US Data Center Liquid Cooling Market

The report "US Data Center Liquid Cooling Market by Component (Solution and Services), End User (Colocation Providers, Enterprises, and Hyperscale Data Centers), Cooling Medium, Data Center Type, Type of Cooling, Enterprise, and Region – Global Forecast to 2032, data center liquid cooling market is estimated to be USD 0.82 billion in 2025 and projected to reach USD 6.59 billion by 2032, at a CAGR of 34.5%, during the forecast period.

Browse in-depth TOC on "US Data Center Liquid Cooling Market by Component (Solution and Services), End User (Colocation Providers, Enterprises, and Hyperscale Data Centers), Cooling Medium, Data Center Type, Type of Cooling, Enterprise, and Region – Global Forecast to 2032"
View detailed Table of Content here - https://www.marketsandmarkets.com/Market-Reports/data-center-liquid-cooling-market-84374345.html

The US data center liquid cooling market is driven by the high-speed acceptance of AI workloads and high-performance computing (HPC). These applications generate excessive heat, making traditional air cooling inadequate, particularly when rack densities exceed 30 to 50 kW capacity. Consequently, more sophisticated liquid cooling techniques, such as direct-to-chip (DTC) cooling, immersion cooling, and cold plate technologies, are becoming increasingly prevalent. Liquid cooling is gaining popularity in the US among hyperscale and edge data centers, particularly those expanding quickly to accommodate cloud, IoT, and 5G equipment. Besides the expansion, the shift is also driven by regulatory pressures such as US carbon emission reduction goals, which are set by the EU Energy Efficiency Directive and go even further in calling for adopting energy-efficient cooling solutions. Liquid cooling presents a good energy-saving opportunity that could ultimately reduce cooling energy consumption by 30–50%, which is of prime importance as the data center power use in the US is expected to rise rapidly and thus contribute greatly to the global electricity demand by 2030.

By enterprise, the US IT and telecom segment is estimated to be the fastest-growing data center liquid cooling segment from 2025 to 2032.

From 2025 through 2032, the US IT & Telecom market is expected to be the most rapidly growing adoption of data center liquid cooling technology, fueled by accelerated development of cloud computing, deployments of 5G, and embedding AI in network functions. Telecom giants AT&T, Verizon, and T-Mobile's move to Network Function Virtualization (NFV) and edge computing architectures require higher-density data centers with higher capacity to process real-time nearer the users. These solutions create high heat loads, so air cooling is inefficient. Liquid cooling, primarily through DTC and immersion solutions, offers enhanced thermal management, lower latency, and improved performance—essential for telco-grade uptime and service level agreements (SLAs).

Concurrently, information technology companies—largely hyperscalers like Amazon Web Services, Microsoft, and Google—increasingly adopt artificial intelligence (AI) training models, metaverse infrastructure, and high-volume data analytics workloads, necessitating extremely high computing density. The move by the US government to encourage local chip production and protect data sovereignty is also driving the growth of high-capacity, secure data centers for information technology and telecom companies. These data centers are increasingly adopting liquid cooling solutions for thermal control and to meet expected energy regulations in many states. As carbon neutrality and energy resilience operations become a strategic imperative, IT and telecom companies are leading the move to liquid cooling to optimize energy efficiency and save long-term operating costs.

By data center type, the small and mid-sized data center segment in the US is estimated to be the fastest-growing segment of the data center liquid cooling market from 2025 to 2032.

Small and medium-sized data centers in the US are expected to be the largest-growing segment of the data center liquid cooling market from 2025-2032. The growth is driven primarily by the rising application of AI, edge computing, and localized data processing. Unlike the hyperscale service providers who have traditionally invested capital in advanced thermal management technologies, enterprise and colocation providers with smaller facilities are now faced with rack densities of more than 30–40 kW, which is beyond the capabilities of traditional air cooling systems. Such data centers are witnessing tremendous growth in Tier 2 and Tier 3 cities, thus enabling industries like healthcare, finance, and e-commerce that need real-time data processing and low-latency operations. The increasing workload drives smaller companies toward efficient, space-conserving cooling technologies like DTC and liquid cold plate systems. Modular liquid cooling systems also enable a cost-effective and simple solution for retrofitting mid-sized facilities, which is driving adoption.

Besides, regulatory and sustainability pressures push these operators to boost energy efficiency and lower operating expenses. Most small and medium-sized enterprises (SMEs) come under state-level energy mandates (e.g., California's Title 24 and New York's climate policies), which promote installing eco-friendly, high-efficiency cooling systems. Liquid cooling provides up to 30–50% higher thermal efficiency, lowering energy costs by a significant margin—a compelling value proposition for mid-size operators with tighter purse strings. Furthermore, the emergence of AI startups, fintech platforms, and SaaS providers—many of whom host small data centers or use colocation—adds more demand for scalable liquid cooling. As the US digital economy increasingly diversifies, these mid-tier facilities are expected to be overriding enablers, making them the epicenter of liquid cooling market growth over the next decade.

By end user, the hyperscale data center segment in the US is estimated to be the fastest-growing data center liquid cooling market segment from 2025 to 2032.

The US hyperscale data center market is expected to be the leading adopter of liquid cooling solutions between 2025 and 2032, driven by the enormous computation demands of AI model training, machine learning, and deep analytics. Large hyperscalers such as AWS, Google, Meta, and Microsoft are spending big money on their facilities, as rack power densities are now breaching 50 kW—the point at which traditional air-cooling solutions start losing their efficiency and viability.

In addition, such organizations are under increasing pressure to meet net-zero emission targets and sustainability targets; therefore, liquid cooling is a viable option with a 30–50% energy efficiency gain. Utilizing chipset architectures, graphical processing units (GPUs), and high-density clusters in hyperscale environments necessitates the application of DTC and immersion cooling methods to effectively manage thermal loads. Big hyperscalers have economies of scale, so the initial investment in liquid cooling is economical and scalable geographically.

As hyperscale providers build multi-megawatt facilities across the US, including modular and edge expansions in rural areas to accommodate latency-sensitive workloads like 5G and IoT, the demand for space-optimized and thermally efficient cooling grows stronger. Increasing regulatory attention from state-level energy commissions and utility partners and encouraging energy-efficient infrastructure compels hyperscalers to add next-generation dielectric fluids, AI-driven thermal management, and hybrid cooling loops to reduce operating costs and emissions. The US government's emphasis on data sovereignty and domestic cloud infrastructure resilience further drives infrastructure development, creating demand for sustainable high-performance cooling solutions. These factors drive the hyperscale segment to be the epicenter of growth in the US liquid cooling market through 2032.

North America to be the fastest-growing region in the data center liquid cooling market during the forecast period, with the US being the largest country in the region.

North America is projected to hold the largest data center liquid cooling market, thanks to the increase in hyperscale data center buildouts, AI-based workloads, and cloud computing demands. The region is home to the largest data center operators worldwide: AWS, Microsoft, Google, and Meta, who invest heavily in DTC and immersion cooling technologies to enhance energy efficiency and sustainability. Severe government regulations on carbon emissions and the move toward green data centers are also playing a key role in the growth of liquid cooling.

The US is the leader of the North American liquid cooling data center market, and the technology leadership of hyper-scale infrastructures of global tech giants Google, Amazon, Microsoft, and Meta leads it. These leaders actively promote next-generation thermal management for AI and HPC workloads, advocating for liquid-based cooling solutions instead of traditional air cooling. High R&D investments and collaboration with cooling disruptors GRC and Submer further place the US leadership in immersion and DTC cooling technology. Federal and state energy efficiency regulations and increasing electricity rates propel liquid-based solution adoption. Availability at the scale of renewable energy also pushes energy-optimized, sustainable construction of data centers. This imperative of technology, policy push, and innovation confluence provides a strategic advantage for the US to position itself in market leadership in the region.

By 2032, the power demand from data centers in the US alone is expected to reach 35 GW, necessitating huge investments in energy-efficient cooling techniques. With a 70% increase in data center construction and record-low vacancy rates (2.6%), liquid cooling is a fundamental requirement in high-density, high-performance computing environments.

Key companies in the US data center liquid cooling market:

Vertiv Group Corp. (US), Green Revolution Cooling Inc. (GRC) (US), LiquidStack Holding B.V. (US), LiquidCool Solutions, Inc. (US), Midas Immersion Cooling (US), BOYD (US), and Chilldyne, Inc. (US) are the key players in the data center liquid cooling market in the US.

Don’t miss out on business opportunities in US Data Center Liquid Cooling Market. Speak to our analyst and gain crucial industry insights that will help your business grow.

About MarketsandMarkets™

MarketsandMarkets™ has been recognized as one of America's Best Management Consulting Firms by Forbes, as per their recent report.

MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. With the widest lens on emerging technologies, we are proficient in co-creating supernormal growth for clients across the globe.

Today, 80% of Fortune 2000 companies rely on MarketsandMarkets, and 90 of the top 100 companies in each sector trust us to accelerate their revenue growth. With a global clientele of over 13,000 organizations, we help businesses thrive in a disruptive ecosystem.

The B2B economy is witnessing the emergence of $25 trillion in new revenue streams that are replacing existing ones within this decade. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.

Built on the 'GIVE Growth' principle, we collaborate with several Forbes Global 2000 B2B companies to keep them future-ready. Our insights and strategies are powered by industry experts, cutting-edge AI, and our Market Intelligence Cloud, KnowledgeStore™, which integrates research and provides ecosystem-wide visibility into revenue shifts.

To find out more, visit www.MarketsandMarkets™.com or follow us on Twitter , LinkedIn and Facebook .

Contact:
Mr. Rohan Salgarkar
MarketsandMarkets™ INC.
1615 South Congress Ave.
Suite 103, Delray Beach, FL 33445
USA: +1-888-600-6441
Email: sales@marketsandmarkets.com
Visit Our Website: https://www.marketsandmarkets.com/