China Data Center Liquid Cooling Market (2026-2031)
The China Data Center Liquid Cooling Market was valued at $381 Million in 2026 and projected to reach to $3128.5 Million by 2031, representing a compound annual growth rate of 35.1%. China's data center liquid cooling market is positioned for exceptional 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 Liquid Cooling Market Trends and Insights
- This represents a compound annual growth rate of 35.1%, significantly outpacing global trends driven by China's massive investments in AI infrastructure, hyperscale data centers, and energy efficiency mandates.
- China's rapid digital transformation and dominance in cloud computing are accelerating adoption of advanced cooling technologies to manage heat dissipation in high-density computing environments. The market expansion in China reflects the country's strategic focus on semiconductor manufacturing, artificial intelligence development, and data center consolidation across major tech hubs.
- China's government initiatives promoting green data centers and carbon neutrality targets are compelling operators to transition from traditional air cooling to liquid cooling solutions.
- By 2031, China is expected to command a substantial share of the Asia Pacific liquid cooling market, driven by continuous infrastructure upgrades and the proliferation of GPU-intensive workloads in data centers throughout the nation..
Key Market Statistics
- CAGR (2026-2031) 35.1% CAGR
- Market Size, 2026 ~USD 381 Million
- Forecast, 2031 ~USD 3128.5 Million
- Country China
China Data Center Liquid Cooling Market Overview
Explosive Growth Trajectory :
China's data center liquid cooling market is projected to grow from $381.0 million in 2026 to $3,128.5 million by 2031, representing a 35.1% CAGR—significantly exceeding the global growth rate of 31.5%.
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, particularly in tier-1 cities like Beijing, Shanghai, and Shenzhen.
Energy Efficiency Mandates :
China's stringent energy consumption regulations and carbon neutrality targets are compelling data center operators to adopt liquid cooling technologies that reduce power consumption and operational costs compared to traditional air cooling.
Hyperscale Data Center Expansion :
Rapid expansion of hyperscale facilities by tech giants and cloud service providers in China is creating unprecedented demand for high-performance liquid cooling systems to manage extreme heat loads in densely packed server environments.
China Data Center Liquid Cooling Market Dynamics
- The country's hyperscale data center operators are increasingly adopting liquid cooling solutions to meet energy efficiency mandates while supporting intensive computational workloads.
- Government support for advanced cooling technologies, combined with rising electricity costs, creates strong incentives for market adoption across enterprise and cloud service provider segments. The competitive landscape in China will intensify as both domestic and international cooling solution providers establish manufacturing and distribution capabilities.
- Regional variations in adoption rates will emerge based on local energy policies, data center density, and technology infrastructure maturity.
- By 2031, liquid cooling is expected to become the standard solution for new hyperscale facilities in China, with retrofit opportunities in existing data centers presenting additional growth avenues..
Related Ecosystem
Equipment Machine And Tooling
Speciality Chemicals
Key Takeaways
- China's data center liquid cooling market will grow from $381.0M (2026) to $3,128.5M (2031) at a 35.1% CAGR, driven by AI and hyperscale infrastructure expansion.
- China's government carbon neutrality mandates and green data center policies are accelerating the shift from air cooling to liquid cooling technologies.
- China's dominance in GPU-intensive AI workloads and semiconductor manufacturing is creating unprecedented demand for advanced thermal management solutions.
- By 2031, China is positioned to become the largest liquid cooling market in Asia Pacific, reflecting the nation's strategic technology investments and digital infrastructure priorities.
Data Center Liquid Cooling Market Report Scope
| Report Metric | Details |
|---|---|
| Base Year | 2026 |
| Fastest Growing Segment | IMMERSION (Cooling Type) |
| Forecast Period | 2026–2031 |
| Growth Rate | CAGR of 31.5% from 2026 to 2031 |
| Largest Segment | DIRECT-TO-CHIP (Cooling Type) |
| Market Size Base Year (Billions) | ~USD 4.07 (2026) |
| Revenue Forecast (Billions) | ~USD 15.99 (2031) |
| Segments Covered | Component, Cooling Type, Data Center Type, End User, Enterprise, Data Center Cooling Type |
China Data Center Liquid Cooling Market Report Segmentation
6 segment dimensions are covered across the global market.
By Component
- Services
- Solutions
By Cooling Type
- Direct-To-Chip
- Immersion
By Data Center Type
- Large
- Large Data Centers
- Small & Mid-Sized
- Small & Mid-Sized Data Centers
By End User
- Colocation Providers
- Enterprises
- Hyperscale Data Centers
By Enterprise
- Bfsi
- Government & Defence
- Government & Defense
- Healthcare
- It & Telecom
- Media & Entertainment
- Other Enterprises
- Research & Academia
- Retail
By Data Center Cooling Type
- Direct-To-Chip Cooling
- Immersion Liquid Cooling
Target Audience
- Data Center Operators & Facility Managers : Need China-specific market data to evaluate liquid cooling adoption timelines, assess technology ROI, and plan infrastructure upgrades aligned with energy efficiency mandates and competitive pressures in the Chinese market.
- Cooling Solution Manufacturers & Suppliers : Require detailed market forecasts and competitive analysis for China to guide product development, manufacturing capacity planning, and go-to-market strategies targeting the region's explosive growth opportunity.
- Cloud Service Providers & Tech Companies : Need China market intelligence to inform hyperscale facility design decisions, technology vendor selection, and capital expenditure planning for data center expansion across mainland China and special economic zones.
- Private Equity & Investment Firms : Seek comprehensive China market analysis to evaluate investment opportunities in cooling technology companies, data center operators, and infrastructure plays benefiting from the region's 35.1% CAGR growth trajectory.
- Government & Policy Advisors : Require market data and trend analysis to inform energy policy development, industrial planning, and technology incentive programs supporting China's digital infrastructure and carbon neutrality objectives.
Key Companies in the China Data Center Liquid Cooling Market
| Company | HQ | Ownership | Strongest segments |
|---|---|---|---|
| PCCW | Hong Kong | Public Company | Fixed and mobile telecom (HKT),Enterprise ICT and managed services,Media and OTT (Viu, TV, advertising), |
| MUNTERS AB | Sweden | Public Company | AirTech (industrial and commercial dehumidification & climate control),Data Center Technologies,FoodTech (farm management and agricultural climate solutions), |
| TELIA COMPANY | Sweden | Public Company | Consumer mobile,Fixed broadband and fiber (consumer and SME),TV and media, |
| THE HCI GROUP | United States | Public Company | Homeowners’ Property and Casualty Insurance,Insurance Technology Platforms (Exzeo, SAMSTM, Harmony, ClaimColony, AtlasViewer),Real Estate and Ancillary Services, |
| PENTAIR PLC | United Kingdom | Public Company | Pool segment (residential and commercial pool equipment and accessories),Flow segment (fluid treatment, pumps, and systems),Water Solutions segment (residential and commercial water treatment), |
| VERTIV GROUP CORP. | United States | Private Company | Integrated power and thermal solutions for data centers,Advanced liquid and immersion-ready thermal subsystems,Racks, enclosures, and IT management platforms, |
| SUPER MICRO COMPUTER, INC. | United States | Public Company | AI and GPU-optimized servers (liquid and air-cooled, PCIe and integrated GPU architectures),Blade, multi-node, and MicroCloud systems (SuperBlade, MicroBlade, FlexTwin, GrandTwin, BigTwin),Storage and rackmount systems (SuperStorage, Hyper, CloudDC, WIO, general rackmount), |
| SCHNEIDER ELECTRIC | France | Public Company | Low- and Medium-Voltage Products and Systems,Building Management, Power Metering, and Critical Power (UPS, Cooling),Industrial Automation and Drives, |
| MODINE MANUFACTURING COMPANY | United States | Public Company | Building HVAC and unit heaters (including makeup air, unit ventilators, modular chillers),Data center and IT cooling solutions,Transportation and powertrain cooling (ICE and electrified), |
| DAIKIN INDUSTRIES, LTD. | Japan | Public Company | Split/Multi-split and Unitary Air Conditioners,VRV, Packaged, Rooftops, and Chillers,Air-to-water Heat Pumps and Heating Systems, |
PCCW
PCCW is a Hong Kong-based public company founded in 1925 with 14,600 employees. The company operates as a major telecommunications and technology services provider in Asia.
MUNTERS AB
Munters AB is a Swedish public company founded in 1955 with 5,153 employees. The company provides air treatment and moisture control solutions for industrial and commercial applications.
TELIA COMPANY
Telia Company is a Swedish public company founded in 1853 with 14,552 employees. The company is a major telecommunications provider serving the Nordic and Baltic regions.
THE HCI GROUP
The HCI Group is a United States-based public company founded in 2006 with 594 employees. The company operates in the insurance and financial services sector.
PENTAIR PLC
Pentair PLC is a United Kingdom-based public company founded in 1966 with 9,000 employees. The company manufactures and distributes water and fluid management solutions globally.
VERTIV GROUP CORP.
Vertiv Group Corp. is a United States-based private company founded in 1965 with 19,000 employees. The company specializes in critical infrastructure and continuity solutions for data centers and communication networks.
SUPER MICRO COMPUTER, INC.
Super Micro Computer, Inc. is a United States-based public company founded in 1993 with 6,238 employees. The company designs and manufactures high-performance server and storage systems.
SCHNEIDER ELECTRIC
Schneider Electric is a France-based public company founded in 1836 with 158,122 employees. The company is a global leader in digital transformation and energy management solutions.
MODINE MANUFACTURING COMPANY
Modine Manufacturing Company is a United States-based public company founded in 1916 with 13,200 employees. The company manufactures thermal management solutions for industrial and automotive applications.
DAIKIN INDUSTRIES, LTD.
Daikin Industries, Ltd. is a Japan-based public company founded in 1924 with 104,095 employees. The company is a global leader in air conditioning, refrigeration, and thermal management solutions.
Reasons to Buy this Report
- Market Entry Strategy for China : Gain detailed insights into China's unique market dynamics, regulatory environment, and competitive landscape to develop effective market entry strategies and localization approaches for liquid cooling solutions.
- Investment Decision Support : Access comprehensive forecasts and growth projections specific to China's market through 2031 to inform capital allocation decisions, facility expansion plans, and technology investment priorities in the region.
- Competitive Intelligence : Understand China-specific competitive positioning, key market players, and emerging technologies to benchmark performance and identify differentiation opportunities in the fastest-growing data center cooling market globally.
- Regulatory Compliance Insights : Navigate China's energy efficiency mandates, environmental regulations, and government incentive programs that directly impact liquid cooling adoption rates and create compliance-driven market opportunities.
- Customer Segmentation Analysis : Identify and prioritize high-value customer segments within China's hyperscale operators, cloud providers, and enterprise data centers to optimize sales strategies and maximize revenue potential in this high-growth market.
Frequently asked questions
What is the projected market size for data center liquid cooling in China by 2031?
China's data center liquid cooling market is projected to reach $3,128.5 million by 2031, up from $381.0 million in 2026, representing a 35.1% compound annual growth rate.
What factors are driving growth in China's data center liquid cooling market?
China's market growth is driven by massive AI infrastructure investments, hyperscale data center expansion, government carbon neutrality mandates, and the need for efficient thermal management in high-density computing environments.
How does China's liquid cooling market growth compare to global trends?
China's 35.1% CAGR significantly exceeds the global average of 31.5%, reflecting the country's accelerated digital transformation and strategic focus on advanced data center technologies.
Which regions in China are experiencing the highest liquid cooling adoption?
Major tech hubs and data center clusters in China, including areas supporting AI development, semiconductor manufacturing, and cloud computing operations, are leading the adoption of liquid cooling solutions.
What role do government policies play in China's liquid cooling market expansion?
China's green data center initiatives and carbon neutrality targets are compelling data center operators to adopt liquid cooling technologies as a more energy-efficient alternative to traditional air cooling systems.
RESEARCH METHODOLOGY
The research entailed four critical steps to assess the present size of the liquid cooling market for data centers. The initial step involved in-depth secondary research to obtain data on the market, allied markets, and the broader parent market. Primary research with industry professionals from the data center liquid cooling supply chain validated these findings and the underlying assumptions and projections. Top-down and bottom-up approaches were both used to arrive at the overall market size. The market was then analyzed, and data triangulation was used to approximate the size of different segments and subsegments.
Secondary Research
This research employed secondary sources like D&B Hoovers, Bloomberg, BusinessWeek, and Dun & Bradstreet to collect and identify the information. These sources consisted of annual reports, press releases, investor presentations, white papers, credible publications, articles by known authors, validated directories, and databases. The secondary data collected was processed to determine the total market size, which was later validated through primary research.
Primary Research
The data center liquid cooling market comprises several stakeholders, such as raw material suppliers, manufacturers, distributors, traders, data center companies, contract manufacturers, and regulatory agencies engaged in the supply chain. A variety of primary sources from both the demand and supply sides were interviewed to collect qualitative and quantitative information for this report. Supply-side information was collected from industry experts such as CEOs, vice presidents, marketing directors, and other significant executives of companies dealing in the liquid cooling industry. The demand side involved interviews with directors, marketing managers, and buying managers from various end-use industries.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
The estimation and validation of the overall size of the data center liquid cooling market utilized both top-down and bottom-up methodologies. These approaches were also applied to assess various subsegments within the market. The research process for determining market size involved several steps:
- Key industry players were identified through thorough primary and secondary research.
- The market size and value chain for data center liquid cooling were evaluated using primary and secondary sources.
- All percentage shares, distributions, and breakdowns were derived from secondary data and confirmed through primary research.
- The study accounted for all relevant factors influencing the market, which were examined in detail, validated through primary sources, and analyzed to produce comprehensive quantitative and qualitative insights.
- The research also involved reviewing reports, newsletters, and analyses from leading market participants, supplemented by in-depth interviews with influential figures such as CEOs, directors, and marketing executives.
Data Triangulation
The market was divided into multiple segments and subsegments after determining the total market size through the previously described estimation methods. Data triangulation and breakdown methods were utilized as needed to finalize the market analysis and obtain precise figures for each segment. This triangulation involved examining various demand and supply factors and trends. Furthermore, the market size was confirmed using both the top-down and bottom-up methodologies.
Market Definition
Liquid cooling in data centers utilizes immersion technology, which involves placing servers in tanks filled with non-conductive coolants that effectively absorb heat. This method offers superior cooling compared to traditional air-cooling techniques and addresses the thermal challenges posed by high-density equipment. Various technologies are available in the market, including direct liquid cooling, indirect cooling, immersion cooling, and cold plate cooling, catering to enterprise, colocation, and hyperscale data centers. The growth in power density, the need for enhanced energy efficiency, and the rise of high-performance and edge computing applications are significant drivers of this market, encompassing all hardware and services associated with liquid cooling solutions.
Key Stakeholders
- Data center liquid cooling solution providers
- Government and research organizations
- Organizations and industry consortia like the Swedish Data Center Industry Association, China Communications Standards Association, Dutch Data Center Association, European Data Center Association, and Africa Data Centers Association are examples of critical associations and bodies within the data center industry.
- Research and consulting firms
- R&D institutes
- National and regional agencies
- Investment banks and private equity firms
Report Objectives
- To define, characterize, and project the market size for liquid cooling in data centers, categorized by component, type of data center, cooling method, end user, enterprise, and region
- To provide in-depth insights into the primary factors that impact market growth, such as drivers, restraints, opportunities, and challenges
- To forecast the size of different segments within the data center liquid cooling market across five regions: North America, Asia Pacific, Europe, South America, and the Middle East & Africa, including significant countries within each region
- To identify stakeholders’ opportunities and outline a competitive landscape, highlighting market leaders
- To explore recent trends, including expansions, agreements, new product launches, partnerships, acquisitions, and collaborations in the data center liquid cooling sector
- To strategically profile the key players, thoroughly examining their core strengths and competencies
Available customizations:
MarketsandMarkets offers various customization choices for this market report, such as:
- An in-depth analysis of each company’s product offerings within the data center liquid cooling sector.
- A detailed examination of a specific region’s data center liquid cooling market focused on a particular country.
- Information and profiles of up to five additional market participants.
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- US Data Center Liquid Cooling Market
- Canada Data Center Liquid Cooling Market
- Mexico Data Center Liquid Cooling Market
- UK Data Center Liquid Cooling Market
- Germany Data Center Liquid Cooling Market
- France Data Center Liquid Cooling Market
- Japan Data Center Liquid Cooling Market
- India Data Center Liquid Cooling Market
- South Korea Data Center Liquid Cooling Market
- Malaysia Data Center Liquid Cooling Market
- Singapore Data Center Liquid Cooling Market
- Australia Data Center Liquid Cooling Market
- Brazil Data Center Liquid Cooling Market
- Saudi Arabia Data Center Liquid Cooling Market
- South Africa Data Center Liquid Cooling Market
- Rest Of Europe Data Center Liquid Cooling Market
- Rest Of Asia Pacific Data Center Liquid Cooling Market
- Other GCC Countries Data Center Liquid Cooling Market
- Rest Of South America Data Center Liquid Cooling Market
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