Data Center Liquid Immersion Cooling Market
Report ID: SQMIG45D2139
Report ID: SQMIG45D2139
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Report ID:
SQMIG45D2139 |
Region:
Global |
Published Date: May, 2025
Pages:
193
|Tables:
182
|Figures:
79
Global Data Center Liquid Immersion Cooling Market size was valued at USD 991.99 Million in 2024 and is expected to grow significantly from USD 1245.94 Million in 2025 to USD 7716.38 Million by 2033, growing at a significant CAGR of 25.6% in the forecast period (2026–2033).
The global data center liquid immersion cooling market is rapidly expanding, driven by increasing demands for high performance computing (HPC), artificial intelligence (AI) workloads, and the increasing inefficiency of traditional air-cooling infrastructures. Hyperscale and edge data centers, particularly in the United States, China, and chosen parts of Europe, are being pushed with higher heat loads through denser server layouts and higher rack power densities, often operating well over 40 kW per rack. This has encouraged operators to look for even more energy and space-efficient alternatives in cooling. Immersion cooling, through a direct submerging of parts into thermally conductive dielectric liquids, provides better dissipation of heat while allowing reduced energy consumption that helps significantly contribute to PUE (Power Usage Effectiveness) enhancement, a top KPI indicator of data center sustainability.
The market is being influenced as well by strategic deployments by cloud majors and colocation providers testing out or rolling out immersion cooling technology at scale. Companies like Meta and Microsoft have publicly tested the systems in association with experts like Submer and GRC and confirmed performance advantages and total cost of ownership reduction potential. At the same time, governmental and environmental factors, primarily in the APAC and EU, are compelling the industry to use less water-intensive cooling technologies, presenting immersion cooling with an eco-friendly opportunity. A trend is also shifting toward increased emphasis on modular, scalable immersion cooling systems for retrofitting into existing facilities to overcome integration challenges without compromising operation continuity.
However, there are problems to overcome, such as high up-front capital outlays, absence of standardization, and inertia to operational dependability and long-term support. Market fragmentation and incompatibility of OEM servers with immersion cool enclosures have also hindered large-scale adoption. Risk-averse mentality among data center operators, due to risk aversion to running operations and lack of scale-proven case studies, also continue to constrain mass market adoption. But increased energy expenses and increasing ESG pressures are likely to push for a transition from pilot to production deployment during the next 3 to 5 years.
How AI is Transforming the Data Center Liquid Immersion Cooling Market?
Artificial Intelligence (AI) is revolutionizing data center liquid immersion cooling by accelerating system automation, power efficiency, and operational integrity. AI models sort through humongous volumes of sensor inputs to attempt to optimize thermal conditions in real-time. Predictive cooling becomes possible due to it, wherein AI predicts thermal uptick according to patterns of workloads and accordingly adjusts the parameters of systems beforehand. The result is fewer energy needs, lower downtime, and increased hardware lifespan, further increasing cost-effectiveness and scalability of immersion cooling to AI-heavy environments.
One recent example of this trend was the 2024 collaboration between Submer Technologies and NVIDIA to implement AI powered immersion cooling systems within GPU-rich data centers. These systems both host AI workloads as well as employ AI to govern thermal loads effectively, creating a feedback loop that drives both performance and sustainability in high-density computing environments.
Market snapshot - 2026-2033
Global Market Size
USD 789.8 Million
Largest Segment
Single Phase Cooling
Fastest Growth
Two-Phase Cooling
Growth Rate
25.6% CAGR
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Global Data Center Liquid Immersion Cooling Market is segmented by component, cooling technique, cooling fluid, organization size, application, end-use industry, and geography. The market is categorized by component on the basis of solution (cooling fluids, cooling racks/modules, filters, pumps, heat exchangers, and others), service (installation & maintenance, and training & consulting). On the basis of cooling technique, the market is categorized by single phase cooling, and two-phase cooling. The market is categorized by cooling fluid by mineral oil, deionized water, fluorocarbon-based fluids, and synthetic fluids. On the basis of organization size, the market is categorized by SME, and large enterprises. The market is categorized by application on the basis of high-performance computing, edge computing, artificial intelligence, cryptocurrency mining, and others. On the basis of end-use industry, the market is categorized by BFSI, manufacturing, IT & telecom, healthcare, government & defence, retail, energy, and others. On the basis of geography, the market is categorized by North America, Europe, Asia Pacific, Latin America, and Middle East and Africa.
Single Phase Cooling is the most common segment of the Global Data Center Liquid Immersion Cooling Market and holds the largest share since it has proved to be effective and less complicated. Single-phase liquid coolant that absorbs heat is used in this cooling technique and is therefore suitable to use in data centers with high or medium-density loads. Its simplicity, reliability, and low cost are why it's favored by early adopters such as hyperscalers and data centers.
Two-Phase Cooling, by contrast, is the fastest growing segment because it offers improved thermal management properties. It utilizes liquid and vapor phases for more efficient heat absorption and release, thus ideal for high performance, high density computing environments such as machine learning and AI. As data centers continue to raise the bar for power usage and performance, two-phase cooling system demand is fast picking up steam, triggering dramatic growth in the segment.
Mineral Oil is the most prevalent segment of the Global Data Center Liquid Immersion Cooling Market due to its affordability, ease of availability, and established history of performance in cooling high density workloads. Its superior thermal stability and lack of conductivity also make it a safe choice for data centers. The dominance of the segment is also due to its extensive use in early immersion cooling systems, where it has been found effective in cooling systems for small and large scale data centers, thereby holding the largest market share.
Fluorocarbon-Based Fluids are the highest growth segment because of their high thermal performance and improved heat transfer properties. They offer greater efficiency and stability at lower operating expense, making them ideal for future-proof, high-performance data centers that support increasingly demanding workloads like AI and HPC. As energy efficiency in data centers gains greater significance, the demand for fluorocarbon-based fluids is gaining traction, driving robust growth in this segment.
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North America is the dominating region in the Global Data Center Liquid Immersion Cooling Market due to significant investments from dominant players in the data center market and massive demand for energy efficient cooling solutions. The region's dominance is fueled by growing demand for high performance computing and green technology adoption. Some of the most prominent initiatives include hyperscaler-powered large scale data centers such as Google, Microsoft, and Amazon, which are at the forefront of embracing liquid immersion cooling for sustainability. Furthermore, the robust regulatory push towards energy efficient solutions and innovation centers throughout the US also fuel the adoption of liquid immersion cooling in the country.
The US Data Center Liquid Immersion Cooling market is gaining traction with rising demand for energy efficient technologies, as high performance computing need in AI, machine learning, and big data applications continues to grow. The US is host to some of the largest technology firms in the world, which are constantly evolving and extending the frontier of data center cooling. In January 2024, Modine Manufacturing bought the intellectual property of TMG Core and acquired advanced single and two-phase immersion cooling technologies. Through this acquisition, Modine is now well-positioned to address increased demand for high efficiency cooling in high density applications, making the US a global leader in the technology.
The Canada Liquid Immersion Cooling market for data centers is gaining momentum because of the growing need for green and energy efficient solutions in the IT industry. With the implementation of AI, high performance computing, and cloud services, the Canadian organizations are looking forward to implementing cutting-edge cooling technologies to tackle greater power consumption in the data center. CoolIT Systems, a top Canadian company, broadened its direct liquid cooling solution to address the increasing demands of high-density applications, putting Canada in the leadership position of embracing innovative energy-efficient data center cooling technology.
Europe is quickly emerging as the hub for the Global Data Center Liquid Immersion Cooling Market due to its emphasis on energy efficiency and sustainability. The stringent environmental policies such as the European Green Deal are forcing data centers to invest in effective cooling, and liquid immersion cooling is one that can. Top European tech pioneers and hyperscalers such as Facebook and OVHcloud are leading the adoption. Furthermore, the EU's carbon emission reduction and waste heat recovery policies are spurring next-generation cooling technologies uptake. Alternative capitalization to nonconventional power also falls in line with the region's plans for achieving sustainable and high performance data center operations.
Germany's data center liquid immersion cooling market is picking up pace due to stringent energy efficiency laws and a strong emphasis on sustainability. The April 2023 draft Energy Efficiency Act mandates new data centers to achieve high levels of energy efficiency, utilize waste heat, and employ minimum air-cooling temperatures. Major companies are responding with innovative solutions. For instance, Submer Technologies has developed module-based immersion cooling systems that make energy more efficient and reduce carbon prints. Similarly, Asperitas deals with compact, space-saving immersion cooling modules for the city's data centers, working in collaboration with renewable energy providers to implement green energy solutions.
France's liquid immersion cooling for data centers is picking up steam due to increasing demand for energy efficient technologies in response to environmental regulations and high-density computing requirements. Immersion technologies offer improved thermal management, reduced energy expenditure, and enable data centers to handle higher power densities. In recent years, Numains Group partnered with Hyperion to introduce two immersion-cooled data centers in Ernée, France. This new solution focuses on carbon neutrality by 2040 and applies waste heat for district heating as well as promoting sustainability.
UK Data Center Liquid Immersion Cooling market is picking up pace due to growing demand for efficient and eco-friendly cooling technology with the growing computational power requirements being imposed by HPC and AI applications. Liquid immersion cooling offers unparalleled benefits compared to traditional air cooling like reduced energy consumption, reduced space, and improved thermal control. In 2024, Sheffield-headquartered Iceotope Technologies established Iceotope Labs to speed the testing and innovation of immersion cooling technology for HPC and AI data centers. This reflects an increasing trend across the UK toward environmentally friendly, high performance coolers.
Asia-Pacific is the fastest growing region in the Global Data Center Liquid Immersion Cooling Market, driven by aggressive digitalization and high demand for high performance cooling technology. India, Japan, and Australia are some of the nations that witness huge investments in data center infrastructure, driven by such initiatives as India's Digital India initiative and Australia's going green for its data centers. Application of the latest technologies such as AI, 5G, and blockchain in the area requires high density computing and thus lesser applicability for conventional air-cooling systems. Liquid immersion cooling provides greater thermal management capabilities, lower power consumption, and lower physical footprint, all being supportive of the area's sustainability agenda and driving its fast growth in the market.
China's data center liquid immersion cooling market is expanding at a fast pace with the country's accelerated digitalization, fueled by AI, 5G, and big data usage. These technologies involve high density computing, which requires efficient thermal management solutions. Liquid immersion cooling provides better energy efficiency and lower carbon emissions than conventional air cooling solutions. To address this requirement, Huawei released the FusionModule2000 liquid cooling system aimed at providing better thermal performance for high-density data centers. The release reveals China's resolve towards developing energy-efficient and eco-friendly data center buildings.
Japan's liquid immersion cooling market of data centers is gaining momentum as the country invests in a carbon-neutral society by 2050 and greater demands for high performance computing (HPC) and artificial intelligence (AI) applications. Liquid immersion cooling offers better thermal management and is energy efficient compared to air cooling and aligns well with sustainability strategies. In November 2024, NTT began testing two-phase immersion cooling systems at a 74kW data center in Noda City to maximize cooling efficiency and solve interoperability issues for equipment. This move highlights Japan's emphasis on efficient and sustainable data center infrastructure.
South Korea's liquid immersion cooling of the data center is gaining pace due to the country's rapid digitalization spearheaded by AI, 5G, and utilization of big data. These new technologies rely heavily on high density computing, which requires effective thermal management solutions to that effect. Liquid immersion cooling is more energy efficient and has fewer carbon emissions compared to traditional air cooling solutions. To meet this need, SK Telecom collaborated with Giga Computing and SK Enmove in March 2025 to drive liquid cooling technologies for AI data centers. The collaboration aims to create high performance, low power consumption solutions through the use of direct liquid cooling, precision liquid cooling, and immersion cooling technologies.
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Surge in AI and High-Density Computing Workloads
Expansion of Hyperscale and Edge Data Centers
High Capital Expenditure and Infrastructure Overhaul
Lack of Standardization and Compatibility Issues
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Global data center liquid immersion cooling market's competitive dynamics are transforming rapidly with organizations adopting cooperative initiatives to drive greater demand for effective thermal management across high density applications. February 2025 was a highlight with one such large development being witnessed when Asperitas teamed up with Cisco as part of Cisco Engineering Alliance. This joint approach combines Asperitas' internally developed immersion cooling technologies, Perpetual Natural Convection (PNC) and Direct Forced Convection (DFC), with Cisco's Unified Compute System (UCS). The coupling of proven cooling hardware and best-of-breed compute infrastructure will enable the collaboration to provide streamlined, scalable, and power efficient solutions tailored for next generation data center applications. This work enables easier adoption in a range of deployment sizes, from edge to hyperscale, reducing implementation barriers and accelerating market reach of immersion-based systems.
Startup Landscape
Established in 2017, Immersion4's ultimate purpose is to provide sustainable and highly efficient liquid immersion cooling systems for data centers. Immersion4, originally established in Lausanne, Switzerland, developed its DTM Cooling technology that eschews the use of traditional mechanical components like fans and pumps. This minimizes failure points and increases system reliability. The firm aims to enhance energy efficiency by leveraging natural thermal convection, leading to reduced operating expenses. Their technology has been more eco-friendly, providing a sustainable solution that reduces water and energy usage. Immersion4's revolutionary cooling system makes them a leader in the increasing need for green data center solutions.
Founded in 2015, Submer's core mission is to transform data center efficiency using environmentally friendly immersion cooling solutions. Based in Barcelona, with further offices in Houston and Taipei, Submer created patented single-phase immersion cooling systems such as the SmartPodX and SmartPod EXO, supporting high density computing environments. Its technology offers considerable reductions in both energy and water consumption, having an industry-leading Power Usage Effectiveness (PUE) of 1.03. Submer raised USD 55.5 million funding led by M&G in 2024, to be used in the expansion of its operations and establishment of presence in North American and Asia-Pacific regions. Its client base comprises elite organizations like the CERN and the EU Joint Research Center, marking its expanding dominance in high-performance computing industry.
Emerging Trends Shaping the Future of Data Center Liquid Immersion Cooling
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
Data center liquid immersion cooling is growing at a rapid pace as green and efficient cooling demand increases in the backdrop of data center density increase and high performance computing demands. AI, machine learning, edge computing, and blockchain technology advancement has obsoleted traditional air cooling. Liquid immersion cooling provides better thermal performance, lower energy cost, and longer equipment life, all of which facilitate environmental sustainability and cost-reduction objectives. Governments and institutions worldwide, including the UK, China, Japan, and South Korea, are rapidly embracing and implementing the technology to achieve green targets and manage high heat loads. Advancements from key players such as Iceotope Technologies, Huawei, NTT, and SK Telecom demonstrate a strong trend towards commercialization and scalability of immersion cooling systems. As the market becomes increasingly mature, collaboration between data center operators, technology providers, and energy firms will be critical in advancing broad adoption and shaping the future of efficient data infrastructure.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 991.99 Million |
| Market size value in 2033 | USD 7716.38 Million |
| Growth Rate | 25.6% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Million |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Data Center Liquid Immersion Cooling Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Data Center Liquid Immersion Cooling Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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