Data center liquid cooling market forecast to near $29B by 2033

Data Center Liquid Cooling Market Projected to Reach $29 Billion by 2033

Two market research firms released reports on Tuesday forecasting that the global data center liquid cooling market will approach $29 billion by 2033, underscoring how the surge in artificial intelligence workloads is reshaping the physical infrastructure of computing.

Dueling Forecasts, Shared Conclusion

Persistence Market Research projects the market will grow from $5.7 billion in 2026 to $29.2 billion by 2033, a compound annual growth rate of 26.4%. Separately, Grand View Research estimates the market was worth $6.6 billion in 2025 and will reach $29.5 billion by 2033 at a 20.1% CAGR. While the two reports differ in their baselines and growth rates, their destination is strikingly similar — both land near $29 billion within the same timeframe.yahoo

The convergence reflects broad industry consensus that traditional air cooling cannot keep pace with server racks now consuming 30 to 50 kilowatts or more per rack. According to the Persistence Market Research report, the solutions segment commands over 73% of the market, exceeding $4.2 billion in value. North America holds more than 36% of the market, while Asia Pacific is projected to be the fastest-growing region, with Persistence citing a 35.6% CAGR for that area. Grand View Research similarly identifies Asia Pacific as the leading growth region through 2033.aijourn

Supermicro Bets on Failsafe Coolant

The reports arrive as hardware makers race to address the thermal demands of next-generation AI chips. At Computex 2026 in Taipei last week, Super Micro Computer unveiled its SMC PG25-A coolant, which the company says offers 1,000 times higher electrical impedance than standard cooling fluids. The proprietary formula is designed to allow AI systems to keep running even during minor liquid leaks — a persistent concern for data center operators weighing the shift from air to liquid cooling.mlq

A Market Reshaped by AI

The liquid cooling boom is part of a broader infrastructure buildout driven by AI training and inference workloads. Dell’Oro Group estimated in January that the liquid cooling market would roughly double in 2025 to nearly $3 billion before scaling toward $7 billion by 2029. The newer forecasts from Persistence and Grand View suggest the trajectory could steepen further in the early 2030s as hyperscale operators and enterprises deploy denser computing clusters.delloro

Single-phase direct liquid cooling remains the dominant architecture for most deployments, according to Dell’Oro, though alternative approaches are gaining traction as heat loads from next-generation accelerator chips continue to climb.delloro