Data Center Liquid Cooling Market

Market Study on Data Center Liquid Cooling: Cold Plates Cooling Type to Account for 1/3 Market Share

Data Center Liquid Cooling Market Segmented By product type such as Water Based, Oil and Minerals Based

Data Center Liquid Cooling Market Outlook (2022-2032)

Global sales revenue from the data center liquid cooling market stood at around US$ 2.52 Bn in 2021, and is predicted to surge at a CAGR of 25.8% to reach a valuation of US$ 31.07 Mn by 2032.

Data Center Liquid Cooling Market Size (2022)

US$ 3.14 Bn

Projected Market Value (2032)

US$ 31.07 Bn

Global Market Growth Rate (2022-2032)

25.8% CAGR

Share of Top 5 Market Players

25%

Data center liquid cooling accounts for almost 55% share of the global data center cooling market.

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Companies

  • Rittal GmbH & Co. Kg
  • Schneider Electric SE
  • Green Revolution Cooling
  • Allied Control Ltd
  • Horizon Computing Solutions
  • Asetek
  • Emerson Electric Co.
  • IBM
  • Midas Green Technologies, LLC
  • Alfa Laval
  • DCX
  • Iceotope
  • Chilldyne, Inc.
  • CoolIT Systems
  • STULZ GmBH

Demand Analysis of Data Center Liquid Cooling from 2017-2021 Vs Market Outlook for 2022-2032

The global market for data center liquid cooling expanded at the rate of 21.5% over 2017-2021. Demand for data center liquid cooling has surged owing to growing demand for reducing energy and water consumption.

Persistence Market Research identifies North America, followed by Europe, as the leading market for data center liquid cooling. Expansion in North America is supported by the presence of advanced IT infrastructure and several key data center liquid cooling service providers in the region.

Data center immersion cooling is considered for high-performance computing applications such as AI and edge computing, which enables greater density of processing capabilities by removing active cooling components such as fans and heat sinks. Increasing adoption of Single-Phase Immersion Cooling and Two-Phase Liquid Immersion Cooling (2PLIC) within data centers for high-performance and data reliability will drive market growth going forward.

Moreover, growing adoption of cold plates, Direct Liquid Cooling (DLC), indirect liquid cooling, and rack liquid cooling types by various end users such as cloud providers, colocation providers, hyperscale data centers, and others is set to boost demand for data center liquid cooling technology.

As per detailed industry analysis, the global data center liquid cooling market is anticipated to forge ahead at 25.8% CAGR over the next ten years.

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What are the Various Factors Driving Demand Growth of Data Center Liquid Cooling?

“High Demand for Density Racks in Telecom Sector Driving Need for Data Center Liquid Cooling”

In recent years, IT infrastructure has become diversified. Telecom data center operators and service providers have the opportunity to develop new technology. Telecom data centers use extensive amounts of fiber networks to ensure that all services are delivered at high speed and properly. This requires high connectivity for driving mobile services, content delivery, and cloud services.

As such, to facilitate this, there is high usage of density racks, which, in turn, drives high need for data center liquid cooling solutions.

“Increase in GPU Usage for AI Training Complementing Market Growth”

Growing adoption of AI/ML and big data creates a ripple effect across enterprise servers. Traditional microprocessors were not able to effectively process the information coming from data center GPUs.

GPUs helps speed up computational processes, which is one of the important parts of modern AI infrastructure. Data center GPUs are used for deep learning technology implementations, can provide enterprise-grade performance, and are designed for large-scale projects.

Surge in GPU usage has also lead to higher data center liquid cooling consumption across the world.

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Country-wise Insights

Why is India a Prominent Market for Data Center Liquid Cooling Technology?

The India market accounts for huge share of the consumption of data center liquid cooling in the APAC region, and the market size is expected to expand 14.7X by 2032.

India has many data center projects in the pipeline, such as Ctrl S, Reliance, Web Werks Data centre, NTT Data centers, Amazon Web Services, and others. Thus, growing demand for data center infrastructure is responsible for high growth of the data center liquid cooling market in the country.

How is the U.S. Data Center Liquid Cooling Market Shaping Up?

Currently, the U.S. market is anticipated to account for the highest growth in the North America data center liquid cooling market, at over 18% CAGR through 2032.

The U.S. has witnessed significant growth in demand for data center liquid cooling solutions owing to increasing adoption of advanced technology among many North American enterprises and SMEs to reduce data center energy consumption.

Also, the U.S. has key data center liquid cooling service and solution providers such as IBM Corporation, Green Revolution Cooling, Emerson Electric Co., and others. Thus, presence of such key market players ultimately spurs demand for data center liquid cooling in the country.

Why is the Germany Data Center Liquid Cooling Market Set for Highest Growth in Europe?

The Germany market is set to register the highest growth in data center liquid cooling demand in Europe and expand 7.7X by 2032.

Germany has smart infrastructure for advanced technology such as AI, ML, big data, and much more.

  • For instance, in March 2021, Rittal GmbH & Co announced a partnership with Stulz. The partnership helped clients expand their portfolio of precision cooling with end-to-end tailored solutions supporting IT infrastructure lifecycles.

Due to such developments in the country, demand for data center liquid cooling platforms is increasing rapidly.

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Category-wise Insights

Why is Demand for Cold Plates Rising Rapidly?

By cooling type, cold plates dominated the data center liquid cooling market and constituted the highest market shares of 33% in 2021. However, demand for direct liquid cooling is set to surge ahead at the highest CAGR of 30% during 2022-2032.

Cold plates provide benefits such as maximizing data center space usage, thereby improving the performance, reliability, and energy efficiency of liquid cooling in data centers. As such, rising adoption of liquid cooling techniques is driving demand growth of direct liquid cooling solutions across regions.

Why Does the Telecom & IT Sector Exhibit High Demand for Data Center Liquid Cooling Technologies?

On the basis of industry, the telecom and IT sector will be a dominating segment and is expected to expand almost 14.5X by 2032.

Liquid cooling provides benefits such as smaller footprint, higher energy efficiency, lower total cost of ownership, enhanced server reliability, and a more efficient and effective cooling solution.

Explosion of digital content, big data, e-Commerce, and Internet traffic has made data centers one of the fastest-growing consumers of computing power and energy. As such, adoption of data center liquid cooling platforms in the telecom and IT segment has increased rapidly.

Why is the Need for Hyperscale Data Centers Surging?

By end user, hyperscale data centers are expected to experience lucrative growth after holding 33.8% market share in 2021. However, the cloud providers segment is estimated to expand at the highest CAGR of 29.8% during 2022-2032.

Hyperscale data centers play an important role in modern IT and power small and medium enterprises. Enterprise data centers help support large corporations and server farms that can run cloud computing services hosted by Amazon, Google, Facebook, and others.

Thus, hyperscale data centers are set to account for highest demand for data center liquid cooling services over the coming years.

How Has COVID-19 Impacted Data Center Liquid Cooling Demand?

Health concerns increased across the globe and caused a significant business impact owing to the ongoing COVID-19 pandemic. Especially when it comes to delivering data, IT operations along with data centers were drastically disrupted during the pandemic.

Closing buildings, physically moving servers, and opening new spaces were more complicated during COVID-19. Due to the pandemic, every major organization moved toward digital transformation and adopted new trends such as remote working with rising mobilization in cloud computing.

Data centers have played a very crucial role during the pandemic, enabling digital commerce and online meetings, making digital infrastructure more important than ever before, and in parallel, driving data center liquid cooling consumption.

Competitive Landscape

Many key data center liquid cooling service providers are inclined at investing heavily in product innovation to uncover increased applications of data center liquid cooling products. Vendors are also entering into strategic partnerships and acquisitions to sustain the competition and increase their customer base.

  • In 2021, Emerson Electric completed its acquisition of Open systems International (OSI). With this acquisition, the company is able to provide a comprehensive portfolio of solutions, help customers in the global power industry, digitize operations more seamlessly, and complement its strong position in power generation systems.
  • In January 2021, Green Revolution cooling announced a multiyear collaboration with Intel. The collaboration aims at attaining data center sustainability. GRC and Intel will also work in educating the market on the advantages of the data center technology via webinars, podcasts, and white papers.

Data Center Liquid Cooling Industry Report Scope

Attribute

Details

Forecast Period

2022-2032

Historical Data Available for

2017-2021

Market Analysis

US$ Million for Value

Key Regions Covered

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

Key Countries Covered

  • U.S.
  • Canada
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • Turkey
  • Northern Africa
  • South Africa

Key Market Segments Covered

  • Cooling Type
  • Industry
  • Data Center Size
  • End User
  • Service
  • Region

Key Companies Profiled

  • Rittal GmbH & Co. Kg.
  • Schneider Electric SE
  • Green Revolution Cooling
  • Allied Control Ltd
  • Horizon Computing Solutions
  • Asetek
  • Emerson Electric Co.
  • IBM
  • Midas Green Technologies, LLC
  • Alfa Laval
  • DCX
  • Iceotope
  • Chilldyne, Inc.
  • CoolIT Systems
  • STULZ GmBH

Report coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

Customization & pricing

Available upon request

Data Center Liquid Cooling Industry Survey by Category

Data Center Liquid Cooling Market by Cooling Type:

  • Cold Plates
  • Direct Liquid Cooling (DLC)
    • Immersion
      • Single-phase Immersion Cooling
      • Two-phase Immersion Cooling
    • Chilled Water Cooling
  • Indirect Liquid Cooling
    • Top-of-Row Cooling
    • In-row Cooling
  • Rack Liquid Cooling

Data Center Liquid Cooling Market by Industry:

  • Telecom and IT
  • BFSI
  • Government and Defense
  • Research and Academia
  • Energy
  • Healthcare
  • Others

Data Center Liquid Cooling Market by Data Center Size:

  • Small and Medium-sized Data Centers (500 sq. feet to 5,000 sq. feet)
  • Large Data Centers (More than 5,000 sq. feet)

Data Center Liquid Cooling Market by End User:

  • Cloud Providers
  • Colocation Providers
  • Enterprise Data Centers
  • Hyperscale Data Centers

Data Center Liquid Cooling Market by Service:

  • Consultation Services
  • Installation and Deployment Services
  • Maintenance and Support Services

Data Center Liquid Cooling Market by Region:

  • North America Data Center Liquid Cooling Market
  • Latin America Data Center Liquid Cooling Market
  • Europe Data Center Liquid Cooling Market
  • East Asia Data Center Liquid Cooling Market
  • South Asia & Pacific Data Center Liquid Cooling Market
  • Middle East & Africa Data Center Liquid Cooling Market

Media Release

- FAQs -

The global data center liquid cooling market was valued at over US$ 2.52 Bn in 2021.

Growing demand for efficient cooling solutions and rising need for reducing energy and water usage in data centers are driving market expansion.

From 2017 to 2021, data center liquid cooling solutions increased at a CAGR of 21.5%.

Sales of data center liquid cooling services are projected to increase at 25.8% CAGR and be valued at over US$ 31 Bn by 2032.

Schneider Electric, Green Revolution Cooling, Rittal GmbH, IBM, and Horizon Computing Solutions are the top 5 data center liquid cooling solution providers accounting for around 20%-25% market share.

The U.K., France, and Germany together hold around 45% share of the total Europe market in 2022.

Rising adoption of liquid cooling solutions in the telecommunication industry for high density racks due to increase in GPU usage for AI training is a key trend in this space.

The U.S., U.K., India, China, and Japan are driving highest demand for data center liquid cooling products.

By 2032, total absolute opportunity for the China market will be US$ 4.56 Bn, whereas, Japan market value will top US$ 2.45 Bn.

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