Data Center Liquid Cooling Growth: Top 10 Companies in $27.6 B Market ft. Vertiv & Schneider Electric (2024-2026)

The data center cooling market is undergoing a seismic shift, driven by the unprecedented thermal challenges of Artificial Intelligence (AI) and high-performance computing (HPC) workloads. The core finding is a clear divergence between two markets: traditional air cooling is becoming a legacy solution, while advanced liquid cooling is entering a period of hypergrowth. This is creating a distinct class of winners among component manufacturers who can meet the demand for direct-to-chip (DTC) and immersion cooling solutions. Forecasts show the liquid cooling segment will surge at a 31.5% compound annual growth rate (CAGR), growing from $4.07 billion in 2026 to $27.65 billion by 2033. The dominant theme for 2025 and 2026 is a supply chain race, as the industry rushes to scale manufacturing for critical components needed to manage server rack densities projected to exceed 300 k W.

Top 10 Data Center Cooling Component Companies by Order Growth

The explosive growth in liquid cooling is reshaping the competitive landscape. While established leaders are pivoting hard, specialized innovators are also capturing significant market share. The following companies are positioned for the highest order growth between 2024 and 2026, based on a combination of strategic partnerships, capacity expansions, and product launches tailored for the AI boom. This analysis is derived from commercial activity signals indicating strong forward momentum.

Table: Top 10 Data Center Cooling Component Companies & Growth Drivers (2024-2026)

31.5% CAGR, Liquid Cooling Adoption Across HPC and AI

The rapid adoption of liquid cooling is not uniform; different technologies are being deployed to solve specific thermal challenges. This segmentation reveals a maturing market where customers are choosing solutions based on rack density, facility constraints, and total cost of ownership. The primary driver remains the inability of air to efficiently cool the next generation of AI accelerators from chipmakers like Nvidia, AMD, and Intel.

Direct-to-Chip Becomes the Default for AI

Direct-to-chip (DTC) cooling is emerging as the dominant solution for AI clusters. This technology uses cold plates connected by tubes to circulate a coolant directly over hot components like CPUs and GPUs. Companies like Cool IT Systems and Asetek have established strong leads by forming deep partnerships with server OEMs. This approach is favored for its efficiency and ability to be deployed on a rack-by-rack basis, making it suitable for both new builds and retrofits of existing air-cooled data centers. The trend is driven from the chip level, with IBM liquid cooling innovations historically paving the way for managing high-heat processors.

Immersion Cooling Targets Extreme Density

Single-phase and two-phase immersion cooling, where entire servers are submerged in a non-conductive dielectric fluid, represents the next frontier. While offering the highest cooling potential, its adoption is slower due to the significant infrastructure changes required. However, for extreme-density applications exceeding 200-300 k W per rack, it is becoming the only viable option. Fluid suppliers are a critical part of this ecosystem, with moves like BP’s Castrol entering the market signaling the growing opportunity. Data center operators like Equinix are actively deploying these solutions to address top-tier customer needs.

North America vs. Europe, A Divergence in Cooling Strategy

Geographic trends highlight different priorities influencing technology choices. While North American hyperscalers prioritize rapid deployment and maximum cooling capacity for their massive AI factories, Europe is increasingly focused on sustainability and energy reuse, driven by stricter regulations.

North America’s Hyperscale-Driven Demand

The United States leads in liquid cooling adoption, largely due to the massive build-out of AI infrastructure by companies like Microsoft, Google, AWS, and Meta. These companies are placing large-volume orders that are fueling the growth of suppliers like Vertiv and Johnson Controls. The focus is squarely on performance and the ability to cool dense racks of GPUs, with less emphasis on secondary factors like heat reuse. This has led to major investments in domestic manufacturing, such as Modine’s recent plant expansion.

Europe’s Focus on Heat Reuse and Efficiency

In Europe, regulations and high energy costs are pushing data centers to be more efficient. Companies like Siemens and Schneider Electric are excelling by offering integrated systems that not only cool servers but also capture waste heat for purposes like district heating, as seen in a recent AWS project in Ireland. This circular economy approach is a key differentiator in the European market, favoring suppliers who can provide holistic thermal management and energy recovery solutions.

Vertiv & Schneider Electric Scale Mature Liquid Cooling Portfolios (2024-2026)

The current market growth is built on the maturity of core liquid cooling components. The technology has moved beyond the experimental phase and is now in a rapid scaling cycle. The primary challenges have shifted from proving efficacy to mass production and supply chain logistics, particularly for the components that form the backbone of these systems.

CDUs and Pumps Reach Mass Production

Coolant Distribution Units (CDUs) and their associated pumps are the heart of any liquid cooling system, circulating the fluid between the servers and heat exchangers. These components have reached a high level of technological maturity. The focus for market leaders like STULZ and Trane is now on manufacturing scale, reliability, and efficiency. Market reports focusing on CDU pumps indicate this sub-segment is seeing intense competition and investment as it is a direct bottleneck to deploying liquid cooling at a hyperscale level.

Full-Stack Solutions Gain Traction

As cooling becomes more integrated with the server and rack, customers are looking for full-stack solutions. The acquisition of Juniper Networks by HPE for $14 billion is a key example of this trend. By combining high-performance networking with server and cooling technology, companies can offer pre-integrated, optimized “AI factory” solutions. This simplifies deployment for customers and allows for greater system-level efficiency, a strategy also pursued by Panasonic through its vertical integration efforts.

Scenario 2026: Supply Chain Bottlenecks for Liquid Cooling Components

Looking toward 2026, the single most critical strategic factor will be the manufacturing capacity for key liquid cooling components. Demand is forecast to outstrip the supply chain’s ability to scale, particularly for specialized parts like quick-disconnect fittings, high-pressure pumps, and custom cold plates. Companies that secured their supply chains and invested in production capacity during 2024 and 2025 will be best positioned to capture market share and fulfill the massive orders from hyperscalers.

• Recent activity signals that this bottleneck is already forming. Modine’s proactive expansion of its Wisconsin facility is a direct response to anticipated supply constraints for large-scale cooling modules.
• Financial reports from companies like Johnson Controls explicitly name data center demand as a key growth engine, suggesting their existing production lines are already operating at high utilization.
• The projected 31.5% CAGR for the liquid cooling market is a growth rate that specialized industrial manufacturing historically struggles to meet without significant, pre-emptive capital investment.
• Anecdotal evidence points to hyperscalers placing multi-year, high-volume orders that lock up supplier capacity, which will likely create shortages and price increases for smaller enterprise and colocation customers.

The questions your competitors are already asking

This report covers one angle of the data center liquid cooling market. The questions that matter most depend on your work.

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