Direct-to-chip Liquid Cooling Market Size, Share & Trends Analysis Report By Cooling Solution Type, By Component Cooling, By Liquid Coolant Type, By Application, By End Use, By Region, And Segment Forecasts, 2025 - 2030

Direct-to-chip Liquid Cooling Market Trends

The global direct-to-chip liquid cooling market size was estimated at USD 1.96 billion in 2024 and is anticipated to grow at a CAGR of 19.7% from 2025 to 2030. Modern processors, including CPUs, GPUs, and ASICs, are generating more heat due to higher power densities.

Traditional air cooling methods are becoming less effective at managing this increased thermal output. Direct-to-chip liquid cooling systems address this challenge by providing efficient heat removal directly at the chip level, ensuring optimal performance and preventing overheating.

The exponential power density of modern CPUs and GPUs in data centers and high-performance computing (HPC) environments is also contributing to the growth of direct-to-chip liquid cooling industry. As processors such as NVIDIA’s H100 and AMD’s EPYC 9004 series push thermal design power (TDP) beyond 500W per chip, traditional air cooling becomes inefficient and cost-prohibitive. Direct-to-chip systems, which deliver coolant directly to cold plates attached to processors, achieve heat removal efficiency, enabling higher clock speeds and sustained performance without thermal throttling. For instance, in March 2025, CoolIT, a provider of liquid cooling solutions, introduced a cold plate designed for direct liquid cooling in data centers, targeting high-efficiency thermal management for components such as CPUs and GPUs. Similar in principle to AIO and custom liquid cooling setups used in personal computers, this technology falls under the direct-to-chip (D2C) cooling category, offering enhanced performance for demanding data center environments.

As semiconductor technology continues to advance, chips are becoming smaller yet more powerful, which increases the power density and heat output. This trend is particularly prevalent in microprocessors, GPUs, and memory modules. Direct-to-chip liquid cooling provides an efficient solution to manage the heat produced by these densely packed components, maintaining system stability and performance. The need to cool high-power density chips without sacrificing size or performance is a significant driver for the adoption of liquid cooling technologies.

The proliferation of AI, machine learning, and deep learning applications has led to a surge in computational requirements. These applications necessitate hardware capable of handling intensive workloads, which in turn generates substantial heat. Direct-to-chip liquid cooling solutions are increasingly adopted in data centers to meet these demands, ensuring that systems remain cool and efficient under heavy processing loads.

Cooling Solution Type Insights

The single-phase liquid cooling segment dominated the market and accounted for the revenue share of over 65.0% in 2024, driven by the escalating need for efficient thermal management solutions in data centers, high-performance computing (HPC), and enterprise IT environments. As computational workloads increase, especially with the expansion of AI, machine learning, and cloud-based applications, traditional air cooling systems are reaching their limits. Single-phase liquid cooling offers a more effective, reliable, and energy-efficient alternative, directly absorbing and transferring heat from processors and other critical components using liquid coolant without changing its physical state.

The two-phase liquid cooling segment is anticipated to register the highest CAGR during the forecast period driven by the increasing demand for high-efficiency thermal management solutions in environments where extreme processing power and heat densities are common, such as hyperscale data centers, AI clusters, and supercomputing facilities. Unlike single-phase cooling, which relies solely on liquid convection, two-phase systems utilize the phase change process-typically from liquid to vapor-to absorb and dissipate heat more effectively.

Component Cooling Insights

The CPU cooling segment dominated the market in 2024, driven by the escalating demand for high-performance computing (HPC), gaming, data centers, and enterprise IT infrastructure. As CPUs evolve with higher core counts and clock speeds, they generate more heat, requiring advanced cooling solutions to maintain optimal performance and ensure system stability. Moreover, the segment's growth can be attributed to the rapid expansion of the gaming and eSports industries, which demand powerful CPUs capable of handling graphically intensive workloads.

The memory cooling segment is expected to grow at a significant CAGR over the forecast period due to the increasing performance demands and power densities of modern DRAM and flash memory modules used in servers, high-performance computing (HPC), gaming systems, and AI workloads. As memory speeds and capacities continue to rise, particularly with the adoption of DDR5, LPDDR5, and HBM (High Bandwidth Memory) leading to heat generated during data-intensive operations. Efficient thermal management of memory modules has become critical for ensuring stability, longevity, and peak performance, especially in data centers and computing environments that require 24/7 reliability.

Liquid Coolant Type Insights

The water-based coolants segment dominated the market in 2024, advancements in water-based coolant formulations are contributing to market growth. Manufacturers are developing new formulations that enhance the cooling efficiency, stability, and lifespan of water-based coolants. The addition of additives such as corrosion inhibitors, anti-freeze agents, and anti-bacterial agents ensures that these coolants perform reliably in various operating conditions, making them suitable for a wide range of applications, from high-performance computing to automotive cooling.

The dielectric fluids segment is expected to grow at a significant CAGR over the forecast period owing to the push for energy efficiency and sustainability in data centers. As global data center electricity consumption surges, liquid cooling-particularly dielectric fluid-based systems, reduces cooling energy usage by 30-50% compared to conventional air cooling. Regulatory pressures, such as carbon emission limits and corporate ESG (Environmental, Social, and Governance) commitments, are pushing hyperscale companies to adopt eco-friendly dielectric fluids, including synthetic hydrocarbons, fluorinated fluids, and biodegradable options.

Application Insights

The data center segment dominated the market in 2024, driven by the surge in digital transformation, cloud computing, AI, and big data analytics across industries. As enterprises migrate workloads to the cloud and hyper scale data centers expand globally, the thermal loads generated by high-performance computing (HPC) systems, dense server racks, and advanced GPUs have increased significantly. This rise in heat output necessitates advanced and energy-efficient cooling solutions to maintain optimal system performance, reliability, and uptime, making thermal management a critical factor in data center design and operations.

The high-performance computing (HPC) segment is expected to grow at a significant CAGR during the forecast period due to the growing technological advancements in HPC architecture, such as increased use of heterogeneous computing, mixing CPUs, GPUs, FPGAs, have made thermal management more complex. Efficient cooling solutions that can support diverse component layouts and varying heat profiles are increasingly essential. Liquid cooling systems, particularly modular and scalable designs, provide the flexibility needed to support evolving HPC infrastructure while maximizing thermal efficiency.

End Use Insights

The telecommunications segment dominated the market in 2024. The expansion of edge computing in telecom networks contributes to the segment’s growth. As operators shift data processing closer to users to support latency-sensitive applications such as autonomous driving, remote surgeries, and industrial automation, the need for high-performance, thermally stable computing at the edge increases. These edge nodes often operate in harsh or space-constrained environments where traditional cooling is inefficient or impractical.

The oil and gas segment is expected to grow at a significant CAGR over the forecast period due to the expansion of digital oilfield technologies. Oil and gas companies are increasingly deploying advanced analytics, 3D seismic modeling, reservoir simulation, and AI-driven decision-making tools to improve exploration success rates and optimize extraction strategies. These applications require powerful computing clusters with high processing capabilities, which in turn generate considerable heat. Liquid cooling, particularly direct-to-chip and immersion cooling, allows these systems to operate at optimal performance levels while minimizing the risk of overheating and downtime, especially in remote and space-constrained locations such as offshore rigs or desert-based control centers.

Regional Insights

The direct-to-chip liquid cooling market in North America held a significant share of over 39.0% in 2024, driven by the rapid expansion of hyperscale data centers, especially to support cloud services, AI, and government-backed digital infrastructure initiatives. Tech giants such as Google, Amazon, and Microsoft are aggressively investing in liquid cooling technologies to improve energy efficiency and reduce operational costs. The region's strong regulatory push toward sustainability and carbon neutrality, along with tax incentives for green data center construction, further accelerates adoption.

U.S. Direct-to-chip Liquid Cooling Market Trends

The direct-to-chip liquid cooling market in the U.S. is expected to grow significantly at a CAGR of 21.6% from 2025 to 2030. Government funding for exascale computing initiatives and a thriving AI startup ecosystem drive demand for advanced cooling solutions that can handle intense thermal loads. Moreover, direct partnerships between cooling solution providers and cloud service providers are fostering customized deployments in large-scale computing environments.

Europe Direct-to-chip Liquid Cooling Market Trends

The direct-to-chip liquid cooling market in Europe is anticipated to register a considerable growth from 2025 to 2030 due to stringent energy efficiency regulations and carbon reduction mandates under frameworks like the European Green Deal. Data center operators in the region are seeking low-PUE solutions to comply with environmental policies while maintaining performance in increasingly dense server environments.

The UK direct-to-chip liquid cooling market is expected to grow rapidly in the coming years owing to the rise of fintech and AI-based health tech solutions is increasing demand for high-density computing infrastructure that relies on advanced cooling systems. The growth of modular and colocation data centers catering to SMEs and tech startups also supports adoption, as these facilities require scalable and energy-efficient cooling.

The direct-to-chip liquid cooling market in Germany held a substantial market share in 2024, due to the country's industrial digitalization push, especially in automotive, manufacturing, and engineering sectors that use simulation, digital twins, and AI. The country’s leadership in edge computing and Industry 4.0 applications demands robust thermal control for distributed high-performance systems.

Asia Pacific Direct-to-chip Liquid Cooling Market Trends

Asia Pacific is expected to register the highest CAGR of 22.6% from 2025 to 2030, due to the growing need for high-performance infrastructure to support smart cities, 5G rollouts, and AI initiatives. The region’s surge in gaming, video streaming, and mobile commerce is creating high server density in urban data centers.

The Japan direct-to-chip liquid cooling market is expected to grow rapidly in the coming years, driven by the prevalence of high-value data centers in urban zones with limited space, which necessitates efficient heat removal at the chip level. In addition, Japan’s commitment to energy efficiency and natural disaster resilience promotes the adoption of compact and stable cooling technologies such as direct-to-chip liquid systems.

The direct-to-chip liquid cooling market in China held a substantial market share in 2024, due to substantial investments in AI, smart manufacturing, and national computing infrastructure as part of the New Infrastructure strategy. The proliferation of hyperscale data centers by companies such as Alibaba, Tencent, and Huawei is increasing demand for energy-optimized, high-performance cooling solutions.

Key Direct-to-chip Liquid Cooling Company Insights

Key players operating in the direct-to-chip liquid cooling industry are Asetek, CoolIT Systems, ZutaCore, Vertiv Holdings Co, and Iceotope Technologies The companies are focusing on various strategic initiatives, including new product development, partnerships & collaborations, and agreements to gain a competitive advantage over their rivals. The following are some instances of such initiatives.

• In April 2025, JetCool Technologies Inc. launched a SmartSense Coolant Distribution Unit (CDU), a modular, in-rack liquid-to-liquid cooling solution for data centers and colocation providers. Capable of cooling up to 300kW in a single rack or over 2MW at the row level, the SmartSense CDU enables free cooling with inlet temperatures exceeding 60°C, eliminating the need for chillers and reducing energy and water usage. When combined with JetCool Technologies Inc.'s SmartPlate, the system provides precise cooling and maintains optimal processor performance, even in high ambient temperatures.

• In June 2024, Asetek announced a strategic partnership with FABRIC8 LABS, a U.S.-based developer of metal 3D printing. The collaboration focuses on the commercial and consumer desktop, introducing an innovation in liquid cooling technology with the AI-optimized cold Plate. Utilizing FABRIC8 LABS' ECAM (Electrochemical Additive Manufacturing) technology, Asetek has created a new cold plate design that aims to improve performance.

Direct-to-chip Liquid Cooling Market Report Scope

Global Direct-to-Chip Liquid Cooling Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the direct-to-chip liquid cooling market report based on cooling solution type, component cooling, liquid coolant type, application, end use, and region. 

• Solution Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Single-phase liquid cooling

  • Two-phase liquid cooling

• Component Cooling Outlook (Revenue, USD Billion, 2018 - 2030)

  • CPU cooling

  • GPU cooling

  • ASIC cooling

  • Memory cooling

  • Other

• Liquid Coolant Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Water-based coolants

  • Dielectric fluids

  • Mineral oils

  • Engineered fluids

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Datacenter

  • Workstations

  • High-performance computing (HPC)

  • Edge computing devices

  • Supercomputers

  • Others

• End Use Outlook (Revenue, USD Billion, 2018 - 2030)

  • Telecommunications

  • Financial services

  • Healthcare and life sciences

  • Oil and gas

  • Aerospace and defense

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • South Africa