The release of the “Data Centre Liquid Cooling Market – A Global and Regional Analysis: Focus on Product, Application, and Country Analysis – Analysis and Forecast, 2024-2034” report projects a strong growth rate of 23.96% for the market between 2024 and 2034. According to the forecast, the global data centre liquid cooling market is expected to grow from $5.65 billion in 2024 to $48.42 billion by 2034.

This market analysis looks at various factors such as products, applications, and regional influences that impact the industry. It highlights challenges and limitations that could affect market growth, along with key drivers that are likely to influence the market in major regions like the US, South Korea, and Germany.

Although there are challenges like high implementation costs and a lack of standardization, liquid cooling technology continues to be essential in modern data centres. For example, AI systems, which generate more heat, require more efficient cooling solutions to be cost-effective.

The growing demand for sustainable, energy-efficient cooling methods is a major factor driving the adoption of liquid cooling systems, particularly in high-performance computing (HPC) clusters and large-scale data centres. These systems are increasingly being used to meet the growing need for efficient cooling solutions.

Advanced cooling technologies, such as immersion and direct-to-chip cooling, are expected to contribute significantly to the market’s growth. These technologies are more efficient than traditional air cooling systems in managing heat, offering better cooling performance and lower energy consumption.

The pressure to reduce carbon footprints and meet net-zero targets is also pushing the adoption of newer cooling technologies. Liquid cooling systems have seen improvements in operational reliability and capacity. Industry players are innovating with sustainable cooling fluids and flexible cooling systems designed to address the unique challenges posed by AI and 5G technologies.

The hyperscale data centre segment is expected to be the largest driver of liquid cooling technology procurement. Global companies like Google, Microsoft, and Alibaba are increasing their demand for scalable, energy-efficient compute and storage solutions.

The telecoms industry is also a major driver of liquid cooling investment, as it handles vast amounts of data generated by data-heavy applications. The rapid growth of AI, virtual reality, 5G, and upcoming 6G technologies has increased the need for efficient data transmission and processing.

The banking, financial services, and insurance (BFSI) sector is transitioning to paperless operations, further increasing demand on data centres.

The report also highlights Rear Door Heat Exchangers (RDHX) as one of the latest innovations in liquid cooling. RDHX systems use sensors to measure the heat produced by individual racks, helping reduce overall energy consumption. Research from Lawrence Berkeley National Laboratory has shown that RDHX systems are more effective at eliminating localized hotspots compared to traditional methods and help maintain a uniform temperature throughout data centres.

In recent years, there have been continued efforts to improve the energy efficiency and sustainability of data centres. For example, Boyd, a company that specializes in thermal management technologies, teamed up with NVIDIA and the US Department of Energy in August 2023 as part of the COOLERCHIPS program. The goal of the program is to develop highly efficient and reliable cooling technologies for data centres, aiming to reduce cooling energy consumption to less than 5% of a data centre’s total energy usage.