Global Data Center Liquid Cooling Market to Grow at a CAGR of Approximately 16% Through 2020, Says Technavio


According to the latest market study released by Technavio, the global data center liquid cooling market is expected to grow at a CAGR of almost 16% during the forecast period.

This research report titled ‘Global Data Center Liquid Cooling Market 2016-2020’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. This market research report also includes an up to date analysis and forecasts for various market segments and all geographical regions.

“Data center operators are building data center facilities that can deliver high efficiency and reduce power consumption. Cooling solutions have become an integral part of data centers. Liquid-based cooling that uses water as a medium to cool the data center along with liquid-immersion cooling solutions has proven to be efficient in terms of growing rack power density and energy consumption as compared to air-based cooling,” says Abhishek Sharma, a lead analyst at Technavio for data center research.

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The report categorizes the global data center liquid cooling market into the following five major product segments, of which the top three are discussed below:

  • Air Conditioners
  • Economizers
  • Cooling towers
  • Chillers
  • Others

Air conditioners

The global data center liquid cooling market by air conditioners is expected to reach USD 1.6 billion by 2020, growing at a CAGR of more than 12%. Commonly adopted air conditioning systems in data centers are the chilled water system. This water can be provided by chilled water plants called chiller units installed in the data center building. In most cases, for liquid-based cooling, the cold air is circulated inside the building through computer room air handling (CRAH), where the water is supplied through the chiller unit. For row and rack-based cooling, chilled water-based closed control computer room air conditioning (CRAC) units, namely precision air conditioners, are generally adopted to reduce the heat dispersed by the server at source.

In terms of water-based cooling, the adoption of chilled water-based precision air conditioners (CRAC units) will continue to drive the market during the forecast period. These chilled water precision air conditioners are capable of working efficiently irrespective of the rack power density. In addition, the market for air-conditioning using liquid-based cooling techniques will also grow because of the increased use of CRAH units in data centers in conjunction with chiller units.


The global data center liquid cooling market by economizers is likely to reach USD 1.4 billion by 2020, growing at a CAGR of close to 21%. Economizers use external climatic conditions to supply chilled water to cool the data center environments. They reduce the energy consumption of a cooling cycle. Water economizers use the heat exchange process to lower the heat from chilled-water loops using external air. They reduce or eliminate the need for chiller refrigeration cycle by cooling water using a water loop, enabling energy-efficient cooling of air.

The Green Grid is a non-profit association that focuses on improving the efficiency of data centers. According to a survey conducted by this organization, economizers find more usage in large data centers. Water-cooled chillers figure among the most widely-adopted economizers for data centers. Notably, economizers offer more reliability compared to other alternatives and help reduce the OPEX for data centers considerably.

The adoption rate of economizers is expected to be higher as compared to other units among countries having favorable climatic conditions (in terms of air quality and humidity level) that enable free cooling through economizers. The growth rate is expected to stabilize after 2017, as the construction of new data center facilities will see a continual decline during the forecast period.

Cooling towers

The global data center liquid cooling market by cooling towers is anticipated to reach USD 1.3 billion by 2020, growing at a CAGR of more than 11%. Data center operators worldwide combine cooling towers with chillers or condense units to lower the heat dissipated by data center equipment. Water-cooled chillers are considered more energy-efficient than air-cooled chillers because heat levels in the former are rejected near wet-bulb temperatures.

Cooling towers are used with heating, ventilation, and air conditioning (HVAC) systems that use multiple water source heat pumps sharing a common piping water loop. They are classified based on the direction of airflow (cross-flow or counter-flow). They are also classified based on the type of draft (mechanical or natural draft).

“Cooling towers are essential operating units of data centers as they maintain optimal temperatures in most operating conditions. The hot air produced inside data centers can be easily expelled to the external environment with the help of these towers,” says Abhishek.

The top vendors highlighted by Technavio’s ICT research analysts in this report are:

  • Airedale Air Conditioning
  • Climaveneta
  • Data Aire
  • Emerson Network Power
  • Rittal
  • Schneider Electric

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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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Technavio Research
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US: +1 630 333 9501
UK: +44 208 123 1770

Release Summary

This research report titled ‘Global Data Center Liquid Cooling Market 2016-2020’ provides an in-depth analysis of the market in terms of revenue and emerging market trends.



Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770