Direct-to-chip coolants market set for rapid growth

The global data centre direct-to-chip coolants market is expected to reach USD $1,301,592 thousand by 2032, up from an estimated USD $132,971 thousand in 2025, according to MarketsandMarkets.

Direct-to-chip cooling uses liquid-based systems to deliver coolant to components such as CPUs, GPUs and accelerators through cold plates or similar interfaces. The method removes heat at the source through a closed-loop system and is gaining adoption as operators contend with higher rack densities in hyperscale, colocation and enterprise facilities.

MarketsandMarkets said demand is being driven by growth in artificial intelligence, machine learning, cloud computing and high-performance computing, all of which are increasing server power density and heat loads inside data centres. In some newer deployments, particularly those using advanced processors and accelerator-heavy systems, traditional air-cooling systems are struggling to meet those thermal demands.

That shift is driving interest in liquid cooling systems using fluids such as water-glycol mixtures and dielectric liquids. The study said these systems are well suited to high-density racks in the 60 kW to 120 kW range, a level increasingly associated with AI infrastructure and large computing clusters.

Segment trends

Single-phase systems are expected to hold the largest share of the market by value over the forecast period. Their position reflects broader use among hyperscale, enterprise and colocation operators because the coolant remains in liquid form throughout the cooling cycle, reducing system complexity compared with two-phase alternatives, MarketsandMarkets said.

The report added that these systems fit more easily into existing infrastructure, making them more practical for both retrofits and new builds. Operators can use commercially available water-glycol blends and engineered fluids, while compatibility with cold plates, coolant distribution units and facility water loops supports wider deployment.

Among coolant types, water-glycol mixtures are projected to dominate the market by value. The research said these formulations are widely used in high-density cooling systems because they balance thermal performance, cost and operational stability in closed-loop arrangements.

According to the findings, water-glycol mixtures also provide freeze protection, corrosion resistance and biological stability, while remaining compatible with mixed-metal construction including copper, aluminium, brass and steel. That compatibility is important for adoption across modern cooling systems, where operators want to limit corrosion and scaling risks.

Hyperscale demand

The hyperscale data centre segment is expected to retain the largest share of the direct-to-chip coolants market. MarketsandMarkets attributed this to the continued expansion of cloud infrastructure built to support AI, machine learning, high-performance computing and large-scale analytics workloads.

These facilities are increasingly deploying dense GPU- and accelerator-based server configurations that generate heavy heat loads during sustained operation. The study said many hyperscale sites now face rack power densities beyond what traditional air-cooling systems can manage, especially in AI training clusters, where densities can range from 40 kW to 100 kW.

As a result, direct-to-chip cooling has emerged as a preferred thermal management approach in these settings because coolant circulates through cold plates attached to CPUs and GPUs. This allows operators to manage heat more effectively, reduce energy use and support stable operation in large-scale liquid-cooling environments, the report said.

Market structure

The market remains relatively concentrated, with the top five players accounting for a combined 40% to 50% share, according to MarketsandMarkets. Companies in the sector are relying on agreements, partnerships and other business arrangements to strengthen their positions in home markets and expand geographically.

Despite the strong growth outlook, the market faces constraints. The study identified leakage and reliability risks as challenges, along with the difficulty of cooling components outside the chip itself, which can complicate broader thermal management strategies in data halls.

Still, the trend reflects a broader shift in data centre design as operators confront the limits of air cooling in facilities handling denser computing loads. MarketsandMarkets forecast a compound annual growth rate of 38.6% from 2026 to 2032.