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The data center liquid immersion cooling market is estimated to increase by USD 537.54 million and grow at a CAGR of 22.77% between 2022 and 2027. Market growth hinges on various factors, notably the surge in data center construction and efforts to minimize power consumption. Additionally, the trend towards liquid immersion cooling is fueled by concerns over water scarcity. However, challenges persist, such as the availability of alternative cooling methods, limited demand, and awareness, and a dearth of technical expertise in developing nations. Despite these hurdles, the market remains resilient, driven by the ever-increasing demand for data processing and storage. To capitalize on opportunities, stakeholders must innovate sustainable cooling solutions, raise awareness, and invest in skill development initiatives in emerging markets. By addressing these challenges head-on, the data center cooling market can continue to expand and evolve in tandem with technological advancements and environmental considerations.
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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.
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.
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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 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 solutions. Market 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 these solutions and their adoption will increase during the forecast period.
In the market, the convergence of Internet of Things (IoT) devices, particularly in the automotive and aerospace sectors, has fueled the demand for innovative cooling solutions. Leveraging liquid cooling techniques has emerged as a promising approach to address the challenges posed by heat generation in hyperscale data centers and edge computing environments.
Cloud computing and artificial intelligence (AI) applications further amplify the necessity for efficient cooling methods, driving the adoption of advanced liquid cooling technology such as cold plate liquid cooling and liquid submersion technology. This transition not only reduces electricity consumption and the carbon footprint but also optimizes the cooling of electronic components within density racks.
By minimizing reliance on traditional air cooling methods, liquid cooling not only enhances thermal management in hot and humid climates but also facilitates improvements in overall efficiency and liquid usage. Moreover, the integration of non-conductive coolants ensures the safety and reliability of the cooling process, contributing to the sustainability of data center operations.
In essence, the increasing adoption of liquid cooling technologies signifies a pivotal shift towards greener and more efficient cooling solutions, aligning with the industry's commitment to reducing environmental impact while meeting the evolving demands of modern data processing. 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 Market Driver
The increase in the construction of data centers is the key factor driving the global 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 this 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 the solutions.
The growing need to reduce carbon footprint is the primary trend in the global 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.
The availability of alternative cooling methods is a major challenge to global 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 the 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.
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.
Market Customer Landscape
Companies 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 - The company offers data center liquid immersion cooling solutions such as Immersed Computing and Asperitas. Also, they offer 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 companies, including:
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.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
The market is experiencing rapid growth, driven by the increasing adoption of liquid cooling technologies in response to rising computing densities and heat generation in hyperscale data centers. This advanced technology offers significant energy efficiency improvements compared to traditional air cooling methods, particularly in hot and humid climates and cooler areas.
Advanced liquid cooling technology such as immersion cooling and cold plate liquid cooling is gaining traction due to its ability to efficiently dissipate heat from electronic components while minimizing electricity consumption. Moreover, hybrid silicone-organic fluids and conductive and non-conductive coolants ensure the safety and reliability of liquid usage.
Despite these advancements, challenges such as lack of standardization and corrosive properties of certain cooling solutions persist, hindering widespread adoption. However, with the emergence of emerging revenue pockets in application niches like blockchain technology and artificial intelligence (AI) training, the Data Center Liquid Immersion Cooling Market is poised for sustained growth.
In the realm of Advanced Technologies, the Data Center Liquid Immersion Cooling Market stands as a pivotal player, catering to diverse sectors including the aerospace sector and automotive sector. With the advent of autonomous vehicles and the exponential growth of data analytics and data storage requirements, there's an increasing demand for innovative cooling solutions to handle the immense capital expenditure associated with maintaining density racks and edge computing infrastructure.
Moreover, as cloud services and content delivery platforms become ubiquitous, the need for efficient cooling in commercial environments intensifies, necessitating the utilization of engineering coolants and liquid submersion technology to enhance thermal conductivity. The integration of digital technologies such as machine learning and virtual reality further underscores the importance of sustainability in data center operations, mitigating maintenance expenditure and ensuring the longevity of IoT devices and industrial IoT (IIoT) devices.
In this landscape, fibre networks and 5G networks play a crucial role in facilitating seamless connectivity, while immersion coding technology offers a glimpse into the future of efficient data processing. Despite challenges posed by breaches and trade regulations, the Data Center Liquid Immersion Cooling Market continues to evolve, driven by a commitment to innovation and the ever-growing demands of mobile services and processing fields in both residential and commercial settings.
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 forecasting, 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 the market 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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