Data Center Coolant Distribution Units Market
Data Center Coolant Distribution Units Market Size, Share, Competitive Landscape and Trend Analysis Report by Type, Cooling Type and End User: Global Opportunity and Industry Forecast (2025-2030)
Report ID:
1115
Industry:
ICT
Published on:
Dec 2025
Data Center Coolant Distribution Units Market Summary
Global Data Center Coolant Distribution Units Market had a value of USD 0.79 Billion in 2024 and expected it to hit USD 4.37 Billion by 2030, with a CAGR of 33 % during the forecast period.
Data Center Coolant Distribution Units Industry Trends and Analytical Insights –
North America led the global Data Center Coolant Distribution Units market in 2024, driven by rapid expansion of hyperscale data centers, rising adoption of liquid cooling for high-density workloads, strong presence of cloud service providers, and stringent energy-efficiency regulations pushing facilities toward advanced thermal management systems.
In-Row accounted for the largest market share in 2024, supported by their ability to manage higher heat loads, improved thermal transfer efficiency, compatibility with direct-to-chip cooling solutions, and growing deployment in AI, HPC, and edge data center environments.
Major Data Center Coolant Distribution Units market participants included Vertiv, Rittal, STULZ, Asetek, CoolIT Systems, and Motivair, with emphasis on modular designs, smart monitoring, leak-prevention technologies, scalable cooling architectures, and integration with AI-driven data center infrastructure management (DCIM) platforms.
Market Size & Forecast:
Market Size 2024: USD 0.79 Billion
Projected Market Size 2030: USD 4.37 Billion
CAGR (2024-2030): 33%
North America dominated the market in 2024
Data Center Coolant Distribution Units Market Overview:
Data Center Coolant Distribution Units (CDUs) are becoming essential components in modern data center cooling systems as facilities increasingly transition from traditional air-cooled environments to liquid-cooling architectures to support AI, high-performance computing (HPC), and dense server workloads. According to technical documentation from ASHB and government-supported studies, Data Center Coolant Distribution Units play a crucial role in separating the facility’s primary cooling loop from the secondary loop near IT equipment, while maintaining precise control over coolant temperature, flow, and pressure to enable efficient heat transfer and prevent condensation. Liquid cooling systems that depend on CDUs have been shown to significantly improve energy efficiency compared with air cooling, with documented savings of 14–23 percent in government-supported research such as Minnesota Commerce Department’s liquid-cooling demonstration project, due to reduced fan energy use and the ability to capture heat directly at the server level.
Data Center Coolant Distribution Units also support a range of liquid-cooling approaches—including liquid-to-liquid and liquid-to-air systems—and are available in rack-mounted, in-row, and floor-mounted configurations, allowing both small and large data centers to integrate liquid cooling without major infrastructure disruptions. Government-linked research programs, including those referenced by the U.S. Department of Energy in studies on liquid-cooled HPC systems at Sandia National Laboratories, highlight that CDUs enable higher rack densities, reliable thermal control, and compatibility with heat reuse strategies, making them a key technology in addressing rising cooling demands, sustainability requirements, and operational efficiency across modern data centers.
Data Center Coolant Distribution Units Market Dynamics
Rapid rise of high-density computing to boost Data Center Coolant Distribution Units Market growth
The rapid rise of high-density computing, especially due to AI, machine learning, cloud services, and high-performance computing workloads that generate far more heat than traditional air-cooling systems can handle, which significantly boost the Data Center Coolant Distribution Units Market growth. As rack power densities continue to increase, data center operators are turning to liquid cooling supported by Data Center Coolant Distribution Units because it provides more efficient heat removal, reduces energy consumption, and enables greater server performance without thermal limitations. Another major driver is the global push toward energy efficiency and sustainability, with governments and enterprises aiming to reduce data center power usage and carbon footprints, making liquid cooling—with its potential for lower PUE and heat-reuse integration—an attractive option. The expansion of hyperscale data centers and edge facilities also contributes to rising demand for scalable, modular CDUs that can be deployed quickly and integrated into diverse cooling architectures.
Data Center Coolant Distribution Units are well-positioned to benefit from the accelerating deployment of AI data centers and GPU-intensive environments, where liquid cooling is becoming a near necessity. There is also significant opportunity in retrofitting existing data centers with liquid-cooling systems, as operators seek to improve efficiency without complete infrastructure overhauls. Growing adoption of immersion cooling and direct-to-chip cooling opens additional avenues for advanced Data Center Coolant Distribution Units designs that support higher heat loads and precise thermal management. Moreover, the increasing emphasis on heat reuse—such as using waste heat from liquid-cooled racks for district heating or industrial processes—creates new opportunities for Data Center Coolant Distribution Units to function as a bridge between IT loads and sustainable energy systems. Together, these trends make CDUs a critical enabling technology in the evolution of data center cooling and a Data Center Coolant Distribution Units market with strong long-term growth potential.
Expert Insight:
Experts note that the accelerating shift toward AI- and GPU-intensive workloads is making liquid cooling—not air cooling—the new thermal backbone of modern data centers, placing CDUs at the center of this transition. Rising rack densities, sustainability mandates, and heat-reuse initiatives are further strengthening the case for advanced, modular Data Center Coolant Distribution Units systems. As hyperscale and edge facilities expand globally, CDUs offer a scalable and energy-efficient pathway to manage thermal loads while reducing operational costs. Together, these factors position CDUs as a critical enabler of next-generation data center infrastructure.
Data Center Coolant Distribution Units Market Segment Analysis
Based on Type, the market is segmented into In-Row, In-Rack, and FDU (Floor-Mounted Distribution Unit). In- Row segment dominated the market in 2024 and is expected to hold the largest Data Center Coolant Distribution Units Market share over the forecast period. The In-Row Data Center Coolant Distribution Units segment dominates the Data Center Coolant Distribution Units market because it offers the most efficient and targeted cooling approach for modern high-density racks, especially in AI, HPC, and GPU-based environments. In-row CDUs are positioned directly between server racks, allowing them to absorb heat at the source, minimize airflow distance, and drastically reduce thermal losses compared to room-level cooling. This close-coupled design delivers superior cooling efficiency, lower latency in heat removal, and higher reliability—all essential as rack densities rise to 40–100 kW or more.
Data Center Coolant Distribution Units Market Regional Insight
North America dominated the market in 2024 and is expected to hold the largest Data Center Coolant Distribution Units Market share over the forecast period. North America remains the leading region for CDUs due to its concentration of hyperscale cloud providers, rapid expansion of AI and HPC facilities, and strong adoption of liquid cooling technologies. The U.S., in particular, is investing heavily in high-density data centers to support AI workloads from companies like Google, Microsoft, Amazon, and Meta, driving strong demand for advanced CDUs.
Europe is experiencing accelerated growth as strict energy-efficiency regulations and sustainability mandates push operators toward liquid cooling and heat-reuse systems. Countries such as Germany, the Netherlands, and the Nordic region are adopting CDUs rapidly, helped by abundant renewable energy sources and supportive government policies.
Data Center Coolant Distribution Units Market Competitive Landscape
The competitive landscape of the Data Center Coolant Distribution Units market is shaped by a mix of global infrastructure giants and specialized liquid-cooling innovators. Vertiv remains the dominant player, supported by strong financial performance and extensive deployment of scalable CDU platforms for hyperscale and AI-driven data centers. Rittal, backed by the Friedhelm Loh Group’s multi-billion-euro revenue base, strengthens its position through highly integrated enclosure-and-cooling systems that appeal to enterprise and colocation operators. STULZ is another influential competitor, leveraging its long-established expertise in precision cooling and strong presence across Europe and North America to deliver advanced in-row and custom CDU solutions. Specialist companies like Asetek and CoolIT Systems focus on direct-to-chip and high-performance liquid-cooling technologies, supplying OEMs and HPC facilities and gaining traction as AI and GPU workloads surge. Private equity investment—such as KKR’s acquisition of CoolIT—signals accelerating consolidation and expansion within the sector, reflecting the growing importance of liquid cooling. Collectively, these companies compete on technological innovation, energy efficiency, modularity, and global service networks as demand for high-density, sustainable cooling solutions continues to rise worldwide.
Data Center Coolant Distribution Units Market Scope:
Top Data Center Coolant Distribution Units Market key players include
STULZ
Schneider Electric
Asetek
Vaisala
CoolIT Systems
Shanghai Shenglin M&E Technology Co., Ltd.
Motivair
Midas Green Technologies
Delta Electronics
Eaton
IBM (Liquid Cooling Solutions)
Supermicro (Direct Liquid Cooling Solutions)
Nvidia (Liquid Cooling Ecosystem Partners)
Lenovo (Neptune Liquid Cooling)
HPE (Cray Liquid Cooling Systems)
Advanced Cooling Technologies (ACT)
Coolcentric
Rocsys Thermal Solutions
Chilldyne
LiquidStack
Frequently asked Questions:
1. What is driving the rapid growth of the Data Center Coolant Distribution Units market?
Ans: Growth is driven by rising AI, GPU, and HPC workloads, increasing rack densities, and the shift from air cooling to energy-efficient liquid cooling. Sustainability regulations and hyperscale data center expansion further accelerate demand.
2. Why is liquid cooling becoming essential in modern data centers?
Ans: High-density servers generate far more heat than air cooling can handle. Liquid cooling—enabled by CDUs—offers 14–23% energy savings, better thermal control, and higher server performance, according to government-supported studies and DOE data.
3. Which region dominated the global Data Center Coolant Distribution Units market in 2024?
Ans: North America led the market due to the strong presence of hyperscale cloud providers, large AI data centers, and early adoption of liquid cooling technologies.
4. What cooling technologies are supported by Data Center Coolant Distribution Units?
Ans: CDUs support direct-to-chip cooling, immersion cooling, and hybrid liquid-air systems by managing coolant flow, temperature, and pressure in the secondary loop.