Data Center Liquid Immersion Cooling Market Size

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).

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.