Market Summary

The Global Data Center Liquid Cooling Market is approximate to reach USD 28.18 billion by 2033. This is due to the Data Center Liquid Cooling being used more in AI servers. Since air-based systems struggle to keep up, companies are turning to liquid methods, mainly because they save power and perform better. Big data hubs like hyperscale and shared facilities are leading this shift. On top of that, spending on cloud platforms, supercomputing, plus eco-friendly upgrades is giving the sector an extra boost.

Market Size & Forecast

• 2025 Market Size: USD 2.84 Billion
• 2033 Projected Market Size: USD 28.18 Billion
• CAGR (2026–2033): 32.22%
• North America: Largest Market in 2025
• Asia Pacific: Fastest Growing Market

Key Market Trends Analysis

• The North America AI in manufacturing market has the largest share of 38% in 2025; this region is growing due to increasing technologies and their use.

• The U.S. Data Center Liquid Cooling industry will grow significantly from 2026 to 2033.

• By Component, the Solutions segment held the highest market share of 65% in 2025, due to increased use of all varieties of immersion cooling systems, cold plates, and liquid distributed cooling units used to manage increases in server power densities.

• Within Data Center Type, Hyperscale Data Center accounted for the dominant share in 2025, and benefited from and received substantial investments from large cloud service providers, and through their continued growth, along with a significant increase in investments into AI, machine learning, and HPC infrastructures

• By Service, Installation &Deployment dominated the market in 2025, with operators needing a more extensive level of specialized expertise to integrate liquid cooling systems, both into new and existing data center facilities.

• By 2026, the IT and telecom field will lead in market size to fast uptake of cloud systems, wider use of 5G networks, along with a rising need for lower-energy data hubs.

• Asia-Pacific should see the quickest rise between 2026 and 2033, driven by China, then India, along with more data centers spreading across Southeast Asia

The liquid cooling scene in data centers involves managing heat more effectively - here, fluids like water or special coolants pull warmth away from servers and gear inside these facilities. This contrasts with the traditional air-cooling methods, where cold air is blown into the data centre and subsequently heated by server, processor, or other high-power components. With liquid cooling solutions like Direct-to-Chip Cooling (DCC), cold plates, and immersion cooling, the liquid absorbs the heat from the server or processor more directly. Liquid cooling solutions allow the data centre to run at much greater power densities than traditional air-cooling systems, while preserving performance and reliability; therefore, liquid cooling is now key to the data centre infrastructure of the future.

There is a significant increase in the need for the application of liquid cooling to organizations due to the growing number of high-density server systems and the increasing number of organizations applying AI, machine learning, and HPC (high-performance computing). In addition, increasing pressure to reduce power consumption, meet sustainability targets, and comply with stringent environmental regulations is further accelerating the adoption of liquid cooling technologies across hyperscale, colocation, and enterprise data centers.

From a market angle, hyperscale data centers take up the biggest share because cloud companies keep building more space for AI apps along with heavy-duty data tasks. On the product side, things like immersion cooling setups, cool air movers, and cold panels lead sales; at the same time, setup, launch, and upkeep jobs are getting more attention since liquid systems aren't simple to handle. Major buyers come from tech comms, banking, healthcare, plus public agencies -each needing a solid, fast, low-energy data hub.

North America is ahead when it comes to liquid cooling in data centers, thanks to quick tech uptake, a solid internet backbone, also big players running massive facilities there. Meanwhile, Asia-Pacific is gaining speed fast, fueled by a digital boom, more cloud services popping up, along with heavier spending on data hubs in places like China, India, and parts of Southeast Asia. All things considered, better cooling methods keep rolling out, server racks are packing more power now, while the push for greener operations worldwide should give this market a steady boost through the coming years.

Data Center Liquid Cooling Market Segmentation

By Component

• Solution

Dominates the market due to high adoption of immersion cooling, cold plates, and liquid cooling distribution units for high-density workloads.

• Services

Growing steadily as data center operators seek expert support for system integration, optimization, and long-term operations.

By Data Center Type

• Hyperscale Data Center

Cloud demands push growth, while heavy AI tasks need better cooling solutions. Dara Centers now uses liquid cooling because it saves more energy while handling stronger servers.

• Colocation Data Centers

These are growing fast, drawing customers who need strong computing power. Some pick them for handling tricky AI tasks. Others rely on steady performance when speed matters most.

• Edge Data Centers

Emerging segment using liquid cooling to manage heat in space-constrained environments.

• High-Performance Computing Centers

They are fast-growing because they create a lot of heat when running HPC or AI systems.

By Service

• Design & Consulting

Shaping liquid cooling setups that fit real needs. They guide choices without fluff, focusing on what actually works from day one.

• Installation & Deployment

These parts are the biggest cause systems need to fit together just right.

• Maintenance & Support

Becoming key to keep things running smoothly over time.

By End-Users

• IT & Telecom

This leads to cloud growth, artificial intelligence, plus faster networks.

• BFSI

Uses liquid cooling keeps data fast plus safe.

• Healthcare

This uses liquid-cooled data centers for data-intensive diagnostic and research workloads

• Government & Defense

This uses liquid cooling when tasks are super important or need heavy computing power.

• Manufacturing

Uses AI for industry tasks, while digital models help test ideas before building them, factories use data tools to run better.

• Energy

Liquid cooling helps manage big simulations or grid analysis.

• Others

Covers schools, universities, also media groups.

Regional Insights

North America’s data center liquid cooling scene is well-developed, thanks to the quick uptake of newer tech and lots of massive data hubs. Tier 1 sub-regions include the U.S. leads in need, fueled by big spending from cloud platforms, AI firms, and supercomputing sites. Meanwhile, Canada is building more centers, aiming for greener, power-smart setups. Here, top-tier areas feature the U.S., where demand spikes because of artificial intelligence use, cloud services, and shared server spaces. Mid-level zones cover Canada and Mexico, seeing rising interest as companies upgrade old buildings or launch fresh ones to handle digital shifts and international data flow.

Europe's data center liquid cooling scene keeps growing, mainly due to tight energy rules, eco targets, and higher power loads in facilities. Tier 1 Sub-regions like Germany, the UK, France, along the Netherlands lead in using liquid-based cooling to cut COâ‚‚ output while boosting PUE metrics. Across the region, top-tier areas Germany, Britain, France, plus Nordic spots are seeing fast growth in massive and shared-data hubs, driving demand. Mid-level zones include southern and eastern parts - Spain, Italy, Poland, together with the Czech Republic, where uptake of fluid-based cooling rises slowly amid growing spending on cloud systems and corporate server sites.

Asia-Pacific’s data center liquid cooling market is growing faster than anywhere else, thanks to a surge in digital activity, wider internet access, plus the rise of cloud services and AI systems. China pushes ahead with help from state-backed initiatives that boost data center builds, while Japan, South Korea, and India keep pace as 5G rollouts, urban tech upgrades, and business digitization lift demand. Key hotspots like China, Japan, South Korea, and Singapore act as central nodes for massive data facilities across the area. Meanwhile, places such as India, Indonesia, Malaysia, Thailand, Australia, Latin America, and parts of the Middle East & Africa make up the second tier- here, climbing data use along with overseas capital flows slowly push liquid-based cooling into newer data.

Recent Development News

• December 03, 2025 – Trane acquired liquid cooling solutions provider Steller Energy Digital.
• November 10, 2025 – OVHcloud launched the next generation of AI-powered cooling that balances performance and environmental responsibility in its data centers. (Corporate OVHcloud https://corporate.ovhcloud.com/en/newsroom/news/ovhcloud-smart-datacenter/
• November 4, 2025 – Vertiv announced its intent to acquire PurgeRite to expand its liquid cooling service portfolio. (Source: SME channels: https://www.smechannels.com/vertiv-announces-intent-to-acquirepurgerite-to-expand-liquid-cooling-services-portfolio/

• October 6, 2025 – Johnson Controls announced a multi-million dollar strategic investment in Accelsius, a leader in two-phase, direct-to-chip liquid cooling technology for data centres. (Source: JohnsonControlshttps://www.johnsoncontrols.com/media-center/news/press-releases/2025/10/06/johnson-controls-announces-investment-in-data-center-liquid-cooling-company-accelsius
• June 2, 2025 – Shell launched direct liquid cooling fluid, their latest evolution in data center cooling. (Shell Business https://www.shell.com/business-customers/industrial-lubricants-and-specialty-fluids-for-business/news-and-media-releases/2025/shell-launches-direct-liquid-cooling-fluid-our-latest-evolution-in-data-centre-cooling.html
• Mar 25, 2025 - HCLTech, a leading global technology company, announced the launch of HCLTech Insight, an agentic AI-powered Industry Focused Repeatable Solution (IFRS) designed to equip manufacturers with advanced data insights and analytics capabilities. (Source: HCLTech PR https://www.hcltech.com/press-releases/hcltech-launches-agentic-ai-powered-smart-manufacturing-solution-google-cloud)

Key Data Center Liquid Cooling Company Insights

Vertiv Group Corp. stands out in the worldwide market for data center liquid cooling. It provides a broad range of options - like cooling distribution units, direct-to-chip setups, along with full thermal control systems built for heavy-duty computing and AI tasks. You’ll find their tech used often in massive data hubs, shared facilities, and corporate centers, especially throughout North America and Europe. Thanks to steady upgrades in new products plus team-ups with chipmakers and cloud platforms, Vertiv keeps holding a top spot in this space.

Key Data Center Liquid Cooling Companies:

• Alfa Laval
• Vertiv Group
• Schneider Electric
• Rittal GmbH & Co. KG
• CoolIIT Systems
• Asetek
• LiquidStack
• Submer
• Midas Immersion Cooling
• Fujitsu Global
• NTT Inc
• Others

Global Data Center Liquid Cooling Market Report Segmentation

By Component

• Solution
• Services

By Data Center Type

• Hyperscale Data Centers
• Enterprise Data Centers
• Colocation Data Centers
• Edge Data Centers
• High-Performance Computing Data Centers

By Service

• Design & Consulting
• Installation & Deployment
• Maintenance & Support

By End-Users

• IT & Telecom
• BFSI
• Healthcare
• Government & Defense
• Manufacturing
• Energy
• Others

Regional Outlook

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia & New Zealand
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa