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March 2025
The global direct-to-chip liquid cooling market size accounted for USD 2.53 billion in 2025 and is forecasted to hit around USD 12.76 billion by 2034, representing a CAGR of 19.72% from 2025 to 2034. The North America market size was estimated at USD 840 million in 2024 and is expanding at a CAGR of 19.92% during the forecast period. The market sizing and forecasts are revenue-based (USD Million/Billion), with 2024 as the base year.
The global direct-to-chip liquid cooling market size was calculated at USD 2.11 billion in 2024 and is predicted to increase from USD 2.53 billion in 2025 to approximately USD 12.76 billion by 2034, expanding at a CAGR of 19.72% from 2025 to 2034. The demand for high-performance computing, like data analytics, machine learning, and AI, has increased, driving the global direct-to-chip liquid cooling market. Government initiatives in promoting energy efficiency and investments in data center infrastructures are expected to boost the market in the coming period.
The rising utilization of Artificial Intelligence technology is the major influencer driving demand for direct-to-chip liquid cooling systems. AI workloads need high-performance computing, which generates excessive heat. Direct-to-chip liquid cooling solutions help to maintain performance and reliability, as well as efficiency in managing the heat. Companies are focusing on implementing advanced direct-to-chip liquid cooling solutions, such as single-phase solutions, to manage excessive heat produced by the AI workloads.
(Source- https://www.techrepublic.com)
The U.S. direct-to-chip liquid cooling market size was exhibited at USD 630 million in 2024 and is projected to be worth around USD 3,900 million by 2034, growing at a CAGR of 19.99% from 2025 to 2034.
Surge for High-Performance Technology: Key Trend of the North America Market
North America held the major market share of 40% in 2024 with the region’s robust growth in data centers, increased use of high-performance computing, and companies' investments in innovation and technological advancements. North America is the hub for well-established research institutions, universities, and industries, contributing to major adoption of high-performance computing, driving the need for advanced cooling solutions. Additionally, ongoing investments in data center infrastructure are fostering the adoption of direct-to-chip liquid cooling solutions to enhance performance efficiency and reduce the cost burden.
The U.S. is a major player in the regional market, growth driven by a rise in adoption of high-performance technologies, government support for exascale efforts, and growing demand for sustainable and energy-efficient solutions.
U.S. manufacturers and suppliers are facing challenges due to US tariffs. The wide-ranging “liberation day” tariffs sent by US President Donald Trump to the global financial market have created a significant impact on the data center industry.
The US tariffs are significantly impacting sectors, including data center construction, hardware manufacturing, software development, supply chains, user demand, and energy consumption. Despite these economic challenges for the data center liquid cooling sector, the high demand for high-performance computing, cloud services, and AI adoption is expected to continuously foster direct-to-chip liquid cooling in the US data centers.
Digital Transformation Fueling Asian Adoption of Direct-to-Chip Liquid Cooling
Asia Pacific is representing a double-digit CAGR of 22.7% over the forecast period, driven by regional rapid digital transformation, increased adoption of cutting-edge technologies, and demand for energy-efficient and sustainable solutions. The Government of Asian is promoting sustainable infrastructure, encouraging initiatives in innovation and development of advanced direct-to-chip liquid cooling solutions in countries like China, India, Japan, and Singapore. Ongoing US traffic is expected to boost the market significantly in Southeast Asia.
China and Japan are leading countries in the Asian market, with growth driven by China’s robust cloud applications market and Japan’s high-value data centers. The countries are witnessing significant investments in data center advancements, fueling the adoption of the direct-to-chip liquid cooling market.
Rise in Demand for Energy-Efficient Solutions: to fuel the European Market
The European direct-to-chip liquid cooling market has witnessed transformative growth due to an increase in demand for energy-efficient solutions and high-density computing solutions. The Government of Europe is promoting the adoption of green technologies. Stringent regulatory encouragement and companies' heavy investments in research and development, enabling access to advanced direct-to-chip liquid cooling solutions in the region.
Germany is a significant player in the regional market, growth driven by the country's robust focus on sustainability and energy efficiency. Rising data center infrastructure in Germany, contributing to the adoption of direct-to-chip liquid cooling solutions for the management of high heat loads and enhancing renewable power use.
Nvidia’s Major Initiatives in 2025: Direct-to-Chip Liquid Cooling Technology and Sustainability
Nvidia is the major player in 2025 innovation in direct-to-chip liquid cooling solutions. The company has set a goal to resolve AI's water consumption problems with direct-to-chip cooling and reported a 300X improvement with closed-loop systems.
Navida has claimed its GB200 NVL72 and GB300 NVL72 machines to be 25 times more energy-efficient and 300 times more water-efficient than coolers, which use direct-to-chip liquid cooling systems.
(Source: https://www.tomshardware.com)
Direct-to-Chip Liquid Cooling: Key Optimization in Data Center Efficiency
The direct-to-chip liquid cooling market has witnessed significant growth due to increased adoption of energy-efficient and sustainable liquid cooling technologies in data centers and high-performance computing ecosystems. Government support and investment in data center infrastructure have boosted the required for advanced cooling solutions, including direct-to-chip liquid cooling solutions. Additionally, the use of high-performance computing and AI has increased, leading to the production of high heat, driving the need for the adoption of advanced direct-to-chip liquid cooling solutions to improve performance, efficiency, reduce heat, and operational cost. As the growth of digital transformation is being seen, the growth of adoption of direct-to-chip liquid cooling market will take place.
Government Initiatives to Influence the Direct-to-Chip Liquid Cooling Market in 2025
(Source: https://blog.bccresearch.com)
(Source: https://www.mhi.com)
| Report Coverage | Details |
| Market Size by 2034 | USD 12.76 Billion |
| Market Size in 2025 | USD 2.53 Billion |
| Market Size in 2024 | USD 2.11 Billion |
| Market Growth Rate from 2025 to 2034 | CAGR of 19.72% |
| Dominating Region | North America |
| Fastest Growing Region | Asia Pacific |
| Base Year | 2024 |
| Forecast Period | 2025 to 2034 |
| Segments Covered | Cooling Solution Type, Component Cooling, Liquid Coolant Type, Application, End Use, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Sustainability Demand in Data Centers
The rapid expansion of data centers has increased the need for sustainable solutions. Liquid cooling solutions help to reduce energy consumption and carbon footprints. Data centers are adopting direct-to-chip liquid cooling solutions to reduce energy consumption, for water conservation, heat, and to reduce greenhouse gas emissions produced by the data centers. Additionally, the ability of direct-to-chip liquid cooling enables higher compute densities and enhances reliability and performance, helping to reduce the need for additional data center space and consistency in temperatures. Government worldwide is investing in improving energy efficiency, driving innovation, and developments of more efficient direct-to-chip liquid cooling solutions.
High Cost
The direct-to-chip liquid cooling solutions required high investments in installation, infrastructure, and maintenance. The solutions required specialized liquid fluids, which increased their upfront cost. Additional infrastructure requirements like leak detection, monitoring systems, hardware like cold plates, heat exchangers, and pumps can increase cost compared to conventional air-cooling systems. Additionally, direct-to-chip liquid cooling systems can be complex, require customized designs and installation, leading to higher cost. The high cost can hamper adoption in some organizations.
Hyperscale and Edge Data Centers
The establishment of Hyperscale and Edge Data Centers is rising, driven by increased demand for 5G networking, use of AI and IoT, cloud computing, and growing need for low-latency applications. These technologies require spectacular computing power and data storage, driving demand for hyperscale and edge data centers, which drives the requirement for efficient cooling solutions to support high-density computing and energy efficiency. Rising investments in hyperscale and edge data centers are driving investments in cutting-edge cooling solutions, including direct-to-chip liquid cooling systems.
The single-phase liquid cooling segment dominated the global market by holding more than 66% in 2024, driven by wide adoption due to their efficient heat dissipation, cost-effectiveness, and simplicity, making them ideal for high-performance computing and data centers. Technological advancements in single-phase liquid cooling systems are enhancing their efficiency and reliability, driving wide adoption in high-performance computing, IT enterprises, and edge data centers.
The two-phase liquid cooling segment is anticipated to grow fastest over the forecast period due to its increased adoption in high-performance computing. The two-phase liquid cooling system enhances high-density computing application performance and improves energy efficiency. The ability of solutions to handle high heat loads makes them ideal for facilities that require efficient thermal management solutions.
(Source: https://www.prnewswire.com)
In 2024, the CPU cooling segment dominated the market. The heat generation of CPU components is high due to the use of higher core counts and clock speeds. The rapid adoption of AI, IoT devices, cloud computing, and high-performance computing is increasing the power consumption of CPUs, driving the need for advanced and more efficient cooling solutions, including direct-to-chip liquid cooling. The ability of these solutions to efficiently cool high-density computing applications makes them more sustainable solutions.
The memory cooling segment is witnessing significant growth due to increased use of memory chips in modern computing, including servers, HPC systems, AI, and machine learning workloads. The application requires high-performance memory solutions with higher speeds and capacities, generates significant heat, and drives the requirement for efficient thermal management cooling solutions to maintain stability and performance.
The water-based coolants segment generated the largest market share in 2024. Water-based coolants provide high thermal conductivity, making them an ideal choice for heat dissipation. water-based coolants are effective in reducing energy consumption while maintaining high-performance standards, increasing their use in sustainability-conscious enterprises. The cost-effectiveness of these coolants has led to rapid adoption in various industries like data centers and high-performance computing.
The dielectric fluids segment is the second-largest segment, leading the market due to wide adoption for their efficient heat transfer, energy-saving, and sustainable benefits. Dielectric fluid coolants provide major electric installations, making them efficient for direct-to-chip liquid cooling applications. The ability of dielectric fluids to prevent electric shorts and safe operational standards makes them suitable for efficient heat management for high-density electronics.
In 2024, the data center segment captured the largest market share due to the wide adoption of direct-to-chip liquid cooling solutions for data centers. Data centers generate high power densities and heat loads. The traditional air-cooling methods face challenges in managing complex and power-intensive workloads of data centers. Rising adoption of cloud services is driving the requirement for an efficient cooling solution in data centers.
However, the high-performance computing (HPC) segment is expected to lead the market in the forecast period. The use of high-performance computing applications, including AI, IoT, and machine learning, has increased, generating high heat loads, driving demand for efficient thermal management solutions. The high-performance computing ecosystem is expanding in various industries, including research, healthcare, and finance, experiencing the generation of high-power densities and heat generation from CPUs and GPUs. The need for efficient solutions to maintain stable performance and prevent thermal throttling, increasing the adoption of direct-to-chip liquid cooling in high-performance computing (HPC) applications.
The telecommunications segment accounted largest market share in 2024. The expansion for the use of 5G, data centers in the telecommunication industries, contributes to the adoption of direct-to-chip liquid cooling solutions. The edge infrastructure and data center of the telecommunication industry are driving the need for a liquid cooling system to manage heat. Telecommunication has increased adoption of 5G networks for extensive video streaming and massive data generation, driving demand for direct-to-chip liquid cooling to manage sustainability, reduce energy consumption, and maintain optimal performance.
(Source- https://blog.zutacore.com)
The oil and gas segment is the second largest, leading the market, due to increased use of digital oilfield technologies, including downhole and subsea applications, driving the need for liquid cooling solutions to maintain high temperature and improve reliability and performance. The ability of direct-to-chip liquid cooling solutions to offer more efficient and space-saving solutions makes them suitable for high-performance computing used in the oil and gas industry.
By Cooling Solution Type
By Component Cooling
By Liquid Coolant Type
By Application
By End Use
By Region
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