Data Center Liquid Immersion Cooling Market Report 2026

The data center liquid immersion cooling market size has grown exponentially in recent years. It will grow from $3.3 billion in 2025 to $4.17 billion in 2026 at a compound annual growth rate (CAGR) of 26.4%. The growth in the historic period can be attributed to increasing server heat generation, rising demand for hpc and AI workloads, limitations of traditional air cooling, expansion of enterprise and colocation data centers, early adoption in cryptocurrency mining.

The data center liquid immersion cooling market size is expected to see exponential growth in the next few years. It will grow to $10.55 billion in 2030 at a compound annual growth rate (CAGR) of 26.1%. The growth in the forecast period can be attributed to growing hyperscale and edge data centers, advancements in two-phase immersion cooling, regulatory focus on energy efficiency, integration with ai-driven data center management, rising adoption in telecom and it sectors. Major trends in the forecast period include high-density data center deployment, energy-efficient thermal management, reduced air cooling dependence, compact and modular data center design, advanced liquid cooling technologies.

The rising adoption of cloud-based services is expected to drive the growth of the data center liquid immersion cooling market going forward. Cloud-based services provide computing resources and applications over the internet instead of relying on local servers or personal devices. The demand for cloud-based services is fueled by their ability to deliver scalable, cost-effective, and easily accessible computing resources and applications. These services rely on data center liquid immersion cooling to efficiently manage the increased heat generated by high-density servers, enhancing performance, optimizing energy usage, and reducing space requirements. For example, in December 2023, Eurostat, a Europe-based statistical office of the European Union (EU), reported that in 2023, 45.2% of EU enterprises purchased cloud computing services - such as software, computing power, and online storage - marking a 4.2 percentage point increase from previous years. Therefore, the growing adoption of cloud-based services is driving the expansion of the data center liquid immersion cooling market.

Major companies in the data center liquid immersion cooling sector are developing advanced solutions to meet the growing demands of high-performance computing and AI. For example, in June 2025, Shell plc, a UK-based oil company, launched DLC Fluid S3, a propylene glycol-based direct liquid cooling fluid designed for high-performance computing and AI data centers. This fluid effectively cools key heat-generating components such as CPUs and GPUs, enhancing power usage effectiveness (PUE) by up to 27% compared to conventional air cooling. It provides long-term corrosion protection for multiple materials, freeze protection down to -10°C, a lifespan of over six years, and simple leak detection through its fluorescent green dye. Compliant with Open Compute Project PG25 standards, DLC Fluid S3 improves data center efficiency, reliability, and sustainability while supporting higher heat loads. This launch expands Shell’s liquid cooling portfolio, offering both direct-to-chip and immersion cooling solutions for modern digital infrastructure.

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.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have impacted the data center liquid immersion cooling market by increasing the cost of importing cooling fluids, tanks, and specialized electronic components, leading to higher overall deployment expenses. The enterprise and hyperscale data center segments in regions such as North America, Europe, and Asia-Pacific are most affected due to their reliance on imported equipment. While tariffs pose challenges, they also encourage local manufacturing and innovation in cooling solutions, potentially fostering cost-efficient and regionally optimized systems.

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.

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.North America was the largest region in the data center liquid immersion cooling market in 2025. The regions covered in the data center liquid immersion cooling market report are Asia-Pacific, South East Asia, 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, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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