Global Data Center Liquid Cooling Market Research Report: Forecast (2024-2030)

Market Definition

Data center liquid cooling is referred to as liquid-based cooling solutions to effectively control and dissipate the heat produced by servers and IT equipment within a data center. The growing setup of the data center is augmenting the prerequisite for liquid cooling systems to sustain the ideal operating temperature of the IT infrastructure & maximize energy efficiency.

Market Insights & Analysis: Global Data Center Liquid Cooling Market (2024-30)

The Global Data Center Liquid Cooling Market size was valued at USD 3.01 billion in 2024 and it is estimated to grow at a CAGR of around 21.70% during the forecast period, i.e., 2024-30. The factors that contributed to the growth of the data center liquid cooling have been the surging setup of data centers in the Information Technology (IT) and telecom sector and the growing focus of governments across the Middle East, Asia-Pacific, and other regions toward digitalization.

Over the past few years, there has been a surge in mobile phone penetration across countries like Indonesia, Thailand, and others due to surging net disposable income of the customers and availability of smartphones at reasonable price due to highly competitive market. According to DataReportal, in 2021, there were approximately 345.3 million mobile connections in Indonesia, and the number of mobile phone connections increased by over 4 million compared to 2020. This significant increase in mobile connection in countries has led to a rise in the data for telecom operators like AT&T Inc., Verizon Communications Inc., and others. As a result, these telecom operators have launched their own data centers to store data, including customer records, network traffic data, and operational information. For instance,

• In 2021, Vodafone, a telecom operator, launched its data center in New Zealand to provide consumers with a secure optic network.

The significant increase in the deployment of data centers in the IT and telecom sector accelerated the demand for data center liquid cooling to efficiently prevent overheating, and minimize the risks of hardware failures & service interruptions, consequently driving the market during 2018-2022. Further, governments across the Asia-Pacific and the Middle East & Africa region, in countries like India, the UAE, Bahrain, etc., are increasingly focusing on digitalization to streamline the business processes and increase the transparency between the government officials & citizens of the country.

Moreover, governments across these countries are encouraging digitization to provide services to the residents more efficiently and conveniently. Therefore, the governments are laying out initiatives like Digital India, the UAE Digital Government Strategy 2025, and others. As a result, the governments are increasingly investing in the digital infrastructure comprising data centers & network towers in these countries. Thus, increasing government investment in setting up data centers would continue to boost the demand for data center liquid cooling in the coming years.

Global Data Center Liquid Cooling Market Driver:

Increasing Data Centers for Financial Institutions to Push Demand for Data Center Liquid Cooling – Over the past few years, there has been a significant increase in the number of banks & the bankable population across the globe due to rising globalization, promoting financial inclusion and economic growth in developed & developing nations. Financial institutions are essential for every individual, including working, students, and others, since the banks pose as a safe place for storing money.

Moreover, nowadays these financial institutions offer a wide range of payment and transaction services for paying bills, making purchases, among other transactional activities. As a result, more individuals are increasingly opening their bank accounts to access different financial services provided by the public & private banks. According to global Findex by the World Bank, in 2022, more than 76% of adults across the globe had an account at a bank or any regulated institution such as a credit union or microfinance institution. This significant rise in the bankable population increased the consumer's financial data. As a result, banks or financial institutions rely on their data centers to store critical financial information.

Further, the data centers have hardware & servers, which tend to overheat due to the continuous operations, therefore, there is a requirement for the data center liquid cooling systems to prevent hardware failure. Hence, the banks opt for data center liquid cooling systems to ensure the continuity of their operations, driving the Global Data Center Liquid Cooling Market.

Global Data Center Liquid Cooling Market Opportunity:

Expansion of 5G Coverage to Uplift the Demand – In recent years, several countries like South Korea, China & India have launched 5 G services in their country and several Sub-Saharan & Asian countries such as Ethiopia, Ghana, Vietnam, etc., are planning to launch 5G during 2024-2030. The 5G facilitates connectivity and provides individuals with faster data speeds and lower latency compared to the other generation networks like 3G & 4G. As a result, the consumers are inclining towards 5G rather than 4G & 3G, resulting in increased data traffic.

According to Nova, a Greece-based telecom operator, in 2023, the 5G data traffic witnessed a growth of approximately 5 times as compared to 2022. Similarly, other countries like China, India, and others are also experiencing data traffic growth. Governments in regions like Asia-Pacific, Europe, etc., are heavily investing in setting up urban data centers to cater to the growing demand for 5G. For instance,

• In 2023, the government of India announced to invest over 3 billion in Maharashtra to set up two data centers. The government aims to strengthen its infrastructure and position the state as an industrial hub.

As a result, the need for the data center liquid cooling systems to dissipate the heat of data centers would continue to increase during 2024-2030 with a surge in the 5G network expansion.

Global Data Center Liquid Cooling Market Challenge:

Higher Initial Setup Costs & Maintenance Costs to Restrain the Adoption of Data Center Liquid Cooling – The data center's liquid cooling systems are generally of higher costs since they are equipped with a wide range of cooling equipment, such as pumps, heat exchangers, and coolant distribution systems. According to research by DataSpan, a Data Center Storage Systems, and Network Service Solutions provider, in 2022, a cooling system will be amongst the most expensive parts of any data center system, and around 30% to 55% of a data center’s energy consumption goes into powering its cooling and ventilation systems. This causes a financial burden on the small-scale data center operators, as a result, they tend to seek economical alternatives like traditional cooling, Rear-Door Heat Exchangers, and others, consequently hindering the market growth of data center liquid cooling.

Further, the coolant required in these systems needs to be regularly monitored and maintained, therefore, data center operators check fluid levels, purity, and the condition of the coolant, thereby increasing maintenance costs. Hence, small & mid-size data center operators refrain from investing in these systems, restraining market growth.

Global Data Center Liquid Cooling Market Trend:

Rising Inclination Towards Immersion Cooling Systems & Green Data Centres to Augment the Market Growth – In recent years, the demand for immersion cooling systems has been gaining traction owing to their high cooling efficiency and ability to reduce energy consumption. These systems don't require large fans and air conditioning units to circulate air and dissipate heat, as a result, they relatively reduce energy consumption compared to traditional air-based cooling methods. Significantly, leading to substantial energy savings and lower operational costs.

Further, there has been growing awareness regarding environmental issues, including climate change, resource depletion, and habitat destruction. As a result, many end-users like telecom companies, financial institutions, etc., are announcing their plans to reduce their carbon footprint. Owing to this, they are shifting towards more energy-efficient & sustainable technologies and have announced to build green data centers. For instance,

• In 2022, Phonepe, a fintech company, in partnership with Dell Technologies & Nippon Telegraph and Telephone (NTT), announced the launch of a green data center equipped with immersion technology to fulfill its sustainability goals.

These green data centers are equipped with more energy-efficient and environmentally sustainable cooling solutions like cold plate, immersion, etc., than traditional air cooling systems. Therefore, the increasing setup of green data centers and rising inclination towards immersion cooling systems to meet sustainability goals & minimize power consumption would boost the Global Data Center Liquid Cooling Market.

Global Data Center Liquid Cooling Market (2024-30): Segmentation Analysis

The Global Data Center Liquid Cooling Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment. It includes predictions for the period 2024–2030 at the global level. As per the analysis, the market has been further classified as:

Based on Cooling Type:

• Cold Plates
• Direct Liquid Cooling
  • Immersion
    • Single-phase
    • Two-phase
  • Chilled Water Cooling
• Indirect Liquid Cooling
  • Top-of-Row Cooling
  • In-row Cooling
• Rack Liquid Cooling

Data centers of end-user industries like Banking, financial services and Insurance (BFSI), retail or e-commerce platforms, IT and telecom, etc., are increasingly opting for cold plates to dissipate heat from the data centers & minimize the risk of hardware failures. As a result, the share of cold plates system in the Global Data Center Liquid Cooling Market is significant.

In general, the liquid cooling systems consume more power, as a result, the operational costs for the end-users become relatively large. According to research by Boyd, a leading innovator of engineered material and thermal management technologies, liquid cooling systems consume nearly 40% of the total electricity. Therefore, to minimize power consumption, the end users prefer to use solutions that reduce the power usage and hence seek to use a cold plate system. These systems are integrated directly with high-heat-generating components such as CPUs, GPUs, or memory modules.

As a result, they cool down the critical computer components with minimal power consumption and lower the operational costs for the end-users. Hence, the power efficiency & cost benefits associated with cold plate systems making them the ideal choice for end-users and enhance their market share in the Global Data Center Liquid Cooling Market.

Based on End Users:

• Healthcare & Lifesciences
• E-commerce and Retail
• IT & Telecom
• BFSI
• Hospitality
• Others (Energy & Utilities, Media & Entertainment, etc.)

In recent years, E-commerce and retail have witnessed significant growth due to a surge in internet penetration across the globe & the advantages of e-commerce over traditional shopping. According to the International Trade Administration, in 2021, globally, retail e-commerce sales increased by approximately 14%, compared to 2020. The increasing inclination of e-commerce and retail businesses has resulted in the generation of vast amounts of data, including customer information, product catalogs, transaction records, and inventory data.

As a result, the data centers of e-commerce and retail companies like Amazon, Noon, etc., require the necessary infrastructure for secure and efficient data storage and have opted for data centers. This increasing setup of data centers by e-commerce companies is leading to the generation of a significant amount of heat. As a result, companies such as Flipkart, Amazon, and other e-commerce websites are using liquid cooling systems to cool down the heat dissipating from the servers & CPUs of data centers, boosting the market share of E-Commerce and retail in the Global Data Center Liquid Cooling Market.

Global Data Center Liquid Cooling Market (2024-30): Regional Projections

Geographically, the Global Data Center Liquid Cooling Market expands across:

• North America
• South America
• Europe
• Middle East & Africa
• Asia Pacific

North America gained a significant market share in the Global Data Center Liquid Cooling Market due to the prevalence of IT and telecom companies like Google, Amazon, Microsoft, Facebook, and Apple in North American countries like the US & Canada. The ease of doing business and the establishment of commercial offices have led to the setup of extensive data center networks in these countries to support their cloud services and online platforms. Therefore, amplifying the requirement for data center liquid cooling and the market share of North America in the Global Data Center Liquid Cooling Market.

Global Data Center Liquid Cooling Industry Recent Development:

• 2022: Green Revolution Cooling Inc. launched an initiative to spread awareness about liquid cooling immersion technologies. Other companies such as Dell Technologies, Intel, HTS, eSamrt Systems, etc., also announced their participation in this initiative to increase attentiveness to immersion cooling technology.
• 2022: Schneider Electric, delivered a data center cooling liquid system in Dublin to digitally transform energy management and automation in the university. The company provided its solutions to make the facility more energy and space-efficient, as well as more resilient and scalable.

Gain a Competitive Edge with Our Global Data Center Liquid Cooling Report

• Global Data Center Liquid Cooling Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps business organizations to gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing business organizations to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Global Data Center Liquid Cooling Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, business organizations can develop strategies to minimize risks & optimize their operations.