Data Center Liquid Cooling Market Size & Share, by Component (Solutions, Services); Product Type (Modular Liquid Cooling Units, Integrated Rack Liquid Cooling, Heat Exchangers for Hot Spots, Door Units, Device-Mounted Liquid Cooling); End-user (BFSI, IT & Telecom, Government & Defense, Healthcare, Retail, Manufacturing, Energy, Research & Academic) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 4747
  • Published Date: Mar 24, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023-2035

Data Center Liquid Cooling Market size is expected to surpass USD 230 billion by the end of 2035, growing at a CAGR of 25% during the forecast period i.e. 2023-2035. In the year 2022, the industry size of data center liquid cooling was over USD 3 billion. The expansion of data centers including hyperscale data center is responsible for the market's expansion. As of January 2022, there are around 490 data centers in Germany. The United Kingdom ranked third in terms of the number of data centres, after China, which has over 450. Additionally, a number of hyper-scalers are now building enormous, over 80MW data centers in Europe.

In addition to this, factors such as the increasing usage of mobile phones and the internet are thought to be driving the market expansion for data center liquid cooling. It is anticipated that as mobile technology and the internet become more accessible and inexpensive, internet and mobile phone usage will rise. More than 60% of all internet users in the globe access the internet via a mobile device, according to estimates of 5 billion different mobile internet users worldwide in 2022.

Data Center Liquid Cooling Market
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Data Center Liquid Cooling Sector: Growth Drivers and Challenges

Growth Drivers

  • Rising Adoption of Advanced Technologies - The productivity of data centers can be increased by automating numerous tasks utilizing Al-based robots. Data centers may function more sustainably thanks to cutting-edge technologies like Al and ML, both financially and environmentally. Al is used by around 37% of companies and organizations across the globe. Moreover, nearly 15% of prominent firms use Al capabilities in their work, while about nine out of ten have invested in Al technologies.
  • Increasing Prevalence of Digitization - The Rollout of a 5G network along with rapidly growing digitization are projected to boost the numbers of the data center all across the world. In the last two decades, digital technologies have transformed civilizations and reached almost 50% of the global population in the developing world according to the United Nations. It is moving faster than any other innovation in human history.
  • Growing Use of Cloud Services - Migration to cloud services has increased the investment in data centers. Moreover, data centers can spend less on infrastructure and gain manageability by utilizing a hybrid cloud strategy. As per a survey, in 2021 almost 90% of global respondents said their companies are adopting the cloud. Compared to 88% last year, there has been a slight increase.


  • Risk of Liquid Leaking - The leakage of liquid is a primary concern for IT experts, particularly in the case where direct-to-chip cooling is been used. Moreover, the leak of the liquid has a catastrophic impact on the hardware. Therefore, the risk of damaging the system is likely to hamper the market growth.
  • Shortage of Liquid Cooling Material
  • Using Liquid Cooling is Expensive as it Needs Specific Infrastructure

Data Center Liquid Cooling Market: Key Insights

Base Year


Forecast Year

2023 – 2035



Base Year Market Size (2022)

~USD 3 billion

Forecast Year Market Size (2035)

~USD 230 billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Data Center Liquid Cooling Segmentation

End-User (BFSI, IT & Telecom, Government & Defense, Healthcare, Retail, Manufacturing, Energy, Research & Academic)

The IT & telecom segment is estimated to account for 30% share of the global data center liquid cooling market in the year 2035. The growth of the segment can be attributed to the increasing usage of data. Globally, around 11 gigabytes of data were utilized by smartphones per month on average in 2021. Moreover, it is expected to almost quadruple by 2027, when it will grow to approximately 41 GB per smartphone each month globally. Furthermore, the rising generation of data in the IT & telecom sector is also expected to boost market growth. The phrase "data is the new oil” was first said by British mathematician Clive Humby fifteen years ago. Since then, the volume of data worldwide has multiplied around 74 times.

Product Type (Modular Liquid Cooling Units, Integrated Rack Liquid Unit, Heat Exchangers for Hot Spots, Door Units, Device-Mounted Liquid)

Data center liquid cooling market from the heat exchangers for the hot spots segment are expected to garner a significant share in the predicted period. Heat exchanger for hot spots is gaining popularity and completely replacing the door units and rack liquid cooling. The primary driving factor for the segment growth is the cost-effective deployment of data center liquid cooling. Basic liquid cooling requires a complete change in infrastructure which was previously used in air cooling.

Our in-depth analysis of the global market includes the following segments:


  • Solutions
  • Services

          Product Type

  • Modular Liquid Cooling Units
  • Integrated Rack Liquid Unit
  • Heat Exchangers for Hot Spots
  • Door Units
  • Device-Mounted Liquid


  • BFSI
  • IT & Telecom
  • Government & Defense
  • Healthcare
  • Retail
  • Manufacturing
  • Energy
  • Research & Academic

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Data Center Liquid Cooling Industry - Regional Synopsis

North American Market Forecast

The data center liquid cooling market in North America, is projected to be the largest market by the end of 2035, registering a growth rate of 35%. The growth of the market can be attributed majorly to the world's largest region for connectivity and cloud the United States. The financial centers of New York and Chicago, as well as the tech centers of the Bay Area (San Francisco), Seattle, and Portland, are among its key markets. In addition to this, there are around 350 providers of hosting and cloud services in the region.

APAC Market Statistics

The Asia Pacific data center liquid cooling market is estimated to grow substantially during the projected period. The growth of the market can be attributed majorly to the rising investment to boost the data center's capacity. The Indian IT ministry intends to provide incentives for data centers under a national policy framework valued at up to USD 1800 million. Moreover, the policy states that over the next five years, the government plans to invest more than USD 36 billion in the ecosystem of data centers.

Research Nester
Data Center Liquid Cooling Market Size
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Companies Dominating the Data Center Liquid Cooling Landscape

    • Rittal GmbH & Co. KG
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Switch Datacenters
    • Baltimore Aircoil Company
    • Brentwood Industries Inc.
    • Paharpur Cooling Towers Ltd.
    • SPX Cooling Tech LLC.
    • Airedale International Air Conditioning Ltd.
    • Berg Chilling Systems Inc.
    • Vertiv Group Corporation
    • Honeywell International Inc.


In The News

  • Rittal GmbH & Co. KG announced the partnership with Stulz to begin offering advice, support, and services for custom data center infrastructure. It enables clients to benefit from a broader selection of premium and precise cooling systems for big and mid-sized data centers.
  • Baltimore Aircoil Company announced the acquisition of Eurocoil SPA to strengthen its position in the data center cooling market. By acquiring Eurocoil, Baltimore Aircoil will be able to produce more heat exchangers for use in its already-existing evaporative hybrid and adiabatic cooling products in the area.

Author Credits:  Abhishek Verma, Hetal Singh

  • Report ID: 4747
  • Published Date: Mar 24, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The growing number of data centers and increasingly advanced technologies are some of the major factors anticipated to drive the growth of the data center liquid cooling market.

The market is anticipated to attain a CAGR of 25% over the forecast period, i.e., 2023-2035.

The major players in the market are Switch Datacenters, Baltimore Aircoil Company, Brentwood Industries Inc., Paharpur Cooling Towers Ltd., SPX Cooling Tech LLC., Airedale International Air Conditioning Ltd., and others.

The IT & telecom segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

The market in North America is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Data Center Liquid Cooling Market Report Scope

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