As data centres face increasing demands for computing power, particularly with the rise of AI and high-performance computing (HPC), innovative cooling solutions are becoming critical.
Traditional air-cooling methods are struggling to manage the escalating heat loads, driving a shift towards more efficient and sustainable alternatives.
As a result, BIS Resdearch predicts renewed focus on efficiency and reduced environmental impact for current and future data centre operations.
The global direct-chip liquid cooling market, valued at $1.2 billion in 2024, is projected to reach $8.6 billion by 2033, expanding at a CAGR of 24.7%. This growth, claims Research intelo, is fueled by the need for energy-efficient cooling and the expansion of cloud-based infrastructure.
DCLC: A Mainstream Solution
Direct-to-chip liquid cooling (DCLC) is emerging as a mainstream necessity, with 22% of data centres already implementing such systems.
DCLC involves circulating a coolant directly to heat-generating chips, enhancing thermal management with minimal energy waste. This method offers enhanced cooling efficiency, energy savings, improved performance, and space optimisation compared to air cooling.
While the initial investment can be high, the superior energy efficiency and cooling capacity make it increasingly indispensable. At a CAGR of 22.7%, Precedence Research claims the Asia-Pacific region will experience the fastest growth over its forecast period of 2023-2034.
The firm attributes the growth to regional rapid digital transformation, increased adoption of cutting-edge technologies, and demand for energy-efficient and sustainable solutions. It cites national efforts by the governments of China, India, Japan and Singapore as encouraging initiatives in innovation and development of advanced direct-to-chip liquid cooling solutions.
Key trends and innovations
- AI-powered optimisation: AI algorithms are being used to monitor, analyse, and optimise power and cooling operations in real-time, ensuring efficient use of cooling resources and early identification of potential issues.
- Hybrid cooling systems: Most data centres are adopting a hybrid approach, utilising both liquid and air cooling methods to balance performance and cost. Stratview Research says Rear Door Heat Exchangers (RDHx) are gaining popularity as they are easier to implement.
- Two-phase cooling: Two-phase direct-to-chip cooling technology, which toggles working fluid between liquid and vapor states, is expected to break into the mainstream for more sophisticated data centres with higher computing needs.
- Sustainability initiatives: Data centres are increasingly focusing on sustainability, with many adopting renewable energy sources and water-efficient cooling technologies. The UN Environment Programme (UNEP) has released guidelines to help governments reduce the energy and water consumption of data centres.
Challenges and considerations
- High Initial Investment: The upfront cost of implementing DCLC systems remains a barrier for smaller organisations. Research intelo says the technology demands specialized infrastructure and maintenance expertise, which may slow adoption in cost-sensitive markets.
- Standardisation Issues: The absence of universal standards for liquid cooling components can create compatibility challenges. Research intelo believes industry-wide collaboration is required to establish uniform guidelines that promote interoperability and scalability.
- Retrofitting Existing Infrastructure: Integrating liquid cooling into existing data centres may require significant modifications and can be limited by the availability of cooling water loops.
- Humidity Problems: Direct-to-chip cooling is susceptible to condensation in humid settings, which can damage hardware.
Future Outlook
The data centre cooling market is poised for rapid expansion, driven by AI, HPC, and sustainability goals, posits BIS Research. The industry is moving towards more adaptable and scalable cooling infrastructures capable of supporting the next generation of cloud and edge computing demands.
As technology matures and costs decline, adoption is expected to extend beyond hyperscale operators to medium-sized enterprises and edge deployments, concluded Research intelo.
