Data Center Liquid Cooling Market Outlook:
Data Center Liquid Cooling Market size was valued at USD 4.58 billion in 2025 and is likely to cross USD 44.39 billion by 2035, registering more than 25.5% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of data center liquid cooling is assessed at USD 5.63 billion.
The data center liquid cooling market is expanding at a fast pace due to the need for high-performance computing (HPC), AI-related workloads, and energy efficiency. Conventional cooler techniques are no longer effective as AI, edge computing, and cloud services consume more processing power, thus generating more heat. In July 2024, Vertiv launched the MegaMod CoolChip, the liquid-cooled prefabricated unit designed for data centers with a focus on AI. It is now a necessity rather than a luxury to incorporate liquid cooling into organizations since it is a more efficient way of cooling as the organizations look for solutions that are more efficient in terms of energy consumption.
Legal requirements and sustainability requirements are the two major factors that are driving the adoption of liquid cooling in data centers globally. Most areas are adopting policies of increased energy efficiency and encouraging the use of green cooling systems. In January 2025, Schneider Electric acquired Motivair, a New York-based liquid cooling technology provider, to enhance its high-pressure coolant pumping solutions. This is in line with the global trends towards the reduction of energy consumption of data centers and the meeting of new standards in sustainability. As countries strive to achieve net-zero emission targets, favorable policies to adopt liquid cooling will be instrumental in determining the data center’s future infrastructure.
