Data Center Liquid Immersion Cooling Market Size
Global Data Center Liquid Immersion Cooling Market size was valued at USD 1.24 billion in 2025, and the total market revenue is expected to grow at a CAGR of 27.94% over the forecast period, reaching nearly USD 3.98 billion by 2034.
Data Center Liquid Immersion Cooling Market Growth Factors and Dynamics
Increasing the Density of Data Centers
The market outlook is favorable as a result of the increasing demand for data center liquid refrigeration, which is a direct result of the increasing number of data centers. The utilization of cloud services, big data analytics, and artificial intelligence (AI) applications has resulted in a rise in the volume of workloads that data centers are managing.
The increased density of servers and equipment in contemporary data centers is accommodated by liquid cooling systems, which directly dissipate heat from hot areas. This capability is essential for the prevention of thermal issues that could compromise hardware performance and reliability, as well as the maintenance of optimal operating conditions. In addition, data center operators are emphasizing the optimization of their infrastructure.
India is ranked 14th in the world, with over 150 data centers, according to the Observer Research Foundation's March 2024 report. The demand for data center liquid cooling systems is being stimulated by these data centers, which is anticipated to drive market growth during the anticipated period.
Increasing Attention to Energy Efficiency
Traditional air-cooling methods in data centers are energy-intensive due to the need for electricity to fuel fans and air conditioning (AC) systems. In contrast, data center liquid cooling solutions provide a more energy-efficient alternative by directly transferring heat away from information technology (IT) equipment using liquid coolant.
Furthermore, data center liquid cooling solutions can enhance heat dissipation and achieve more precise temperature control by utilizing liquid coolant to absorb and transport heat away from hot areas. This enhanced cooling efficiency enables data centers to sustain optimal operating temperatures while utilizing less energy.
For example, the California Public Utilities Commission (CPUC) established a Market Transformation Administrator (CalMTA) to enhance the market's accessibility to energy-efficient technologies and practices. To satisfy California's climate objectives, this initiative allocated approximately US$320 million.
In addition, data center liquid cooling solutions reduce the overall footprint of cooling infrastructure and reduce energy consumption associated with fan operation and air circulation by eliminating the necessity for large air ducts, raised platforms, and other components.
Report Scope
| Feature of the Report | Details |
| Market Size in 2025 | USD 1.24 Billion |
| Projected Market Size in 2034 | USD 3.98 Billion |
| Market Size in 2024 | USD 1.12 Billion |
| CAGR Growth Rate | 27.94% CAGR |
| Base Year | 2024 |
| Forecast Period | 2025-2034 |
| Key Segment | By Component, Cooling Technique, Cooling Fluid, Organization Size, End Use and Region |
| Report Coverage | Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends |
| Regional Scope | North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America |
| Buying Options | Request tailored purchasing options to fulfil your requirements for research. |
New Market Entrants
The global Data Center Liquid Immersion Cooling market is being bolstered by the extensive presence of prominent competitors, including Alfa Laval AB, Liquid Cool Solutions, Asetek AS, and Vertiv Co. These entities are emphasizing the expansion of their international clientele. To enhance their profitability and market share, these organizations implement strategic joint ventures.In addition, the competition is further exacerbated by the entry of new competitors, who invest in advanced technologies and form strategic partnerships. For example, in May 2022, Intel initiated a new initiative to address data center sustainability by investing US$ 700 million in a new research facility that specializes in liquid and immersion cooling. Intel also introduced the first immersion cooling reference design in the market to promote the use of the technology in data centers worldwide.
Competition In The Market Is Stimulated By Product Innovation:
Product innovations, including water-efficient liquid cooling solutions, are the primary focus of major companies in the data center liquid cooling market in order to establish a competitive edge. Water-efficient liquid cooling is a solution that enhances performance while simultaneously reducing energy consumption and water usage in data centers.
This solution also contributes to the reduction of carbon emissions and the enhancement of resource sustainability. For instance, in November 2022, Vertiv, a US-headquartered business that manufactures equipment along with offering auxiliary services for data centers, proposed the Liebert XDU, the latest model of thermal management systems that enable the control of liquid quality, flow, and pressure and support liquid-cooled servers.
The Liebert XDU is a device that is expressly engineered to eliminate impediments to liquid cooling in air-cooled environments, thereby enabling the efficient and effective thermal management of high-density server applications. The Liebert XDU provides liquid-cooled server systems with optimal performance and reliability by providing enhanced control over liquid quality, flow, and pressure.
List of the prominent players in the Data Center Liquid Immersion Cooling Market:
- 3M Company
- Alfa Laval AB
- Asetek Group
- Asperitas B.V.
- DCX - The Liquid Cooling Company
- Fujitsu Limited
- Green Revolution Cooling Inc.
- Midas Green Technologies LLC
- Schneider Electric SE
- Submer Technologies S.L.
- Others
The Data Center Liquid Immersion Cooling Market is segmented as follows:
By Component
- Solution
- Cooling fluids
- Cooling racks/modules
- Filters
- Pumps
- Heat exchangers
- Others
- Service
- Installation & maintenance
- Training & consulting
By Cooling Technique
- Single phase cooling
- Two-phase cooling
By Cooling Fluid
- Mineral oil
- Synthetic fluid
- Fluorocarbons-based fluid
By Organization Size
- SME
- Large enterprises
By End Use
- Hyperscale
- Supercomputing
- Enterprise HPC
- Cryptocurrency
- Edge/5G computing
- Others
Regional Coverage:
North America
- U.S.
- Canada
- Mexico
- Rest of North America
Europe
- Germany
- France
- U.K.
- Russia
- Italy
- Spain
- Netherlands
- Rest of Europe
Asia Pacific
- China
- Japan
- India
- New Zealand
- Australia
- South Korea
- Taiwan
- Rest of Asia Pacific
The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
Latin America
- Brazil
- Argentina
- Rest of Latin America
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