Direct-to-Chip Liquid Cooling - Global Strategic Business Report

The global market for Direct-to-Chip Liquid Cooling was estimated at US$2.0 Billion in 2024 and is projected to reach US$6.1 Billion by 2030, growing at a CAGR of 20.3% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Direct-to-Chip Liquid Cooling market.

Global Direct-to-Chip Liquid Cooling Market - Key Trends & Drivers Summarized

Is Direct-to-Chip Liquid Cooling the Future of High-Performance Computing?

As the demand for high-performance computing (HPC), artificial intelligence (AI), and data-intensive applications continues to grow, traditional air-cooling methods are struggling to keep up with rising thermal loads. Direct-to-Chip (DTC) liquid cooling is emerging as a game-changing solution, offering superior heat dissipation for data centers, supercomputers, and high-density computing environments. Unlike air cooling, which relies on fans and heat sinks, DTC liquid cooling uses cold plates in direct contact with the CPU, GPU, or other high-power components, transferring heat away more efficiently. This method significantly improves energy efficiency, reduces operational costs, and enables higher compute densities without overheating risks. With data centers consuming increasing amounts of power and facing sustainability pressures, the transition toward liquid cooling is gaining momentum. However, factors such as high initial investment, system complexity, and maintenance requirements pose challenges to widespread adoption. Despite these barriers, direct-to-chip liquid cooling is becoming a crucial technology for enabling next-generation computing power while reducing energy consumption.

How Are AI, Cloud Computing, and Edge Data Centers Driving Demand for Liquid Cooling?

The rapid expansion of AI workloads, cloud computing, and edge data centers is accelerating the adoption of direct-to-chip liquid cooling solutions. AI-driven applications such as machine learning (ML), deep learning, and big data analytics require immense processing power, generating substantial heat that traditional cooling methods struggle to manage efficiently. Cloud service providers (CSPs) and hyperscale data centers are turning to liquid cooling to maintain optimal operating conditions, reduce power usage effectiveness (PUE) ratios, and lower their carbon footprint. Additionally, edge data centers, which bring computing closer to end-users for reduced latency, are adopting liquid cooling solutions to manage space constraints and thermal challenges in remote or urban environments. As digital transformation continues, industries such as financial services, healthcare, and autonomous vehicles are deploying high-density computing infrastructure, further driving demand for effective thermal management solutions like DTC liquid cooling.

Can Sustainability Goals and Regulatory Pressures Accelerate the Adoption of Liquid Cooling?

Energy efficiency and environmental sustainability are becoming top priorities for data center operators, prompting increased investment in direct-to-chip liquid cooling technologies. Traditional air-cooling systems require excessive energy for fans, air circulation, and HVAC operations, contributing to high power consumption and carbon emissions. In contrast, liquid cooling reduces cooling-related energy usage by up to 50%, helping companies achieve sustainability targets and comply with stringent environmental regulations. Governments worldwide are imposing stricter energy efficiency mandates for data centers, incentivizing the adoption of greener cooling solutions. Additionally, rising electricity costs and the growing push for carbon neutrality are encouraging enterprises to transition from air cooling to liquid cooling. While concerns over water usage, leakage risks, and infrastructure compatibility remain, ongoing advancements in closed-loop liquid cooling systems and non-conductive cooling fluids are addressing these challenges. As sustainability becomes a competitive differentiator, direct-to-chip liquid cooling is expected to see accelerated adoption across the data center industry.

What Is Driving the Growth of the Direct-to-Chip Liquid Cooling Market?

The growth in the direct-to-chip liquid cooling market is driven by several factors, including the increasing demand for high-performance computing, the expansion of AI and cloud-driven data centers, and the growing emphasis on energy efficiency and sustainability. The rise of edge computing and 5G infrastructure is further fueling demand for compact, efficient cooling solutions. Additionally, technological advancements in liquid cooling materials, non-conductive coolants, and modular cooling architectures are making implementation more feasible for mainstream data centers. The push for carbon-neutral data centers and government regulations on energy efficiency are accelerating the shift toward liquid cooling adoption. Despite challenges such as high upfront costs and integration complexities, continuous innovations in thermal management solutions are positioning direct-to-chip liquid cooling as a critical enabler of next-generation computing. As digital workloads increase, industries will continue to adopt liquid cooling to enhance performance, reduce costs, and meet sustainability objectives, driving significant market growth in the years to come.

Report Scope

The report analyzes the Direct-to-Chip Liquid Cooling market, presented in terms of market value (US$ Thousand). The analysis covers the key segments and geographic regions outlined below.

Segments: Cooling Solution (Single-Phase Liquid Cooling, Two-Phase Liquid Cooling); Component Cooling (CPU Cooling, GPU Cooling, ASIC Cooling, Memory Cooling, Other Components); Liquid Coolant (Water-based Coolants, Dielectric Fluids, Mineral Oils, Engineered Fluids); Application (Servers, Workstations, Edge Computing Devices, Supercomputers, Gaming PCs, Other Application); End-Use (Data Centers End-Use, High-Performance Computing End-Use, Artificial Intelligence/Machine Learning Systems End-Use, Gaming & Esports End-Use, Telecommunications End-Use, Financial Services End-Use, Healthcare & Life Sciences End-Use, Oil & Gas End-Use, Automotive End-Use, Aerospace & Defense End-Use, Other End-Uses)

Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Single-Phase Liquid Cooling segment, which is expected to reach US$4.0 Billion by 2030 with a CAGR of a 18.7%. The Two-Phase Liquid Cooling segment is also set to grow at 23.9% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, estimated at $525.1 Million in 2024, and China, forecasted to grow at an impressive 19.3% CAGR to reach $933.7 Million by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Direct-to-Chip Liquid Cooling Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Direct-to-Chip Liquid Cooling Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Direct-to-Chip Liquid Cooling Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as Advanced Thermal Solutions, Inc. (ATS), Asperitas, Boyd Corporation, Cooling Source Thermal, COFAN-USA and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Select Competitors (Total 34 Featured):

• Advanced Thermal Solutions, Inc. (ATS)
• Asperitas
• Boyd Corporation
• Cooling Source Thermal
• COFAN-USA
• Digital Storm
• Hewlett Packard Enterprise (HPE)
• Iceotope
• LiquidStack
• Mikros Technologies
• Motivair Corporation
• Munters
• STULZ
• Submer
• Super Micro Computer, Inc.
• Usystems
• Vertiv
• Wieland MicroCool
• ZutaCore

Tariff Impact Analysis: Key Insights for 2025

Global tariff negotiations across 180+ countries are reshaping supply chains, costs, and competitiveness. This report reflects the latest developments as of April 2025 and incorporates forward-looking insights into the market outlook.

The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.

What’s Included in This Edition:

• Tariff-adjusted market forecasts by region and segment
• Analysis of cost and supply chain implications by sourcing and trade exposure
• Strategic insights into geographic shifts

Buyers receive a free July 2025 update with:

• Finalized tariff impacts and new trade agreement effects
• Updated projections reflecting global sourcing and cost shifts
• Expanded country-specific coverage across the industry