Direct-to-chip Liquid Cooling Market Reduces Data Center Power Usage

The global direct-to-chip (D2C) liquid cooling market was estimated at USD 1.96 billion in 2024 and is anticipated to reach USD 5.62 billion by 2030, expanding at a CAGR of 19.7% from 2025 to 2030. The rapid increase in heat generation from modern processors—including CPUs, GPUs, and ASICs—due to rising power densities is a key factor accelerating market growth.

Traditional air-cooling technologies are increasingly inadequate for managing the thermal loads of next-generation computing systems. Direct-to-chip liquid cooling addresses this challenge by delivering coolant directly to processor cold plates, enabling efficient heat dissipation at the chip level. This approach ensures stable performance, minimizes thermal throttling, and supports higher compute densities in data centers and high-performance computing (HPC) environments.

Key Market Trends & Insights

• North America accounted for over 39.0% of global revenue in 2024, supported by the rapid expansion of hyperscale data centers serving cloud computing, artificial intelligence (AI), and government-backed digital infrastructure initiatives.
• The U.S. market is projected to grow at a CAGR of 21.6% from 2025 to 2030, driven by sustained investments in advanced data center architectures.
• By cooling solution type, the single-phase liquid cooling segment dominated the market, capturing more than 65.0% of revenue in 2024.
• By component cooling, the CPU cooling segment led the market in 2024 due to high thermal design power (TDP) requirements.
• By liquid coolant type, water-based coolants represented the largest share in 2024 owing to their cost-effectiveness and thermal efficiency.

Market Size & CAGR

• 2024 Market Size: USD 1.96 Billion
• 2030 Projected Market Size: USD 5.62 Billion
• CAGR (2025–2030): 19.7%
• Largest Regional Market (2024): North America
• Fastest-Growing Region: Asia Pacific

The increasing power density of modern CPUs and GPUs used in data centers and HPC applications is a major growth driver for the direct-to-chip liquid cooling market. Advanced processors, such as NVIDIA’s H100 and AMD’s EPYC 9004 series, are pushing thermal design power beyond 500W per chip, making air cooling inefficient and economically unviable.

Direct-to-chip liquid cooling systems, which circulate coolant through cold plates mounted directly on processors, significantly enhance heat removal efficiency. This enables higher clock speeds, sustained computational performance, and reduced energy consumption. In March 2025, CoolIT introduced a cold plate designed for direct liquid cooling in data centers, targeting high-efficiency thermal management for CPUs and GPUs. Comparable in principle to all-in-one (AIO) and custom PC liquid cooling systems, this technology is optimized for large-scale data center deployments.

Continued semiconductor miniaturization is also contributing to higher power densities and heat output across microprocessors, GPUs, and memory modules. Direct-to-chip liquid cooling provides a scalable and effective solution for managing these thermal challenges without compromising system size or performance.

Additionally, the rapid adoption of AI, machine learning, and deep learning workloads has significantly increased computational intensity. These applications require high-performance hardware that generates substantial heat, further driving the adoption of direct-to-chip liquid cooling solutions across enterprise and hyperscale data centers.

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Key Direct-to-Chip Liquid Cooling Company Insights

Leading players in the direct-to-chip liquid cooling market include Asetek, CoolIT Systems, ZutaCore, Vertiv Holdings Co., and Iceotope Technologies. These companies are actively pursuing strategies such as new product development, partnerships, collaborations, and technology agreements to strengthen their competitive positioning.

• In April 2025, JetCool Technologies Inc. launched the SmartSense Coolant Distribution Unit (CDU), a modular, in-rack liquid-to-liquid cooling solution capable of cooling up to 300 kW per rack or over 2 MW at the row level. The system enables free cooling at inlet temperatures above 60°C, reducing reliance on chillers and lowering energy and water consumption.
• In June 2024, Asetek announced a strategic partnership with FABRIC8 LABS to introduce an AI-optimized cold plate developed using ECAM (Electrochemical Additive Manufacturing) technology, aimed at improving thermal performance in both commercial and consumer desktop applications.

Key Direct-to-Chip Liquid Cooling Companies

• Asetek
• Advanced Micro Devices, Inc.
• Chilldyne, Inc.
• CoolIT Systems
• Fujitsu Ltd.
• Iceotope Technologies
• JETCOOL Technologies Inc.
• LiquidStack
• Schneider Electric
• Submer
• Vertiv Holdings Co.
• ZutaCore

Conclusion

The global direct-to-chip liquid cooling market is poised for robust growth through 2030, driven by escalating power densities, the rapid expansion of AI-driven workloads, and the limitations of traditional air-cooling solutions. With strong adoption across hyperscale data centers and HPC environments, direct-to-chip liquid cooling is emerging as a critical thermal management technology. Continued innovation, strategic partnerships, and increasing investments in advanced data center infrastructure are expected to further accelerate market expansion and solidify liquid cooling as a core component of next-generation computing systems.

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