Immersion Cooling Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, UK, India, Germany - Size and Forecast 2024-2028

Immersion Cooling Market Size 2024-2028

The immersion cooling market size is valued to increase by USD 988 million, at a CAGR of 28.62% from 2023 to 2028. Increasing investments in data centers will drive the immersion cooling market.

Market Insights

• North America dominated the market and accounted for a 45% growth during the 2024-2028.
• By Type - Single-phase immersion cooling segment was valued at USD 134.70 million in 2022
• By Application - High-performance computing segment accounted for the largest market revenue share in 2022

Market Size & Forecast

• Market Opportunities: USD 619.93 million 
• Market Future Opportunities 2023: USD 988.00 million
• CAGR from 2023 to 2028 : 28.62%

Market Summary

• The market has gained significant traction in recent years due to the increasing investments in data centers and the emergence of advanced technologies. Immersion cooling, a method of cooling data center equipment by submerging it in a non-conductive liquid, offers numerous benefits, including increased energy efficiency and higher power density. This cooling solution is particularly advantageous for high-performance computing applications, such as artificial intelligence and machine learning, which generate substantial amounts of heat. One real-world business scenario where immersion cooling can bring value is in supply chain optimization. By adopting immersion cooling, data center operators can reduce the need for large, traditional cooling systems, which can be bulky and time-consuming to install.
• This, in turn, can lead to faster deployment of new IT infrastructure and quicker response times to market demands. However, the market faces challenges, such as the lack of demand and awareness in certain industries. Additionally, the high upfront costs associated with implementing immersion cooling systems can be a barrier for some organizations. Despite these challenges, the market is expected to continue growing as more businesses recognize the benefits of this innovative cooling solution. With the ongoing digital transformation and the increasing importance of data, the demand for more efficient and effective cooling solutions is only set to rise.

What will be the size of the Immersion Cooling Market during the forecast period?

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• Immersion cooling, a cutting-edge thermal management solution, continues to evolve in the technology landscape. This cooling system design, which involves submerging servers directly in a non-conductive liquid, offers significant benefits for data center optimization. Direct-to-chip cooling, enabled by this technology, ensures component temperature stability and eliminates hotspots, contributing to improved operational efficiency. Pressure sensors, heat sink design, and temperature sensors play crucial roles in maintaining thermal equilibrium. Adherence to industry standards ensures preventive maintenance and remote monitoring, enhancing system scalability and reliability. Liquid cooling solutions, such as immersion cooling, are increasingly popular due to their ability to reduce energy consumption and improve system lifespan.
• Thermal modeling and simulation tools, like CFD simulation, enable performance benchmarking and safety regulations compliance. Automation systems, including flow meters and control algorithms, further enhance the system's operational efficiency. Material compatibility and failure analysis are essential considerations in the design and implementation of immersion cooling systems. The cost-benefit analysis of immersion cooling reveals substantial savings in energy consumption reduction and cooling infrastructure costs. This technology's environmental impact is also noteworthy, as it significantly reduces the need for traditional air conditioning systems. Incorporating immersion cooling into a data center strategy is a strategic decision that addresses compliance, budgeting, and product performance concerns.

Unpacking the Immersion Cooling Market Landscape

Immerision cooling, a cutting-edge liquid cooling technology, offers significant advantages in data center thermal management. Compared to traditional server rack cooling methods, immersion solutions provide up to 30% improvement in power usage effectiveness (PUE). This translates to substantial operational cost savings. Immerision cooling's heat transfer efficiency is superior to convection cooling, enabling data centers to achieve higher cooling capacity with less energy consumption. Single-phase immersion cooling utilizes dielectric fluids for heat dissipation, ensuring fault tolerance and component reliability. Pressure drop in immersion cooling systems is minimized due to the cold plate design, which optimizes refrigerant flow rate and enhances system reliability. Two-phase immersion cooling further improves efficiency by reducing pumping power requirements. Immerision cooling's energy efficiency metrics align with safety protocols, ensuring safe operation with liquid dielectric and insulation materials. Thermal conductivity of immersion cooling fluids is superior to air, leading to efficient heat transfer. Maintenance procedures are simplified due to the elimination of traditional cooling equipment, such as heat exchangers and fans. Immerision cooling's high-density computing capabilities enable data centers to accommodate more servers per square foot, making it an attractive solution for businesses seeking to maximize their IT infrastructure investment. Leak detection systems ensure safety and minimize downtime, while flow rate control maintains optimal system performance. Overall, immersion cooling is a strategic investment for businesses seeking to enhance their data center cooling capabilities and reduce operational costs.

Key Market Drivers Fueling Growth

A significant factor fueling market growth is the rising investment in data centers. This trend reflects the increasing demand for advanced digital infrastructure to support business operations and accommodate the growing volume of data.

• The market is experiencing significant growth due to the increasing demand for data centers and the adoption of immersion cooling solutions in various sectors. According to industry estimates, the number of data centers worldwide is projected to reach over one million by 2025, and immersion cooling is expected to be a preferred cooling method in many of these facilities. For instance, megaprojects such as Microsoft and Amazon Web Services' data centers in France, and Facebook's investments in New Mexico, Apple's in Ireland, and Google's anticipated operations in eight new regions, are anticipated to drive market revenue and expansion.
• Immersed computing systems offer energy savings of up to 15%, and can reduce water usage by 95% compared to traditional cooling methods. Additionally, immersion cooling enables higher power densities and increased system reliability, resulting in operational efficiencies and lower downtime.

Prevailing Industry Trends & Opportunities

Advanced technologies are emerging as the market trend. (Capitalize each word that starts a sentence.) The implementation of sophisticated technologies represents the current market direction. (Use "represents" instead of "is" and add "the implementation of" for clarity.) 

• In the rapidly evolving technology landscape, the demand for advanced solutions to manage the heat generated by high-performance computing hardware is escalating. Machine learning, artificial intelligence, and blockchain technologies, with their growing adoption and popularity, require powerful hardware accelerators like tensor processing units (TPUs) and graphics processing units (GPUs), which have higher thermal points. Traditional air-cooling methods struggle to manage the high flux produced by these new hardware components, particularly when power usage surges rapidly during new workloads. Consequently, several service providers are enhancing their air-cooled solutions for high-density workloads. However, as densities exceed 25 kW to 30 kW per rack, immersion cooling has emerged as a preferred choice for managing these workloads.
• This cooling method submerges the IT equipment in a non-conductive liquid, enabling the removal of heat more efficiently and reducing the risk of downtime by up to 30%. The market for immersion cooling is poised for significant growth as more businesses seek reliable, high-performance computing solutions.

Significant Market Challenges

The industry's growth is significantly hindered by the concurrent issues of insufficient demand and low awareness. 

• Immersion cooling systems have gained traction in the IT infrastructure landscape, offering enhanced performance and efficiency for various business sectors. Although the technology involves submerging electronic components in dielectric heat transfer liquids, concerns regarding potential malfunctions have slowed down its widespread adoption. Nevertheless, the benefits of immersion cooling are evident in high-performance computing (HPC), cryptocurrency mining, artificial intelligence (AI), machine learning (ML), and data mining applications. According to industry reports, immersion cooling can lead to operational cost savings of up to 12%, while reducing energy consumption by approximately 35%.
• Furthermore, it enables a 25% increase in compute density and a 30% reduction in cooling infrastructure requirements. Despite the initial skepticism, the potential advantages of immersion cooling are compelling, making it a promising solution for data-intensive industries.

In-Depth Market Segmentation: Immersion Cooling Market

The immersion cooling industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Type
  • Single-phase immersion cooling
  • Two-phase immersion cooling
• Application
  • High-performance computing
  • Edge computing
  • Cryptocurrency mining
• Geography
  • North America
    • US
  • Europe
    • Germany
    • UK
  • APAC
    • China
    • India
  • Rest of World (ROW)

By Type Insights

The single-phase immersion cooling segment is estimated to witness significant growth during the forecast period.

In the dynamic realm of data center cooling, immersion cooling continues to evolve as an innovative solution for enhancing heat dissipation and energy efficiency. Single-phase immersion cooling, a type of this technology, submerges components, devices, and sub-systems in a hydrocarbon-based dielectric fluid. This fluid absorbs the heat generated by IT equipment, circulating it through heat exchangers for cooling before returning it to the immersion bath. The fluid's high boiling point ensures it remains in a liquid state throughout the process, optimizing heat transfer efficiency. This method reduces power usage effectiveness (PUE) by minimizing convection cooling and air conditioning requirements. With improved system reliability, fault tolerance, and component reliability, immersion cooling has gained traction in high-density computing environments.

Key aspects, such as fluid dynamics, temperature monitoring, and safety protocols, are crucial for maintaining optimal performance and ensuring the longevity of the system. A notable improvement in single-phase immersion cooling is the reduction of pumping power by up to 50% compared to traditional air cooling.

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The Single-phase immersion cooling segment was valued at USD 134.70 million in 2018 and showed a gradual increase during the forecast period.

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Regional Analysis

North America is estimated to contribute 45% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in North America is experiencing significant growth due to the shift towards software-based services and the proliferation of new data centers in the region. Major tech companies, including Cisco Technologies Inc., IBM Corp., VMware Inc., Microsoft Corp., and Hewlett Packard Enterprise, have established their data centers in the US, fueling the demand for immersion cooling solutions. This trend is further bolstered by the expansion of mobile broadband services and the rising adoption of big data analytics and cloud computing. Some market players are focusing on introducing new edge computing platforms to cater to this increasing demand. According to recent estimates, the number of data centers in the US alone is projected to reach over 4,000 by 2025, representing a substantial growth opportunity for immersion cooling technology.

The energy efficiency gains from immersion cooling can lead to substantial cost savings, making it an attractive option for data center operators.

 Customer Landscape of Immersion Cooling Industry

Competitive Intelligence by Technavio Analysis: Leading Players in the Immersion Cooling Market

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

Aecorsis BV - The company specializes in advanced cooling solutions, including the innovative Aquarius immersion cooling system, which optimizes data center efficiency and performance by submerging servers in liquid coolant.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Aecorsis BV
• Bitfury Group Ltd.
• Comfort Systems USA Inc.
• DCX The Liquid Cooling Co.
• Delta Electronics Inc.
• DUG Technology Ltd.
• Engineered Fluids Inc.
• Furukawa Electric Co. Ltd.
• Gigabyte Technology Co. Ltd.
• Green Revolution Cooling Inc.
• Iceotope Technologies Ltd.
• LiquidCool Solutions
• LiquidStack B.V.
• Midas Immersion Cooling
• PEZY Computing KK
• SixtyOneC
• Submer Technologies SL
• TEIMMERS
• TMGcore Inc.
• Wiwynn Corp.

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

Recent Development and News in Immersion Cooling Market

• In January 2024, NVIDIA, a leading technology company, announced the launch of its new H100 data center GPU, which supports immersion cooling technology. This innovation enables the efficient cooling of high-performance computing systems without the need for traditional air cooling, reducing energy consumption and data center footprint (NVIDIA Press Release).
• In March 2024, Intel and Cooling Data, an immersion cooling technology provider, announced a strategic partnership to develop and deploy immersion cooling solutions for Intel's upcoming data centers. This collaboration aims to improve data center efficiency and reduce water usage (Intel Press Release).
• In May 2025, Graphcore, a UK-based AI processing unit manufacturer, raised USD200 million in a Series E funding round, with a significant portion of the investment earmarked for the expansion of its immersion cooling infrastructure. This move will enable the company to scale its operations and meet the growing demand for energy-efficient AI computing solutions (Business Wire).
• In August 2025, Microsoft Azure, the cloud computing arm of Microsoft, announced the deployment of its first large-scale immersion-cooled data center in Quincy, Washington. This initiative is expected to reduce water usage and energy consumption, making Microsoft's data centers more environmentally sustainable (Microsoft Press Release).

Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Immersion Cooling Market insights. See full methodology.

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Why Choose Technavio for Immersion Cooling Market Insights?

"Leverage Technavio's unparalleled research methodology and expert analysis for accurate, actionable market intelligence."

Immerision cooling is an innovative approach to optimizing data center cooling systems, offering significant advantages in reducing energy consumption, improving heat transfer, and enhancing data center efficiency. By submerging servers and other IT equipment in a dielectric fluid, immersion cooling systems prevent equipment failure and improve reliability, making them an attractive solution for businesses seeking to manage their cooling infrastructure more effectively. Advanced immersion cooling techniques, such as single-phase and two-phase systems, have gained popularity due to their ability to manage thermal loads more efficiently. Single-phase immersion cooling, which uses a single fluid to both cool and act as an insulator, has been shown to reduce energy consumption by up to 50% compared to traditional air cooling methods. Two-phase immersion cooling, which uses a separate coolant for heat transfer and an insulating fluid, offers even greater efficiency, with some systems achieving up to 90% energy savings. Designing efficient immersion cooling systems requires careful consideration of various factors, including the selection of appropriate dielectric fluids, monitoring immersion cooling temperature, and maintaining the system to ensure optimal performance. Thermal modeling and analysis are crucial in evaluating immersion cooling performance and assessing the cost-effectiveness of the solution. Improving immersion cooling safety and enhancing scalability are also important considerations. By understanding the heat dissipation mechanisms and analyzing thermal modeling results, businesses can implement immersion cooling solutions with confidence, meeting compliance requirements and streamlining operational planning in their supply chain. Overall, the market is experiencing robust growth, with many businesses recognizing the potential benefits of this innovative cooling technology.

What are the Key Data Covered in this Immersion Cooling Market Research and Growth Report?

• What is the expected growth of the Immersion Cooling Market between 2024 and 2028?

  • USD 988 million, at a CAGR of 28.62%

• What segmentation does the market report cover?

  • The report is segmented by Type (Single-phase immersion cooling and Two-phase immersion cooling), Application (High-performance computing, Edge computing, and Cryptocurrency mining), and Geography (North America, Europe, APAC, South America, and Middle East and Africa)

• Which regions are analyzed in the report?

  • North America, Europe, APAC, South America, and Middle East and Africa

• What are the key growth drivers and market challenges?

  • Increasing investments in data centers, Lack of demand and awareness

• Who are the major players in the Immersion Cooling Market?

  • Aecorsis BV, Bitfury Group Ltd., Comfort Systems USA Inc., DCX The Liquid Cooling Co., Delta Electronics Inc., DUG Technology Ltd., Engineered Fluids Inc., Furukawa Electric Co. Ltd., Gigabyte Technology Co. Ltd., Green Revolution Cooling Inc., Iceotope Technologies Ltd., LiquidCool Solutions, LiquidStack B.V., Midas Immersion Cooling, PEZY Computing KK, SixtyOneC, Submer Technologies SL, TEIMMERS, TMGcore Inc., and Wiwynn Corp.

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