China Data Center Direct-to-chip Cooling Market (2026-2031)
The China Data Center Direct-to-chip Cooling Market was valued at $291.2 Million in 2026 and projected to reach to $1792.4 Million by 2031, representing a compound annual growth rate of 35.4%. China's data center direct-to-chip cooling market is poised for unprecedented expansion through 2031, driven by the nation's strategic focus on AI infrastructure development and digital transformation initiatives.
| Market Size in | USD 26.32 MN |
| Market Forecast in | |
| CAGR | |
| Forecast Period | |
| Units Considered | Value (USD MN) |
China Data Center Direct-to-chip Cooling Market Trends and Insights
- This represents a compound annual growth rate of 35.4%, significantly outpacing global trends driven by China's massive investments in AI infrastructure, hyperscale data centers, and semiconductor manufacturing.
- China's rapid digital transformation and government support for advanced cooling technologies position the country as a critical hub for direct-to-chip cooling innovation. The expansion in China reflects the nation's urgent need to manage thermal challenges in increasingly dense computing environments.
- China's data center operators are adopting direct-to-chip cooling solutions to improve energy efficiency, reduce operational costs, and meet sustainability targets.
- Between 2026 and 2031, China's market will nearly sixfold, driven by rising demand from cloud service providers, AI training facilities, and next-generation semiconductor fabs operating within China's borders. China's competitive advantage in manufacturing and supply chain integration accelerates adoption of direct-to-chip cooling technologies.
- The market's trajectory underscores China's strategic importance in the global data center cooling ecosystem and its commitment to maintaining technological leadership in high-performance computing infrastructure..
Key Market Statistics
- CAGR (2026-2031) 35.4% CAGR
- Market Size, 2026 ~USD 291.2 Million
- Forecast, 2031 ~USD 1792.4 Million
- Country China
China Data Center Direct-to-chip Cooling Market Overview
Explosive Growth Trajectory :
China's data center direct-to-chip cooling market is projected to grow from USD 291.2 million in 2026 to USD 1,792.4 million by 2031, representing a 35.4% CAGR—significantly exceeding the global growth rate of 26.5%.
AI Infrastructure Boom :
Massive government investments in artificial intelligence and machine learning infrastructure are driving demand for advanced cooling solutions in China's hyperscale data centers, positioning the country as a global leader in cooling technology adoption.
Semiconductor Manufacturing Hub :
China's expanding semiconductor manufacturing sector requires cutting-edge direct-to-chip cooling to manage thermal challenges in high-density chip production, creating substantial market opportunities for cooling solution providers.
Hyperscale Data Center Expansion :
Rapid proliferation of hyperscale data centers across major Chinese cities to support cloud computing, edge computing, and 5G infrastructure is accelerating the adoption of direct-to-chip cooling technologies over traditional cooling methods.
China Data Center Direct-to-chip Cooling Market Dynamics
- Government policies supporting cloud computing adoption and semiconductor self-sufficiency are catalyzing investments in advanced thermal management solutions.
- The market's 35.4% CAGR reflects strong demand from hyperscale operators seeking energy-efficient cooling alternatives. The competitive landscape in China is intensifying as both domestic and international cooling solution providers establish manufacturing and R&D facilities to capture market share.
- Technological innovations in liquid cooling, immersion cooling, and hybrid systems are gaining traction among Chinese data center operators seeking to reduce operational costs and environmental impact.
- By 2031, China is expected to represent a significant portion of global direct-to-chip cooling market value..
Related Ecosystem
Equipment Machine And Tooling
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- Alfa Laval Corporate AB
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- Daikin Industries,Ltd.
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Key Takeaways
- China's direct-to-chip cooling market will grow from USD 291.2M (2026) to USD 1,792.4M (2031) at a 35.4% CAGR, nearly sixfolding in five years.
- China's AI infrastructure boom and hyperscale data center expansion are primary drivers of accelerated cooling technology adoption.
- China's manufacturing capabilities and supply chain integration provide competitive advantages in direct-to-chip cooling deployment.
- Government support for semiconductor and data center sustainability in China creates favorable conditions for advanced cooling solution adoption.
Data Center Direct-to-chip Cooling Market Report Scope
| Report Metric | Details |
|---|---|
| Base Year | 2026 |
| Fastest Growing Segment | TWO-PHASE (Type) |
| Forecast Period | 2026–2031 |
| Growth Rate | CAGR of 26.5% from 2026 to 2031 |
| Largest Segment | SINGLE-PHASE (Type) |
| Market Size Base Year (Billions) | ~USD 4.22 (2026) |
| Revenue Forecast (Billions) | ~USD 13.68 (2031) |
| Segments Covered | Type, End User |
China Data Center Direct-to-chip Cooling Market Report Segmentation
2 segment dimensions are covered across the global market.
By Type
- Single-Phase
- Two-Phase
By End User
- Colocation Providers
- Enterprises
- Hyperscale Data Centers
Target Audience
- Data Center Operators & Hyperscalers : Chinese hyperscale data center operators need market intelligence to evaluate cooling technology investments, benchmark against competitors, and optimize thermal management strategies for cost reduction and sustainability goals.
- Cooling Solution Manufacturers : Equipment manufacturers and cooling technology providers require detailed market data to identify growth opportunities, assess competitive positioning, and develop localized product strategies for the Chinese market.
- Semiconductor & Chip Manufacturers : Chinese semiconductor companies need insights into cooling technology trends to integrate advanced thermal management into manufacturing facilities and ensure competitive advantage in high-density chip production.
- Investment & Private Equity Firms : Investors evaluating opportunities in China's data center and cooling technology sectors require comprehensive market analysis to assess growth potential, identify acquisition targets, and make informed capital allocation decisions.
- Government & Policy Makers : Chinese government agencies and industrial planners need market data to inform infrastructure policies, technology development initiatives, and strategic investments in AI and semiconductor manufacturing ecosystems.
Key Companies in the China Data Center Direct-to-chip Cooling Market
| Company | HQ | Ownership | Strongest segments |
|---|---|---|---|
| VERTIV GROUP CORP. | United States | Private Company | Single Phase Direct-to-chip Solutions,Two Phase Direct-to-chip Architectures,Water-Glycol-based Coolant Ecosystem, |
| SUPER MICRO COMPUTER, INC. | United States | Public Company | Single Phase Direct-to-chip (Water-Glycol-based),Single Phase Direct-to-chip (Dielectric Fluids),Two Phase Direct-to-chip (Refrigerant-based), |
| MODINE MANUFACTURING COMPANY | United States | Public Company | Single Phase Direct-to-chip (water-glycol, rack-level and plant-side),Two Phase Direct-to-chip and dielectric-based platforms,Supporting IT cooling (CRAC/CRAH, precision AHUs, fan walls) attached to liquid deployments, |
| SCHNEIDER ELECTRIC | Canada | Public Company | Single Phase Direct-to-chip Cooling,Two Phase Direct-to-chip Cooling,Water-Glycol-based Coolants, |
| FLEX LTD. | Singapore | Public Company | Single Phase Direct-to-chip Solutions,Two Phase Direct-to-chip and Dielectric-based Systems,Hyperscale Data Center Deployments, |
| NVENT | United Kingdom | Public Company | |
| KAORI HEAT TREATMENT CO., LTD. | Taiwan | Public Company | Single-phase direct-to-chip (water-glycol-based coolants),Single-phase direct-to-chip (dielectric fluids),Two-phase direct-to-chip (refrigerant-based), |
| BOYD | Canada | Public Company | Single Phase Direct-to-chip Cooling,Two Phase Direct-to-chip Cooling,Water-Glycol-based Coolants, |
| TAISOL ELECTRONICS CO., LTD. | Taiwan | Public Company | Single Phase Direct-to-chip Cooling,Two Phase Direct-to-chip Cooling,Water-Glycol-based Coolants, |
| WIWYNN CORPORATION | Taiwan | Public Company | Single Phase Direct-to-chip Platforms,Two Phase Direct-to-chip Platforms,Water-Glycol-based Coolant Enablement, |
| INSPUR CO., LTD. | China | Public Company | Single Phase Direct-to-chip Cooling,Two Phase Direct-to-chip Cooling,Water-Glycol-based Coolants, |
VERTIV GROUP CORP.
Vertiv Group Corp. is a United States-based private company founded in 1965 that employs 19,000 people. The company operates in the infrastructure and technology sectors.
SUPER MICRO COMPUTER, INC.
Super Micro Computer, Inc. is a publicly traded United States company founded in 1993 with 6,238 employees. The company specializes in high-performance computing systems and solutions.
MODINE MANUFACTURING COMPANY
Modine Manufacturing Company is a publicly traded United States manufacturer founded in 1916 with 13,200 employees. The company produces thermal management and cooling solutions for various industrial applications.
SCHNEIDER ELECTRIC
Schneider Electric is a publicly traded company headquartered in Canada and founded in 1836 with 158,122 employees. The company is a global leader in digital transformation and energy management solutions.
FLEX LTD.
Flex Ltd. is a publicly traded company headquartered in Singapore and founded in 1969 with 149,686 employees. The company provides design, engineering, and manufacturing services to various industries.
NVENT
nVent is a publicly traded company headquartered in the United Kingdom and founded in 1903 with 12,000 employees. The company manufactures electrical enclosures, thermal management, and cable management products.
KAORI HEAT TREATMENT CO., LTD.
Kaori Heat Treatment Co., Ltd. is a publicly traded company headquartered in Taiwan and founded in 1970. The company provides heat treatment and thermal processing services.
BOYD
Boyd is a publicly traded company headquartered in Canada and founded in 1990 with 13,424 employees. The company manufactures thermal management and engineered materials solutions.
TAISOL ELECTRONICS CO., LTD.
Taisol Electronics Co., Ltd. is a publicly traded company headquartered in Taiwan and founded in 1983. The company manufactures thermal solutions and cooling products.
WIWYNN CORPORATION
Wiwynn Corporation is a publicly traded company headquartered in Taiwan and founded in 2012. The company designs and manufactures high-performance computing and server solutions.
INSPUR CO., LTD.
Inspur Co., Ltd. is a publicly traded company headquartered in China and founded in 1998 with 6,896 employees. The company provides cloud computing, servers, and information technology solutions.
Reasons to Buy this Report
- Market Size & Growth Validation : Obtain precise market valuation data for China's direct-to-chip cooling sector with detailed CAGR analysis, enabling accurate financial forecasting and investment decision-making for the 2026-2031 period.
- Competitive Intelligence : Identify key market players, emerging competitors, and technology leaders operating in China's cooling solutions space to benchmark your positioning and develop targeted market entry or expansion strategies.
- Demand Driver Analysis : Understand the specific factors fueling China's exceptional 35.4% growth rate—including AI investments, hyperscale expansion, and semiconductor manufacturing—to align product development and marketing initiatives with market dynamics.
- Regional Opportunity Assessment : Evaluate geographic hotspots within China for data center development and cooling solution deployment, identifying high-potential cities and industrial zones for targeted business development efforts.
- Technology Trend Insights : Access detailed analysis of cooling technology preferences in China—including liquid cooling, immersion systems, and hybrid solutions—to guide R&D investments and product portfolio optimization.
Frequently asked questions
What is the projected market size for direct-to-chip cooling in China by 2031?
China's direct-to-chip cooling market is projected to reach USD 1,792.4 million by 2031, up from USD 291.2 million in 2026.
What is the CAGR for China's direct-to-chip cooling market?
China's direct-to-chip cooling market is expected to grow at a compound annual growth rate of 35.4% between 2026 and 2031.
What factors are driving growth in China's direct-to-chip cooling market?
Growth in China is driven by massive AI infrastructure investments, hyperscale data center expansion, semiconductor manufacturing demands, and government sustainability initiatives.
How does China's market growth compare to global trends?
China's 35.4% CAGR significantly exceeds the global average of 26.5%, reflecting China's strategic focus on advanced data center cooling technologies.
Which industries in China are adopting direct-to-chip cooling solutions?
Cloud service providers, AI training facilities, semiconductor manufacturers, and hyperscale data center operators in China are primary adopters of direct-to-chip cooling technologies.
RESEARCH METHODOLOGY
The research methodology used to estimate the size of the data center direct-to-chip cooling market consisted of four major activities. Extensive secondary research was conducted to gather detailed information on the market, peer markets, and parent markets. These findings, assumptions, and metrics were verified through primary interviews with experts from both the demand and supply sides of the data center direct-to-chip cooling value chain. Both top-down and bottom-up approaches were used to estimate the total market size. Market sizes for various segments and subsegments were finalized through comprehensive market segmentation and data triangulation.
Secondary Research
The research methodology for estimating and forecasting the data center direct-to-chip cooling market begins with gathering data on key vendors' revenues through secondary research. This process draws on a range of secondary sources, including Hoover's, Bloomberg Businessweek, Factiva, the World Bank, and industry-specific journals. These sources encompass annual reports, press releases, investor presentations, white papers, certified publications, articles by recognized authors, regulatory notifications, trade directories, and databases. Vendor offerings are also considered to inform market segmentation.
Primary Research
The data center direct-to-chip cooling market comprises several stakeholders throughout the supply chain, including raw material suppliers, processors, end-product manufacturers, and regulatory organizations. The demand side of this market is characterized by industry segments, coolant types, and end users. The supply side is characterized by technological advancements and a wide range of applications. Primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. The following is the breakdown of the primary respondents:
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
The top-down and bottom-up approaches have been used to estimate and validate the total size of the data center direct-to-chip cooling market. These approaches have also been widely used to calculate the sizes of various dependent market subsegments. The research methodology used to estimate the market size included the following:
The following segments provide details about the overall market size estimation process employed in this study:
- Extensive primary and secondary research was done to identify the key players.
- The value chain and market size in terms of value of the data center direct-to-chip cooling market were determined through primary and secondary research.
- All percentage shares, splits, and breakdowns were collected through secondary sources and verified through primary sources.
- All possible parameters that affect the market were covered in this research study and are viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The study of reports, reviews, and newsletters of top market players, along with extensive interviews for opinions from key leaders, such as CEOs, directors, and marketing executives, is included in this research.
Data Center Direct to Chip Cooling Market : Top-Down and Bottom-Up Approach
Data Triangulation
After estimating the overall market size using the above estimation process, the market was segmented into various segments and subsegments. Data triangulation and market segmentation techniques, along with the market engineering process, were employed to obtain precise market analysis data for each segment and its subsegments.
Research Methodology: The research methodology used to estimate and forecast the global market size began by aggregating data and information from various levels, including country-level data.
Market Definition
The data center direct-to-chip cooling market refers to the segment of the data center cooling industry that uses liquid-based thermal management solutions to deliver coolant directly to CPUs, GPUs, and accelerators via cold plates and similar devices. This method enables organizations to extract heat from their systems through a closed-loop process that operates more efficiently and allows them to install more equipment than traditional air cooling systems. The market includes cooling infrastructure components that provide essential equipment for hyperscale data centers, colocation facilities, and enterprise data centers, including cold plates, coolant distribution units, pumps, and advanced fluids. The market is growing because AI, cloud computing, and high-performance computing create a need for higher computing power, which generates excessive heat that traditional air cooling systems cannot handle. Operators are using direct-to-chip cooling systems to achieve energy-efficient thermal management that protects system performance while supporting next-generation data center designs requiring high-density configurations.
Key Stakeholders
- Data center direct to chip cooling manufacturers
- Manufacturers of small and mid-sized data centers
- Manufacturers of hyperscale, colocation providers, and enterprises
- Traders, distributors, and suppliers of data center direct to chip cooling
- ASHRAE (American Society of Heating, Refrigerating and Air Conditioning Engineers), Open Compute Project (OCP), Uptime Institute, The Green Grid, Data Center
- Dynamics, Bitcoin Mining Council, Blockchain Infrastructure Alliance, Liquid Cooling Coalition, European Data Centre Association (EUDCA), Asia Pacific Data Centre Association (APDCA)
- Contract manufacturing organizations (CMOs)
- NGOs, governments, investment banks, venture capitalists, and private equity firms
Report Objectives
- To define, describe, and forecast the size of the data center direct-to-chip cooling market, in terms of value, based on type, coolant type, end user, and region
- To provide detailed information regarding the key factors, such as drivers, restraints, opportunities, and industry-specific challenges, influencing the growth of the data center direct-to-chip cooling market
- To strategically analyze micromarkets with respect to individual growth trends, prospects, and their contribution to the total market
- To analyze opportunities in the market for stakeholders and provide a competitive landscape of the market leaders
- To project the size of the market and its submarkets, in terms of value and volume, with respect to five regions (along with their respective key countries), namely, North America, Asia Pacific, Europe, South America, and the Middle East & Africa
- To provide ecosystem analysis, case study analysis, value chain, patent analysis, technology analysis, pricing analysis, Porter's five forces analysis, key stakeholders and buying criteria, investment and funding scenario, trade analysis, impact of AI/Gen AI and 2025 US tariff, key conferences and events, regulatory bodies, government agencies, and regulations about the market under study
- To strategically profile the key players and comprehensively analyze their core competencies
- To analyze competitive developments such as mergers & acquisitions, product launches, and research & development in the data center direct-to-chip cooling market
- To provide the macroeconomic outlook for all regions considered under the study
Available customizations:
Based on the given market data, MarketsandMarkets offers customizations tailored to client-specific needs.
The following customization options are available for the report:
? Additional country-level analysis of the data center direct-to-chip cooling market
? Profiling of additional market players (up to 5)
Product Analysis
- Product matrix, which provides a detailed comparison of each company's product portfolio.
Get the Full Data Center Direct-to-chip Cooling Market Report
Full forecast, segment splits, and company analysis for all Data Center Direct-to-chip Cooling Market.
- US Data Center Direct-to-chip Cooling Market
- Canada Data Center Direct-to-chip Cooling Market
- Mexico Data Center Direct-to-chip Cooling Market
- Germany Data Center Direct-to-chip Cooling Market
- France Data Center Direct-to-chip Cooling Market
- UK Data Center Direct-to-chip Cooling Market
- Japan Data Center Direct-to-chip Cooling Market
- India Data Center Direct-to-chip Cooling Market
- South Korea Data Center Direct-to-chip Cooling Market
- Malaysia Data Center Direct-to-chip Cooling Market
- Singapore Data Center Direct-to-chip Cooling Market
- Australia Data Center Direct-to-chip Cooling Market
- Saudi Arabia Data Center Direct-to-chip Cooling Market
- South Africa Data Center Direct-to-chip Cooling Market
- Brazil Data Center Direct-to-chip Cooling Market
- Rest Of Europe Data Center Direct-to-chip Cooling Market
- Rest Of Asia Pacific Data Center Direct-to-chip Cooling Market
- Rest Of GCC Countries Data Center Direct-to-chip Cooling Market
- Rest Of South America Data Center Direct-to-chip Cooling Market
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