Japan Immersion Cooling Market Accelerates on AI Data Centers, HPC Workloads & Sustainable Energy Policies

Leander, Texas and Tokyo, Japan - Dec.31.2025
As per DataM Intelligence research report "Global Immersion Cooling Market is expected to grow at a CAGR of 14.3% from 2024 to 2031." Rising data center energy consumption, high-density AI and HPC workloads, demand for sustainable cooling solutions, and inefficiencies of traditional air cooling are fueling adoption of immersion cooling technologies.

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Japan: Recent Industry Developments
✅ In November 2025, Japan's data center immersion cooling market expanded with investments in advanced, eco-friendly solutions aligned with national energy policies, supporting high-density servers and AI workloads.
✅ In Q2 2025, Green Revolution Cooling (GRC) partnered with NTT to deploy immersion cooling systems in Japanese data centers, enhancing energy efficiency and reducing operational costs.
✅ In 2025, Fujitsu deployed immersion cooling systems in Tokyo data centers to optimize thermal management for AI and high-performance computing applications.

United States: Recent Industry Developments
✅ In November 2025, Green Revolution Cooling (GRC) launched the ICEraQTM Nano, a compact single-phase immersion cooling rack for edge deployments, delivering efficient cooling without chilled water requirements.
✅ In October 2025, The U.S. immersion cooling sector advanced with a projected 22.3% CAGR through 2030, driven by hyperscale data centers and innovations in high-performance computing.
✅ In September 2025, LiquidStack introduced scalable immersion cooling solutions tailored for hyperscale operators, improving thermal management for cloud and AI workloads.

Immersion Cooling Market: Drivers
The immersion cooling market is driven by escalating power densities in data centers from AI, machine learning, and high-performance computing, where traditional air cooling falls short. Immersion systems offer superior energy efficiency, reduced PUE, lower carbon footprints, and higher server density without fans or extensive infrastructure.
Another driver is growing regulatory pressure for sustainability, water conservation, and noise reduction in urban data centers. Advancements in dielectric fluids, modular designs, and partnerships for deployment in hyperscale and edge environments expand applications. Increasing investments in green data center technologies sustain market momentum.

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Immersion Cooling Market: Major Players
Fujitsu Limited, Green Revolution Cooling Inc., Submer Technologies, Asperitas, LiquidStack, Midas Immersion Cooling, Iceotope Technologies Limited, Liquidcool Solutions, Inc., Downunder Geosolutions Pty Ltd, DCX The Liquid Cooling Company.

Segment Covered in the Immersion Cooling Market:
By Product
The market is segmented into Single Phase Immersion Cooling and Two-Phase Immersion Cooling. Single Phase dominates due to simplicity, lower costs, and widespread adoption in data centers.
By Cooling Fluid
Mineral Oil, Fluorocarbon-Based Fluid, Synthetic Oil, and Others.
By Application
High-Performance Computing, Edge Computing, Artificial Intelligence, Cryptocurrency Mining, and Others. Artificial Intelligence and High-Performance Computing lead amid rising AI workloads.

Regional Analysis
Europe - Largest Share
Europe holds the largest share, supported by high demand for data center cooling, numerous colocation facilities, and focus on energy efficiency in countries like the U.K., Germany, and France.
North America - Significant Growth
North America grows rapidly with hyperscale expansions, AI innovations, and investments in sustainable infrastructure.
Asia Pacific - Fastest-Growing
Asia Pacific is the fastest-growing region, driven by data center boom, AI adoption, and eco-friendly policies in Japan, China, and India.
Latin America - Gradual Growth
Latin America shows steady progress in digital infrastructure.
Middle East & Africa - Emerging Growth
Middle East & Africa expands with investments in high-density computing facilities.

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