Data Center Liquid Cooling Global Market Report 2026

Data center liquid cooling refers to cooling technologies designed to regulate and maintain temperatures within data center facilities. These facilities use liquid-based cooling systems in combination with air conditioning and immersion cooling to optimize energy usage and enable operations at high availability and equipment density. Liquid cooling systems can lower overall power consumption and enhance power usage effectiveness within data center facilities.

The primary types of data center liquid cooling are single-phase cooling and two-phase cooling. Single-phase cooling refers to a cooling approach that uses a single fluid phase to regulate the temperature of equipment and facilities within a data center. In single-phase systems, the cooling fluid remains in liquid form while coming into contact with system components, absorbing heat and transferring it through the cooling distribution system to a heat exchanger. The different components include solutions and services that are provided to hyperscale centers, enterprise facilities, colocation data centers, and other data centers across telecom and IT, BFSI, research, energy, government and academia, healthcare, and other industries.

Tariffs on liquid cooling components, heat exchangers, and advanced cooling systems are increasing operating costs for data centers. Telecom, banking, financial services and insurance, research, and government sectors across North America, Europe, and Asia-Pacific are experiencing the greatest effects. Positive outcomes include greater local manufacturing of cooling components, increased use of regional sourcing strategies, and faster adoption of energy-efficient and sustainable cooling technologies.

The data center liquid cooling market research report is one of a series of new reports from The Business Research Company that provides data center liquid cooling market statistics, including data center liquid cooling industry global market size, regional shares, competitors with a data center liquid cooling market share, detailed data center liquid cooling market segments, market trends and opportunities, and any further data you may need to thrive in the data center liquid cooling industry. This data center liquid cooling market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The data center liquid cooling market size has grown exponentially in recent years. It will grow from $5.11 billion in 2025 to $6.44 billion in 2026 at a compound annual growth rate (CAGR) of 26.0%. The growth in the historic period can be attributed to the rise in adoption of single-phase and two-phase liquid cooling solutions, increasing deployment in hyperscale and enterprise data centers, expansion in telecom and BFSI sectors, adoption in government and research facilities, and integration in healthcare data centers.

The data center liquid cooling market size is expected to see exponential growth in the next few years. It will grow to $16.32 billion in 2030 at a compound annual growth rate (CAGR) of 26.2%. The growth in the forecast period can be attributed to increasing demand for energy-efficient cooling solutions, rising adoption of immersion and direct-to-chip cooling technologies, expansion of large-scale data center facilities, growing emphasis on sustainable and low-PUE cooling technologies, and increasing use of predictive and automated cooling management systems. Major trends in the forecast period include greater implementation of AI-optimized liquid cooling systems, integration of IoT-enabled cooling monitoring solutions, increasing deployment of energy-efficient liquid cooling technologies, wider adoption of intelligent data center analytics, and continued expansion of sustainable cooling practices.

The increasing investment in data centers is expected to support the growth of the data center liquid cooling market going forward. A data center is a physical facility that houses computing machines and associated hardware and includes infrastructure such as servers, data storage drives, and networking equipment. Increasing investments in data centers are supporting demand for liquid cooling solutions because of their ability to improve cooling efficiency, reduce energy consumption, enable scalability, support sustainability objectives, and accommodate higher-performance computing equipment. For instance, in July 2023, ActiveBatch by Redwood, a US-based company offering automation solutions for streamlining and managing complex business processes and IT workflows, reported that the data center market was continuing to demonstrate strong growth as organizations increasingly relied on data for decision-making and as the generation of personal and corporate data increased. Revenue in the US data center market was expected to increase from $99.97 billion in 2023 to $128.46 billion in 2028, supported by ongoing digital transformation and growing demand for cloud services.

Leading companies operating in the data center liquid cooling market are focusing on developing innovative products such as power and reliability solutions to improve cooling efficiency, ensure system stability, and support high-performance computing operations. Power and reliability refer to the ability of data center systems to maintain consistent energy performance and operational stability under high computing loads. For example, in June 2024, Asperitas, a Netherlands-based immersion cooling technology company, launched its Direct Forced Convection Immersion Cooling solution, designed to optimize cooling performance for AI and HPC workloads. The technology incorporates forced liquid movement within immersion systems to provide greater thermal control, support higher server densities, and deliver improved energy efficiency for modern data center infrastructure.

In January 2024, ZutaCore, a US-based company specializing in liquid cooling technologies, entered into a notable four-year commercial agreement with Valeo. Under this agreement, ZutaCore seeks to advance data center cooling capabilities through its innovative waterless two-phase direct-on-chip cooling technology. The partnership is intended to enhance cooling performance for high-density servers while supporting sustainability objectives through heat reuse and lower carbon emissions. Valeo is an automotive technology company focused on the development and manufacture of advanced automotive systems.

Major companies operating in the data center liquid cooling market are 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, Aspen Systems Inc, IBM Corporation, ExaScaler Inc, Stulz GmbH, Ebullient Inc, LiquidStack Inc, KyotoCooling BV, Asperitas B.V., Airedale International Air Conditioning Ltd, Motivair Corporation, Delta Electronics Inc.

North America was the largest region in the data center liquid cooling market in 2025. 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 are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the data center liquid cooling market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The data center liquid cooling market consists of revenues earned by entities by providing data center liquid cooling solutions such as direct-to-chip cooling, rear-door heat exchangers, and immersion cooling. The market value includes the value of related goods sold by the service provider or included within the service offering. The data center liquid cooling market also includes sales of cooling systems such as liquid-to-liquid, closed-loop dry systems, closed-loop dry systems with trim cooling, open-loop evaporative system, closed-loop evaporator system, and chilled water system. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Data Center Liquid Cooling Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses data center liquid cooling market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for data center liquid cooling ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The data center liquid cooling market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered: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
• Companies Mentioned: 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; Aspen Systems Inc; IBM Corporation; ExaScaler Inc; Stulz GmbH; Ebullient Inc; LiquidStack Inc; KyotoCooling BV; Asperitas B.V.; Airedale International Air Conditioning Ltd; Motivair Corporation; Delta Electronics Inc.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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