Data Center Liquid Cooling Market to reach $14.8 Billion by 2030; The increasing demand for high-performance computing, the need for energy-efficient cooling solutions, advances in cooling fluids/materials and the push for sustainability in data cent

The Data Center Liquid Cooling Market size is estimated to reach $14.8 Billion by 2030, growing at a CAGR of 25.6% during the forecast period 2024-2030, according to a recent report published by IndustryARC, titled, “Data Center Liquid Cooling Market – By Service (Monitoring Solutions, Installation & Deployment and Support & Maintenance), By Cooling Strategies (Indirect Liquid Cooling and Direct Liquid Cooling), By Cooling Techniques (Rack/Row Based and Room Based) By End User Types (Tier 1,Tier 2 ,Tier 3 andTier 4), By Industry Vertical (Telecom, Oil and Gas/Energy/Utilities, Healthcare, IT/ITES/Cloud Service Providers, Colocation, Content and CDN, Education, BFSI, Government, F&B, Manufacturing/Mining, Retail and Others) and By Geography - Opportunity Analysis & Industry Forecast, 2024-2030.

The growing increase in power density within data centers is driving the demand for more advanced and efficient cooling solutions to manage heat dissipation. As data centers become more complex and energy-intensive, the need for energy-efficient cooling methods, coupled with cost reduction goals, is fueling the growth of the market, during the forecast period.

In 2023, the North America region held the largest share of 35% in the Data Center Liquid Cooling Market, particularly driven by the region's rapid technological advancements, robust infrastructure, and high demand for cloud services, AI, and big data applications.  The surge in data consumption and the growing need for energy-efficient cooling solutions have led to significant investments in data center construction and upgrades. For example, according to an August 2024 report by Reuters, 3.9 gigawatts (GW) amount of data center supply which is under construction in North America's leading markets surged by approximately 70% compared to the previous year 2023. This expansion reflects the increasing reliance on data centers to support the digital transformation of businesses across various industries. In May 2023, the U.S. Department of Energy (DOE) announced a $40 million funding initiative to support 15 projects focused on developing high-performance, energy-efficient cooling solutions for data centers. Data centers, which house critical computing infrastructure such as servers and storage systems, currently account for about 2% of total U.S. electricity consumption. Notably, cooling systems alone can represent up to 40% of the total energy usage within these facilities. This funding is aimed at advancing technologies that can reduce the energy demands of data center cooling, improving both efficiency and sustainability across the sector.As companies in North America continue to build and expand their data center capabilities, they are adopting cutting-edge liquid cooling technologies to meet the high-performance and sustainability demands of modern IT workloads. This growth trajectory positions North America to maintain its leadership in the global data center market.

As computing power continues to grow, data centers are handling increasingly dense workloads, with racks and servers consuming more power to support high-performance applications like AI, big data analytics, and cloud services. According to Volico's December 2023 data, power density levels in data centers have been rising, with high-density racks now consuming between 40 kW to 125 kW. However, some extreme-density data centers are pushing this further, with racks consuming up to 200 kW. In these high-density environments, cabinets typically consume between 10 kW and 150 kW/sqft, making traditional air cooling methods insufficient for managing the resulting heat.In response to this trend, companies are unveiling cutting-edge solutions to ensure efficient thermal management. For example, in March 2024, Marathon Digital Holdings, Inc. introduced its MARA 2PIC700, a next-generation two-phase immersion cooling system designed to address the industry's growing demand for power, density, and efficiency. By using liquid cooling to directly absorb heat, these advanced systems can maintain optimal temperatures in high-density data centers while significantly reducing energy consumption. As power density continues to rise, the need for such innovative cooling solutions becomes even more critical, presenting a key market opportunity for companies offering scalable and energy-efficient thermal management technologies.

The growing demand for computing power is driving data centers to reduce energy consumption and operational costs while ensuring high performance. Traditional air cooling methods are becoming less effective in managing the heat produced by high-density workloads, such as those in AI and cloud computing. Liquid cooling technologies provide more efficient thermal management, helping data centers lower energy costs associated with cooling and improve sustainability. A notable example of this trend is Hewlett Packard Enterprise (HPE), which, in October 2024, unveiled the industry's first 100% fanless direct liquid cooling system, designed specifically to enhance the energy efficiency of large-scale AI deployments. Announced during HPE’s AI Day, this system leverages liquid cooling to directly manage the heat produced by AI processors, eliminating the need for traditional fans and significantly reducing energy consumption. This innovation underscores HPE's leadership in AI infrastructure and liquid cooling, as it addresses both the growing demands of AI workloads and the need for sustainable, cost-effective cooling solutions. As energy efficiency becomes an increasingly critical concern for data center operators, liquid cooling technologies are poised to play a central role in driving down costs and meeting the sustainability goals of the industry.

Key companies profiled in the Data Center Liquid Cooling Market are Vertiv Group Corp., Schneider Electric, Rittal GmbH & Co. KG, Asetek A/S, Asperitas , Green Revolution Cooling, Inc, BlackBox, Chilldyne, Inc, COOLIT SYSTEMS ,DCX and others.

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