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Immersion Cooling Market In Data Centers Market Size (2024 - 2029)

The immersion cooling market size in data centers is poised for significant growth, driven by the increasing demand for advanced cooling technologies to address the rising carbon footprint and energy consumption of traditional air-based systems. This shift is further accelerated by the expansion of data centers in emerging economies and the growing adoption of cloud models, which necessitate efficient cooling solutions. The integration of high-density racks and GPUs in data centers also contributes to the demand for effective cooling technologies. Additionally, the impact of the COVID-19 pandemic has intensified the focus on sustainable cooling solutions, as digital transformation and remote work continue to drive up energy usage in data centers.

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Market Size of Immersion Cooling Industry In Data Centers

Immersion Cooling Market in Data Centers Summary
Study Period 2019-2029
Market Size (2024) USD 0.79 Billion
Market Size (2029) USD 2.52 Billion
CAGR (2024 - 2029) 26.15 %
Fastest Growing Market North America
Largest Market North America
Market Concentration Low

Major Players

Immersion Cooling Market Major Players

*Disclaimer: Major Players sorted in no particular order

Data Center Immersion Cooling Market Analysis

The Immersion Cooling Market In Data Centers Industry is expected to grow from USD 0.79 billion in 2024 to USD 2.52 billion by 2029, at a CAGR of 26.15% during the forecast period (2024-2029).

Owing to the increasing demand for this technology, companies such as Supermicro and Fujitsu offer several server lines ready for immersion cooling. Several hardware manufacturers are launching firmware and BIOS updates to inform servers that fans are not required in immersion-cooling-based installations, primarily indicating the industry's readiness to shift to hardware cooling technologies.

  • The increasing carbon footprint of the data centers is another major issue leading to the increased adoption of advanced liquid cooling technology, such as immersion cooling. In a recent study conducted by company 3M, a prominent synthetic coolant provider in the immersion cooling market, it was identified that 38% of the electricity needed in data centers equipped with traditional air-based cooling technologies is utilized to cool the electronic components.
  • The developments in the IT structure in emerging economies, such as India and China, are expected to boost the demand for data centers favorably. The demand for data centers is anticipated to increase due to the increasing adoption of the cloud model, which has cost and operational benefits for the IT industry.
  • According to an NTT Ltd study, over half of the respondents stated that the cloud model would have the most transformational impact on their organization's business operations. Therefore, the demand for the cooling of data centers is anticipated to increase, leading to the execution of liquid cooling methods based on end-user preferences.
  • Uptime launched its recent annual survey, which found that racks consisting of 20 kW and advanced are decreasingly deployed. On a time-over-year base, most respondents highlighted their highest density rack usage in the 10-19 kW range. Direct liquid cooling becomes more economical and effective when rack densities higher than 20- 25 kW are preferred.
  • For large enterprises, replacing failed servers more constantly than usual may be less expensive over time than operating a hyperscale facility at lower temperatures. Still, with the growing integration of GPUs in data centers urged by the need for better computing power, large enterprises must move toward an effective cooling technology.
  • The outbreak of COVID-19 posed further stress on multiple economies across various sectors. This shifted the focus toward a digital economy. China's top cloud computing provider, Alibaba Cloud, invests billions in building next-generation data centers to support digital transformation needs in a"post-pandemic world."
  • Data center energy usage has been compounded due to increased teleworking and other virtual activities brought on by the COVID-19 pandemic. Thus, developments using sustainable cooling technologies are on the rise.

Data Center Immersion Cooling Industry Segmentation

Immersion cooling involves the installation of IT hardware, similar to memory, CPUs, and drives, directly into non-conductive dielectric liquids that cool the system. The heat generated from these systems is directly transferred to coolants, reducing the need for active cooling factors, similar to heat sinks, fans, and interface materials commonly used for air cooling.

The immersion cooling market in data centers is segmented by type (single-phase immersion cooling system and two-phase immersion cooling system), cooling fluid (mineral oil, deionized water, fluorocarbon-based fluids, and synthetic fluids), application (high-performance computing, edge computing, cryptocurrency mining, artificial intelligence, and other applications), and geography (North America, Europe, Asia-Pacific, Australia and New Zealand, Latin America, and Middle East and Africa). The market size and forecasts are provided in USD for all the above segments.

By Type
Single-Phase Immersion Cooling System
Two-Phase Immersion Cooling System
By Cooling Fluid
Mineral Oil
Deionized Water
Fluorocarbon-Based Fluids
Synthetic Fluids
By Application
High-Performance Computing
Edge Computing
Artificial Intelligence
Cryptocurrency Mining
Other Applications
By Geography***
North America
Europe
Asia
Australia and New Zealand
Latin America
Middle East and Africa
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Immersion Cooling Market In Data Centers Size Summary

The immersion cooling market within the data centers industry is poised for significant expansion over the forecast period, driven by the increasing demand for efficient cooling technologies. Companies like Supermicro and Fujitsu are leading the charge by offering server lines compatible with immersion cooling, while hardware manufacturers are updating firmware and BIOS to support these advancements. The shift towards immersion cooling is largely fueled by the need to reduce the carbon footprint of data centers, as traditional air-based cooling systems consume substantial electricity. Emerging economies, particularly India and China, are expected to contribute to this growth due to advancements in IT infrastructure and the rising adoption of cloud models, which offer cost and operational benefits. The COVID-19 pandemic has further accelerated the digital transformation, increasing the demand for data centers and sustainable cooling technologies.

The market landscape is characterized by high competitiveness, with key players such as Fujitsu Limited, Green Revolution Cooling Inc., and Liquid Stack Inc. actively engaging in partnerships and collaborations to enhance their product offerings. The emergence of 5G technology and the growing trend of edge computing are also driving the demand for efficient cooling solutions, as these technologies require low-latency and high-resiliency infrastructure. Immersion cooling is becoming increasingly viable for high-density racks, offering energy-saving benefits and reducing power consumption for high-performance applications like artificial intelligence. The United States, as a leading market, is witnessing substantial investments in edge data centers to support the burgeoning mobile data traffic and IoT proliferation. As the market continues to evolve, innovations such as Liquid Stack's universal coolant distribution units and Intel's collaboration with Submer are set to revolutionize data center cooling, further propelling the industry's growth.

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Immersion Cooling Market In Data Centers Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Degree of Competition

      5. 1.2.5 Threat of Substitutes

    3. 1.3 Assessment of the Impact of COVID-19 on the Industry

    4. 1.4 Industry Supply Chain Analysis

    5. 1.5 Fluorine-based Liquid Suppliers/Manufacturers

    6. 1.6 Immersion Cooling Bath Equipment Vendors

    7. 1.7 Data Center Vendors

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Single-Phase Immersion Cooling System

      2. 2.1.2 Two-Phase Immersion Cooling System

    2. 2.2 By Cooling Fluid

      1. 2.2.1 Mineral Oil

      2. 2.2.2 Deionized Water

      3. 2.2.3 Fluorocarbon-Based Fluids

      4. 2.2.4 Synthetic Fluids

    3. 2.3 By Application

      1. 2.3.1 High-Performance Computing

      2. 2.3.2 Edge Computing

      3. 2.3.3 Artificial Intelligence

      4. 2.3.4 Cryptocurrency Mining

      5. 2.3.5 Other Applications

    4. 2.4 By Geography***

      1. 2.4.1 North America

      2. 2.4.2 Europe

      3. 2.4.3 Asia

      4. 2.4.4 Australia and New Zealand

      5. 2.4.5 Latin America

      6. 2.4.6 Middle East and Africa

Immersion Cooling Market In Data Centers Market Size FAQs

The Immersion Cooling Market In Data Centers Industry size is expected to reach USD 0.79 billion in 2024 and grow at a CAGR of 26.15% to reach USD 2.52 billion by 2029.

In 2024, the Immersion Cooling Market In Data Centers Industry size is expected to reach USD 0.79 billion.

Immersion Cooling Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)