Data Center Liquid Cooling Market revenue to exceed USD 230 Billion by 2035, says Research Nester

Major data center liquid cooling market players include Rittal GmbH & Co. KG, 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, and Honeywell International Inc.

New York, Jan. 16, 2024 (GLOBE NEWSWIRE) -- The global data center liquid cooling market size is predicted to grow at a CAGR of over ~25% from 2023 to 2035. The market is projected to garner a revenue of USD 230 billion by the end of 2035, up from a revenue of ~USD 3 billion in the year 2022.The increasing demand for energy-efficient cooling solutions and the growing adoption of cloud computing are the major reasons behind the growth of the market. Over 62% of all corporate data worldwide is stored in the cloud. Cloud data centers contribute to, about 4% of the global energy consumption.

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The revenue generated from cloud infrastructure services amounts to a $170 billion annually. It's worth noting that a significant 92% of enterprises have embraced the adoption of multi cloud infrastructures. As cloud computing becomes increasingly popular, the need for energy-efficient cooling solutions also increases. Liquid cooling solutions are more efficient and consume less energy than traditional cooling solutions, making them an attractive choice for data centers.

Advancements in Liquid Cooling Technologies to Boost Market Growth

Advancements in liquid cooling technologies are contributing to the growth of the Data Center Liquid Cooling Market. Innovations in cooling solutions, such as direct-to-chip liquid cooling and immersion cooling, offer more efficient and effective ways to cool data center infrastructure.

Direct-to-Chip Liquid Cooling is an innovative cooling solution that delivers liquid coolant directly to the heat-generating components of the data center infrastructure, ensuring more efficient and effective cooling. Further, Immersion Cooling is a cutting-edge cooling technique that involves submerging servers and other IT equipment in a non-conductive liquid, resulting in enhanced cooling performance and reduced energy consumption. Additionally, liquid cooling technologies can help reduce the energy consumption of data centers by up to 50%, which makes them an attractive option for many data centers.

Data Center Liquid Cooling Market: Regional Overview

The market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa region. 

The Increased Deployment Of 5G Networks to Drive the Growth in the North America Region

The data center liquid cooling market in North America region is estimated to garner the largest revenue by the end of 2035. North America has always been a leader in the adoption of new technologies, and the recent increase in linked devices has further accelerated this growth. Investors in data centers are recognizing the potential of the market and are investing in direct-to-chip and liquid immersion cooling technologies to meet growing demand. Moreover, the increased deployment of 5G networks in the US has necessitated the need for data centers with higher cooling capacity, which has in turn driven the demand for liquid cooling solutions. The adoption of 5G technology, in the American market is steadily increasing and currently sits at almost 37%. In the quarter of 2023 approximately 15 million new 5G connections were established. 5G networks require more processing power and data transfer speeds than previous generations, which requires data centers with higher cooling capacity.

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The Increasing Deployment Of Data Centers to Drive the Growth in the Asia Pacific Region

The Asia Pacific data center liquid cooling market is estimated to garner the largest revenue by the end of 2035. This is largely due to the increasing deployment of data centers in countries in the Asia Pacific region, as well as the growth of the digital economy in the region. Additionally, the region's hot and humid climate makes liquid cooling a more viable option for cooling data centers. Further, increasing investments in developing data centers contribute to the market's growth. Data centers in India are expected to receive investments exceeding $9 billion within the three years. This surge in investment can be attributed to the growing accessibility of the internet government led digitalization initiatives well as the widespread adoption of cloud computing, IoT and 5G technologies.

Data Center Liquid Cooling Segmentation by End User

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

The IT and Telecom segment in data center liquid cooling market is anticipated to hold the largest revenue by the end of 2035. Data centers within the IT and Telecom segment is the most demanding in terms of cooling requirements, with up to 30% of the power being consumed by data centers. This is attributed to the increasing demand for data-intensive applications, such as video streaming, artificial intelligence, and machine learning. Additionally, the growth in cloud computing and edge computing is also driving the demand for data centers, resulting in increased cooling requirements. According to survey data it is predicted that businesses will allocate, around 32% of their IT budget towards edge cloud computing in the three years.

Data Center Liquid Cooling Segmentation by Product Type

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

The heat exchangers for hot spots segment is anticipated to hold the largest revenue by the end of 2035. Heat exchangers are becoming increasingly popular in the data center liquid cooling market due to their energy efficiency and their ability to reduce energy costs. For instance, Coolcentrics Rear Door Heat Exchangers (RDHx) cool down the equipment directly at its source preventing any heat from escaping into the data center. This method is significantly more efficient, than circulating air throughout the data center. They are also becoming increasingly sophisticated, allowing them to more effectively transfer heat away from the hot spots. Furthermore, as data centers become more densely packed with servers and processors, the demand for heat exchangers is expected to grow significantly.

A few of the well-known industry leaders in the global data center liquid cooling market that are profiled by Research Nester are Rittal GmbH & Co. KG, 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., and other key market players.

Recent Development in the Market

  • Rittal. Co. KG has recently announced a collaboration, with Stulz to provide guidance, assistance and services for tailor made data center infrastructure. This partnership will allow clients to access a range of high quality and accurate cooling systems specifically designed for large and medium sized data centers.
  • Baltimore Aircoil Company has recently announced its acquisition of Eurocoil SPA, a move aimed at solidifying its presence, in the data center cooling market. With this acquisition Baltimore Aircoil will enhance its capacity to manufacture a number of heat exchangers. These heat exchangers will be utilized in their existing hybrid and adiabatic cooling products specifically designed for data centers.

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