intense data processing. Massive investments have actually been made in liquid cooling systems by industries, namely, finance, healthcare, and scientific research, just to make more efficient use of their applications for data-heavy operations. Furthermore, with the rapid emergence of edge computing and 5G networks, demand is rapidly accelerating for data center facilities that are small in size yet require huge power.

"Investments Made Towards Sustainable Cooling Technologies to Expand the Market"

Investments made towards sustainable cooling technologies have been lifted and, thus, raise further grounds for the phenomenal growth of the data center liquid cooling market share when coupled and increasing use of liquid for the majority of cloud service providers and hyperscale data centers in the reduction of their carbon footprints and energy efficiency. The big manufacturing players in the technology industry are fighting fiercely to introduce liquid cooling in order to spend less water and optimize server performance. Features currently being credited for the growing acceptance of liquid cooling in applications across industries are its compactness and ability to support modularity. The legislative bodies are already following stricter environmental compliance standards, and these standards here constitute liquidity-upsurge momentum.

Restraining Factor

"Capital Expenditure for Installation to Potentially Impede Market Growth"

It takes a lot of capital expenditure for installation and maintenance to place implementation of these systems as a problematic factor with respect to data center liquid cooling. Often, installation of liquid cooling means extensive work on the capital structure in the existing data center. Installation and maintenance costs appear to have increased primarily because of this. In addition, some training is done for the data center personnel on the operation and maintenance of such systems. Factors limiting, behavior-wise, involve leakages and problems when converting legacy systems to liquid cool. Although this is energy-wise a great way in the long run, the operating capital is, nonetheless, a very hindering issue. This again is seen as a hindrance for small- and medium-sized data centers, thereby restricting market entry.

Opportunity

"Growth In Processing Capacity to Create Opportunity for the Product in the Market"

Liquid cooling technology is one of the most promising innovative opportunities for the entities out there for a dive deep into focused AI, machine learning, and edge computing. Growth in processing capacity, the higher the gain that will question any temperature penalization-free cooling scheme-incurs with growth in processing ability of the entities. Liquid cooling is a method of easily scaling with respect to increasing thermal loads associated with AI workloads. In this regard, continued research work and development into eco-friendly coolant formulation and advanced cooling architectures can stand to gain from a potential market.

Challenge

"Potential Leakage of Coolants Could Be a Potential Challenge for Consumers"

Liquid cooling systems will have to be made more reliable and safety risks minimized. While liquid cooling is generally more economical, there exist concerns over the potential leakage of coolants and occasional corrosion of components. To date, mishandled cooling systems have occasionally led to equipment damage, data loss, and monetary costs due to downtime. Besides, changes to the infrastructure of legacy data centers are needed to accommodate liquid cooling, a process that adds to the implementation complexities. The operator of the data center must be prepared to train personnel, stock special tools, and provide ongoing maintenance to ensure the unbroken operation of the liquid-cooling system. Awareness campaigns will be necessary to sensitize stakeholders about the long-term savings potential associated with liquid cooling compared to the better efficiency index of traditional cooling systems.

DATA CENTER LIQUID COOLING MARKET REGIONAL INSIGHTS

North America

Rapid growth in the data center liquid cooling market is observed in North America, where hundreds of hyperscale data centers and numerous cloud service providers are located. Most prominent is the U.S. due to huge investments in AI applications, infrastructure for edge computing, and sustainable data centers. In this area, several large cloud tech companies like AWS, Microsoft, and Google have started liquid cooling as a step to the more energy-efficient and better-performing technologies.

Europe

The growth of the market in Europe is an expression of more stringent environmental policies and an increasingly energy-efficient infrastructure that encourages liquid cooling in data centers. Hence, Germany, the U.K., and the Netherlands have taken the lead and begun investing in liquid-cooling technology to achieve their set sustainability targets while at the same time working toward improved efficiencies within data centers.

Asia

The rapidly-growing data center liquid cooling market of Asia-pacific is attributed to increasing digitalization and greater cloud adoption. China, Japan, and India are investing in datacenters and often integrated cooling technologies with future developments.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

Leading market players for the liquid cooling systems for data centers are Vertiv Holdings Co., Asetek Inc., CoolIT Systems, Green Revolution Cooling Inc. (GRC), and Submer Technologies. These companies lead the way in the technology of liquid cooling in order to meet the ever-changing needs of the data center. These players are growing the market through strategic partnerships, product innovation, and sustainability contributions. The climate in the liquid cooling market will be driven by the focus on energy-efficient and scalable cooling solutions.

List Of Top Data Center Liquid Cooling Companies

• Asetek (Denmark)
• Green Data Center LLP (India)
• Green Revolution Cooling, Inc (U.S.)
• Horizon Computing Solutions, Inc (U.S.)
• IBM Co. (U.S.)
• Midas Green Technologies LLC (U.S.)
• Rittal GmbH & Co. (Germany)
• Schneider Electric SE (France)
• Allied Control (Hong Kong)
• Fujitsu (Japan)
• Vertiv Co. (U.S.)
• Chilldyne Inc. (U.S.)
• Liquid Cool Solutions (U.S.)
• Mitsubishi Electric Corporation (Japan)
• Submer (Spain)

KEY INDUSTRY DEVELOPMENT

August 2024: Iceotope Technologies has developed a precision immersion cooling solution suitable for the highly GPU-intensive workloads. The cooling solution addresses the performance enhancement concerning the cost of energy better for AI, deep learning, and scientific computing workloads.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The data center liquid cooling is seeing huge development, powered by expanding attention to its advantages, rising consumer interest in sustainable solutions, and persistent technological headways. In spite of the fact that it faces difficulties like supply limitations and increasing costs, the continuous interest for innovative and excellent choices is driving extension and progress across the area. Key industry players are driving advancement through essential developments and market extensions, improving both supply and appeal. As purchaser inclinations shift towards better and more different choices, the market is supposed to thrive, upheld by progressing developments and a developing acknowledgment of its contributions.