In the fast-evolving realm of data centers, where power and efficiency are paramount, a new player is emerging as the frontrunner in liquid cooling innovation: single-phase direct-to-chip liquid cooling. As the demand for higher processing power and compute density intensifies, traditional air-cooling methods are being outpaced by the efficiency and adaptability of liquid cooling solutions.
Striking the Right Balance: Power, Cooling and Efficiency
Preparing for these density shifts, data center operators are faced with the challenge of striking the right balance between cooling, power, and energy efficiency within compact space constraints. Until recently, conventional air-cooling methods met industry-standard power and spatial requirements, effectively providing efficient cooling solutions. Stagnant power and space parameters facilitated maturation and widespread adoption of air cooling, awarding it as the predominant cooling method in today’s data centers.
Nonetheless, escalating server power and compute densification are straining this delicate balance of IT infrastructure, driving data center operators to explore liquid cooling technologies to cool high-density devices. In response to these requirements, single-phase direct-to-chip liquid cooling emerges as the leading liquid cooling alternative to traditional air cooling, empowering data centers to support the latest high-density chipsets while driving performance and energy efficiency.
Direct-to-Chip Liquid Cooling Market Trends and Drivers
As artificial intelligence adoption continues to dominate the market, the adoption of single-phase direct-to-chip liquid cooling solutions is anticipated to grow to meet these escalating demands. According to Markets and Markets, the data center liquid cooling market is predicted to grow at a 24.4% CAGR from 2023 to 2028, reaching $7.8 billion. This expansion is primarily attributed to the efficiency of liquid cooling, which can boost server density, decrease energy usage, and lower Power Usage Effectiveness (PUE).
Projections from the Dell’Oro Group’s analysis underscore this trend, forecasting an 11% compound annual growth rate (CAGR) in the Data Center Physical Infrastructure (DCPI) market from 2023 to 2028, exceeding $46 billion. As chip density continues to rise, data center operators will require efficient liquid cooling to manage thermal challenges effectively.
Barriers to Adoption
Single-phase direct-to-chip liquid cooling technologies are the most commonly deployed liquid cooling solutions on the market; however, its adoption presents challenges, including infrastructure compatibility, standardization, and cost concerns. Building on those challenges, previous rack densities and power demands weren’t high enough to justify implementation. However, as individual server power and rack densities rise, these barriers to adoption are quickly being removed to meet the evolving thermal management demands of modern data centers.
Dive Deeper: Exploring Liquid Cooling Technologies
Discover our latest report below for a comprehensive analysis of two leading single-phase direct-to-chip liquid cooling technologies: microchannel and microconvective liquid cooling. Discover how these technologies overcome barriers amidst rising densities, empowering data centers to drive the capabilities of next-generation servers.








