Data Center Liquid Cooling Industry Forecast to Hit $12.79 Billion by 2029 With a Strong 25.9% CAGR

November 14, 2025 by The Business Research Company

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#What Are The Current (2025) And Forecast (2029) Sizes Of The Data Center Liquid Cooling Market?

The market for liquid cooling in data centers has seen a remarkable surge recently, projected to expand from a value of $4.18 billion in 2024 to $5.1 billion a year later, reflecting a substantial compound annual growth rate of 21.9%; this notable expansion during the past period is linked to several driving factors, including the rising volume of collected data, the proliferation of data center infrastructure, pressing requirements for greater energy efficiency, the continuous evolution of cloud computing services, and the broadening footprint of hyperscale data center facilities.

Forecasting substantial expansion, the market for liquid cooling within data centers is poised for rapid escalation, reaching an impressive valuation of $12.79 billion by the year 2029, driven by a significant compound annual growth rate (CAGR) of 25.9%. This surge throughout the projection timeframe is underpinned by several key factors, including the escalating demand for data storage capabilities, the expansion of edge computing environments and micro data centers, increasing emphasis on environmental sustainability practices, rising concerns surrounding data security and user privacy, and the necessity of adhering to various regulatory mandates. Furthermore, the upcoming period will be characterized by several prominent market shifts, such as the mainstream adoption of edge computing and micro data centers, the increasing computational demands imposed by AI and machine learning applications, the extensive rollout of 5G networks, continuous technological advancements, the introduction of novel cooling solutions, and the forging of significant strategic alliances among industry players.

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Which Drivers Are Impacting The Data Center Liquid Cooling Market?

Propelled by the rising proliferation of data centers and heightened server concentration, the market for liquid cooling solutions in data environments is anticipated to expand considerably. Businesses across various sectors now heavily rely on data centers as they yield numerous benefits supporting critical functions like processing power, data conservation, network infrastructure, and essential software applications required for seamless operations. This inherent reliance leads to an escalation in both the volume of data centers established and the density of servers housed within them, consequently intensifying the need for liquid cooling technologies; thus, this very density and growth are the primary forces fueling the expansion of the data center liquid cooling sector. As an illustration of this trend, a March 2024 report from Stellarix, a cloud and data center firm originating from Africa, indicated that global devices linked via IoT hit 15.14 billion by the close of 2023, representing a three-quarters jump since 2019, with forecasts showing this number set to double again before 2030; this massive influx of IoT data and associated technologies mandates that data centers integrate liquid cooling, with certain installations now capable of managing rack power requirements reaching as high as 200 kW, a substantial departure from conventional methods relying on air circulation.

What Are The Major Segment Types Covered In The Data Center Liquid Cooling Market?

The data center liquid cooling market covered in this report is segmented –

1) By Type: Single Phase Cooling, Two Phase Cooling

2) By Component: Solutions, Services

3) By Data Center Type: Hyperscale Centers, Enterprise type, Colocation Data Centers, Other Data Center Types

4) By Industry Type: Telecom and IT, BFSI, Research, Energy, Government and Academia, Healthcare, Other Industry Types

Subsegments:

1) By Single Phase Cooling: Direct-to-Chip Cooling, Rack-Based Cooling Solutions, Immersion Cooling Systems

2) By Two-Phase Cooling: Vapor Chamber Cooling, Heat Pipes, Immersion Cooling

What Are The Major Trends Driving The Growth Of The Data Center Liquid Cooling Market?

A paramount trend propelling growth within the data center liquid cooling sector is technological progress, with Huawei positioned as a leading innovator in this space. The ever-increasing power requirements of data centers, driven by the substantial energy needed for operation and adequate thermal management, have spurred major breakthroughs in cooling methodologies; Huawei’s rollout of the FusionModule2000 6.0 perfectly illustrates this trend, as it integrates sophisticated liquid cooling systems and a modular structure to boost both spatial and energy performance, thereby redefining data center operational benchmarks. Specifically, in November of 2022, the multinational technology firm from China, Huawei, unveiled the FusionModule2000 6.0, boasting sophisticated liquid cooling integrations alongside modular architecture designed to maximize both energy conservation and physical footprint efficiency in contemporary data centers, reflecting Huawei’s dedication to supplying state-of-the-art technology that meets escalating power and cooling needs in environments characterized by high-density computation.

Who Are The Key Multinational Companies Dominating The Data Center Liquid Cooling Market?

Major companies operating in the data center liquid cooling market include Asetek Inc., Rittal GmbH & Co. KG, Fujitsu Limited, Vertiv Group Corp, Green Revolution Cooling Inc, Submer Technologies SL, Midas Green Technologies LLC, Schneider Electric SE, Alfa Laval AB, Chilldyne Inc, Iceotope Technologies Limited, CoolIT Systems Inc, 3M Company, Aspen Systems Inc, Mitsubishi Group, IBM Corporation, ExaScaler Inc, Stulz GmbH, Ebullient Inc, LiquidStack Inc, KyotoCooling BV, Asperitas B.V., Airedale International Air Conditioning Ltd, Motivair Corporation, Munters Group AB, Delta Electronics Inc.

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Which Region Is Expected To Witness The Fastest Growth In The Data Center Liquid Cooling Market?

North America was the largest region in the data center liquid cooling market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center liquid cooling market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

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