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Data Center Liquid Immersion Cooling Market on Track for Strong Growth, Estimated to Grow at 26.3% CAGR Through 2029
Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shifts.What Is the Expected CAGR for the Data Center Liquid Immersion Cooling Market Through 2025?
The size of the data center liquid immersion cooling market has seen a rapid increase in recent years. The market is projected to escalate from $2.63 billion in 2024 to $3.3 billion in 2025, registering a compound annual growth rate (CAGR) of 25.4%. The growth observed in the historical period can be associated with the proliferation of data centers, a surge in the adoption of cloud-based services, expansion of IT infrastructure, embracing of the cloud model, and an increment in the count of hyper-scale data centers.
What's the Projected Size of the Global Data Center Liquid Immersion Cooling Market by 2029?
The market for liquid immersion cooling in data centers is anticipated to witness a significant uptick in growth in the ensuing years. The market is projected to amass a value of $8.38 billion by 2029, burgeoning at a compound annual growth rate (CAGR) of 26.3%. The predicted growth for the future is credited to factors such as handling high-power density consumption, increasing investments in liquid immersion cooling for data centers, and a growing emphasis on lowering carbon emissions. Other factors are the installation of effective liquid immersion systems, and the expansion of hyper-scale data centers. The forthcoming period is set to experience trends like improvements in real-time tracking and data assessment, deployment of cutting-edge liquid cooling technology, application of artificial intelligence, and other high-performance computing technologies, along with advances in advanced liquid cooling technology.
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Top Growth Drivers in the Data Center Liquid Immersion Cooling Industry: What's Accelerating the Market?
The growth of the data center liquid immersion cooling market is anticipated to be spurred by the rising adoption of cloud-based services. These services provide applications and computing resources via the internet instead of through individual devices or local servers. The appeal of cloud-based services lies in their ability to provide scalable, affordable, and readily accessible computing resources and applications. Data center liquid immersion cooling is utilized by these services to efficiently handle the excess heat generated by high-density servers, thereby optimizing energy use and performance and minimizing space needs. For example, a report released by Google Cloud, an American cloud computing service, in September 2022 revealed that multiple public clouds saw a rise from 21% in 2021 to 26% in 2022. In addition, the use of hybrid cloud has too escalated from 25% in 2021 to 42.5% in 2022. Hence, the escalating adoption of cloud-based services is propelling the growth of the data center liquid immersion cooling market.
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Which Emerging Trends Are Transforming the Data Center Liquid Immersion Cooling Market in 2025?
Leading firms in the data center liquid immersion cooling sector are generating advanced open intellectual property (IP) reference outlines to cater to the increasing needs for sustainability and operational efficiency in data centers. An open IP reference blueprint is a framework that is accessible to the public, providing detailed procedures for the incorporation of liquid immersion cooling systems into data centers. This assists organizations in handling the thermal requirements of high-performance computing. For example, Intel Corporation, a chip producing company based in the United States, introduced an open intellectual property immersion liquid cooling solution in May 2022. The design of this liquid cooling solution aims to help ease and accelerate the uptake of immersion cooling in data centers. It uses non-conductive mineral oils or synthetic fluids to soak IT hardware, effectively dissipating heat from the chips. The design includes two interconnected cabinets that can house up to 12 servers, which can help make the installation of immersion cooling solutions more efficient. Furthermore, it offers operations that are quieter than traditional cooling mechanisms.
What Are the Main Segments in the Data Center Liquid Immersion Cooling Market?
The data center liquid immersion cooling market covered in this report is segmented -
1) By Type: Single-Phase Immersion Cooling System, Two-Phase Immersion Cooling System
2) By Cooling Fluids: Mineral Oil, Deionized Water, Fluorocarbon-Based Fluids, Synthetics Fluids
3) By Data Center: Enterprise, Colocation, Wholesale, Hyperscale, Other Data Centers
4) By Application: High-Performance Computing, Edge Computing, Artificial Intelligence, Cryptocurrency Mining, Other Applications
5) By End-Use Industry: Banking, Financial Services, And Insurance (BFSI), Manufacturing, Information Technology (IT) And Telecommunication (Telecom), Healthcare, Government And Defense, Retail, Energy, Other End-User Industries
Subsegments:
1) By Single-Phase Immersion Cooling System: Closed-loop Systems, Open-loop Systems, Dielectric Fluids, Chilled Liquid Cooling
2) By Two-Phase Immersion Cooling System: Single-Phase to Two-Phase Transition Systems, Passive Two-Phase Cooling, Active Two-Phase Cooling, Cooling with Enhanced Heat Transfer Liquids
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Which Top Companies are Driving Growth in the Data Center Liquid Immersion Cooling Market?
Major companies operating in the data center liquid immersion cooling market are Intel Corporation, Schneider Electric SE, Fujitsu Limited, Solvay SA, Delta Electronics Inc., Alfa Laval AB, Rittal GmbH & Co. KG, Boyd Group Services Inc., Wiwynn Corporation, Kaori Heat Treatment Co. Ltd., Submer Technologies SL, Asetek A/S, STULZ GMBH, CoolIT Systems, DUG Technology, Midas Immersion Cooling, Prasa Infocom & Power Solutions Pvt. Ltd., Green Revolution Cooling Inc., Motivair Corporation, Iceotope Technologies Ltd., LiquidCool Solutions Inc., Asperitas, LiquidStack Holding BV, Chilldyne Inc., Vertiv Group Corp., DCX Liquid Cooling Systems
Which Regions Will Dominate the Data Center Liquid Immersion Cooling Market Through 2029?
North America was the largest region in the data center liquid immersion cooling market in 2024. The regions covered in the data center liquid immersion cooling market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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