Direct-to-Chip Liquid Cooling Market Drivers: Rising Power Density in Modern Processors

The global direct-to-chip liquid cooling market size was estimated at USD 1.96 billion in 2024 and is anticipated to reach USD 5.62 billion by 2030, growing at a CAGR of 19.7% from 2025 to 2030. Modern processors, including CPUs, GPUs, and ASICs, are generating increasing heat due to higher power densities, making traditional air cooling methods less effective.

Direct-to-chip (D2C) liquid cooling systems address this challenge by providing efficient heat removal directly at the chip level, ensuring optimal performance and preventing thermal throttling. The exponential power density of modern CPUs and GPUs in data centers and high-performance computing (HPC) environments is a major driver for this market. As processors like NVIDIA’s H100 and AMD’s EPYC 9004 series exceed 500W TDP per chip, air cooling becomes inefficient and cost-prohibitive. D2C systems, delivering coolant directly to cold plates attached to processors, achieve superior heat removal, enabling higher clock speeds and sustained performance.

For example, in March 2025, CoolIT Systems introduced a cold plate for direct liquid cooling in data centers, targeting high-efficiency thermal management for CPUs and GPUs. Similar to AIO and custom liquid cooling setups used in personal computers, this technology enhances performance in demanding data center environments.

As semiconductor technology advances, chips are becoming smaller yet more powerful, increasing power density and heat output. This trend is especially notable in microprocessors, GPUs, and memory modules. Direct-to-chip liquid cooling provides an efficient solution to manage heat, maintaining system stability and high performance without compromising size or efficiency.

Key Market Trends & Insights

• North America held a significant market share of over 39.0% in 2024, driven by the expansion of hyperscale data centers, cloud services, AI, and government-backed digital infrastructure initiatives.
• The U.S. is expected to grow at a CAGR of 21.6% from 2025 to 2030.
• By cooling solution type, the single-phase liquid cooling segment dominated with a revenue share of over 65.0% in 2024.
• By component cooling, the CPU cooling segment led the market in 2024.
• By liquid coolant type, the water-based coolants segment dominated in 2024.

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Market Performance

• 2024 Market Size: USD 1.96 Billion
• 2030 Projected Market Size: USD 5.62 Billion
• CAGR (2025–2030): 19.7%
• North America: Largest market in 2024
• Asia Pacific: Fastest growing market

Competitive Landscape

Companies in the direct-to-chip liquid cooling market are actively pursuing product development, strategic partnerships, collaborations, and agreements to gain a competitive edge. Key initiatives include:

• In April 2025, JETCOOL Technologies Inc. launched the SmartSense Coolant Distribution Unit (CDU), a modular liquid-to-liquid cooling solution capable of cooling up to 300kW per rack or over 2MW at the row level. Combined with SmartPlate, the system delivers precise cooling, maintains processor performance, and reduces energy and water usage by eliminating chillers.
• In June 2024, Asetek partnered with FABRIC8 LABS, a U.S.-based 3D metal printing developer, to introduce an AI-optimized cold plate for desktop and commercial liquid cooling applications. Using Electrochemical Additive Manufacturing (ECAM) technology, this innovation improves cooling efficiency and performance.

Key Companies

• Asetek
• Advanced Micro Devices, Inc.
• Chilldyne, Inc.
• CoolIT Systems
• Fujitsu Ltd.
• Iceotope Technologies
• JETCOOL Technologies Inc.
• LiquidStack
• Schneider Electric
• Submer
• Vertiv Holdings Co
• ZutaCore

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Conclusion

The global direct-to-chip liquid cooling market is poised for strong growth, driven by rising power densities in modern processors, expansion of data centers, and increasing adoption of high-performance computing solutions. D2C liquid cooling provides a highly efficient thermal management solution, enabling sustained performance without thermal throttling, while supporting innovations in AI, cloud computing, and HPC. With continuous technological advancements, strategic partnerships, and growing demand in North America and Asia Pacific, the market is set to experience robust expansion through 2030, solidifying liquid cooling as a critical component of next-generation computing infrastructure.