
Report ID: SQMIG45D2139
Skyquest Technology's expert advisors have carried out comprehensive global market analysis on the data center liquid immersion cooling market, covering regional industry trends and market insights. Our team of analysts have conducted in-depth primary and secondary research to provide regional industry analysis and forecast of data center liquid immersion cooling market across North America, South America, Europe, Asia, the Middle East, and Africa.
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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Global Data Center Liquid Immersion Cooling Market size was valued at USD 789.8 Million in 2023 and is expected to grow significantly from USD 986.7 Million in 2024 to USD 6,102.3 Million by 2032, growing at a significant CAGR of 25.6% in the forecast period (2025-2032).
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. 'Fujitsu Limited', 'Delta Power Solutions', 'DUG Technology', 'Green Revolution Cooling Inc.', 'Submer Technologies SL', 'LiquidStack Holding B.V.', 'Asperitas Company', 'LiquidCool Solutions', 'Midas Immersion Cooling', 'Iceotope Technologies Ltd', 'Wiwynn Corporation', 'DCX Polska sp. z o.o.', 'STULZ GmbH', 'Schneider Electric SE', 'Alfa Laval', 'Airedale International Air Conditioning', 'Engineered Fluids', 'BOYD', 'Kaori Heat Treatment Co., Ltd.', 'Teimmers'
The growth in AI, machine learning, and blockchain technologies has been a major driving force behind the demand for high performance computing (HPC) hardware, including GPUs and TPUs. These devices produce significant heat, so air cooling techniques are not sufficient. With workload densities above 25–30 kW per rack, immersion cooling is the best option, handling heat efficiently and maximizing Power Usage Effectiveness (PUE). It allows businesses to utilize computationally intensive applications with lower power consumption and operational expense.
Short-Term: In the near term, liquid immersion cooling in the data center is picking up speed as a solution because of the thermal management issues precipitated by AI, ML, and GPU workloads. Hyperscalers and enterprises are testing immersion cooling in targeted deployments to address rack densities above 30 kW. Short term energy efficiency benefits, lower hardware failure rates, and ESG pressures are driving early adoption. The trend is especially significant in North America and the Asia-Pacific region, where demand for infrastructure capable of supporting AI is currently greater than the cooling capacity of conventional air-based systems.
Why is North America Leading Data Center Liquid Immersion Cooling Market in 2024?
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Report ID: SQMIG45D2139
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