Increasing pressure to enhance rack-level power density without expanding physical infrastructure is expected to drive a $14 billion increase in the market from 2026 to 2032, according to a report.
DELRAY BEACH, Fla.—The global data center direct-to-chip cooling market is projected to grow from USD 3.33 billion in 2026 to USD 17.31 billion by 2032, at a compound annual growth rate (CAGR) of 26.5 percent during the forecast period, according to a report from the market intelligence and management consulting firm MarketsandMarkets.
The report, “Data Center Direct-to-Chip Cooling Market,” analyzes the market by cooling system type (single phase and two-phase), coolant type (water-glycol-based coolants, dielectric fluids, refrigerants), end user (hyperscale data centers, colocation providers, enterprises), and region, the company stated in a release highlighting its report.
The report identifies the increasing pressure to enhance rack-level power density, without expanding physical infrastructure, as a significant driver of the global data center direct-to-chip cooling market. Data center operators need to achieve higher computing output from their existing facilities because they are using high-wattage processors and server setups that create intense heat production.
“The current cooling methods have lost their effectiveness because they cannot support additional system capacity, while direct-to-chip cooling methods, which control heat at its origin, have become more popular,” the release stated. “Operators need to maintain optimal thermal conditions because real-time applications like AI inference and financial transactions and streaming services require them to reduce latency while increasing processing speed. Direct-to-chip cooling provides temperature control, which prevents thermal throttling and helps maintain processing efficiency throughout the entire process.”
The increasing need for scalable infrastructure solutions has led to investments in cooling technologies. Such technology investments are expected to enable future hardware developments that make direct-to-chip cooling “the preferred solution for developing next generation data centers,” according to the release.
By type, the single-phase segment is projected to grow at the highest CAGR of 26.4 percent during the forecast period. By end user, the hyperscale data centers segment is projected to register the highest CAGR of 27.1 percent during the forecast period, the release said.
The report also identifies Vertiv Group Corp. (U.S.), Super Micro Computer, Inc. (U.S.), Modine Manufacturing Company (U.S.), DCX Liquid Cooling Systems (Poland), and Schneider Electric (France) as some of the leading players in the data center pipes market, owing to their strong market share and product footprint.
Koolance, Inc. (U.S.) and GIGA-BYTE Technology Co., Ltd. (Taiwan), among others, have become leading startups or small and medium-sized enterprises (SMEs) by identifying niche gaps early and delivering solutions that precisely match unmet customer needs. Their agility, faster decision-making, and ability to innovate continuously allow them to outperform larger, less flexible competitors, the release stated.
In addition, the global data center direct-to-chip cooling market is also reportedly expanding due to the growing need for infrastructure standardization and future-ready data center designs that can accommodate rapidly evolving computing technologies. Data center operators now choose adaptable cooling systems because technology cycles are developing faster than their current hardware systems, according to the release.
“Direct-to-chip cooling provides a scalable and modular approach, enabling operators to enhance server capabilities while maintaining effective thermal control throughout the system. The increasing need to cut total ownership expenses throughout data center lifecycles drives organizations to select solutions that provide stable, long-term performance with reduced energy consumption and minimal cooling requirements,” the company said in the release.
Accurate and effective cooling systems, which help maintain performance during extended high-demand periods, are reported to have become necessary because workloads now include real-time data processing systems and advanced simulation applications. Direct-to-chip cooling has become a popular investment choice among organizations because it helps them achieve their long-term infrastructure needs while enabling their energy-efficient, high-capacity data center operations to grow worldwide, according to MarketsandMarkets.
By type of cooling system, the single-phase segment is expected to account for the largest market share, in terms of value, in the data center direct-to-chip cooling market. The report attributes the expectation to the strong compatibility of the single-phase segment with current data center design practices, and its ability to deliver efficient cooling solutions that maintain operational simplicity.
“Single-phase systems use established liquid circulation methods to simplify operational procedures, including system deployment, monitoring, and maintenance tasks,” according to the release.
Familiar operating procedures in data center environments are said to enable organizations to implement new systems with reduced risk, and decision-making becomes faster in environments where they must operate at full capacity. Established infrastructure components, including pumps, heat exchangers, and piping systems, enable organizations to integrate their systems into new buildings and existing facilities, which boosts adoption.
Single-phase cooling systems require lower upfront costs than other systems, and their operational performance remains steady throughout their life. This is said to make them well-suited for organizations that want to achieve efficiency goals while staying within budget limits. Rising demand for high-density computing has led operators to select solutions that provide reliable system stability during operational scaling, which helps the single-phase segment maintain its leadership throughout the forecast period, the release noted.
Water-glycol-based Coolant Segment Expected to Register Fastest Growth by Coolant Type
By coolant type, the water-glycol-based coolant segment is projected to register the fastest growth in the data center direct-to-chip cooling market, in terms of value, during the forecast period.
The water-glycol-based coolant segment is projected to show the highest value growth in the data center direct-to-chip cooling market because of its ability to deliver operational performance and flexible use across extensive system implementations. Data centers need liquid cooling systems because their heat output continues to grow, prompting operators to select coolant systems that maintain stable thermal output while their systems operate safely and durably.
Water-glycol mixtures provide effective heat transfer along with added benefits such as freeze protection and corrosion control, making them suitable for various environmental conditions and for extended service life. The system is adopted more quickly because it works with cooling systems already in place and can be used in both new installations and existing systems that need upgrades. Operators who run data centers across multiple regions require a coolant solution that can work under various conditions, which makes water-glycol-based coolants their main solution.
The need to decrease operational risks while extending equipment lifespan and creating consistent cooling systems for different operating times has resulted in higher demand for their use. The benefits of water-glycol-based coolants are leading to increased funding and quicker implementation, which results in strong growth for this technology during the forecast period.
By End User, Hyperscale Segment Poised for Fastest Growth
By end user, the hyperscale segment is estimated to be the fastest-growing in the data center direct-to-chip cooling market, in terms of value, during the forecast period. The projection is driven by the rapid, continuous expansion of large-scale cloud and AI infrastructure by major technology companies. Hyperscale operators are aggressively investing in next-generation data centers to support rising demand for artificial intelligence, machine learning, and data-intensive applications, all of which require high-performance processors that generate substantial heat at the chip level.
According to the release, adoption of direct-to-chip cooling has increased because this method enables precise heat management, which is critical for sustaining high performance and system reliability in high-density computing environments. The design of hyperscale facilities includes future expansion capabilities, allowing the implementation of advanced cooling systems at larger capacities than in other facility types. The segment follows a trend toward liquid cooling solutions because organizations need to enhance energy savings, reduce power used for cooling, and boost overall operational effectiveness.
“Demand for advanced cooling systems is increasing because hyperscale operators have both financial backing and technical knowledge to implement these systems across their multiple facilities,” the release said. “The combination of massive infrastructure investments, increased compute intensity, and early adoption of innovative technologies is driving hyperscale segment growth at its fastest pace during the upcoming forecast period.”
North America Projected to Account for Largest Market Share, in Value
North America is expected to hold the largest market share in the data center direct-to-chip cooling market. The region’s advantage stems from its data center infrastructure and adoption of advanced computing technologies, according to the release. It is home to major hyperscale operators, such as Amazon Web Services, Microsoft, and Google, which are continuously investing in large-scale, high-density data centers to support growing demand for cloud services, artificial intelligence, and data-intensive applications. These facilities require efficient cooling systems because of their thermal loads.
North America operates a complete network of technology companies, cooling system producers, and system integration firms, enabling quick development and implementation of liquid cooling systems. The region experiences faster technology adoption because of its significant investment resources, sophisticated infrastructure, and high density of AI workloads, the release stated.
As regulatory authorities direct their attention toward energy efficiency and sustainability, operators are encouraged to implement more effective cooling systems that reduce energy use and enhance system efficiency.
“North America maintains its dominant market position throughout the forecast period because the region combines technological expertise with major investments and early implementation of advanced cooling technologies,” the release stated.