The global AI data centre liquid cooling market is projected to grow from $3.52 billion in 2026 to $20.39 billion by 2032, registering a compound annual growth rate (CAGR) of 34%, according to a new report by MarketsandMarkets.
The forecast reflects growing investment in artificial intelligence infrastructure, particularly data centres designed to support high-performance computing, graphics processing units (GPUs) and increasingly complex AI workloads.
As computing requirements increase, data centre operators are examining alternatives to conventional air-based cooling systems, which can face limitations when managing the heat generated by densely configured AI processors.
According to the report, rising rack power densities, hyperscale data centre expansion and the need for improved energy and water efficiency are contributing to demand for liquid cooling technologies.
The study identifies direct-to-chip cooling as the segment expected to account for the largest share of the market by value during the forecast period.
Unlike conventional air cooling, direct-to-chip systems circulate liquid coolant close to heat-generating components, including processors, to manage temperatures more directly.
The report also highlights immersion cooling and hybrid cooling architectures as technologies being adopted across hyperscale, colocation and enterprise data centres.
Among infrastructure categories, the 150 kilowatt (kW) and above segment is projected to register the highest CAGR of 78% between 2026 and 2032, reflecting demand for cooling systems capable of supporting higher-density computing environments.
Hyperscale data centres are expected to account for the largest market share by volume, with the segment projected to grow at a CAGR of 34.7%.
Regionally, North America is forecast to retain the largest market share, supported by its established data centre infrastructure and continued investment in AI and high-performance computing.
Asia Pacific, meanwhile, is expected to record the fastest growth, with a projected CAGR of 35.2% during the forecast period.
The report also identifies increasing investor interest in companies developing specialised cooling technologies.
ZutaCore raised $100 million in Series C funding in June 2026 to develop waterless, two-phase direct-to-chip cooling systems, with participation from Mitsubishi Electric, Carrier Ventures and Samsung Ventures.
Separately, Iceotope secured $26 million in Series B funding in May 2026 to advance its precision liquid cooling technology.
The study identifies Vertiv, Schneider Electric and Super Micro Computer among the established companies operating in the market.
It also points to acquisitions involving cooling technology providers, including transactions associated with Eaton, Ecolab and Trane Technologies, as evidence of consolidation across the sector.
According to MarketsandMarkets, continued AI infrastructure investment and the development of higher-density computing facilities are expected to support the adoption of liquid cooling solutions.
The figures represent market projections rather than confirmed future revenues, with actual growth dependent on infrastructure investment, technology adoption and deployment costs.
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