Data Center Immersion Cooling Market - By Component, By Cooling Technique (Single-phase Cooling, Two-phase Cooling), By Cooling Fluid (Mineral Oil, Synthetic Fluid, Fluorocarbons-based Fluid), By Organization Size, By End-Use, Forecast 2024 – 2032

Data Center Immersion Cooling Market Size

Data Center Immersion Cooling market was valued at USD 1.1 billion in 2023 and is estimated to register a CAGR of over 17% between 2024 & 2032. The market growth is driven by the technological advancements and a growing emphasis on energy efficiency.
 

As technology evolves, data centers require more efficient cooling solutions to manage increasing workloads. Immersion cooling offers a highly efficient alternative, dissipating heat more effectively than traditional methods. This focus on energy efficiency aligns with industry demands, propelling the adoption of immersion cooling systems and driving the market's growth. For instance, in January 2024, Stack introduced a data center liquid cooling solution capable of supporting 300 kW or more per rack using immersion cooling. Their customizable options range from 30 kW per rack with air cooling to 50 kW with door-mounted heat exchangers and up to 100 kW with direct-to-chip liquid cooling.
 

The rising data generation and the increasing prevalence of high-density computing applications are catalyzing the growth of the data center immersion cooling industry. As organizations generate vast amounts of data from various sources, the demand for efficient cooling solutions rises. Additionally, the proliferation of AI, machine learning, and big data analytics requires advanced cooling methods like immersion cooling to manage the heat generated by densely packed servers, driving the market's growth trajectory. For instance, in August 2023, CyrusOne introduced a customized data center design tailored for AI applications, featuring immersion cooling, among other advanced techniques, to achieve exceptionally high-power densities. This innovative approach aims to optimize performance for AI workloads.
 

Though the data center immersion cooling market shows promising growth, it faces initial hurdles due to its upfront investment requirements. However, these costs signify a long-term investment in energy efficiency and performance. Similarly, navigating regulatory compliance ensures safe and environmentally responsible practices, highlighting the industry's commitment to sustainability. As companies explore financing options and innovative solutions, the potential benefits of data center liquid cooling in terms of efficiency and environmental impact become increasingly apparent.
 

Data Center Immersion Cooling Market Trends

The data center immersion cooling industry is propelled by ongoing developments in cooling fluids and a strong emphasis on sustainability. Advancements in cooling fluids with improved thermal properties enhance the efficiency of immersion cooling systems. Furthermore, as companies prioritize environmentally friendly practices, immersion cooling's ability to reduce energy consumption and carbon footprints aligns with the trend toward sustainability, driving the adoption of immersion cooling solutions in data centers.
 

For instance, in November 2023, LiquidStack unveiled a single-phase immersion cooling solution, enhancing its DataTank product line. This eco-friendly option allows data centers to shift from energy-intensive air cooling to efficient liquid cooling, promising both energy savings and environmental benefits.
 

Data Center Immersion Cooling Market Analysis

Based on cooling technique, the market is divided into single-phase cooling and two-phase cooling. In 2023, the single-phase segment was valued at over USD 700 million in 2023. The segment growth is driven by its efficiency and versatility. This method involves submerging IT equipment in a dielectric fluid, facilitating effective heat dissipation. Companies favor single-phase immersion cooling for its simplicity and ability to handle high-density workloads with ease. With an increasing emphasis on energy efficiency and performance optimization, the single-phase cooling segment continues to maintain its dominant position, offering reliable and efficient cooling solutions for various applications.
 

Based on the end use, the market is categorized into hyperscale, supercomputing, enterprise HPC, cryptocurrency, edge/5G computing, and others. The hyperscale segment is anticipated to register a CAGR of over 18% from 2024 to 2032. The segment observed a noteworthy upsurge in 2023 due to its extensive infrastructure requirements. These massive facilities, operated by industry leaders, demand efficient cooling solutions to manage their immense data processing needs. Immersion cooling technology, with its ability to effectively handle high-density servers, aligns perfectly with the hyperscale segment's demands for performance and scalability. This dominance solidifies the hyperscale segment's position as a key driver in the immersion cooling industry.
 

North America dominated the global data center immersion cooling market with a major share of over 35% in 2023. The region growth is attributed to its robust infrastructure and substantial demand. The region's technological prowess, in line with stringent environmental regulations, drives the adoption of advanced data center cooling solutions. Companies in the U.S. and Canada invest in innovative immersion cooling technologies, such as liquid cooling and direct-to-chip systems, to cater to the escalating demands of high-density data centers, solidifying their dominance in the market.
 

Data Center Immersion Cooling Market Share

Fujitsu Limited and 3M company held significant market share of over 9% market share in 2023. These companies are expanding their market presence through strategic partnerships and innovative solutions. Collaborations with established cooling technology firms grant access to state-of-the-art immersion cooling solutions, expanding their reach across various customer segments. These partnerships facilitate the provision of comprehensive immersion cooling options, encompassing both single-phase and two-phase systems, thus catering to a wide array of data center requirements and solidifying their position in the market.
 

Furthermore, enterprises are making substantial investments in research and development to advance immersion cooling technology. This includes the introduction of novel cooling fluids with enhanced thermal characteristics and the creation of modular immersion cooling systems for seamless integration into current data center infrastructures. Such dedication to innovation enriches their product portfolios and positions them as frontrunners in the fast-evolving data center immersion cooling industry, driving market expansion.
 

Data Center Immersion Cooling Market Companies

Major players operating in the market are:

• 3M Company
• Alfa Laval AB
• Asetek Group
• Asperitas B.V.
• DCX - The Liquid Cooling Company
• Fujitsu Limited
• Green Revolution Cooling Inc.
• Midas Green Technologies LLC
• Schneider Electric SE
• Submer Technologies S.L.
   

Data Center Immersion Cooling Industry News

• In November 2023, LITEON introduced COOLITE, its next-gen liquid cooling solutions featuring immersion cooling and ORv3 power products, revolutionizing data centers with innovative cooling technology.
   
• In October 2023, ExxonMobil introduced a range of data center immersion cooling fluids featuring both synthetic and non-synthetic options, providing a comprehensive portfolio for various applications.
   

The data center immersion cooling market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2021 to 2032, for the following segments:

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Market, By Component

• Solution
  • Cooling fluids
  • Cooling racks/modules
  • Filters
  • Pumps
  • Heat exchangers
  • Others 
• Service
  • Installation & maintenance
  • Training & consulting

Market, By Cooling Technique

• Single phase cooling
• Two-phase cooling

Market, By Cooling Fluid

• Mineral oil
• Synthetic fluid
• Fluorocarbons-based fluid

Market, By Organization Size

• SME
• Large enterprises

Market, By End Use

• Hyperscale
• Supercomputing
• Enterprise HPC
• Cryptocurrency
• Edge/5G computing
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Poland
  • Benelux
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Colombia
  • Argentina
  • Chile
  • Rest of South America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA