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Posted by rohit on March 29, 2023 at 1:44am 0 Comments

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Data Center Liquid Cooling Market 2026 by Key Manufacturers

A data center is a building or property that houses storage servers, networking devices, and other important useful connectivity hardware. These buildings are hired as means to replicate what an on-premise computer system can do, which reduces the operational cost of consumers. With the growing demand for data processing along with the increase in usage of smart devices and internet applications, the demand for data centers has also increased. This directly affects the operation intensity and standard operating procedures being followed by these giant data center buildings. One of the core operational factors of efficiency for these data centers is the PUE or power usage effectiveness, which is a measure of efficiency in any data center. The PUE gets impacted by any change in load on servers or in power consumption.

Read Report Overview: Data Center Liquid Cooling Market

Data centers are designed to run 24/7, which causes the components to heat. Overheating can lead to outages, thereby preventing a data center from running continuously. Apart from this, the servers are designed in such a way that they operate at an optimum temperature, and any change in that temperature may lead to dysfunction. Thus, cooling becomes a crucial component of data center operations.

IT and Telecom Industry Segment to Dominate the Data Center Liquid Cooling Market

The IT and telecom industry is the largest contributor to the demand for the entire data center industry, let alone the market for data center liquid cooling. The industry is driven by data transmission and data processing, with the IT industry producing the largest amount of data from data-intensive applications. The IT and telecom industries are considered to be the backbone for all other industries as communication is a key factor in the growth of a modern economy. Similarly, the banking, financial services, and insurance (BFSI) industry also plays a huge role in the economy, and due to the ongoing efforts of dematerialization, the BFSI industry is expected to further push the demand for data centers.

Both these industries play a significant role in driving the demand for data centers, thereby boosting the demand for data center liquid cooling technologies.

Hyperscale Data Centers to Generate the Highest Demand in Data Center Liquid Cooling Market

Hyperscale data centers are responsible for cloud services and cloud computing applications. Due to the ongoing trend and increased migration from physical computing to cloud computing, hyperscale data centers have been producing more demand as compared to other data center types. Some of the leading hyperscale operators such as Alibaba, Microsoft, and Google have already enacted these technologies and are expected to further drive the market. 

Direct Liquid Cooling Segment Expected to Witness Highest Growth Rate

The direct liquid cooling segment is expected to grow at the highest CAGR of 33.49% during the forecast period 2021-2026. This is due to the fact that direct cooling technologies are at a developing stage and are being experimented with. Many data center operators and service providers have initiated pilot programs to scale expected returns from the technology, which is expected to increase the adoption rate. Another factor contributing to this growth is the higher efficiency of direct cooling technologies. Direct cooling technologies, especially immersion cooling, have the potential to reduce energy costs in cooling operations by approximately 90%. This is also expected to boost the market further.

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Competitive Landscape

The competitive landscape of the data center liquid cooling market consists of different strategies undertaken by major players across the industry to gain market presence. Some of the strategies adopted by the companies are new product launches, business expansions, and partnerships and collaborations.

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