Data Center Immersion Cooling Market Size - By Component, By Cooling Technique, By Cooling Fluid, By Organization Size, By Application, Growth Forecast, 2025 – 2034

Data Center Immersion Cooling Market Size

The global data center immersion cooling market size was estimated at USD 1.3 billion in 2024. The market is expected to grow from USD 1.6 billion in 2025 to USD 7.2 billion in 2034, at a CAGR of 18.3%.

• Immersion cooling is becoming more popular in data centers because it can handle the explosion in compute density and power requirements. U.S. Department of Energy repots indicate that data centers consumed 4.4% of U.S. total electricity in 2023, and will increase to 6.7% to 12% by 2028, with cooling using 25-40% of the electricity consumption by data centers.
   
• Rising applications of artificial intelligence, machine learning and high-performance cooking are contributing to higher cooling demand. For instance, Data Center Frontier points out average rack density has almost doubled (6.1 kW to 12 kW) with 60% of data centers in the process of adding density (with 40% coming via liquid cooling solutions).
   
• The largest growth drivers in the market are hyperscale data centers and cryptocurrency mining that are facilities that have limited cooling capacities to maintain their optimal operating temperatures. According to the International Energy Agency, it is estimated that the electricity consumption of data centers worldwide will increase to 260 TWh by 2026, which accounts to 6% of the overall electricity demand in the U.S. and 40% of data center power consumption is due to cooling.
   
• In February 2023, Iceotope Technologies raised 30m in a global investment syndicate spearheaded by ABC Impact of Singapore. The investment will be used to grow the capability of Iceotopes precision immersion cooling technology, which saves up to 96%  and 40% respectively on energy and water consumption per kilowatt of IT equipment.
   
• The immersion cooling technologies are being propelled by the introduction of environmental regulations and sustainability programs. BOYD Corporation reports that a 75% conversion of air to liquid cooling has lowered facility power costs by 27% along with reducing the total data center energy consumption by 15.5% and their average PUE was 1.55 in the year 2022.
   
• The solution segment dominates the market because this covers the fundamental hardware part such as immersion tanks, pumps, heat exchangers and cooling distribution units. The systems offer an infrastructure to resultant effective heat dissipation in higher density computing engagements.
   
• The largest end-use category is the hyperscale segment which is propelled by a number of big cloud service providers and technology companies that demand a huge amount of computational capacity with maximum energy efficiency.
   
• North America holds the largest market share because most of the large technology firms together with hyperscale data centers and leading edge cooling technologies adoption is concentrated in that region.
   
• Asia Pacific is expected to witness the highest growth rate during the forecast period due to the massive digitalization, high pace of data center constructions, and the development of awareness about energy-efficient cooling systems.
   

Data Center Immersion Cooling Market Trends

• Another important industrial trend that has been heavily embraced is the use of immersion cooling solutions where existing air-based air cooling systems are being insufficient to support the current high-density computing needs. According to nVent report, liquid cooling adoption is projected to increase from 10% in 2024 to over 20% in 2025, with liquid cooling systems providing heat transfer capacity 3,500 times greater than air.
   
• The transition allows data center operators to attain greater rack densities, consume less energy, and have a more efficient overall operation. This technology enables the use of smaller data center designs and retains the optimum level of performance.
   
• In March 2023, Trane Technologies strategic invested in startup company LiquidStack, whose focus is liquid immersion cooling of data centers. This is an alliance that deals with sustainable data centers and the expansion of immersion cooling technology.
   
• Artificial intelligence and machine learning applications in data centers are establishing new cooling challenges that have never been experienced before. These loads come with high heat loads that must be properly cooled using sophisticated cooling systems, than the typical air cooling systems.
   
• In February 2024, the TotalEnergies Fluids joined Green Revolution Cooling (GRC) as a member of its ElectroSafe Fluid Partner Program. TotalEnergies will furnish BioLife immersion cooling fluids, and these are biosourced, biodegradable, and built to perform optimally.
   

Data Center Immersion Cooling Market Analysis

Based on component, the market is segmented into solution and service. The solution segment held over 70% of the market share and generated revenue of around USD 900 million in 2024.
 

• The solution segment encompasses comprehensive hardware systems including cooling fluid, cooling racks, filters, pumps, heat exchangers, and others. These components form the core infrastructure required for effective immersion cooling implementation.
   
• The immersion cooling solutions also have the advantage of dissipating heat better than the conventional air-cooling systems and this has allowed data centers to achieve higher densities with optimum temperatures. The technology enables the utilization of the facility space to be more efficient and less energy has to be consumed.
   
• Immersion cooling solutions also come equipped with advanced monitoring and control systems that allow real time temperature control, fluid level detection and predictive maintenance. The characteristics increase the reliability of the operation and lower the cost of maintenance.
   
• In March 2024 Kelvion and Rosseau announced a collaboration to improve immersion cooling solutions in the High Performance Computing (HPC) market. The cooperation will merge the heat exchanger technology of Kelvion with Rosseau immersion cooling technology to serve bitcoin mining and AI workloads.
   
• The service segment is expected to grow at a rate of approximately 20.5% during the forecast period. The rising demand of the services in terms of installation, support of maintenance, and system optimization consulting services in immersion cooling methods is what spur this growth as more organizations adopt immersion cooling technologies.
   

Based on application, the data center immersion cooling market is divided into hyperscale, supercomputing, enterprise HPC, cryptocurrency, edge/5G computing, and others. The hyperscale segment held 30% of the market share and generated revenue of around USD 400 million in 2024.
 

• Hyperscale data centers have a massive compute capacity that needs optimal energy efficiency based on which, using immersion cooling to manage high-density server deployments is an ideal method of handling it. Such services usually run thousands of servers in huge structures, creating high heat demands.
   
• Supercomputing businesses hold market share of about 25% and are led by research organizations, government organizations and businesses with high performance computing needs. Such applications impose a high heat load that can be greatly improved through immersion cooling.
   
• Immersion cooling is becoming a common practice in the cryptocurrency mining industry, where unusually high amounts of heat are produced by mining equipment. The technology facilitates increased mining efficiency at a lower energy requirement and operation costs.
   
• In April 2024, Nidec Corporation announced its plans to increase the capacity of water-cooling modules necessary in data center immersion cooling systems. The growth helps foster the rising popularity of effective cooling solutions in clustered computing environments.
   
• The edge/5G computing market segment will have the prominent growth over the forecast period due to 5G networks installations and edge computing infrastructure demanding effective cooling solutions with space restrictions.
   

Based on organization size, the data center immersion cooling market is segmented into SME and large enterprises. Large enterprises segment held around 73% of the market share and is expected to grow at a CAGR of 16% from 2025 to 2034.
 

• Large enterprises tend to have large data center infrastructures that have high computation needs thus making them the major adopters of immersion cooling systems. These entities possess the skills and the technical capacity to install the use of better cooling systems.
   
• Data centers that enterprise a large corporation usually involve the availability of 24/7 operations and efficient cooling systems become essential to the business as they continue to operate. Immersion cooling results in a better thermal management that has less possibility of causing equipment malfunctions.
   
• The SME segment is expected to grow at a rate of approximately 21% during the forecast period. The reasons behind this growth can be attributed to the growing digitalization of small and medium enterprises as well as the accessibility of scalable systems of immersion cooling.
   
• The shared infrastructure model being enabled by cloud service providers and managed service providers is allowing smaller firms to use more advanced cooling technologies without increasing the entrance into immersion cooling.
   

Based on cooling fluid, the data center immersion cooling market is segmented into mineral oil, synthetic fluid, and fluorocarbons-based fluid. The synthetic fluid segment was valued at USD 600 million in 2024 and is expected to grow at a CAGR of around 19% during 2025 to 2034.
 

• Synthetic fluid has better thermal property, chemical stability and environmental friendliness than conventional coolants. The fluids offer good heat transfer capacity along with suitable equipment compatibility as well as safety levels.
   
• Mineral oil-based cooling fluids represent approximately 37% of the market share, giving affordable cooling solutions to the different data center products. Such fluids offer good thermal management which is accompanied with performance and safety property as felt.
   
• The fluorocarbons based fluids are utilized in a number of special application that demand a specific thermal and chemical characteristic. The fluids provide superior dielectric and thermal stability.
   
• The emerging trends in the segment lie in the field of developing biodegradable and environment friendly cooling fluids that can satisfy both performance and environmental needs, thus sustainable solutions are the part of the on-going innovation with manufacturers turning to sustainable solutions in this segment.
   

US accounted for over 72% share in North America data center immersion cooling market, generating revenue of USD 372.9 million in 2024.
 

• The US dominates the North American market because of the high concentration of major technology industries, hyperscale data centers as well as early usage of advanced cooling technology. According to the U.S. Energy Information Administration, commercial electricity sales in data center-heavy states like Virginia increased by 14 billion kilowatthours and Texas by 13 billion kilowatthours from 2019 to 2023, largely due to data center expansion.
   
• The growth in demand of the efficient cooling solutions is fuelled by the leading clouds service providers and technology companies that have their headquarters in the region to accommodate their growing data centre infrastructures. Such organizations need emerging cooling technologies to sustain the competition in terms of energy efficiency and operating costs.
   
• The trend towards sustainability and energy efficiency regulations of the region is boosting the usage of immersion cooling technologies. The operators of data centers are also adopting more advanced cooling applications to ensure that they meet their environmental compliance-related obligations and to ensure that they lower costs of operation.
   
• Market growth is being supported by government initiatives aimed at the energy efficiency and sustainability in data centers. The immersion cooling technology is being adopted due to federal and state-level subsidies on energy-efficient technologies.
   
• Canada is expected to register significant growth during the forecast period due to the rising constructions of data centers and rising consciousness on energy efficient cooling options amongst Canadian business and providers of services.
   

The Europe data center immersion cooling market is expected to experience significant and promising growth from 2025 to 2034.

• Energy efficiencies and carbon neutrality laws created by the European Union are influencing the use of advanced cooling systems in data centers. The adherence to environmental sustainable solutions in the region is leading to high demand of immersion cooling solutions.
   
• Germany represents the largest market in Europe due to its structural strength as an industrial nation and technical manufacturing capabilities as well as a large data center infrastructure. The emphasis that the country has put on Industry 4.0 plans is also generating the need of deploying high-performance computing capabilities that demand effective cooling.
   
• Data center construction, as well as data center modernization, is undergoing a significant transformation in United Kingdom, where the requirements of brexit-related data sovereignty and the growing need of local data processing services are the driving forces.
   
• France is investing a lot in data center infrastructure and sustainable technologies, and government initiatives prompt the use of energy efficient cooling solutions. Development on nuclear energy in this country offers a reliable source of power that can be utilized in the workings of data centers.
   
• As developed nations like Norway, Sweden, and Denmark are endowed with cold climates, the availability of renewable energy deposits, and favorable policies towards green technologies, they are emerging as promising sites of data centers development.
   

The data center immersion cooling market in China is anticipated to witness lucrative growth between 2025 and 2034.
 

• China represents the largest market in the Asia Pacific region due to the huge investments on data center infrastructure, development of artificial intelligence solutions and digital transformation projects. The ambitious of the country to transform itself into the global technology hub is generating huge demand of high quality cooling solutions.
   
• The fast growing software application in services, cloud computing and artificial intelligence solutions across the region have increased demand of high density computing facility which needs an efficient cooling solution.
   
• The construction and modernization of the data centers are also growing tremendously in Japan due to the digital transformation plans and growing needs to use cloud services. Ensuring energy efficiency and environmental sustainability is the driver the country is looking forward to achieving, which is also contributing to the mainstreaming of immersion cooling technologies.
   
• It is gaining fast digitalization and rising infrastructural investment in data centers in India, mainly due to the government of India encouraging the digital India trend and the higher need of cloud services. The data center operations require effective cooling in the country due to the hot climatic effects of the country.
   
• South Korea makes significant investments in the development of 5G infrastructure and artificial intelligence breakthrough, which leads to the need in high-performance computing systems demanding coolers with advanced cooling systems.
   

The Latin America data center immersion cooling market is expected to experience significant and promising growth from 2025 to 2034.
 

• Brazil represents the largest market in Latin America and it is fueled by digital transformation programs and growing need of cloud services. The increased technology industry of the country is raising the demand in the efficient cooling solution of the data center.
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• Mexico is experiencing growth in data center construction driven by nearshoring trends and increasing demand for local data processing capabilities. International investors are flocking into the country to build data centers due to its location in proximity with the US.
   
• In Argentina, there has been a rise in investing in data center infrastructure due to government efforts to undergo a process of digital transformation and cloud consumption in the region which has continuously increased.
   
• The emphasis on energy efficiency and the concept of sustainability in the region opens up the possibility of adoption of immersion cooling technology especially in the poor environmental conditions countries.
   

The data center immersion cooling market in UAE is anticipated to witness lucrative growth between 2025 and 2034.
 

• The United Arab Emirates is leading the region in data center development, as the government focuses on the digital transformation and smart city development. The strategic position and the good infrastructure in the country is inviting foreign investments in data centers.
   
• The Kingdom of Saudi Arabia is undertaking Vision 2030 to build data centers; this strategy has necessitated the need to install effective cooling systems in harsh environmental conditions. The extreme weather in the country makes sophisticated cooling systems very crucial.
   
• The biggest marketplace in Africa region is marked by South Africa because of the rising digital world and demand of cloud operation. Developing technology sector in the country is giving the opportunity of advanced cooling solutions.
   

Data Center Immersion Cooling Market Share

• Top 7 companies of global data center immersion cooling industry are LiquidCool Solutions, Green Revolution Cooling, Submer, Fujitsu, Asperitas, Vertiv, Bitfury Group, collectively hold more than 30% of the market in 2024.
   
• LiquidCool Solutions is a prominent provider of submerged cooling systems, a player of single-phase immersion cooling system providers in the data-centers market. The company supply full cooling systems such as immersion tanks, pumps, heat exchanger and monitoring systems. LiquidCools solutions are developed to be used in the high-density computing environment and their superior energy performance is compared to the modules with the conventional air-cooling solutions.
   
• Green Revolution Cooling (GRC) based in San Francisco is a company operating in immersion cooling market, providing high-performance data centers with single-phase immersion cooling systems. ElectroSafe fluids offered by the company are free of toxicity and are not inflammable and have superior thermal properties with which they efficiently facilitate heat transfer.
   
• Submer is a European company focusing on data centers and high-performance computing solutions using immersion cooling of systems. The company has a complete cooling system which comprises of immersion tanks, cooling distribution and monitoring units which are made to be efficient with regard to use of energy and reliability in operation.
   
• Fujitsu is a large technology platform that provides immersion cooling to the extensive data center offering. The cooling systems required by the company are meant to help them in the case of high compute densities and at the same time deliver an efficient energy as well as low costs required during operation.
   
• Asperitas is a Dutch company, which has been developing immersion cooling technology to be used in data centres and high performative computing. The corporation develops creative refrigerating services to employ the best distinctive capacities in energy use, minimal use of the environment.
   
• Vertiv is a worldwide leader providing technological solutions for the critical infrastructure, such as the immersion cooling system of the data centers. The firm provides the complete cooling solutions in a bid to assist in mission-critical applications with high-level reliability and efficiency.
   
• Bitfury Group Limited is an organization that is involved in technology consisting of immersion cooling solutions that are specifically designed to cater to the cryptocurrency mining industry. The cooling systems of the company are high density mining optimised that offer better thermal and energy management systems.
   

Data Center Immersion Cooling Market Companies

Major players operating in the data center immersion cooling industry include:

• Asperitas
• Bitfury Group
• DCX Liquid Cooling Company
• Fujitsu
• Green Revolution Cooling
• Inspur
• LiquidCool Solutions
• Midas Immersion Cooling
• Submer
• Vertiv
   
• The global data center immersion cooling market is marked with great competition and high technological development. Companies are working on new kinds of coolers that may outdo the competition in terms of cooling, energy efficiency and environmentally friendly operations.
   
• TStrategic partnerships, acquisitions, and product development initiatives are common strategies employed by market participants to strengthen their competitive positions.
   
• Market players are also putting in more investment on research and development activities where the firms target to come up with next generation cooling fluids, advanced monitoring systems, and integrated cooling solutions. The introduction of artificial intelligence and machine learning solutions in the management of cooling systems is generating a novel potential for differentiating positions at the market and competitive strength.
   

Data Center Immersion Cooling Industry News

• In October 2024, Submer received a total of USD 55.5 million to expand immersion cooling technologies that power AI manufacturing and AI data centers. This investment will enable the company to grow and come up with more green cooling technology.
   
• In October 2024, Zero Two and Submer announced a collaboration, which would fast-track the expansion of AI development in the UAE by use of immersion cooling processes. This partnership improves the effectiveness and viability of Middle East data centers.
   
• In September 2024, LiquidStack raised a further USD 20 million, a total amount of USD 35 million of Serious B funding through Tiger Global. The money will be utilized to increase production capacity and to offer more product lines in immersion cooling AI data centers worldwide.
   
• In September 2024, Stellium Datacenters joined forces with Submer and ExxonMobil on an Open Compute Project. The partnership combines the immersion cooling practices at Submer and ExxonMobil DC 3235 Super cooling fluid in a bid to improve the efficiency.
   
• In August 2024, Baltimore Aircoil Company (BAC) announced a global exclusive licensing agreement with DUG Technology of immersion-cooling technology. The collaboration supports the changing cooling requirements that are prompted by augmented heat loads of AI and machine learning deployments.
   

The global data center immersion cooling market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($Mn/Bn) from 2021 to 2034, 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 Coolig 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 Application

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

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

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Poland
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Southeast Asia
• Latin America
  • Brazil
  • Argentina
  • Chile
  • Colombia
• MEA
  • UAE
  • Saudi Arabia
  • South Africa