The Global Data Center Liquid Cooling Market Size is valued at 3.56 billion in 2022 and is predicted to reach 30.61 billion by the year 2031 at a 27.22% CAGR during the forecast period for 2023-2031, according to InsightAce Analytic.
Data centers play a pivotal role in modern information processing, operating tirelessly to handle immense data volumes around the clock. To maintain optimal performance, data center operators resort to advanced cooling techniques, known as data center liquid cooling, to regulate the temperatures within permissible limits.
The urgency for cooling arises from the substantial heat generated by data processing equipment. Preventing equipment damage due to excessive heat emission becomes paramount, propelling the adoption of innovative cooling solutions. Paradoxically, while these solutions curb overheating risks, they simultaneously lead to heightened energy consumption within the data center ecosystem, causing operating temperatures of components to rise.
Coinciding with this trend, the tech landscape has witnessed remarkable strides in artificial intelligence, algorithms, 5G networks, and augmented and virtual reality. These advancements contribute to an exponential surge in cooling demands within the Information Technology (IT) and telecom sectors. As the forecast period unfolds, the role of cooling solutions is primed to be indispensable, serving as a catalyst for the expansion of the market.
Liquid cooling systems use water or other liquids to directly cool the servers and other equipment in a data center. These systems can be more efficient than air-based cooling systems, but require specialized equipment and maintenance. Cooling is essential for data centers to ensure that the equipment operates at optimal temperatures and avoids overheating, which can lead to system failures and data loss.
Liquid cooling is reported to be the most popular cooling technology within the data center market, particularly for High-Performance Computing (HPC) applications supporting AI and ML workloads. Leading industry players like Google have adopted liquid cooling for their latest AI hardware by retrofitting their existing data center infrastructure to accommodate this technology.