Server Liquid Cold Plate Market Surges with 62.3% CAGR | Key Growth in Internet & Telecom Sectors

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May 30, 2025, 11:44 ET

BANGALORE, India, May 30, 2025 /PRNewswire/ -- Server Liquid Cold Plate Market is Segmented by Type (Copper Type, Copper+Aluminum Type), by Application (Internet, BFSI, Telecom, Energy, Healthcare).

The Server Liquid Cold Plate Market was valued at USD 153 Million in the year 2024 and is projected to reach a revised size of USD 4361 Million by 2031, growing at a CAGR of 62.3% during the forecast period.

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Major Factors Driving the Growth of Server Liquid Cold Plate Market:

The server liquid cold plate market is undergoing a transformation driven by demand for high-efficiency cooling in increasingly compact, high-performance server environments. These cold plates are emerging as a vital component in both centralized and edge computing infrastructure. The ability to manage thermal loads effectively while reducing energy consumption positions them as a key solution in the evolution of sustainable and scalable data centers. With investments flowing into AI, cloud services, and decentralized computing, the market is poised for substantial growth across multiple sectors.

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TRENDS INFLUENCING THE GROWTH OF THE SERVER LIQUID COLD PLATE MARKET:

The Copper+Aluminum type is gaining traction in the server liquid cold plate market due to its effective balance between performance and cost-efficiency. Copper ensures superior thermal conductivity, while aluminum contributes lightweight characteristics and reduces the overall cost of the cold plate assembly. This hybrid composition supports large-scale data center deployments where heat dissipation and structural optimization are critical. As high-density servers generate more heat, the need for reliable thermal solutions becomes essential. The growing demand for modular and scalable server infrastructure further pushes the adoption of copper+aluminum cold plates. Their adaptability to various cooling systems and improved thermal interface performance make them a preferred choice for data centers focused on performance-per-watt metrics and operational reliability.

Pure copper cold plates are contributing significantly to the server liquid cold plate market due to their unmatched thermal conductivity. These solutions are increasingly used in high-performance computing environments, including AI servers and GPU clusters, where efficient heat transfer is crucial to maintaining processing speed and system longevity. Copper's superior heat dissipation capabilities help reduce hotspots and extend component life. The expansion of hyperscale data centers and enterprise computing facilities further boosts the use of copper-based cold plates. Though more expensive than aluminum or hybrid variants, the performance benefits of copper justify its adoption in mission-critical infrastructure. This preference for premium cooling solutions is directly influencing the market's growth trajectory.

The explosive growth of internet usage, streaming platforms, cloud computing, and e-commerce has intensified the demand for efficient data center infrastructure. This surge requires servers with enhanced processing capabilities, which in turn generate higher thermal loads. Liquid cold plates offer a more effective solution than traditional air cooling systems, especially in high-density server racks. As internet data traffic continues to expand exponentially, especially with the growth of 5G and IoT ecosystems, data centers must implement robust cooling strategies. Liquid cooling using cold plates provides energy-efficient temperature regulation, supporting the uninterrupted performance of servers handling massive data flow, thus fueling the demand for advanced thermal management components.

Modern data centers are evolving toward compact, high-performance server racks that generate substantial heat. Traditional air-based cooling systems often fail to manage such thermal loads efficiently. Server liquid cold plates provide a direct-to-chip cooling solution, removing heat at the source and allowing data centers to maximize computing density without thermal throttling. The push for space optimization and improved energy efficiency has made cold plates essential for next-generation infrastructure, directly enhancing the market potential for these solutions across cloud service providers and colocation facilities.

High-performance computing applications in sectors such as scientific research, defense, and financial modeling require exceptional thermal management. Server liquid cold plates are ideal for HPC environments due to their ability to maintain stable temperatures under extreme processing conditions. These plates support the growing number of HPC clusters that drive AI, machine learning, and large-scale simulations. As governments and enterprises continue investing in supercomputing capabilities, demand for efficient thermal technologies like cold plates is expected to rise rapidly.

Governments and global institutions are enforcing stricter energy efficiency and environmental regulations on data centers. Server liquid cold plates consume significantly less energy for cooling compared to air-based systems. This lower power usage helps data centers meet regulatory standards and sustainability goals. Additionally, by reducing the need for massive HVAC systems, cold plates support overall infrastructure efficiency. These regulatory pressures are acting as a catalyst, pushing more data center operators to adopt liquid cooling solutions for long-term operational compliance.

The widespread integration of Graphics Processing Units (GPUs) into server systems for AI, analytics, and rendering tasks has led to increased thermal output. Unlike CPUs, GPUs can generate significantly more heat, demanding specialized cooling. Liquid cold plates offer efficient, localized cooling solutions that are well-suited for multi-GPU configurations. This compatibility has made them a preferred choice among hardware integrators and data center architects who aim to boost performance without compromising thermal stability.

One of the major trends propelling the server liquid cold plate market is the demand for modular and customizable solutions. Manufacturers are offering cold plates tailored to specific server architectures and workloads, ensuring optimized performance. This modularity allows data center operators to scale and configure systems based on usage patterns. It also reduces downtime during upgrades or maintenance. As enterprises move towards hyperconverged and software-defined infrastructures, adaptable cooling hardware is gaining greater significance.

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SERVER LIQUID COLD PLATE MARKET SHARE

Global key players of Server Liquid Cold Plate include AVC, Auras, Cooler Master, CoolIT Systems, Boyd, etc. The top five players hold a share of about 96%.

In terms of product type, Copper+Aluminum Type is the largest segment, accounting for a share of 68%.

In terms of application, the Internet has a share of about 40 percent.

The North American market is witnessing strong adoption of server liquid cold plates due to the proliferation of hyperscale data centers and early integration of advanced cooling solutions.

In Europe, energy efficiency mandates are pushing the adoption of liquid cooling systems, including cold plates. The Asia-Pacific region, particularly China and India, is showing accelerated demand due to digitalization and rapid cloud infrastructure development.

Key Companies:

BOYD
AVC
Auras
Shenzhen Cotran New Material
Shenzhen FRD
Cooler Master
Nidec
Forcecon
KENMEC

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