Data Centre Liquid Cooling Market Size, Share, Opportunities, And Trends By Solutions (Software, Services), By Enterprise Size (Transportation, Small Enterprises, Medium Enterprises, Large Enterprises), By Cooling Technology (Immersion Cooling Cold-Plates Method, Others), By End-user (Colocation Service Provider, Cloud Service Providers, Enterprise, Others), By Industry Vertical (Banking and Financial Services, Manufacturing, Healthcare, Communication and Technology, Education, Government, Media and Entertainment, Others), And By Geography - Forecasts From 2024 To 2029

The data centre liquid cooling market is projected to grow at a CAGR of 22.88%, reaching US$6,979.693 million in 2029 from US$1,649.604 million in 2022.

The data centre liquid cooling market refers to using liquid-based cooling systems to manage the temperature of data centres. As data centres have become increasingly important for businesses and organizations, the demand for more efficient cooling solutions has grown. As a result, liquid cooling has emerged as a viable alternative to traditional air-based cooling systems due to its higher efficiency, lower energy consumption, and greater capacity to manage heat.

This technology uses liquid coolants such as water, refrigerants, or dielectric fluids to absorb and remove heat from IT equipment. The liquid is then circulated through a heat exchanger or chiller, cooled, and returned to the IT equipment, completing the cooling cycle. The liquid cooling approach can enable data centres to operate more efficiently, reduce their carbon footprint, and improve IT equipment's overall performance and lifespan. As a result, the data centre liquid cooling market is expected to grow as more data centres are built and businesses seek to optimize their operations.

What are the data centre liquid cooling market growth drivers?

The data centre liquid cooling market is driven by the rising demand due to increasing heat generation, server density, and demand for colocation services.

• Rising demand due to increasing heat generation - With the rise of high-density computing and processing, data centres are generating more heat than ever. Traditional air-cooling systems are struggling to keep up with the cooling demands of modern IT equipment, leading to the adoption of liquid cooling systems. The US Department of Energy's (DOE) Lawrence Berkeley National Laboratory found that liquid cooling can reduce cooling energy consumption by up to 90% compared to air cooling systems. The study also found that liquid cooling can enable data centres to operate at higher temperatures, leading to additional energy savings.
• Increasing server density and demand for colocation services - As data centre operators look to maximize their floor space, they are increasing server density. This means more servers are being packed into smaller areas, which can generate more heat. Liquid cooling systems can help to manage this heat more effectively than traditional air-cooling systems. The increasing demand for colocation services also drives the adoption of liquid cooling systems. Colocation providers are looking for ways to differentiate themselves from their competitors, and offering more efficient and sustainable cooling solutions is one way to do this.

Recent developments in the data centre liquid cooling market:

• In December 2022, Vertiv, a company that provides essential digital infrastructure and business continuity solutions, launched the Liebert XDU, an advanced generation of thermal management systems that facilitate liquid-cooled servers while allowing the control of liquid quality, flow, and pressure. High-density computing applications surpass the cooling capacity of traditional air-cooled units. As such, more effective and sustainable solutions are used, such as the Liebert XDU, which allows liquid-cooled server applications to be deployed in any data centre environment. The Liebert XDU is a closed water loop system that captures heat and utilizes it to warm nearby offices, homes, or farms, promoting the circular economy. The system uses integrated controls to optimize supply water temperature and provide intelligent flow monitoring and alarms. The Liebert XDU comes in two sizes, 450 kW and 1368 kW, and is suitable for colocation providers who host applications with higher power processors that require more effective heat management solutions, such as liquid cooling.
• In January 2023, NTT announced major enhancements for Indian data centres by deploying Liquid Immersion Cooling (LIC) and Direct Contact Liquid Cooling (DCLC) technologies in one of its global data centres for the first time. As a result, the Navi Mumbai Data Centre has become the biggest APAC data centre to implement these cooling solutions, resulting in up to 30% more energy efficient than conventional cooling systems. The project was a collaborative effort between the client, NTT, PhonePe, and NTT's key partners, including Sudlows and Dell. According to the company, deploying green data centre technologies can significantly reduce power consumption in future data centres and build a sustainable and responsible connected future globally.

Based on the industry vertical, the communication and technology segment will witness robust growth over the projected period.

The adoption of liquid cooling technology in communication and technology data centers is driven by the need to manage the high heat generated by high-performance computing infrastructure. Liquid cooling solutions, such as immersion and direct contact liquid cooling, enable efficient and sustainable management of this heat, resulting in improved energy efficiency, reduced power consumption, and lower operating costs.

What are the key geographical trends shaping the data centre liquid cooling market?

Asia Pacific accounted for a significant share of the global data centre liquid cooling market.

Based on geography, the data centre liquid cooling market is segmented into North America, South America, Europe, the Middle East and Africa, and Asia Pacific.

The Asia Pacific data centre liquid cooling market is expected to grow quickly during the projected period, driven by the increasing demand for cloud-based services, digitalization, and e-commerce.

The region is witnessing significant growth in countries such as China, India, and Japan. China, the region's largest data center market, has a high demand for liquid cooling solutions due to the country's strict energy consumption regulations. Japan is also a significant market due to its high adoption of IoT, artificial intelligence, and big data technologies. Additionally, the region is witnessing increased investments in renewable energy sources, expected to drive market growth.

Data Centre Liquid Cooling Market Scope:

Report Metric	Details
Market Size Value in 2022	US$1,649.604 million
Market Size Value in 2029	US$6,979.693 million
Growth Rate	CAGR of 22.88% from 2022 to 2029
Study Period	2019 to 2029
Historical Data	2019 to 2022
Base Year	2023
Forecast Period	2024 – 2029
Forecast Unit (Value)	USD Million
Segments Covered	Solutions Enterprise Size Cooling Technology End-user Industry Vertical Geography
Companies Covered	IBM Fujitsu Eaton Vertiv Group Corp Hewlett Packard Enterprise Development LP
Regions Covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Customization Scope	Free report customization with purchase

 

Market Segmentation:

• BY SOLUTIONS
• Software
• Services
• BY ENTERPRISE SIZE
• Small Enterprises
• Medium Enterprises
• Large Enterprises
• BY COOLING TECHNOLOGY
• Immersion Cooling
• Cold-Plates Method
• Others
• BY END-USER
• Colocation Service Providers
• Cloud Service Providers
• Enterprise
• Others
• BY INDUSTRY VERTICAL
• Banking and Financial Services
• Manufacturing
• Healthcare
• Communication and Technology
• Education
• Government
• Media and Entertainment
• Others
• BY GEOGRAPHY

o   North America

• USA
• Canada
• Mexico

o   South America

• Brazil
• Argentina
• Others

o   Europe

• Germany
• France
• United Kingdom
• Spain
• Others

o   Middle East And Africa

• Saudi Arabia
• UAE
• Israel
• Others

o   Asia Pacific

• China
• Japan
• India
• South Korea
• Indonesia
• Taiwan
• Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

2. RESEARCH METHODOLOGY

2.1. Research Data

2.2. Research Design

2.3. Validation

3. EXECUTIVE SUMMARY

3.1. Research Highlights

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. DATA CENTER LIQUID COOLING MARKET BY SOLUTIONS

5.1. Introduction

5.2. Software

5.3. Services

6. DATA CENTER LIQUID COOLING MARKET BY ENTERPRISE SIZE

6.1. Introduction

6.2. Small Enterprises

6.3. Medium enterprises

6.4. Large Enterprises

7. DATA CENTER LIQUID COOLING MARKET BY COOLING TECHNOLOGY

7.1. Introduction

7.2. Immersion Cooling

7.3. Cold-Plates Method

7.4. Others

8. DATA CENTER LIQUID COOLING MARKET BY END-USER

8.1. Introduction

8.2. Colocation Service Provider

8.3. Cloud Service Providers

8.4. Enterprise

8.5. Others

9. DATA CENTER LIQUID COOLING MARKET BY INDUSTRY VERTICAL

9.1. Introduction

9.2. Banking and Financial Services

9.3. Manufacturing

9.4. Healthcare

9.5. Communication and Technology

9.6. Education

9.7. Government

9.8. Media and Entertainment

9.9. Others

10. DATA CENTER LIQUID COOLING MARKET BY GEOGRAPHY

10.1. Introduction

10.2. North America

10.2.1. USA

10.2.2. Canada

10.2.3. Mexico

10.3. South America

10.3.1. Brazil

10.3.2. Argentina

10.3.3. Others

10.4. Europe

10.4.1. Germany

10.4.2. France

10.4.3. United Kingdom

10.4.4. Spain

10.4.5. Others

10.5. Middle East and Africa

10.5.1. Saudi Arabia

10.5.2. UAE

10.5.3. Israel

10.5.4. Others

10.6. Asia Pacific

10.6.1. China

10.6.2. Japan

10.6.3. India

10.6.4. South Korea

10.6.5. Indonesia

10.6.6. Taiwan

10.6.7. Others

11. COMPETITIVE ENVIRONMENT AND ANALYSIS

11.1. Major Players and Strategy Analysis

11.2. Emerging Players and Market Lucrativeness

11.3. Mergers, Acquisition, Agreements, and Collaborations

11.4. Vendor Competitiveness Matrix

12. COMPANY PROFILES

12.1. AIREDALE INTERNATIONAL AIR CONDITIONING LTD.

12.2. IBM

12.3. Fujitsu

12.4. Eaton

12.5. Vertiv Group Corp

12.6. Hewlett Packard Enterprise Development LP

12.7. Schneider Electric

12.8. Laird Thermal Systems, Inc.

12.9. Alfa Laval

12.10. JETCOOL Technologies Inc.

AIREDALE INTERNATIONAL AIR CONDITIONING LTD.

IBM

Fujitsu

Eaton

Vertiv Group Corp

Hewlett Packard Enterprise Development LP

Schneider Electric

Laird Thermal Systems, Inc.

Alfa Laval

JETCOOL Technologies Inc