South America Data Center Liquid Cooling Market (2026-2031)
The South America Data Center Liquid Cooling Market was valued at $116.5 Million in 2026 and projected to reach to $639 Million by 2031, representing a compound annual growth rate of 27.5%. South America's data center liquid cooling market is poised for exceptional growth through 2031, driven by accelerating cloud infrastructure expansion and hyperscale data center deployments across the region.
| Market Size in | USD 26.32 MN |
| Market Forecast in | |
| CAGR | |
| Forecast Period | |
| Units Considered | Value (USD MN) |
South America Data Center Liquid Cooling Market Trends and Insights
- This robust growth trajectory reflects South America's increasing investment in advanced cooling technologies to support expanding cloud infrastructure and hyperscale data center operations across the region.
- South America's market growth is driven by rising energy costs, regulatory pressure for sustainability, and the region's growing digital economy demanding efficient thermal management solutions. The 27.5% compound annual growth rate positions South America as a high-growth market within the global data center liquid cooling sector.
- South America's adoption of immersion cooling, direct-to-chip cooling, and other advanced liquid cooling solutions is accelerating as major technology companies and local operators prioritize operational efficiency and carbon footprint reduction.
- Between 2026 and 2031, South America is expected to capture significant market share as infrastructure modernization initiatives and data localization requirements drive demand for next-generation cooling technologies across Brazil, Argentina, and other key markets in the region..
Key Market Statistics
- CAGR (2026-2031) 27.5% CAGR
- Market Size, 2026 ~USD 116.5 Million
- Forecast, 2031 ~USD 639 Million
- Geography South America
South America Data Center Liquid Cooling Market Overview
Rapid Market Expansion :
South America's data center liquid cooling market is projected to grow from $116.5 million in 2026 to $639 million by 2031, representing a 27.5% CAGR and demonstrating strong regional momentum in cooling technology adoption.
Hyperscale Data Center Growth :
Increasing investments in hyperscale data center operations across South America are driving demand for advanced liquid cooling solutions to manage heat dissipation and improve operational efficiency in the region's expanding cloud infrastructure.
Cloud Infrastructure Acceleration :
South America's growing cloud adoption and digital transformation initiatives are creating substantial opportunities for liquid cooling technologies to support emerging data center deployments and modernization projects across the region.
Regional Technology Investment :
Major technology investments and infrastructure development in South America are positioning the region as a key market for advanced cooling solutions, with enterprises prioritizing energy-efficient and sustainable data center operations.
South America Data Center Liquid Cooling Market Dynamics
- The 27.5% CAGR reflects increasing recognition of liquid cooling's superior efficiency and cost-effectiveness compared to traditional air cooling methods, particularly as enterprises scale operations to meet rising digital demands. Key growth catalysts include rising energy costs, environmental sustainability mandates, and the need for higher computing density in data centers.
- South America's strategic position as a growing tech hub, combined with increasing foreign direct investment in cloud services and digital infrastructure, will continue to fuel demand for advanced liquid cooling technologies.
- Regional players and global vendors are expanding their presence to capitalize on this high-growth opportunity..
Related Ecosystem
Equipment Machine And Tooling
Speciality Chemicals
Key Takeaways
- South America's data center liquid cooling market will grow from $116.5M (2026) to $639M (2031), representing a 27.5% CAGR.
- South America's market expansion is driven by energy efficiency mandates, rising operational costs, and increased hyperscale data center deployments.
- South America is adopting advanced cooling technologies including immersion cooling and direct-to-chip solutions to meet sustainability and performance requirements.
- South America's growth rate outpaces many mature markets, positioning the region as a critical opportunity for liquid cooling solution providers.
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 |
South America 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 : South American data center operators need this market intelligence to evaluate liquid cooling investments, benchmark against regional peers, and optimize cooling infrastructure for cost and efficiency gains.
- Technology & Equipment Vendors : Cooling solution manufacturers and IT equipment providers require detailed South America market data to develop regional strategies, identify customer segments, and prioritize product development for the expanding market.
- Cloud Service Providers & Hyperscalers : Major cloud and hyperscale operators expanding in South America need market insights to plan infrastructure investments, evaluate cooling technologies, and assess competitive positioning in the region.
- Private Equity & Investment Firms : Investors evaluating opportunities in South America's data center and cooling technology sectors require comprehensive market analysis to assess growth potential, valuations, and exit opportunities.
- Consulting & Systems Integration Firms : Consultants advising South American enterprises on data center modernization and infrastructure optimization need regional market data to provide informed recommendations and competitive benchmarking.
Key Companies in the South America 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.
Countries within South America - compare and drill down
| Country | 2025 size (native) |
|---|---|
| Brazil | USD 414.8 Million |
| Rest Of South America | USD 224.2 Million |
Country market size visualization
Reasons to Buy this Report
- Regional Market Sizing & Forecasts : Obtain precise market valuations for South America's liquid cooling sector with detailed projections through 2031, enabling accurate business planning and investment decisions specific to the region's growth trajectory.
- Competitive Landscape Intelligence : Understand key players, market share dynamics, and competitive positioning within South America's data center cooling market to identify partnership and expansion opportunities in this high-growth region.
- Technology Adoption Trends : Gain insights into liquid cooling technology preferences, adoption rates, and implementation patterns specific to South American data centers, including immersion cooling and direct-to-chip solutions.
- Investment & Growth Opportunities : Identify high-potential segments, emerging use cases, and geographic hotspots within South America where liquid cooling demand is accelerating fastest, supporting strategic market entry and expansion planning.
- Regulatory & Sustainability Drivers : Access analysis of regional environmental regulations, energy efficiency mandates, and sustainability initiatives driving liquid cooling adoption across South American data center operations.
Frequently asked questions
What is the current size of South America's data center liquid cooling market?
South America's data center liquid cooling market is valued at $116.5 million in 2026 and is projected to reach $639 million by 2031.
What is the CAGR for South America's data center liquid cooling market?
South America's data center liquid cooling market is expected to grow at a compound annual growth rate of 27.5% from 2026 to 2031.
What factors are driving growth in South America's liquid cooling market?
South America's market growth is driven by rising energy costs, environmental regulations, hyperscale data center expansion, and the region's digital transformation initiatives.
Which cooling technologies are gaining adoption in South America?
South America is increasingly adopting immersion cooling, direct-to-chip cooling, and other advanced liquid cooling solutions to improve efficiency and reduce carbon footprints.
Which countries in South America are leading the liquid cooling market?
Brazil and Argentina are the primary markets driving South America's data center liquid cooling growth due to their large data center infrastructure and digital economy expansion.
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
- China 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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