The data center cooling state of play (2025) — Liquid cooling is on the rise, thermal density demands skyrocket in AI data centers, and TSMC leads with direct-to-silicon solutions

The tech industry is seeing a significant shift in data center cooling methods, with liquid cooling gaining traction due to the increasing power densities in AI and hyperscale cloud data centers. By 2024, liquid cooling had captured 46% of the data center cooling market, with air cooling still prevalent in legacy facilities. Companies like AMD and Nvidia are recommending direct-to-chip (D2C) liquid cooling for their high-power AI accelerators, with power densities expected to rise to 4.4kW by 2028. TSMC's Direct-to-Silicon Liquid Cooling technology is showing promise in embedding microfluidic channels directly into silicon structures, potentially revolutionizing data center cooling.