Data Center Liquid Cooling Market Set to Soar to 21.8 Billion by 2032
The global data center liquid cooling market is set to grow from US$ 4.5 billion in 2025 to US$ 21.8 billion by 2032, at a CAGR of 25.3%
BRENTFORD, ENGLAND, UNITED KINGDOM, January 19, 2026 /EINPresswire.com/ -- Overview of the Market
The global Data Center Liquid Cooling Market is projected to grow from US$4.5 billion in 2025 to US$21.8 billion by 2032, representing a robust CAGR of 25.3% over the forecast period. The surge in AI, high-performance computing (HPC), hyperscale workloads, and cloud adoption is driving data-center operators to move toward advanced liquid cooling solutions. Traditional air-cooling systems are increasingly inadequate to handle high heat densities, pushing enterprises and cloud providers to adopt cold plate and immersion cooling systems that deliver improved energy efficiency and sustainability.
Among product segments, solutions dominate the market with a 74% share in 2025, while services are growing rapidly at a CAGR of 27.1% due to installation, maintenance, and optimization requirements. Cold plate cooling leads among cooling types with over 43% market share, managing CPU and GPU heat effectively, whereas immersion cooling is the fastest-growing technology offering up to 80% higher energy efficiency. Geographically, North America holds a dominant share of 31% in 2025, driven by AI workloads, defense modernization, and renewable energy adoption, while Asia-Pacific is the fastest-growing market, fueled by AI, 5G edge deployments, and cloud expansion.
𝐆𝐞𝐭 𝐚 𝐒𝐚𝐦𝐩𝐥𝐞 𝐏𝐃𝐅 𝐁𝐫𝐨𝐜𝐡𝐮𝐫𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐑𝐞𝐩𝐨𝐫𝐭: https://www.persistencemarketresearch.com/samples/13330
Key Highlights from the Report
Solutions account for over 74% of the market share in 2025.
Cold plate cooling represents the leading technology with 43% share.
Large data centers (>10,000 sq. ft) dominate with 58% market share.
Enterprises are the largest end-user segment with 35% share.
North America leads the market with over 31% share in 2025.
Immersion cooling offers 80% higher energy efficiency compared to traditional methods.
Market Segmentation
The Data Center Liquid Cooling Market is primarily segmented by component, type of cooling, data center size, and end-user. In terms of components, solutions cover complete liquid cooling systems addressing heat density, energy consumption, and space optimization, while services focus on installation, maintenance, and system optimization. The cold plate segment efficiently manages thermal loads from CPUs and GPUs, whereas immersion cooling supports higher server densities, drastically reducing PUE and energy usage.
By data center size, large-scale facilities (>10,000 sq. ft) account for the majority of market share due to high energy demands and cooling requirements. Conversely, small and medium data centers are growing rapidly, driven by edge computing and high-performance workloads in compact spaces. Regarding end-users, enterprises lead due to high-performance computing and sustainability targets, while cloud providers are witnessing accelerated adoption, propelled by AI, machine learning infrastructure, and hyperscale computing demands.
𝐃𝐨 𝐘𝐨𝐮 𝐇𝐚𝐯𝐞 𝐀𝐧𝐲 𝐐𝐮𝐞𝐫𝐲 𝐎𝐫 𝐒𝐩𝐞𝐜𝐢𝐟𝐢𝐜 𝐑𝐞𝐪𝐮𝐢𝐫𝐞𝐦𝐞𝐧𝐭? 𝐑𝐞𝐪𝐮𝐞𝐬𝐭 𝐂𝐮𝐬𝐭𝐨𝐦𝐢𝐳𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐑𝐞𝐩𝐨𝐫𝐭: https://www.persistencemarketresearch.com/request-customization/13330
Regional Insights
North America maintains market leadership with over 31% share in 2025, underpinned by AI/GPU workload expansion, defense modernization, and renewable energy integration. Hyperscale operators in the region are increasingly leveraging liquid cooling to improve energy efficiency, reduce footprint, and achieve sustainability goals.
Asia-Pacific is the fastest-growing region, with expected market value exceeding US$10.2 billion by 2032. Rapid AI, cloud, and 5G deployment, along with supportive government policies in China, India, and Southeast Asia, are pushing data centers to adopt cold plate and immersion cooling solutions for enhanced thermal performance and reduced operational costs.
Europe is projected to reach approximately US$5.0 billion by 2032, driven by stringent sustainability regulations, EU PUE mandates, and growing adoption of high-density AI and HPC workloads, favoring liquid cooling over traditional air systems.
Market Drivers
The primary driver of the market is rising computational demand from AI, HPC, and hyperscale workloads, which are increasing power densities in data centers. Liquid cooling systems provide efficient heat management, improve energy efficiency, and support high-density server operations. The shift toward green and sustainable data centers is also accelerating adoption, as liquid cooling reduces energy consumption and carbon footprints, helping operators comply with ESG mandates and achieve PUE scores as low as 1.02–1.2.
Market Restraints
High capital investment and infrastructure complexity present significant challenges for liquid cooling adoption. Retrofitting existing data centers, integrating direct-to-chip or immersion systems, and managing water consumption add to operational costs. Additionally, limited technical expertise and regulatory compliance requirements slow deployment, making the technology less accessible for small enterprises or price-sensitive markets.
Market Opportunities
Innovations in advanced coolants, closed-loop systems, and AI-powered thermal management are creating new opportunities. Integration with district heating systems and predictive maintenance enhances energy efficiency while generating additional revenue. Government incentives, energy mandates, and sustainability initiatives worldwide further accelerate the adoption of liquid cooling solutions in AI, HPC, and cloud-intensive environments.
𝐁𝐮𝐲 𝐍𝐨𝐰 𝐭𝐡𝐞 𝐃𝐞𝐭𝐚𝐢𝐥𝐞𝐝 𝐑𝐞𝐩𝐨𝐫𝐭: https://www.persistencemarketresearch.com/checkout/13330
Reasons to Buy the Report
✔ Comprehensive analysis of market size, growth, and forecasts for 2025–2032.
✔ Insights on technological innovations in cold plate and immersion cooling solutions.
✔ Detailed regional analysis highlighting North America, Asia-Pacific, and Europe.
✔ Strategic competitive landscape with key players and recent market developments.
✔ Identification of growth opportunities in green and energy-efficient data center operations.
Frequently Asked Questions (FAQs)
How big is the Data Center Liquid Cooling Market globally?
Who are the key players in the global Data Center Liquid Cooling Market?
What is the projected growth rate of the Data Center Liquid Cooling Market?
What is the market forecast for Data Center Liquid Cooling by 2032?
Which region is estimated to dominate the Data Center Liquid Cooling industry through the forecast period?
Company Insights
Key Players Operating in the Market:
Schneider Electric
LiquidStack
Rittal GmbH Co. KG
Green Revolution Cooling Inc.
DCX Liquid Cooling Systems
IBM
Asetek
Emerson Electric Co
STULZ GMBH
Alfa Laval
Vertiv Group Corp.
Fujitsu
Recent Developments:
In June 2025, Ecolab Inc. launched its 3D TRASAR Technology for Direct-to-Chip Liquid Cooling, providing real-time AI-based monitoring to optimize server efficiency and resource use.
In May 2025, The Chemours Company partnered with DataVolt to advance immersion and two-phase direct-to-chip cooling, improving efficiency and sustainability in AI data centers.
Related Reports:
Pooja Gawai
Persistence Market Research
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