Data Center Liquid Cooling Market to register high revenue growth at 25.8% CAGR during 2022-2032

According to the data center liquid cooling industry analysis by Persistence Market Research, demand registered in the market is set to surge at a high CAGR of 25.8% from 2022 to 2032. Rising demand for green data centers is one of the major factors driving market growth. The green data center initiative is majorly focused on managing the rising energy costs of data center infrastructure and helps reduce their carbon footprint.

Increasing Internet penetration, growing emphasis on digitization, and rising migration of cloud-based services have led to an increase in IT workloads across the globe, which has eventually increased rack power densities. Data center liquid cooling technology provides better efficiency for high rack densities as compared to air-based cooling systems. In comparison with traditional data center air cooling technology, liquid cooling provides benefits such as higher energy efficiency, lower total cost of ownership, smaller footprint, and enhanced server reliability.

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This is a rapidly developing market with frequent developments, such as:

  • In September 2021, CoolIT Systems Inc., a world leader in modular, scalable data center liquid cooling technology, announced a joint product launch with GIGABYTE Technology, an industry leader in high-performance servers & workstations.
  • In February 2020, STULZ GMBH expanded its business in the Oceania region – Papua New Guinea, Solomon Islands, Fiji, Vanuatu, Tonga, Samoa, and other Pacific islands. This expansion further strengthened its position as a technology leader, providing resilient and energy-efficient cooling solutions & services for mission-critical applications.

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Key Takeaways from Market Study

  • By cooling type, cold plates are anticipated to account for a leading market share of 33.1%. However, direct liquid cooling (DLC) is estimated to expand at a robust CAGR of 32.1% during 2022-2032.
  • On the basis of industry, the telecom and IT sector is expected to dominate the market and exhibit the highest CAGR of 30.7% during the forecast period.
  • Large data centers (more than 5,000 sq. feet) hold the highest market of 56.9%.
  • North America is projected to lead the global market, closely followed by Europe, in 2022. South Asia & Pacific is anticipated to emerge as the fastest-growing regional market through 2032.
  • The India data center liquid cooling market is projected to progress at a CAGR of 30.9% through 2032.
  • Across GCC countries, sales are expected to increase at a CAGR of 20.7% over the next ten years.

“Data center liquid cooling technology helps create unprecedented opportunities for data centers. Two-phase liquid immersion cooling (2PLIC) is the latest evolution in data center cooling tech, which is engineered for higher boiling points, without any residue, prevents fluid degeneration, and does not need a pump,” says a Persistence Market Research analyst.

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Growing Demand for Reducing Energy & Water Usage Driving Demand for Data Center Liquid Cooling Products

Data center liquid cooling is most often viewed as a technical solution for high-density and high-performance computing applications. Reduction in energy consumption across all geographies, deployment in space-constrained and harsh environments, and reduction in water usage are few of the major factors expected to drive adoption of data center liquid cooling across the IT industry.

With increasing business operations relying on data centers, there has been a rise in the demand for efficient solutions for data center cooling. Water scarcity has always been a pressing concern across the globe. Facilities that are located in humid or warm areas tend to consume more water for cooling, which leads to higher cooling expenses.

Companies need to reconsider their water consumption capacities for data centers. Data center liquid cooling happens to be a water-saving alternative for the same, thereby driving market growth.

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