Data Center Liquid Cooling Market 2026-2030: Exploring Growth Trends and Recent Developments

The Business Research Company's Data Center Liquid Cooling Market Report 2026 – Market Size, Trends, And Global Forecast 2026-2035

LONDON, GREATER LONDON, UNITED KINGDOM, January 23, 2026 /EINPresswire.com/ -- "The demand for efficient and sustainable cooling solutions in data centers has escalated sharply as digital transformation accelerates worldwide. As the volume of data and computing power surges, liquid cooling technologies are becoming crucial to maintaining optimal performance and energy efficiency. Let’s explore the current market dynamics, growth drivers, leading regions, and future prospects of the data center liquid cooling industry.

Steady Expansion Expected in the Data Center Liquid Cooling Market Size
The data center liquid cooling market has witnessed rapid development recently, with its value rising from $5.1 billion in 2025 to a projected $6.41 billion in 2026, representing a robust compound annual growth rate (CAGR) of 25.7%. This increase during the historical period is largely due to the growing use of single-phase and two-phase liquid cooling methods, wider deployment in hyperscale and enterprise data centers, and expanding applications within telecom and BFSI (Banking, Financial Services, and Insurance) sectors. Additional growth comes from uptake in government, research facilities, and healthcare data centers.

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Looking ahead, the market is set for remarkable expansion, with estimates reaching $16.16 billion by 2030 at an even higher CAGR of 26.0%. This anticipated surge is fueled by trends like the rising adoption of immersion cooling and direct-to-chip cooling, growth in large-scale data center infrastructure, and a shift towards more sustainable, low-PUE (Power Usage Effectiveness) cooling technologies. Furthermore, predictive and automated cooling management systems are gaining traction. Key innovations expected to drive future growth include AI-optimized cooling solutions, IoT-enabled monitoring systems, energy-efficient liquid cooling deployments, smart analytics for data center operations, and broader adoption of environmentally friendly cooling practices.

Understanding Data Center Liquid Cooling Systems
Data center liquid cooling involves technologies designed to manage and regulate the temperature inside data centers more efficiently. These systems typically combine traditional air conditioning with immersion cooling techniques to optimize energy use, enabling data centers to maintain high availability and support dense hardware configurations. By integrating liquid cooling, data centers can significantly decrease overall power consumption and enhance their power usage effectiveness, making operations more sustainable and cost-effective.

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Rising Investments Spur Growth in the Data Center Liquid Cooling Market
A key factor driving the liquid cooling market is the increasing investment in data center infrastructure. Data centers are physical facilities housing servers, storage devices, and networking equipment essential for computing operations. The surge in spending on data centers is motivated by the pressing need for better cooling efficiency, cost reduction, scalability, eco-friendliness, and improved performance. For example, in July 2023, Redwood’s ActiveBatch, a U.S.-based automation platform, highlighted the growing complexity of IT workflows and business processes that data centers must handle. As reliance on data-driven decision-making expands among organizations, the demand for data center capacity continues to rise. Supporting this trend, revenue in the U.S. data center market is forecasted to grow from $99.97 billion in 2023 to $128.46 billion by 2028, propelled by digital transformation and increased cloud service adoption.

North America Leads While Asia-Pacific Emerges as Fastest Growing Region
In 2025, North America held the largest share of the data center liquid cooling market, reinforcing its position as a hub for advanced data center technologies. Meanwhile, the Asia-Pacific region is predicted to experience the fastest growth throughout the forecast period. The market analysis covers various regions, including Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa, providing a comprehensive view of global market trends and opportunities.

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