Immersion Cooling Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product (Single-phase, Two-phase), By Application (Edge Computing, High-performance Computing, Cryptocurrency Mining, Artificial Intelligence, Others), By Cooling Liquid (Mineral Oil, Fluorocarbon-based Fluids, Deionized Water, Others), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 261.01 Million
CAGR (2026-2031)	24.12%
Fastest Growing Segment	High-performance Computing
Largest Market	North America
Market Size (2031)	USD 954.35 Million

Market Overview

The Global Immersion Cooling Market will grow from USD 261.01 Million in 2025 to USD 954.35 Million by 2031 at a 24.12% CAGR. Immersion cooling is defined as the practice of submerging IT hardware components in a thermally conductive but electrically insulating dielectric liquid to efficiently dissipate heat. The primary drivers supporting market growth include the rising power density requirements of artificial intelligence workloads and the industry-wide mandate for improved sustainability through reduced energy consumption. This shift is quantitatively supported by recent industry data regarding infrastructure investment. According to the Open Compute Project, in 2025, the spending on cooling technologies is projected to grow at a compound annual growth rate of over 32 percent through 2029, highlighting the intensifying momentum behind liquid-based thermal solutions.

A significant challenge impeding the broader expansion of the global immersion cooling market is the substantial capital expenditure required to retrofit existing data centers. Most legacy facilities are designed specifically for air cooling and lack the structural capacity or floor space to accommodate heavy immersion tanks without costly renovations. This infrastructure incompatibility, combined with the complex operational procedures for handling dielectric fluids, creates a formidable barrier for enterprises attempting to transition from traditional cooling methods to immersion systems.

Key Market Drivers

The rapid expansion of high-performance computing and artificial intelligence infrastructure is a critical catalyst for the Global Immersion Cooling Market. As facilities integrate powerful GPUs to support generative AI workloads, the resulting thermal density often exceeds the capacity of legacy air-based systems, necessitating the adoption of advanced liquid thermal management. The magnitude of this infrastructure growth is driving a corresponding need for power and cooling capacity. According to Goldman Sachs, April 2024, in the 'Generational Growth: AI, data centers and the coming US power demand surge' report, global data center power demand is projected to increase by 165 percent by 2030, driven primarily by AI acceleration. This surge forces operators to adopt immersion technologies that can efficiently dissipate the intense heat generated by next-generation processors, which traditional methods can no longer handle effectively.

Concurrently, the increasing demand for energy-efficient and eco-friendly cooling solutions is propelling market adoption. Operators are prioritizing technologies that lower Power Usage Effectiveness (PUE) and reduce carbon emissions to satisfy strict sustainability mandates. Immersion systems achieve this by removing the need for energy-intensive fans and mechanical chillers, thereby significantly lowering facility energy consumption. According to LiquidStack, May 2024, in a press announcement regarding Cisco Live, their two-phase immersion cooling technology provides a 41 percent reduction in energy usage compared to traditional air cooling. This potential for operational savings and environmental compliance is accelerating deployment rates across the industry. According to Supermicro, in 2024, liquid-cooled data centers are expected to grow to represent up to 30 percent of all installations over the next two years, signaling a major shift away from air-cooled infrastructure.

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Key Market Challenges

The substantial capital expenditure required to retrofit existing data centers constitutes a primary obstacle limiting the expansion of the immersion cooling market. The majority of legacy facilities are engineered exclusively for air-based thermal management and lack the requisite floor loading capacity to support heavy dielectric fluid tanks. Modifying these environments necessitates extensive structural reinforcements and complex plumbing overhauls, resulting in prohibitive upfront costs that often outweigh the immediate operational benefits. This financial burden makes the transition from traditional air cooling to immersion systems economically impractical for many enterprises.

This infrastructure incompatibility is reinforced by the prevalence of low-density environments that do not yet necessitate liquid adoption. According to the Uptime Institute, in 2024, the average server rack density across global data centers remained below 8 kilowatts, with the majority of facilities lacking any racks exceeding 30 kilowatts. This statistic demonstrates that a significant portion of the market operates well within the thermal limits of air cooling. Consequently, the widespread existence of low-density legacy infrastructure weakens the business case for investing in expensive immersion renovations, thereby restricting the technology's broader market penetration.

Key Market Trends

The standardization of fluid compatibility and testing protocols is emerging as a critical trend to eliminate hardware warranty risks and validate performance claims. Previously, the lack of certified interaction between dielectric fluids and processors created liability concerns for operators, as unverified coolants could void equipment guarantees. This barrier is being dismantled by formal certification programs that verify material durability and system interoperability. According to Shell, May 2025, in the 'Shell cooling fluids certified by Intel for use in data centres worldwide' press release, the company's immersion fluids became the first to receive official certification from Intel, confirming that the validated solution can reduce capital and operating expenditures by up to 33 percent while maintaining full processor warranty coverage.

Concurrently, the accelerated adoption of single-phase immersion architectures is being catalyzed by the introduction of comprehensive fluid lifecycle management services. As the technology matures, providers are shifting from simple product sales to holistic operational support, addressing the complexity of fluid maintenance and disposal that previously hampered implementation. This operational shift is driven by urgent market necessity rather than experimental interest. According to Castrol, June 2025, in the 'Castrol launches new fluid management service' announcement, recent industry research indicated that 74 percent of data center experts now classify immersion cooling as essential to meeting current power requirements, a sentiment that is fueling the rollout of end-to-end service models designed to simplify deployment.

Segmental Insights

The High-performance Computing segment is currently the fastest-growing category within the Global Immersion Cooling Market due to the escalating thermal demands of data-intensive operations. As industries increasingly rely on dense processor configurations for artificial intelligence and complex simulations, traditional air cooling systems often fail to manage the excessive heat generated by this hardware. Immersion cooling addresses these limitations by providing superior heat dissipation and enabling higher operational density. Consequently, data centers are adopting this technology to maintain system stability, improve energy efficiency, and align with strict environmental sustainability standards regarding power consumption.

Regional Insights

North America maintains a dominant position in the Global Immersion Cooling Market, primarily due to its extensive network of hyperscale data centers and the rising demand for high-performance computing. The region's market leadership is further strengthened by the rapid adoption of artificial intelligence, which requires advanced thermal management capabilities. Moreover, strategic initiatives by the U.S. Department of Energy, including funding for energy-efficient cooling research, have significantly accelerated industry development. This combination of robust technological infrastructure, intense computational demand, and supportive regulatory frameworks establishes North America as the central driver of global market expansion.

Recent Developments

• In November 2025, Vertiv unveiled the CoolCenter Immersion cooling system, expanding its portfolio of liquid cooling solutions to support high-performance computing and artificial intelligence environments. The system, which became available in Europe, the Middle East, and Africa, submerges servers in a dielectric fluid to ensure efficient heat removal for high-density applications where traditional air cooling is insufficient. The solution offers cooling capacities ranging from 25 kW to 240 kW per unit and features a complete architecture including tanks, coolant distribution units, and monitoring sensors. This launch addressed the growing thermal management challenges posed by advanced computing workloads.
• In October 2025, Green Revolution Cooling (GRC) entered into a strategic partnership with LG Electronics and SK Enmove to advance liquid immersion cooling capabilities for artificial intelligence data centers. This collaboration aimed to combine GRC's specialized cooling technology with LG's expertise in high-efficiency equipment and SK Enmove's advanced lubricant fluids. The companies focused on developing integrated solutions that improve energy efficiency and thermal management for data centers handling intensive AI processing tasks. This joint initiative underscored the industry's shift towards liquid cooling methods to sustain the rising power densities of next-generation server infrastructure.
• In November 2024, Iceotope Technologies Limited launched KUL AI, a precision liquid cooling solution specifically engineered to enhance the performance and efficiency of artificial intelligence and high-performance computing workloads. Unveiled at the SC24 conference in Atlanta, this product features an eight-GPU server integrated with the company's proprietary cooling technology, utilizing Intel Xeon Scalable processors. The system was designed to maintain uniform cooling across all heat-generating components, thereby reducing hotspots and minimizing throttling. This development provided data center operators with a scalable method to maximize server performance while adhering to sustainability goals.
• In October 2024, Submer signed a strategic partnership with Zero Two, a company specializing in digital infrastructure, to deploy sustainable computing solutions tailored for artificial intelligence applications in the United Arab Emirates. This collaboration combined Submer’s single-phase immersion cooling technology with Zero Two’s capabilities in developing large-scale data center projects. The agreement aimed to support the region’s rapid growth in AI by delivering energy-efficient infrastructure that eliminates water usage in cooling processes. The initiative built upon previous successful deployments, focusing on optimizing performance and reducing the environmental impact of high-density computing operations.

Key Market Players

• Fujitsu Limited
• Dug Technology Ltd
• Green Revolution Cooling Inc.
• Submer Technologies , S.L.
• LiquidStack Holding B.V.
• Aecorsis BV
• DCX Inc.
• LiquidCool Solutions Inc.
• ExaScaler Inc.
• Iceotope Technologies Ltd.

By Product	By Application	By Cooling Liquid	By Region
Single-phase Two-phase	Edge Computing High-performance Computing Cryptocurrency Mining Artificial Intelligence Others	Mineral Oil Fluorocarbon-based Fluids Deionized Water Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Immersion Cooling Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Immersion Cooling Market, By Product:

• Single-phase
• Two-phase

• Immersion Cooling Market, By Application:

• Edge Computing
• High-performance Computing
• Cryptocurrency Mining
• Artificial Intelligence
• Others

• Immersion Cooling Market, By Cooling Liquid:

• Mineral Oil
• Fluorocarbon-based Fluids
• Deionized Water
• Others

• Immersion Cooling Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE