Immersion Cooling Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Immersion Cooling Market is projected to expand from USD 261.01 Million in 2025 to USD 954.35 Million by 2031, achieving a compound annual growth rate of 24.12%. This technology involves the practice of submerging IT hardware components into a thermally conductive yet electrically insulating dielectric liquid to effectively dissipate heat. The primary factors driving market growth include the increasing power density demands of artificial intelligence workloads and an industry-wide requirement for better sustainability through lowered energy consumption. This shift is supported by recent industry figures regarding infrastructure investment; according to the Open Compute Project, spending on cooling technologies is expected to grow at a CAGR of over 32 percent from 2025 through 2029, underscoring the rising momentum behind liquid-based thermal solutions.

A major challenge hindering the broader growth of the global immersion cooling market is the significant capital expenditure needed to retrofit existing data centers. Most legacy facilities are designed specifically for air cooling and lack the floor space or structural capacity to support heavy immersion tanks without expensive renovations. This incompatibility with current infrastructure, coupled with the complex operational procedures required for handling dielectric fluids, presents a formidable barrier for enterprises seeking to transition from traditional cooling methods to immersion systems.

Market Drivers

The rapid growth of high-performance computing and artificial intelligence infrastructure serves as a crucial catalyst for the Global Immersion Cooling Market. As facilities integrate powerful GPUs to handle generative AI workloads, the resulting thermal density often surpasses the capabilities of legacy air-based systems, requiring the adoption of advanced liquid thermal management. The scale of this infrastructure expansion is creating a parallel need for power and cooling capacity. According to a Goldman Sachs report from April 2024 titled 'Generational Growth: AI, data centers and the coming US power demand surge,' global data center power demand is expected to rise by 165 percent by 2030, largely due to AI acceleration, forcing operators to adopt immersion technologies that can efficiently dissipate the intense heat from next-generation processors.

Simultaneously, the rising demand for eco-friendly and energy-efficient cooling solutions is driving market adoption. Operators are prioritizing technologies that reduce carbon emissions and lower Power Usage Effectiveness (PUE) to meet stringent sustainability mandates. Immersion systems accomplish this by eliminating the need for energy-intensive mechanical chillers and fans, significantly reducing facility energy consumption. For instance, LiquidStack announced in May 2024 at Cisco Live that their two-phase immersion cooling technology offers a 41 percent reduction in energy usage compared to traditional air cooling. This potential for operational savings and environmental compliance is accelerating deployment; according to Supermicro in 2024, liquid-cooled data centers are projected to account for up to 30 percent of all installations within two years, signaling a major shift from air-cooled infrastructure.

Market Challenges

The significant capital expenditure necessary to retrofit existing data centers represents a primary obstacle limiting the expansion of the immersion cooling market. Most legacy facilities are engineered exclusively for air-based thermal management and lack the necessary floor loading capacity to support heavy dielectric fluid tanks. Modifying these environments requires extensive structural reinforcements and complex plumbing overhauls, leading to prohibitive upfront costs that often exceed immediate operational benefits. This financial burden makes the transition from traditional air cooling to immersion systems economically impractical for many enterprises.

This infrastructure incompatibility is further reinforced by the prevalence of low-density environments that do not yet require liquid adoption. Data from the Uptime Institute in 2024 indicates that the average server rack density across global data centers remained below 8 kilowatts, with the majority of facilities lacking any racks exceeding 30 kilowatts. This statistic shows that a large portion of the market operates effectively within the thermal limits of air cooling. Consequently, the widespread existence of low-density legacy infrastructure weakens the business case for investing in expensive immersion renovations, thereby restricting the technology's broader market penetration.

Market Trends

The standardization of testing protocols and fluid compatibility is emerging as a significant trend to validate performance claims and eliminate hardware warranty risks. Previously, the lack of certified interaction between processors and dielectric fluids raised liability concerns for operators, as unverified coolants could void equipment guarantees. This barrier is being removed by formal certification programs that verify system interoperability and material durability. According to a May 2025 press release by Shell titled 'Shell cooling fluids certified by Intel for use in data centres worldwide,' the company's immersion fluids became the first to receive official certification from Intel, confirming that the validated solution can reduce capital and operating expenditures by up to 33 percent while maintaining full processor warranty coverage.

At the same time, the accelerated adoption of single-phase immersion architectures is being catalyzed by the introduction of comprehensive fluid lifecycle management services. As the technology matures, providers are moving from simple product sales to holistic operational support, addressing the complexities of fluid disposal and maintenance that previously hindered implementation. This operational shift is driven by urgent market necessity; according to a June 2025 announcement by Castrol titled 'Castrol launches new fluid management service,' recent industry research indicated that 74 percent of data center experts now classify immersion cooling as essential to meeting current power requirements, a sentiment that is fueling the rollout of end-to-end service models designed to simplify deployment.

Key Players Profiled in the Immersion Cooling Market

• Fujitsu Limited
• Dug Technology Ltd.
• Green Revolution Cooling Inc.
• Submer Technologies, S.L.
• LiquidStack Holding B.V.
• Aecorsis BV
• DCX Inc.
• LiquidCool Solutions Inc.
• ExaScaler Inc.
• Iceotope Technologies Ltd.

Report Scope

In this report, the Global Immersion Cooling Market has been segmented into the following categories:

Immersion Cooling Market, by Product:

• Single-phase
• Two-phase

Immersion Cooling Market, by Application:

• Edge Computing
• High-performance Computing
• Cryptocurrency Mining
• Artificial Intelligence
• Others

Immersion Cooling Market, by Cooling Liquid:

• Mineral Oil
• Fluorocarbon-based Fluids
• Deionized Water
• Others

Immersion Cooling Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Immersion Cooling Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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