The data center liquid immersion cooling market is set for strong growth, driven by increasing data centers, cloud service adoption, and the need for energy-efficient cooling solutions. Opportunities lie in addressing high-density power needs, reducing carbon footprints, and leveraging AI and advanced cooling technologies amid trade tensions.
Dublin, Jan. 08, 2026 (GLOBE NEWSWIRE) -- The "Data Center Liquid Immersion Cooling Global Market Report 2025" has been added to ResearchAndMarkets.com's offering.
The data center liquid immersion cooling market is experiencing significant growth, evidenced by its expansion from $2.63 billion in 2024 to an anticipated $3.3 billion in 2025, at a CAGR of 25.4%. This trend results from the proliferation of data centers, increased adoption of cloud-based services, IT infrastructure development, and the rise of hyper-scale data centers.
This surge is expected to continue, reaching $8.38 billion by 2029, with a CAGR of 26.3%. The growth will be driven by the challenges of high-density power consumption, growing investments in liquid immersion cooling technologies, and a concerted effort to reduce the carbon footprint associated with data center operations.
However, recent trade tensions and tariffs, especially between the US and other countries, have created supply chain disruptions. These have led to higher costs due to constrained supplies of dielectric cooling liquids and custom immersion tanks, mainly imported from Germany and Singapore. This situation mandates careful navigation of these challenges to maintain growth trajectories.
Cloud-based services are a notable driver for the liquid immersion cooling market as they necessitate effective thermal management solutions to handle the heat from high-density servers. According to a Google Cloud report from September 2022, the usage of multiple public clouds saw an increase to 26% from 21% in the previous year. Similarly, hybrid cloud adoption rose from 25% to 42.5% over the same period, highlighting a surge in demand for cooling technologies.
Prominent market players are innovating with advanced open IP reference designs to enhance sustainability and operational efficacy in data centers. Intel Corporation's launch in May 2022 of an open IP immersion liquid cooling system exemplifies this innovation, using non-conductive cooling agents to efficiently manage thermal outputs.
Strategic acquisitions are also shaping the market landscape. Modine Manufacturing Company acquired TMG Core in January 2024, expanding its capabilities in advanced liquid immersion technologies crucial for supporting high-density computing applications such as generative AI and 5G.
The prominent technologies in this market include single-phase and two-phase immersion cooling systems, with each offering distinct performance benefits across various industry sectors. Major companies like Intel, Schneider Electric, and Fujitsu are among those spearheading advancements in this domain, fostering a competitive yet collaborative environment for innovation.
Regionally, North America was the largest market in 2024, a trend that is likely to continue given the region's technological infrastructure and investment capacity. However, the market remains globally diverse, with significant contributions to growth anticipated from regions such as Asia-Pacific and Europe.
Overall, the data center liquid immersion cooling market presents robust growth opportunities, contingent on effectively addressing supply chain challenges and leveraging advancements in technology to support the future demands of high-performance computing environments. For a thorough understanding of market dynamics, ongoing reports provide comprehensive data, market statistics, trends, and strategic insights for operators in the industry.
Scope:
Markets Covered:
- Type: Single-Phase Immersion Cooling System; Two-Phase Immersion Cooling System
- Cooling Fluids: Mineral Oil; Deionized Water; Fluorocarbon-Based Fluids; Synthetics Fluids
- Data Center: Enterprise; Colocation; Wholesale; Hyperscale; Other Data Centers
- Application: High-Performance Computing; Edge Computing; Artificial Intelligence; Cryptocurrency Mining; Other Applications
- End-Use Industry: Banking, Financial Services, and Insurance (BFSI); Manufacturing; IT and Telecom; Healthcare; Government and Defense; Retail; Energy; Other Industries
Key Companies Mentioned:
- Intel Corporation, Schneider Electric SE, Fujitsu Limited, Solvay SA, Delta Electronics Inc., Alfa Laval AB, Rittal GmbH & Co. KG
Geographical Coverage:
- Countries: Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain
- Regions: Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
Companies Featured
- 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
For more information about this report visit https://www.researchandmarkets.com/r/34pksw
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