Data center cooling revenue to reach $7.8B on AI density surge
Frost & Sullivan projects that the global revenue for data center pumps and valves will reach $7.80 billion by 2031, driven by the increased cooling requirements of AI-intensive infrastructure. The report underscores a structural shift toward liquid-ready cooling architectures, including direct-to-chip and immersion systems, necessary for maintaining the reliability of high-density streaming and compute clusters.
Key Takeaways
- Projected revenue for data center pumps and valves to grow from $2.44 billion in 2024 to $7.80 billion by 2031.
- Data centers are shifting toward liquid-ready cooling, utilizing coolant distribution units (CDUs) and dielectric fluid pumps.
- Pumping systems currently account for 15% to 20% of total electricity use in commercial buildings.
- Suppliers are pivoting from simple equipment sales to offering integrated lifecycle services and predictive maintenance via IoT-enabled smart valves.
Why It Matters
The transition to liquid cooling is no longer optional for infrastructure providers supporting generative AI and high-resolution streaming. As rack densities exceed the limits of traditional air cooling, precise flow control becomes a critical bottleneck for hardware reliability and energy efficiency. For the streaming ecosystem, this shift dictates the geographical expansion of edge nodes and the cost-effectiveness of localized transcoding clusters. Market participants must monitor the adoption rate of direct-to-chip architectures as a proxy for the next generation of high-density facility spend.
Additional Context
The move toward advanced thermal management is accelerating as next-generation hardware reaches unprecedented power levels. Per TrendForce in September 2024, the launch of NVIDIA’s Blackwell platform is expected to drive liquid cooling adoption from roughly 10% in 2024 to over 20% by 2025. This transition is critical for supporting the GB200 NVL72 systems, which can draw between 120kW and 140kW per rack, far exceeding the 20kW limits of legacy air-cooled facilities.
Major infrastructure players are positioning themselves through significant M&A and product development. Per Reuters and other filings, Schneider Electric acquired a 75% stake in liquid cooling specialist Motivair for $850 million in October 2024 to bolster its AI-ready portfolio. Similarly, Vertiv reported in late 2024 that orders for its high-capacity coolant distribution units (CDUs) surged as hyperscalers began retrofitting existing sites to accommodate GPU-dense clusters.
Beyond performance, sustainability mandates are a primary driver for investment in precision flow systems. According to Global Market Insights in early 2025, cooling accounts for roughly 40% of a data center's total electricity load. By shifting to direct-to-chip or two-phase liquid cooling, operators can achieve a cooling Power Usage Effectiveness (PUE) as low as 0.05, compared to 0.30 for air cooling. This efficiency gain is becoming a competitive necessity for providers looking to scale while meeting stringent carbon neutrality targets in North America and Europe.
Read full article at frost.com
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