Data Center Liquid Immersion Cooling Market by Type, Component and Geography - Forecast and Analysis 2023-2027

The data center liquid immersion cooling market is estimated to grow at a CAGR of 22.77% between 2022 and 2027. The size of the market is forecast to increase by USD 537.54 million. The growth of the market depends on several factors, including the increase in the construction of data centers, the reduction in power consumption by data centers, and the inclination toward data center liquid immersion cooling owing to the rise in water scarcity.

This report extensively covers market segmentation by type (large data centers, small, and mid-sized data centers), component (solution and services), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the Size of the Data Center Liquid Immersion Cooling Market During the Forecast Period?

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Parent Market Analysis

Technavio categorizes the global data center liquid immersion cooling market as a part of the global internet services and infrastructure market within the global IT services market. The super parent global IT services market covers companies offering IT consulting and system integration services, application services, electronic data processing services, business process outsourcing services, infrastructure services, and Internet services. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.

Data Center Liquid Immersion Cooling Market: Key Drivers, Trends, Challenges, and Customer Landscape

The increase in the construction of data centers is notably driving the market growth, although factors such as the availability of alternative cooling methods may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Data Center Liquid Immersion Cooling Market Driver

The increase in the construction of data centers is the key factor driving the global data center liquid immersion cooling market growth. Data centers have become an integral part of every organization. The massive growth in the amount of data being generated has compelled several companies to build data centers of their own. The increasing interest in cloud computing will further drive the need for data centers. With the growing demand for data centers, the need for data center liquid immersion cooling is increasing.

Moreover, in terms of countries, data center investments remain high in the US, the UK, and China when compared with other countries. During the forecast period, significant investment is expected in megaprojects, such as Microsoft's and AWS' data centers in France, Facebook's investments in New Mexico, Apple's investments in Ireland, and Google's expected operations in eight new regions across the world. Hence, several investments in the construction of data centers will drive the need for data center liquid immersion cooling solutions.

Key Data Center Liquid Immersion Cooling Market Trend

The growing need to reduce carbon footprint is the primary trend in the global data center liquid immersion cooling market. In a data center environment, the operation of components such as IT servers, generators, and building shell emits carbon dioxide. Carbon emissions can be determined by the amount of power consumed by these facilities. In a year, data centers consume 2.5% to 4.5% of the power generated globally, while they emit 1.5% to 2.5% of greenhouse gas. The demand for the data center is growing at a significant phase. Many large organizations are forced to develop new data centers to power their business efficiently.

The installation of efficient liquid immersion will aid in reducing power consumption as well as carbon emissions in the facilities. The PUE generated by CarnotJet System is significantly lower than the air-cooling data centers, thereby helping in reducing carbon emission. The direct reduction in carbon emissions associated with cooling energy reduction also helps enterprises achieve better scores on the Carbon Disclosure Project (CDP) and reach carbon reduction goals. Therefore, as the need to reduce carbon footprint is increasing, it is expected that the global market in focus will witness high growth during the forecast period.

Key Data Center Liquid Immersion Cooling Market Challenge

The availability of alternative cooling methods is a major challenge to the global data center liquid immersion cooling market growth. The power consumption by data centers is increasing worldwide. This scenario has made data center operators look for an alternative solution that is efficient in terms of power consumption and performance. Vendors in the data center cooling market are moving from air-based cooling to chilled water-based cooling solutions. Both solutions are predominantly used in data centers worldwide. However, the liquid immersion cooling solution is hugely adopted by scientific data centers, wherein the computing requirement is usually more than twice of a large data center environment.

Currently, air-based cooling solutions through airside economizer and waterside economizer are effective and are used to operate a data center at a PUE of 1.1, with reduced energy consumption using a renewable source. However, implementing air-based cooling involves higher CAPEX than an immersion solution, and it is not suitable for every environmental condition. Due to all such factors, global market growth may retrain during the forecast period.

Key Data Center Liquid Immersion Cooling Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Data Center Liquid Immersion Cooling Market Customer Landscape

Who are the Major Data Center Liquid Immersion Cooling Market Vendors?

Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

asperitas.com - The company offers data center liquid immersion cooling solutions such as Immersed Computing and Asperitas. Also, through this segment, the company offers immersion cooling solutions to achieve an energy neutral data center.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:

• Chilldyne
• Coolit Systems
• DCX The Liquid Cooling Co.
• DUG Technology Ltd.
• Engineered Fluids Inc.
• ExaScaler Inc.
• Fujitsu General Ltd.
• Green Revolution Cooling Inc.
• Iceotope Technologies Ltd.
• LiquidCool Solutions
• LiquidStack B.V.

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

What is the Fastest-Growing Segment in the Data Center Liquid Immersion Cooling Market?

The market share growth by the large data centers segment will be significant during the forecast period. A large data center is an industrial-scale operation composed of networked computers, storage systems, and computing infrastructure. Data centers with over 20,000 square feet of computer floor space are considered in the large data center segment. These data centers often hold more than 800 racks. Large data centers consist of IT hardware that is designed to provide massively scalable storage solutions. The IT hardware typically consists of small, individual servers, called nodes, which provide storage and networking. These nodes are clustered together and managed as a single entity. 

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The large data centers segment was valued at USD 84.66 million in 2017 and continue to grow by 2021. Large data centers and hyperscale facilities are designed and developed to balance workloads between multiple servers and are required to ensure maximum cooling efficiency. Due to the growing need for data centers to store exponentially growing data, large-scale public cloud data centers are being developed. This is expected to increase the demand for liquid immersion cooling solutions for data centers within large data centers. Some of the largest data centers in the world include the QTS Atlanta Metro Data Center in Atlanta, Georgia, US; Utah data center; DFT data center (owned by DuPont Fabros Technology); Switch SuperNap data center located in Las Vegas, Nevada, US; Microsoft's Data Center in Iowa; and Next Generation Data Europe in Wales, UK.

Which are the Key Regions for the Data Center Liquid Immersion Cooling Market?

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North America is projected to contribute 38% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The data center liquid immersion cooling market in North America is expected to grow during the forecast period as vendors and distributors are increasingly entering into strategic partnerships to offer efficient data center liquid immersion cooling solutions. Data center liquid immersion cooling vendors are continuously focusing on strategic alliances to expand their product portfolio and gain a competitive edge over each other, as well as to improve their market reach and customer base. Intense competition in the market also compels established vendors to grow their market presence through strategic alliances. With the increasing number of strategic alliances, awareness about the availability of data center liquid immersion cooling solutions and their adoption will increase during the forecast period.

This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. COVID-19 led to an upsurge in the demand for North America. However, the lockdown restrictions were relaxed in the second half of 2020 owing to large-scale vaccination drives across North America. Since the first half of 2021, the removal of lockdown restrictions resumed operations in various industries, such as BFSI, IT, manufacturing, and others. This is expected to recover the demand for data center infrastructure during the forecast period. Moreover, the increase in the adoption of cloud services and digitization led to the emergence of a new business environment and data.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Type (large data centers, small, and mid-sized data centers), Component (solution and services), and Geography (North America, Europe, APAC, South America, and Middle East and Africa).

• Type Outlook (USD Million, 2017 - 2027)
  • Large data centers
  • Small
  • Mid-sized data centers

• Component Outlook (USD Million, 2017 - 2027)
  • Solution
  • Services

• Region Outlook (USD Million, 2017 - 2027)
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Data Center Liquid Immersion Cooling Market Scope
Report Coverage	Details
Page number	155
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 22.77%
Market growth 2023-2027	USD 537.54 million
Market structure	Fragmented
YoY growth (%)	21.48
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 38%
Key countries	US, China, Japan, UK, and Germany
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Aecorsis BV, Chilldyne, Coolit Systems, DCX The Liquid Cooling Co., DUG Technology Ltd., Engineered Fluids Inc., ExaScaler Inc., Fujitsu General Ltd., Green Revolution Cooling Inc., Iceotope Technologies Ltd., LiquidCool Solutions, LiquidStack B.V., Midas Immersion Cooling, Rittal GmbH and Co. KG, STULZ GmbH, and Submer Technologies SL
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Data Center Liquid Immersion Cooling Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the data center liquid immersion cooling market between 2023 and 2027
• Precise estimation of the size of the data center liquid immersion cooling market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of data center liquid immersion cooling market vendors

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