Data Center Liquid Immersion Cooling Market Report 2025

This Data Center Liquid Immersion Cooling market report delivers an in-depth analysis of the market’s key characteristics, including size, growth potential, and segmentation. It provides a detailed breakdown of the market across major regions and leading countries, highlighting historical data and future growth projections. The report also examines the competitive landscape, market share insights, emerging trends, and strategic developments shaping the market.

The data center liquid immersion cooling market size has grown exponentially in recent years. It will grow from $2.63 billion in 2024 to $3.35 billion in 2025 at a compound annual growth rate (CAGR) of 27.1%. The growth in the historic period can be attributed to the increasing presence of data centers, increasing adoption of cloud-based services, rising IT infrastructure development, adoption of the cloud model, and increase in the number of hyper-scale data centers.

The data center liquid immersion cooling market size is expected to see exponential growth in the next few years. It will grow to $8.66 billion in 2029 at a compound annual growth rate (CAGR) of 26.9%. The growth in the forecast period can be attributed to dealing with high-density power consumption, growing investment in liquid immersion cooling for data centers, growing need to reduce carbon footprint, installation of efficient liquid immersion, and increase in the number of hyper-scale data centers. Major trends in the forecast period include advancements in real-time monitoring and data analytics, usage of advanced liquid cooling technology, adoption of ai, and other high-performance computing technologies, and development in advanced liquid cooling technology.

The growing adoption of cloud-based services is projected to fuel the expansion of the data center liquid immersion cooling market. Cloud-based services provide computing resources and applications over the internet rather than through local servers or personal devices. Their appeal is driven by the scalability, cost-effectiveness, and accessibility they offer. To manage the increased heat generated by high-density servers, cloud-based services employ data center liquid immersion cooling, which optimizes performance, enhances energy efficiency, and reduces space requirements. For example, a report published by Google Cloud in September 2022 indicated that the use of multiple public clouds rose to 26% in 2022, up from 21% in 2021. Additionally, hybrid cloud adoption increased from 25% in 2021 to 42.5% in 2022. Thus, the growing adoption of cloud-based services is driving the growth of the data center liquid immersion cooling market.

Major companies in the data center liquid immersion cooling market are developing advanced open intellectual property (IP) reference designs to meet the increasing demands for sustainability and operational efficiency in data centers. An open IP reference design is a publicly accessible framework that outlines the implementation of liquid immersion cooling systems in data centers, helping organizations manage the thermal needs of high-performance computing. For example, in May 2022, Intel Corporation, a US-based chip manufacturer, introduced an open intellectual property immersion liquid cooling system. This system is designed to simplify and accelerate the adoption of immersion cooling in data centers. It uses non-conductive mineral oils or synthetic fluids to immerse IT equipment, effectively transferring heat away from chips. The system includes two interconnected cabinets capable of housing up to 12 servers, aiming to facilitate the deployment of immersion cooling solutions. Additionally, it offers quieter operation compared to traditional cooling methods.

In January 2024, Modine Manufacturing Company, a US-based provider of thermal management solutions, acquired TMG Core for an undisclosed amount. This acquisition enhances Modine's capabilities in the rapidly growing data center market by incorporating advanced liquid immersion cooling technologies. It broadens Modine's product offerings, positioning the company as a comprehensive provider of cooling solutions for high-density computing environments. The acquisition also supports essential applications such as generative AI, 5G, and other advanced technologies that require efficient heat management. TMG Core, a US-based company, specializes in single- and two-phase liquid immersion cooling technology for data centers.

Major companies operating in the data center liquid immersion cooling market are Intel Corporation, Schneider Electric SE, Fujitsu Limited, Solvay SA, Delta Electronics Inc., Alfa Laval AB, Rittal GmbH & Co. KG, Boyd Group Services Inc., Wiwynn Corporation, Kaori Heat Treatment Co. Ltd., Submer Technologies SL, Asetek A/S, STULZ GMBH, CoolIT Systems, DUG Technology, Midas Immersion Cooling, Prasa Infocom & Power Solutions Pvt. Ltd., Green Revolution Cooling Inc., Motivair Corporation, Iceotope Technologies Ltd., LiquidCool Solutions Inc., Asperitas, LiquidStack Holding BV, Chilldyne Inc., Vertiv Group Corp., DCX Liquid Cooling Systems.

North America was the largest region in the data center liquid immersion cooling market in 2024. The regions covered in the data center liquid immersion cooling market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the data center liquid immersion cooling market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Data center liquid immersion cooling is a technique where electronic components are immersed in a thermally conductive liquid to improve heat transfer. This method uses a tank to manage the cooling liquid, enhancing thermal management and allowing for higher hardware density and performance. It reduces the reliance on air cooling, enabling more compact and efficient data center designs.

The primary types of data center liquid immersion cooling systems are single-phase and two-phase immersion cooling systems. Single-phase immersion cooling involves immersing electronic components in a liquid that absorbs heat, improving thermal management, reducing energy costs, and increasing equipment reliability. Various cooling fluids used in single-phase systems include mineral oil, deionized water, fluorocarbon-based fluids, and synthetic fluids. This technology is applicable in various data centers, such as enterprise, colocation, wholesale, and hyperscale facilities. It supports several applications, including high-performance computing, edge computing, artificial intelligence, and cryptocurrency mining. Industries utilizing this technology include banking, financial services and insurance (BFSI), manufacturing, information technology (IT) and telecommunications, healthcare, government and defense, retail, energy, and others.

The data center liquid immersion cooling market research report is one of a series of new reports that provides data center liquid immersion cooling market statistics, including data center liquid immersion cooling industry global market size, regional shares, competitors with a data center liquid immersion cooling market share, detailed data center liquid immersion cooling market segments, market trends, and opportunities, and any further data you may need to thrive in the data center liquid immersion cooling industry. This data center liquid immersion cooling market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The data center liquid immersion cooling market consists of revenues earned by entities by providing services such as space optimization, energy efficiency, noise reduction, and simplified maintenance. The market value includes the value of related goods sold by the service provider or included within the service offering. The data center liquid immersion cooling market also includes sales of tanks, pumps, and non-conductive cooling liquids. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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