A new market research report projects the data-center liquid cooling industry will grow to roughly $23.24 billion by 2035, driven by demand from what the report calls “gigawatt scale” AI data center campuses. For everyday residents living near these facilities, the report is a useful signal, not a headline event — but it points to real trends worth watching.
Why liquid cooling matters
Traditional data centers cool their servers with fans and air conditioning. But the dense computing chips used for AI training and inference generate far more heat than older equipment, and air cooling can struggle to keep up at scale. Liquid cooling systems — which circulate coolant directly to or near chips — are more efficient at removing that heat, which is one reason the industry is investing heavily in the technology as it builds bigger AI campuses.
What this means for communities
The report itself doesn’t name specific projects, companies, or locations. But its broader message — that data centers are scaling toward “gigawatt” sizes — matters to anyone living near a proposed or existing facility. Gigawatt-scale campuses require enormous amounts of electricity, and cooling systems, whether air or liquid, often require significant water use as well. Some liquid cooling approaches can reduce water consumption compared to older evaporative cooling methods, while others still depend on water for heat rejection. The specifics vary by design, and companies don’t always disclose which systems they’re using or how much water and power a given facility will draw.
Questions worth asking locally
When a new data center is proposed in your area, it’s reasonable to ask what cooling technology will be used, how much water it will consume, where that water comes from, and what the facility’s projected electricity demand is. Utility regulators and local governments increasingly have to answer these questions as they weigh new grid connections and permits. Cooling technology choices also affect what infrastructure gets built nearby — from water lines to substations — which can shape a community for decades.
What you can do
Market forecasts like this one are aimed at investors, not residents, but they offer an early read on where the industry is headed. If a data center is proposed or under construction near you, check local permitting records and utility filings for details on water and power use. You can also track known projects across the country on our interactive map, learn the basics of how these facilities work at our explainer hub, and find steps for engaging with local decision-makers at take action.
Source: Macau Business