The global data center liquid immersion cooling market was valued at USD 2.12 billion in 2024 and is expected to reach USD 7.22 billion by 2030, expanding at a CAGR of 22.3% from 2025 to 2030. This rapid growth is driven primarily by the rising demand for high-performance computing (HPC) and AI-intensive workloads, which generate significantly more heat than traditional systems can efficiently manage using air-based cooling.
Liquid immersion cooling, which involves submerging servers in thermally conductive yet electrically non-conductive fluids, provides superior heat dissipation. It enables more compact and powerful computing configurations, making it ideal for next-generation data centers running machine learning, cryptocurrency mining, and complex simulations.
Key Growth Drivers
A growing emphasis on sustainability and energy efficiency is accelerating the adoption of immersion cooling. As data centers consume vast amounts of electricity globally, operators face mounting pressure to reduce their carbon footprints. Immersion cooling can significantly lower energy use by eliminating the need for large air conditioning units and fans, thereby improving Power Usage Effectiveness (PUE). This aligns with corporate ESG goals and increasing global regulatory requirements for energy consumption and emissions reduction.
Though the initial capital expenditure for immersion cooling systems can be high, they offer long-term cost savings through reduced cooling costs, improved hardware lifespan (due to lower thermal stress), and decreased maintenance. This total cost of ownership (TCO) advantage is particularly appealing to hyperscale and colocation data center operators.
Market maturity is also increasing, driven by advancements in cooling technology and a growing vendor ecosystem. Standardized and scalable solutions are making immersion cooling easier to integrate. For example, in March 2025, The Chemours Company launched a large-scale product trial with NTT DATA and Hibiya Engineering, Ltd., testing Opteon 2P50, a next-generation dielectric fluid designed for advanced two-phase immersion cooling systems in data centers.
Order a free sample PDF of the Data Center Liquid Immersion Cooling Market Intelligence Study, published by Grand View Research.
Key Market Trends & Insights
- North America led the global market with a 39.0% share in 2024, propelled by the expansion of AI and machine learning workloads in hyperscale data centers, especially across the U.S. and Canada. The region’s early adoption of advanced cooling technologies is backed by strong investments from major cloud and tech companies focused on energy efficiency and operational scalability.
- By cooling type, the two-phase immersion cooling segment accounted for over 59.0% of revenue in 2024. These systems, which operate via boiling and condensing, offer high heat transfer efficiency without requiring large heat exchangers or mechanical chillers. Their ability to maximize space and energy efficiency makes them attractive to hyperscale operators.
- In terms of cooling fluid, deionized water was the leading choice, capturing more than 27.0% of revenue in 2024. Its superior thermal properties and cost-effectiveness make it a preferred solution, especially for data centers aiming to optimize thermal performance without incurring high fluid costs.
- By data center type, hyperscale facilities held the largest market share at over 35.0% in 2024. As AI clusters and advanced workloads push the limits of power density, these large-scale data centers are quickly adopting immersion cooling to maintain operational efficiency and reliability.
- The IT sector led all end-use segments with a revenue share exceeding 27.0% in 2024. Immersion cooling’s modular and retrofit-compatible nature supports phased modernization, allowing enterprises to convert select server racks while maintaining hybrid infrastructure without disrupting ongoing operations.
Market Size & Forecast
- 2024 Market Size: USD 2.12 Billion
- 2030 Projected Market Size: USD 7.22 Billion
- CAGR (2025-2030): 22.3%
- North America: Largest market in 2024
Key Companies & Market Share Insights
Prominent companies in the data center liquid immersion cooling market include: Submer, Green Revolution Cooling Inc., Vertiv Group Corp., Iceotope, CoolIT Systems and Schneider Electric.
These players are pursuing strategic initiatives such as product launches, partnerships, and technology collaborations to strengthen their market position.
- In March 2025, Vertiv Group Corp. introduced the Vertiv CoolLoop Trim Cooler, designed to support both air and liquid cooling for AI and HPC environments. Built for global deployment, it integrates with both hybrid and fully liquid-cooled systems and is compatible with immersion cooling, simplifying installation and reducing complexity in high-density deployments.
- In October 2024, Submer partnered with Zero Two, a UAE-based data center innovator, to address the region’s surge in AI infrastructure. The collaboration introduced a zero-water, single-phase immersion cooling system using specialized fluids rather than traditional water, offering a sustainable and scalable alternative to conventional cooling.
Key Players
- 3M Company
- Alfa Laval AB
- Asetek Group
- Asperitas B.V.
- CoolIT Systems
- DCX - The Liquid Cooling Company
- Fujitsu Limited
- GIGA-BYTE Technology Co., Ltd
- Green Revolution Cooling Inc.
- Iceotope
- LiquidCool Solutions
- Midas Green Technologies LLC
- Schneider Electric
- Submer
- Vertiv Group Corp.
Explore Horizon Databook – The world's most expansive market intelligence platform developed by Grand View Research.
Conclusion
The global data center liquid immersion cooling market is undergoing rapid transformation, fueled by the twin imperatives of supporting high-density computing and achieving greater energy efficiency. With AI, HPC, and machine learning driving unprecedented thermal loads, immersion cooling offers a practical and scalable solution for modern data centers.
While initial costs remain a consideration, the long-term operational savings, environmental benefits, and technological advancements make immersion cooling an increasingly viable choice. As standardization improves and leading vendors expand their offerings, adoption is expected to accelerate—particularly among hyperscale operators and enterprises seeking to future-proof their infrastructure.
With a projected market size of USD 7.22 billion by 2030, liquid immersion cooling is poised to become a mainstream solution in the next wave of sustainable and high-performance data center development.
No comments:
Post a Comment