Data center liquid cooling market to hit $8.46 bn by 2027

The global data center liquid cooling market grew from $2.71 billion in 2022 to $3.42 billion in 2023 at a compound annual growth rate (CAGR) of 26.2%. The data center liquid cooling market is expected to grow to $8.46 billion in 2027 at a CAGR of 25.4%, according to a report by Research and Markets.

North America was the largest region in the data center liquid cooling market in 2022. Asia-Pacifc 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, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The increasing number of data centers and server density is expected to propel the growth of the data center liquid cooling market going forward. Data centers have become an integral part of business operations in enterprises due to their number of advantages in supporting the business in various aspects such as computation, data storage, network, business applications, and other functions for the smooth functioning of business operations.

Due to these advantages, there is an increase in the number of data centers and server density, ultimately raising the demand for liquid cooling systems.

For instance, in September 2021, according to an article published by phoenixNAP, a US-based company offering progressive Infrastructure-as-a-Service solutions, technologies such as cloud services, virtualization and containerization, artificial intelligence (AI), machine learning (ML), Internet of Things (IoT), blockchains, and edge computing require high processing power and high-density racks exceeding the traditional 2 to 5kW average. With this increased demand for compute-intensive workloads, the average server density in enterprises and on-premises data centers has increased from 7.3 kW per rack in 2019 to 8.4 kW per rack in 2021. Therefore, the increasing number of data centers and server density are driving the growth of the data center liquid cooling market.

Technological advancement is the key trend gaining popularity in the data center liquid cooling market. The demand for power in data centers is insatiable. They require massive amounts of energy to run and cool their facilities. Recent advancements have witnessed the implementation of a computer room air handler (CRAH), which combines air and liquid cooling in the process. This design allows a data center to preserve temperature, air distribution, and humidity in data centers.

Major companies operating in the data center liquid cooling market are focused on developing advanced and better solutions to strengthen their market position. For instance, in May 2021, Super Micro Computer, Inc., a US-based information technology company, introduced a range of cost-effective liquid cooling solutions that enable applications to run with less jitter and at higher CPU frequencies. This liquid cooling solution can reduce data center power usage effectiveness (PUE) and total cost of ownership (TCO) by more than 40% on power costs.

In March 2021, Wiwynn, a Taiwan-based company operating in the data center liquid cooling sector, partnered with LiquidStack. Through this partnership, Wiwynn intends to expand its data center liquid cooling product portfolio and form a solid alliance to enable the synergic advancement of next-generation cloud IT infrastructure designed for two-phase immersion cooling in data centers and edge computing (HPC). LiquidStack is a US-based company operating in the data center liquid cooling market.

CT Bureau