Dell’Oro Group forecasts data center liquid cooling market to reach $7 billion by 2029

Dell’Oro Group forecasts the global data center liquid cooling market will reach about $7 billion by 2029, a shift that matters to technical leaders because Artificial Intelligence (AI) accelerator thermal loads make liquid cooling a deployment requirement.

Market Overview

The report projects the market will roughly double in 2025 to close to $3 billion and continue toward approximately $7 billion by 2029.

Hyperscaler demand accounts for a substantial share of market revenue, with colocation facilities supplying a notable portion of remaining deployments.

Key Findings

“Liquid cooling has crossed a critical threshold,” said Alex Cordovil, Research Director at Dell’Oro Group.

The analyst note projects leading-edge Graphics Processing Unit (GPU) TDPs will exceed 4,000 W by 2029, reinforcing liquid cooling’s role as a structural requirement for large-scale AI deployments.

Segment or Supplier Performance

The report identifies Vertiv, CoolIT, nVent, and Boyd among established suppliers and notes Aaon has delivered growth tied to deep hyperscaler partnerships and customized solutions.

It also describes increased vendor entry and merger-and-acquisition activity reshaping competitive dynamics.

Technology or Trend Analysis

Single-phase Direct Liquid Cooling (DLC) supplies the majority of current liquid-cooled capacity and is expected to remain the prevailing architecture for most deployments through 2029.

Two-phase DLC is expected to expand gradually once chip-level TDPs and thermal flux exceed single-phase limits, while immersion cooling will see selective adoption where its architectural trade-offs match performance or operational needs.

Forecast or Analyst Outlook

The note says vendor investment and hyperscaler experience support ongoing deployment of single-phase DLC even as system architectures and cold plate designs evolve to address rising heat loads.

The report anticipates continued market scaling driven by AI workload requirements and increasing rack densities through the end of the decade.

Dell’Oro Group concludes liquid cooling will be a deployment requirement for large-scale AI infrastructure as accelerator TDPs and rack densities rise. This Analyst Signals brief reflects a neutral, fact-based summary of the original research note.