Immersion Cooling Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Data Center Liquid Immersion Cooling Market Manufacturers and is Segmented by Type (single-Phase Immersion Cooling System and Two-Phase Immersion Cooling System), by Cooling Fluid (mineral Oil, Deionized Water, Fluorocarbon-Based Fluids, and Synthetic Fluids), by Application (high-Performance Computing, Edge Computing, Artificial Intelligence, Cryptocurrency Mining), and by Geography (North America, Europe, Asia-Pacific, and Rest of the World). The Market Size and Forecasts are Provided in USD for all the Above Segments.

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Data Center Immersion Cooling Market Size

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Immersion Cooling Market in Data Centers Summary
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Study Period 2019-2029
Market Size (2024) USD 0.78 Billion
Market Size (2029) USD 2.34 Billion
CAGR (2024 - 2029) 24.42 %
Fastest Growing Market North America
Largest Market North America

Major Players

Immersion Cooling Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Data Center Immersion Cooling Market Analysis

The Immersion Cooling Market In Data Centers Industry is expected to grow from USD 0.78 billion in 2024 to USD 2.34 billion by 2029, at a CAGR of 24.42% during the forecast period (2024-2029).

  • The increasing carbon footprint of data centers is a major issue leading to the increased adoption of advanced liquid cooling technology, such as immersion cooling. In a recent study conducted by company 3M, a prominent synthetic coolant provider in the immersion cooling market, it was identified that 38% of the electricity needed in data centers equipped with traditional air-based cooling technologies is utilized to cool the electronic components.
  • Liquid cooling is another commonly used method for heat management in data centers, alongside air cooling. However, liquid cooling is considered more beneficial than air cooling, as water is more efficient than air as a heat removal medium and may reduce cooling power needs by 70%.
  • Technological advancements have made liquid cooling simple to maintain, easily scalable, and affordable. They have reduced liquid usage by more than 15% for data centers in built-in hot and humid climates and 80% in cooler areas. The energy dedicated to liquid cooling may be recycled to heat buildings or water, effectively shrinking the carbon footprint of air conditioning due to advanced engineering coolants.
  • However, as the liquid is both corrosive and conductive with electricity, any type of breach or risk in the data center liquid cooling system can be dangerous for the facilities and systems. This presents a major challenge for the data center liquid cooling sector in the market studied.
  • The COVID-19 pandemic hastened the adoption of digital technologies, increasing the need for cooling systems and data centers. Following the pandemic, data center operators started to consider immersion coding technology because of its advantages for sustainability and energy efficiency. Immersion coding developed and became more important in the data center sector as a result of increased industry investments and innovations with a higher focus on residence and sustainability. The usage of these technologies is anticipated to grow as the digital economy continues to develop.

Data Center Immersion Cooling Market Trends

Edge Computing to Witness Major Growth

  • Growing research and development in edge computing are creating new opportunities for establishing new data centers worldwide. Edge computing is altering the data storage and processing fields, driving the demand for a new generation of edge micro data centers and thereby increasing the demand for immersion cooling for these data centers.
  • Immersion cooling helps reduce energy consumption in high-performance edge computing data centers. Companies in the Asia-Pacific region, especially in developing economies such as India, carefully consider the technologies and methods of cooling for their data centers to operate more efficiently. The construction of large data centers nationwide has increased investment in single-phase immersion cooling backed by hybrid silicone-organic fluids. Mineral oil is expected to enhance the data center's performance with its cooling ability and high thermal conductivity.
  • With a rising demand for artificial intelligence, higher computing densities are emerging. Liquid immersion cooling is becoming a suitable option for increasing demand for AI at the edge, where traditional air cooling has much lower thermal conductivity than liquid. To cater to this situation, vendors offer their best-in-class liquid cooling technology, the fastest and least disruptive way to adopt liquid cooling for AI and edge computing.
  • Overall, the deployment of large-scale edge computing data centers to cater to the growing fifth-generation (5G) networks, IoT, industrial IoT (IIoT) devices, autonomous vehicles, virtual and augmented reality, artificial intelligence, machine learning, and data analytics, has urged data center operators to opt for immersive cooling solutions to provide dramatic energy-saving benefits, augmenting market demand.
Immersion Cooling Market - Forecast Number of Mobile 5G Subscriptions, in millions, by region, Global, 2020 - 2028

North America to Hold Significant Market Share

  • North America is anticipated to hold a significant share in the immersion cooling market for data centers as it is an early adopter of newer technologies and is increasingly investing in liquid immersion and direct-to-chip cooling solutions. The emergence of AI and edge computing has further augmented the demand for data centers in North America.
  • The United States is the largest market in data center operations and is continuously growing due to the higher data consumption by end-users. The popularity of the IoT is a significant driver for the US hyper-scale data center growth. Similarly, Canada continuously enhances its data center infrastructure solutions due to the substantial increase in power density across the region. According to Natural Resources Canada, around half of the energy consumed in a data center is utilized by computing servers, with a further 40% being attributable to cooling these servers.
  • Liquid cooling becomes a more viable solution as more data centers aim to pack racks to capacity. The US-based 3M Company is a prominent provider of fluids related to immersion cooling technology. 3M Fluorinert liquids are much better than air and have the highest dielectric strength and electrical resistivity of all organic fluids. Unlike hydrocarbon liquids, such as mineral oil, 3M Fluorinert liquids are entirely fluorinated.
  • In July 2023, Texas-based Midas Immersion Cooling LLC, an industry player in immersion cooling technology solutions for Bitcoin miners and Data Centers with the largest deployed single-phase immersion cooling capacity, announced that it has entered into a long-term supply agreement with Riot Platforms, Inc., an industry player in BTC mining and Data Center hosting. Midas has secured an initial order of 200 megawatts (MW) of its latest generation of immersion cooling systems and has designed the ASICE 2.0 immersion cooling systems in Texas for manufacturers in North America.
  • In November 2022, US-based One Stop Systems Inc., an AI Transportable solutions provider, and TMGcore Inc., an innovator in immersion cooling technology solutions, introduced a two-phase liquid immersion-cooled technology. The solutions leverage non-conductive, chemically inert, non-corrosive fluids, and their boiling point properties efficiently remove the heat from the electronics. This helps provide high performance in small form factors for AI-based applications. The two-phase liquid immersion-cooled supercomputer for AI transportable applications represents a new level of operating efficiency, compactness, ruggedness, and performance.
  • Overall, North American investors are growing interested in immersion cooling products. The rise of 5G, IoT, AI, and edge computing has further highlighted the significance of data centers in the United States. Canada is continuously growing and providing more data center infrastructure solutions due to increased demand for power density across the region. Such data suggest a positive growth in the market adoption in North America during the forecast period.
Immersion Cooling Market in Data Centers - Growth Rate by Region

Data Center Immersion Cooling Industry Overview

The market studied reflects high competitiveness and is expected to intensify further during the forecast period. Key players, including Fujitsu Limited, Green Revolution Cooling Inc., Submer Technologies SL, Liquid Stack Inc., and Asperitas Company, are actively employing strategies like partnerships, collaborations, and acquisitions to fortify their product portfolios and secure sustainable competitive advantages.

In March 2023, Green Revolution Cooling Inc. announced Castrol's participation in GRC’s ElectroSafe Fluid Partner Program, aimed at advancing single-phase immersion cooling fluids' performance. GRC’s ElectroSafe liquid coolant range, available globally and utilized in twenty-two countries with GRC immersion cooling systems, offers high-performance, eco-friendly synthetic coolants extensively tested for quality. Within the program, Castrol and GRC jointly assess and collect fluid test data through a specialized protocol to optimize material compatibility, safety, and thermal efficiency. This collaboration expands the choices of trusted fluids for GRC’s global clientele, catering to diverse data center needs.

Simultaneously, Asperitas and Intel collaborated on immersion cooling solutions, enhancing their service offerings for customers utilizing Intel products. They recently convened a panel during a Data Center Dynamics (DCD) broadcast featuring esteemed partners like Shell and Boston Ltd. The discussion highlighted the intelligent and systematic implementation of immersion cooling systems in data centers. The panel emphasized that immersion technology can streamline cooling deployments while minimizing threats to current and future uptime. It emphasizes the importance of education, training, and knowledge regarding the tank and its IT infrastructure.

Data Center Immersion Cooling Market Leaders

  1. Fujitsu Limited

  2. Green Revolution Cooling Inc.

  3. Submer Technologies SL

  4. Liquid Stack Inc.

  5. Asperitas Company

*Disclaimer: Major Players sorted in no particular order

Data Center Immersion Cooling Market Concentration
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Data Center Immersion Cooling Market News

  • "July 2023: Midas Immersion Cooling announced its entry into a long-term supply agreement with Riot Platforms Inc., a provider of BTC mining and data center hosting. Under this agreement, Midas has secured an initial order of 200 megawatts (MW) for its latest generation of immersion cooling systems and associated adiabatic coolers designated for Riot's Corsicana, Texas, operations. Midas specifically designed the ASICE 2.0 immersion cooling systems in Texas for manufacturing in North America. The agreement stipulates the delivery of these new immersion cooling systems by the end of 2023. Upon commissioning, the initial 200 MW of immersion cooling systems will expand Midas' total deployed capacity to over 500 MW (0.5 GW).
  • February 2023: Iceotope collaborated with Hewlett Packard Enterprise (HPE), Intel, and nVent to introduce a scalable Open RAN liquid-cooling offering named Ku:l Extreme. This solution is designed to support 'Far Edge' computing across telco data center estates. Ku:l Extreme by Iceotope is a fully integrated, standardized solution offering improved sustainability, energy efficiency, and serviceability for future server generations. Intel Xeon Scalable processors power it and has been collaboratively developed to curtail energy consumption, providing a sustainable option for distributed workloads across both telco service providers and enterprises

Immersion Cooling Market In Data Centers Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Degree of Competition

      5. 4.2.5 Threat of Substitute Products

    3. 4.3 Assessment of the Impact of COVID-19 on the Industry

    4. 4.4 Industry Supply Chain Analysis

    5. 4.5 Fluorine-based Liquid Suppliers/Manufacturers

    6. 4.6 Immersion Cooling Bath Equipment Vendors

    7. 4.7 Data Center Vendors

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Increase in the Number of Hyper-scale Data Centers

      2. 5.1.2 Dealing with High-density Power Consumption

    2. 5.2 Market Restraint

      1. 5.2.1 High Investment with Greater Capital Expenditure

  6. 6. TECHNOLOGY SNAPSHOT

    1. 6.1 Evolution of Data Center Cooling

    2. 6.2 Energy Consumption and Computing Density Metrics, and Key Considerations

    3. 6.3 Teardown of Fluid, Processor, GPUs, Racks, and Infrastructure Providers

  7. 7. MARKET SEGMENTATION

    1. 7.1 By Type

      1. 7.1.1 Single-Phase Immersion Cooling System

      2. 7.1.2 Two-Phase Immersion Cooling System

    2. 7.2 By Cooling Fluid

      1. 7.2.1 Mineral Oil

      2. 7.2.2 Deionized Water

      3. 7.2.3 Fluorocarbon-Based Fluids

      4. 7.2.4 Synthetic Fluids

    3. 7.3 By Application

      1. 7.3.1 High-performance Computing

      2. 7.3.2 Edge Computing

      3. 7.3.3 Artificial Intelligence

      4. 7.3.4 Cryptocurrency Mining

      5. 7.3.5 Other Applications

    4. 7.4 By Geography

      1. 7.4.1 North America

      2. 7.4.2 Europe

      3. 7.4.3 Asia Pacific

      4. 7.4.4 Rest of the World

  8. 8. COMPETITIVE LANDSCAPE

    1. 8.1 Company Profiles

      1. 8.1.1 Fujitsu Limited

      2. 8.1.2 Green Revolution Cooling Inc.

      3. 8.1.3 Submer Technologies SL

      4. 8.1.4 Liquid Stack Inc.

      5. 8.1.5 Asperitas Company

      6. 8.1.6 LiquidCool Solutions

      7. 8.1.7 Midas Green Technologies

      8. 8.1.8 Iceotope Technologies Ltd.

      9. 8.1.9 Wiwynn Corporation

      10. 8.1.10 DCX Ltd.

    2. *List Not Exhaustive
  9. 9. INVESTMENT ANALYSIS

  10. 10. FUTURE OF THE MARKET

**Subject to Availability
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Data Center Immersion Cooling Industry Segmentation

Immersion cooling is an IT technique that immerses significant power distribution components in a thermally conductive dielectric fluid. This method is used to cool components, including transformers and electronic servers. The components are often submerged in coolants during this operation. Since these coolants are neither conductive nor capacitive, they present no risk to the electronics.

The study is segmented by type (single-phase immersion cooling system, two-phase immersion cooling system), by cooling fluid (mineral oil, deionized water, fluorocarbon-based fluids, synthetic fluids), by application (high-performance computing, edge computing, artificial intelligence, cryptocurrency mining), by geography (North America, Europe, Asia Pacific, and Rest of the World).

The market size and forecasts are provided in USD for all the above segments.

By Type
Single-Phase Immersion Cooling System
Two-Phase Immersion Cooling System
By Cooling Fluid
Mineral Oil
Deionized Water
Fluorocarbon-Based Fluids
Synthetic Fluids
By Application
High-performance Computing
Edge Computing
Artificial Intelligence
Cryptocurrency Mining
Other Applications
By Geography
North America
Europe
Asia Pacific
Rest of the World
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Immersion Cooling Market In Data Centers Market Research Faqs

The Immersion Cooling Market In Data Centers Industry size is expected to reach USD 0.78 billion in 2024 and grow at a CAGR of 24.42% to reach USD 2.34 billion by 2029.

In 2024, the Immersion Cooling Market In Data Centers Industry size is expected to reach USD 0.78 billion.

Fujitsu Limited, Green Revolution Cooling Inc., Submer Technologies SL, Liquid Stack Inc. and Asperitas Company are the major companies operating in the Immersion Cooling Market In Data Centers Industry.

North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Immersion Cooling Market In Data Centers Industry.

Immersion Cooling Market In Data Centers Industry Report

Statistics for the 2024 Immersion Cooling In Data Centers market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Immersion Cooling In Data Centers analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Immersion Cooling Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)