Global Data Center Liquid Immersion Cooling Market Size, Share, Statistics Analysis Report By Component (Solution (Cooling Fluids, Cooling Racks/Modules, Filters, Pumps, Heat Exchangers, Others), Service (Installation & Maintenance, Training & Consulting)), By Cooling Technique (Single Phase Cooling, Two-phase Cooling), By Organization Size (SMEs, Large Enterprises), By End Use (Hyperscale, Supercomputing, Enterprise HPC, Cryptocurrency, Edge/5G Computing, Others), Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2025-2034

Report Overview

The Data Center Liquid Immersion Cooling Market size is expected to be worth around USD 6,947.9 Mn By 2034, from USD 1305.2 Mn in 2024, growing at a CAGR of 18.20% during the forecast period from 2025 to 2034. In 2024, North America held the largest share of Market with over 36.1%, generating approximately USD 471 mn in revenue. The U.S. market was valued at USD 424.05 mn and is projected to grow at a CAGR of 17.1%.

Data Center Liquid Immersion Cooling is a technology used to manage heat in data centers through the immersion of computer components, or entire servers, in a thermally conductive liquid. Unlike traditional air-cooled systems, liquid immersion cooling submerges hardware in a non-conductive fluid that efficiently absorbs heat, offering superior thermal management.

The growth of the Data Center Liquid Immersion Cooling market is driven by the demand for energy-efficient data centers, as immersion cooling significantly lowers power usage effectiveness (PUE) ratios. Additionally, the rise of high-performance computing (HPC) applications like AI, machine learning, and big data analytics requires advanced cooling solutions to manage higher thermal loads.

The primary drivers of the data center liquid immersion cooling market include the escalating demand for high-performance computing and the growing need for energy-efficient cooling technologies. As data centers expand and computing operations intensify, traditional air-cooled systems are becoming inadequate, thereby boosting the demand for liquid immersion cooling solutions.

The demand for data center liquid immersion cooling is fueled by the high-density configurations of modern data centers, which require advanced cooling to maintain operational efficiency. The ability of liquid immersion cooling to reduce cooling energy consumption by up to bold 90% is a major reason for its increasing popularity.

For instance, In January 2024, Stack unveiled a high-performance liquid cooling solution for data centers, designed to support 300 kW or more per rack through immersion cooling. The company also offers customizable configurations, starting from 30 kW per rack with air cooling, progressing to 50 kW using door-mounted heat exchangers, and reaching up to 100 kW with direct-to-chip liquid cooling.

Current trends in the data center liquid immersion cooling market include the integration of AI and IoT technologies, which enhance the efficiency and automation of cooling systems. There is also a notable shift towards using eco-friendly coolants, which supports the broader trend of environmental sustainability in data center operations.

Key Takeaways

• The Global Data Center Liquid Immersion Cooling Market is projected to reach USD 6,947.9 Million by 2034, up from USD 1,305.2 Million in 2024, growing at a CAGR of 18.20% during the forecast period from 2025 to 2034.
• In 2024, the Solution segment dominated the Data Center Liquid Immersion Cooling market, accounting for more than 71.6% of the market share.
• The Single Phase Cooling segment also held a leading position in 2024, capturing more than 59.4% of the data center liquid immersion cooling market.
• In 2024, Large Enterprises dominated the Data Center Liquid Immersion Cooling Market, with more than 82.7% of the market share.
• The Hyperscale segment captured over 31.4% of the market share in 2024, holding a dominant position in the data center liquid immersion cooling market.
• In 2024, North America had the largest market share in the Data Center Liquid Immersion Cooling Market, accounting for more than 36.1%, with revenues reaching approximately USD 471 million.
• The U.S. Data Center Liquid Immersion Cooling Market was valued at USD 424.05 million in 2024 and is expected to grow at a CAGR of 17.1%.

Analyst’s Viewpoint

Technologies that are increasing adoption in the liquid immersion cooling market include advanced coolant materials and IoT-enabled monitoring systems. These technologies contribute to enhanced cooling performance and operational reliability, which are critical in high-demand data center environments.

The key reasons for adopting advanced liquid immersion cooling technologies are their ability to significantly reduce energy consumption and operational costs, improve system performance, and extend the lifespan of hardware by providing a more stable thermal environment.

Investment opportunities in the data center liquid immersion cooling market are abundant, particularly in developing regions where the expansion of data centers is most rapid. Investors are particularly interested in companies that offer innovative cooling solutions that promise operational efficiency and reduced environmental impact.

The regulatory environment for data center liquid immersion cooling is increasingly focused on environmental standards and energy efficiency mandates. Regulations such as the European Union’s Code of Conduct on Data Center Energy Efficiency are influencing the adoption of sustainable cooling technologies in data centers.

U.S. Market Growth

The U.S. Data Center Liquid Immersion Cooling Market was valued at USD 424.05 million in the year 2024. It is projected to grow at a compound annual growth rate (CAGR) of 17.1%.

Liquid immersion cooling technology in data centers involves submerging computer components or entire servers in a thermally conductive liquid, providing superior heat transfer compared to traditional air cooling systems. This efficiency leads to significant energy savings, making it a key driver in the adoption of this technology as data centers continue to evolve.

The growth of the liquid immersion cooling market in the U.S. is driven by the rising demand for data processing and storage, which leads to larger, energy-intensive data centers with increased cooling needs. Traditional methods may be insufficient or expensive, prompting a shift toward sustainable solutions to reduce carbon footprints and energy costs.

Advancements in technology and innovative coolant solutions have made immersion cooling more viable and appealing. These non-conductive coolants prevent hardware damage, enhancing the reliability and lifespan of data center components. The increasing adoption of power-intensive technologies like artificial intelligence, which generates significant heat, is expected to further drive the U.S. market for immersion cooling.

In 2024, North America held a dominant market position in the Data Center Liquid Immersion Cooling Market, capturing more than a 36.1% share with revenue amounting to approximately USD 471 million. This prominent standing is primarily due to several region-specific factors that promote the adoption of innovative cooling technologies in data centers.

North America’s significant market share is largely due to the high concentration of technology companies and advanced data centers in the region. The United States, home to many global tech giants and data-intensive companies, is increasingly adopting liquid immersion cooling techniques to improve efficiency and reduce operational costs, driving regional market growth.

The region’s strong regulatory framework promoting energy efficiency and sustainability has accelerated the adoption of green technologies in data centers. Standards aimed at reducing carbon emissions and energy consumption encourage operators to adopt more efficient solutions, like liquid immersion cooling, which outperforms traditional air cooling methods.

Technological advancements and innovations in liquid cooling solutions by North American companies have created a favorable environment for market growth. These innovations improve system efficiency and performance while ensuring compatibility with evolving hardware. As data centers expand, the demand for effective and sustainable cooling solutions like liquid immersion cooling is expected to drive further growth, reinforcing North America’s leadership in the market.

Component Analysis

In 2024, the Solution segment held a dominant market position in the Data Center Liquid Immersion Cooling market, capturing more than a 71.6% share. This segment includes key components like cooling fluids, racks/modules, filters, pumps, and heat exchangers. Its significant market share is driven by the essential role these components play in the setup and efficient operation of liquid immersion cooling systems.

Cooling fluids and racks/modules are key elements in the Solutions segment, crucial for the efficient transfer of heat from electronic components. Cooling fluids are designed for high thermal conductivity and low electrical conductivity, while racks/modules optimize immersion of IT hardware. Their need for compatibility and efficiency drives ongoing innovation and adoption.

Furthermore, the need for auxiliary components like filters and pumps, which support the maintenance of the cooling system’s integrity and operation, also bolsters the Solutions segment. Filters are crucial for maintaining the purity of the cooling fluid, thereby ensuring its effectiveness and longevity, while pumps are required to circulate the fluid, ensuring consistent heat dissipation from the hardware.

Heat exchangers are vital in this segment, transferring heat from the cooling fluid to an external system or ambient environment, helping maintain optimal temperatures in data centers. Their effectiveness directly impacts cooling efficiency, emphasizing the importance of the Solutions segment in the market. Technological advancements and the growing need for effective heat management drive continued demand, reinforcing the segment’s leadership.

Cooling Technique Analysis

In 2024, the Single Phase Cooling segment held a dominant market position, capturing more than a 59.4% share of the data center liquid immersion cooling market. This technique, where the cooling liquid is circulated around the components without changing its state, has been widely adopted due to its simplicity and effectiveness in managing heat dissipation in data centers.

Single Phase Cooling is favored for its operational simplicity and reliability. Unlike Two-phase Cooling, which involves liquid vaporizing and condensing, Single Phase Cooling eliminates the need for complex systems to manage phase changes. This simplicity leads to lower installation and maintenance costs, making it a popular choice for smaller data centers or regions with less demanding cooling needs.

Single Phase Cooling is widely adopted due to its cost-effectiveness. Its non-evaporative process requires less specialized equipment and fewer operational adjustments, reducing energy and pump costs. This method efficiently supports moderate heat loads, making it well-suited to meet the needs of many conventional data centers.

Single Phase Cooling systems are highly compatible with existing data center designs, allowing for easy integration without major modifications. This makes them an attractive option for operators looking to upgrade cooling systems with minimal infrastructure changes, ensuring smoother transitions and reduced downtime.

Organization Size Analysis

In 2024, the Large Enterprises segment held a dominant market position in the Data Center Liquid Immersion Cooling Market, capturing more than an 82.7% share. The substantial market share is mainly driven by the scale and operational demands of large enterprises, which require advanced cooling solutions to manage high heat loads efficiently.

Large enterprises often operate vast data centers with numerous high-performance servers that generate significant heat, exceeding the capacity of traditional air cooling systems. Liquid immersion cooling offers an effective solution by submerging hardware in a non-conductive liquid, improving cooling efficiency and reducing thermal stress on system components.

The economic scale of large enterprises enables them to invest in innovative technologies like liquid immersion cooling. While the initial setup and operational costs are higher, these organizations can achieve cost-efficiency at scale, absorbing upfront investments with the expectation of long-term savings in energy and improved hardware longevity.

Large enterprises are also motivated by corporate sustainability goals to reduce their carbon footprint and enhance energy efficiency. Liquid immersion cooling not only provides superior cooling but also significantly lowers energy consumption compared to traditional methods. This aligns with the environmental strategies of large organizations, further encouraging the adoption of liquid immersion cooling in their data centers.

End Use Analysis

In 2024, the Hyperscale segment held a dominant position in the data center liquid immersion cooling market, capturing more than a 31.4% share. This significant market presence can be attributed to the increasing demand for cloud services and the expansion of large-scale data centers by major technology firms.

Hyperscale data centers, characterized by their vast size and capacity, are pivotal in managing the massive volumes of data generated by modern digital activities. These facilities require advanced cooling solutions to handle high heat loads efficiently, making liquid immersion cooling an ideal choice due to its effectiveness in enhancing thermal management and reducing energy consumption.

The leadership of the Hyperscale segment is strengthened by ongoing investments from key tech players focused on enhancing data processing and energy efficiency. Liquid immersion cooling systems are ideal for hyperscale environments, enabling higher server densities and reducing data center footprints. Additionally, these systems lower cooling energy costs, driving adoption in regions with high electricity rates.

The trend toward sustainability in the technology industry also contributes to the dominance of the Hyperscale segment. Companies are focused on reducing their carbon footprint, and liquid immersion cooling provides a more eco-friendly alternative to traditional air cooling. This system aligns with corporate sustainability goals by lowering energy consumption and using coolants that are often less harmful to the environment than conventional refrigerants.

Key Market Segments

By Component

• Solution
  • Cooling Fluids
  • Cooling Racks/Modules
  • Filters
  • Pumps
  • Heat Exchangers
  • Others
• Service
  • Installation & Maintenance
  • Training & Consulting

By Cooling Technique

• Single Phase Cooling
• Two-phase Cooling

By Organization Size

• SMEs
• Large Enterprises

By End Use

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

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Singapore
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Driver

Enhanced Energy Efficiency

The adoption of liquid immersion cooling in data centers is primarily driven by its superior energy efficiency compared to traditional air-cooling methods. By submerging servers directly into a thermally conductive but electrically insulating liquid, heat generated by electronic components is dissipated more effectively.

This direct heat transfer mechanism reduces the need for energy-intensive air conditioning systems and mechanical cooling components, leading to significant energy savings. Moreover, liquid immersion cooling enables higher server densities, allowing more servers to operate within a smaller footprint without the risk of overheating.

Additionally, the reduction in mechanical components such as fans leads to quieter operations and less energy spent on ancillary cooling processes. Collectively, these factors make liquid immersion cooling a compelling solution for data centers aiming to enhance energy efficiency and reduce operational costs.​

Restraint

High Initial Investment Costs

Despite its benefits, the widespread adoption of liquid immersion cooling is hindered by substantial initial investment costs. Implementing this technology requires significant modifications to existing data center infrastructures, including the installation of specialized tanks, pumps, and heat exchangers designed for liquid cooling systems.

The dielectric fluids used in immersion cooling are costly, with prices reaching hundreds of dollars per gallon, raising operational expenses. Additionally, transitioning to this cooling method requires extensive staff training, further increasing upfront costs.

Although long-term energy savings and efficiency gains can offset these investments, the initial financial outlay remains a significant barrier for many organizations considering the adoption of liquid immersion cooling technologies.

Opportunity

Expansion of Edge Computing

The proliferation of edge computing presents a significant opportunity for the adoption of liquid immersion cooling technologies. Edge data centers, characterized by their deployment in locations closer to end-users to reduce latency, often face space constraints and require high-density computing solutions.

Liquid immersion cooling addresses these challenges by enabling higher server densities within compact spaces, as it eliminates the need for bulky air-cooling infrastructure. This compactness allows for the deployment of powerful computing resources in smaller, localized facilities, aligning with the requirements of edge computing environments.

The enhanced energy efficiency and reduced environmental impact of liquid immersion cooling make it an appealing option for edge data centers looking to minimize their carbon footprint while maximizing performance. As edge computing grows, the demand for efficient, space-saving cooling solutions like liquid immersion cooling is expected to rise, presenting significant market opportunities for this technology.

Challenge

Maintenance and Operational Complexity

Implementing liquid immersion cooling systems introduces several maintenance and operational challenges. Routine checks are essential, including monitoring fluid levels, pump functionality, and system integrity, to prevent potential leaks and corrosion. The specialized nature of these systems necessitates staff training to handle the unique aspects of liquid cooling maintenance effectively.

Additionally, ensuring the compatibility of existing hardware with immersion cooling solutions can be complex, requiring careful planning and potential hardware modifications. Addressing these challenges is crucial to maintain the reliability and efficiency of data center operations utilizing liquid immersion cooling.​

Emerging Trends

Liquid immersion cooling is rapidly gaining popularity in data centers for its efficiency in handling high-density workloads. By submerging IT hardware in non-conductive liquids, it effectively dissipates heat, enabling more compact and efficient data center designs.

As demand for compute-intensive applications like AI and machine learning rises, traditional air-cooling methods are proving less effective, driving the shift towards liquid cooling solutions.​ Space constraints within data centers are another driving factor for this trend. Liquid immersion cooling enables higher server density per rack, reducing the overall physical footprint.

This efficiency is particularly beneficial in urban areas where space is limited. Furthermore, the rise of edge computing necessitates localized data processing, often in environments with limited space and cooling infrastructure. Liquid cooling systems are well-suited for these scenarios, offering effective thermal management in compact setups.

Business Benefits

Liquid immersion cooling enhances hardware lifespan and reliability by maintaining a stable and uniform cooling environment. This reduces thermal stress and overheating risks, minimizing hardware failures. Consequently, data centers benefit from lower capital expenditures and improved operational reliability over time.

Liquid immersion cooling systems allow data centers to maximize the use of physical space by enabling higher-density server configurations without the extensive cooling infrastructure required by traditional methods. This approach can eliminate the need for new constructions or expansions, optimizing space utilization and potentially reducing real estate costs.

Liquid immersion cooling reduces operational and maintenance costs by minimizing reliance on large HVAC systems. Fewer mechanical components lead to lower wear and tear, less frequent replacements, and reduced complexity, enhancing overall cost efficiency.

Key Player Analysis

As data center demand grows, market leaders are innovating to deliver solutions that enhance energy efficiency, lower operational costs, and provide environmental benefits.

Submer Technologies S.L. is one of the leading companies in the liquid immersion cooling market. The company is known for its pioneering technology in providing cooling solutions for high-performance computing (HPC) environments, including data centers. Submer’s “Immersion Cooling Technology” ensures that IT components are directly immersed in a special liquid that absorbs the heat efficiently.

Alfa Laval AB is another prominent player in the liquid immersion cooling market, known for its expertise in heat transfer, separation, and fluid handling technology. Alfa Laval offers a range of products, including their “Alfa Laval Immersion Cooling Solution,” which helps businesses cool their data centers more efficiently.

Midas Green Technologies LLC focuses on providing cutting-edge liquid cooling solutions designed specifically for data centers. They offer “Immersion Cooling Systems” that use special dielectric fluids to cool electronics, enhancing operational efficiency and reducing the need for traditional air conditioning. Midas Green Technologies stands out for its focus on energy efficiency and scalability, offering solutions that can adapt to various data center sizes and configurations.

Top Key Players in the Market

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

Top Opportunities for Players

The Data Center Liquid Immersion Cooling market presents key opportunities driven by technological advancements and the growing demand for energy-efficient and sustainable operations.

• Expansion into Emerging Markets: The Asia Pacific region is experiencing rapid growth in data center deployments, offering significant opportunities for market expansion. Companies are investing heavily in modernizing infrastructure to support digital economies, with countries like China, India, and Australia becoming attractive destinations for data center operators due to lower setup costs and supportive government policies​.
• Integration with Cloud Services: The increasing adoption of cloud-based services is a key driver for the Data Center Liquid Immersion Cooling market. These services require efficient cooling management due to the high heat generated by dense server deployments. Integrating liquid cooling solutions with cloud services can enhance operational efficiency and performance, optimizing energy use and reducing space requirements​.
• Advancements in Cooling Technologies: The market is witnessing significant technological innovations, such as two-phase immersion cooling systems and advanced cooling fluids. These advancements not only improve the efficiency of heat transfer but also align with sustainability goals by reducing the energy consumption and carbon footprint of data centers​.
• Strategic Partnerships and Collaborations: Companies in the Data Center Liquid Immersion Cooling market are increasingly engaging in strategic partnerships to enhance their technological capabilities and market reach. For instance, collaborations between cooling technology providers and major cloud service providers can streamline the deployment of immersion cooling solutions across various data center sizes and types​.
• Regulatory Compliance and ESG Goals: As global awareness of environmental issues grows, data centers are pressured to adopt green technologies. Liquid immersion cooling systems support regulatory requirements and Environmental, Social, and Governance (ESG) goals by providing energy-efficient cooling solutions. This compliance not only mitigates environmental impact but also enhances the marketability of data centers to eco-conscious clients​.

Recent Developments

• In July 2024, Midas Green Technologies LLC partnered with Carbon-Z in July 2024 to deploy advanced data centers emphasizing energy efficiency and cutting-edge cooling technology.
• In October 2024, Fujitsu and Supermicro have partnered to innovate green AI computing and liquid-cooled data center solutions. Their collaboration will focus on advancing liquid-cooled systems for HPC, Gen AI, and next-gen sustainable data centers.

Report Scope