Data Center Liquid Immersion Cooling Market (2025 - 2030) Size, Share, & Trend Analysis By Cooling Type (Single-phase Immersion Cooling System), By Cooling Fluid, By Data Center Type, By End Use, By Region, And Segment Forecasts

Data Center Liquid Immersion Cooling Market Summary

The global data center liquid immersion cooling market size was estimated at USD 2.12 billion in 2024 and is projected to reach USD 7.22 billion by 2030, growing at a CAGR of 22.3% from 2025 to 2030. The market growth can be attributed to the increasing demand for high-performance computing (HPC) and AI workloads.

These applications generate immense heat, which traditional air-based cooling systems struggle to manage efficiently. Liquid immersion cooling, where servers are submerged in a thermally conductive but electrically non-conductive liquid, offers superior heat dissipation and enables the operation of denser and more powerful computing setups. This makes it an ideal solution for next-generation data centers handling large-scale machine learning, cryptocurrency mining, and complex simulations. The rising focus on sustainability and energy efficiency also contributes to the data center liquid immersion cooling industry. With data centers consuming vast amounts of electricity globally, operators are under pressure to reduce their carbon footprint. Immersion cooling can significantly reduce the energy required for cooling, eliminating the need for air conditioning units and large-scale fans, thereby improving Power Usage Effectiveness (PUE). This appeals to companies seeking to meet environmental, social, and governance (ESG) goals and comply with increasingly stringent energy consumption and emissions regulations.

Cost efficiency over the long term is also bolstering adoption. While initial setup costs for immersion cooling systems can be high, the technology offers long-term savings through reduced cooling costs, increased hardware lifespan (due to less thermal stress), and lower maintenance needs. This total cost of ownership (TCO) advantage is becoming more attractive, especially for hyperscale and colocation data center operators. Moreover, advancements in cooling technology and growing vendor ecosystems are helping to mature the market. Companies now offer more standardized, scalable, and easier-to-integrate immersion cooling solutions. For instance, in March 2025, the Chemours Company initiated a large-scale product trial in collaboration with NTT DATA and Hibiya Engineering, Ltd., targeting advanced two-phase immersion cooling for data centers. Building on successful lab tests, the trial features Chemours’ next-generation dielectric fluid, Opteon 2P50.

Cooling Type Insights

The two-phase immersion cooling segment dominated the market and accounted for the revenue share of over 59.0% in 2024. The boiling and condensing mechanism in two-phase systems allows for superior heat transfer, reducing the need for bulky heat exchangers or mechanical chillers. This appeals strongly to hyperscale operators and enterprises aiming for maximum space utilization and energy optimization. Additionally, the reduction in water usage makes two-phase systems highly suitable for data center operators prioritizing sustainability and regulatory compliance.

The single-phase immersion cooling segment is anticipated to grow at a CAGR of 20.9% during the forecast period due to its lower cost, simpler design, and ease of integration into existing data center infrastructures. It is particularly favored by mid-sized data centers and colocation providers seeking affordable and incremental upgrades to traditional air cooling systems. Single-phase systems are seen as a low-barrier entry point into liquid immersion cooling, appealing to operators with limited capital expenditure budgets.

Cooling Fluid Insights

The deionized water segment dominated the market and accounted for the revenue share of over 27.0% in 2024. As water-based solutions offer superior heat absorption capabilities, they are increasingly favored in data centers focused on thermal efficiency without reliance on expensive engineered fluids. Moreover, the non-toxic and biodegradable nature of deionized water supports growing sustainability initiatives and regulatory mandates aimed at reducing the environmental impact of large-scale data center operations.

The synthetic fluids segment is expected to grow at a significant CAGR over the forecast period, driven by the need for enhanced thermal performance and material compatibility in next-generation data centers. Unlike traditional mineral oils, synthetic dielectric fluids offer superior heat transfer efficiency, with some formulations achieving better thermal conductivity, making them ideal for high-density AI and GPU workloads. Their chemical stability ensures long-term reliability, reducing the risk of degradation or sludge formation that can clog critical components, thereby extending the lifespan of expensive hardware.

Data Center Type Insights

The hyperscale data centers segment dominated the market and accounted for the revenue share of over 35.0% in 2024. The hyperscale data center segment is rapidly adopting liquid immersion cooling to address the exponential power density challenges posed by AI clusters and advanced computing workloads. Modern GPU/TPU server racks now exceed 50kW per cabinet, far surpassing the cooling capacity of traditional air systems, making immersion cooling a mission-critical solution for thermal management. Hyperscalers such as Google, Microsoft, and AWS are deploying tank-based immersion systems at scale, achieving significant reductions in cooling energy consumption compared to conventional CRAC units.

The edge data centers segment is expected to grow at a significant CAGR over the forecast period, driven by the need for maintenance-free operation in remote or unmanned edge locations. Immersion cooling systems eliminate moving parts like fans and filters, reducing failure risks and servicing requirements, a key advantage for deployments in harsh or inaccessible areas. The sealed design of immersion tanks also protects sensitive electronics from dust, humidity, and corrosive elements, extending hardware lifespan in challenging environments such as factory floors or outdoor enclosures.

End Use Insights

The IT segment dominated the market and accounted for a revenue share of over 27.0% in 2024. Immersion cooling's modular and retrofit-friendly nature supports phased IT modernization. Enterprises can gradually transition select racks to immersion while maintaining hybrid environments, minimizing disruption to live operations. This flexibility drives adoption among financial institutions, research labs, and government agencies that require high-availability computing without full infrastructure overhauls.

The retail & e-commerce segment is expected to grow at a significant CAGR over the forecast period due to the exponential growth of digital transactions and real-time analytics, which place increasing pressure on backend infrastructure to deliver low-latency, high-availability performance. With rising customer expectations for seamless, always-on online experiences, particularly during peak shopping seasons and flash sales, retailers are investing in high-performance data centers that can maintain consistent cooling efficiency under dynamic and high-load conditions. Liquid immersion cooling provides a robust solution for such environments, enabling retailers to maximize server density without overheating risks, which is crucial for handling traffic spikes and supporting large-scale recommendation engines.

Regional Insights

The data center liquid immersion cooling market in North America held a significant share of nearly 39.0% in 2024, driven by the expansion of AI and machine learning workloads across hyperscale data centers, particularly in the U.S. and Canada. The region's early adoption of advanced cooling technologies is supported by robust investment from cloud giants and technology firms focused on energy efficiency and operational scalability. Additionally, regulatory and ESG pressures push operators toward green data center architectures, for which immersion cooling offers significant advantages.

U.S. Data Center Liquid Immersion Cooling Industry Trends

The data center liquid immersion cooling market in the U.S. is expected to grow significantly at a CAGR of 22.3% from 2025 to 2030, fueled by the proliferation of hyperscale cloud facilities and high-performance computing (HPC) clusters, including those powering government, defense, and university research initiatives. The availability of advanced infrastructure, coupled with a strong innovation ecosystem and tax incentives in states like Texas and Virginia, is accelerating the adoption of immersion cooling to support dense compute environments with minimal operational downtime and reduced cooling costs.

Europe Data Center Liquid Immersion Cooling Industry Trends

The data center liquid immersion cooling market in Europe is anticipated to register considerable growth from 2025 to 2030. Europe is experiencing accelerated adoption of immersion cooling due to stricter environmental regulations and high electricity prices, which are prompting data center operators to seek alternative cooling solutions that reduce energy consumption. The market is also supported by multi-national digital transformation efforts and increased AI deployment in enterprise applications, encouraging more efficient and space-saving cooling technologies to ensure compliance and competitiveness.

The UK data center liquid immersion cooling market is expected to grow rapidly in the coming years, driven by the surge in financial services digitization and edge data center deployment across the country. Immersion cooling is increasingly seen as a way to support latency-sensitive, high-throughput applications while managing space constraints and meeting carbon neutrality objectives under the UK's net-zero targets.

The Germany data center liquid immersion cooling market held a substantial market share in 2024 due to its position as a manufacturing and industrial IoT leader, where smart factory and automation deployments require robust, efficient data handling. Germany’s strong commitment to energy efficiency and sustainability, along with government support for green technology adoption in IT infrastructure, is further propelling demand for liquid immersion systems in both public and private sector data centers.

Asia Pacific Data Center Liquid Immersion Cooling Industry Trends

Asia Pacific is expected to register the highest CAGR of 23.2% from 2025 to 2030 due to growing digital economies, 5G rollout, and rising cloud adoption across Southeast Asia, Australia, and India. The region’s increasing use of AI, IoT, and fintech services is fueling the demand for scalable, high-efficiency cooling solutions. Immersion cooling is attractive for its lower operational complexity in high-temperature climates, where traditional air cooling systems often underperform or become cost-prohibitive.

The Japan data center liquid immersion cooling market is expected to grow rapidly in the coming years due to its aging infrastructure and limited physical space, which makes immersion cooling ideal for retrofitting older urban data centers. The country’s emphasis on disaster resilience and high-reliability systems supports adoption, especially for financial services, telecom, and gaming sectors. Furthermore, Japanese firms are embracing immersion cooling to help achieve national energy efficiency goals under the Green Transformation (GX) initiative.

The China data center liquid immersion cooling market held a substantial market share in 2024, due to massive investments in AI, blockchain, and hyperscale cloud platforms supported by state-backed technology initiatives. The government’s push to reduce data center PUE (Power Usage Effectiveness) and reliance on coal-based power has led to a surge in interest in immersion cooling as part of broader new infrastructure development strategies aimed at sustainability and technological self-sufficiency.

Key Data Center Liquid Immersion Cooling Company Insights

Key players operating in the data center immersion liquid cooling industry are Submer, Green Revolution Cooling Inc., Vertiv Group Corp., Iceotope, CoolIT Systems, and Schneider Electric. The companies are focusing on various strategic initiatives, including new product development, partnerships & collaborations, and agreements to gain a competitive advantage over their rivals. The following are some instances of such initiatives.

• In March 2025, Vertiv Group Corp. launched the Vertiv CoolLoop Trim Cooler, designed to support both air and liquid cooling needs for AI and high-performance computing (HPC) environments. Engineered for global deployment, the new solution accommodates diverse climate conditions and can be integrated with hybrid or fully liquid-cooled data centers, including AI-focused facilities. Moreover, the CoolLoop Trim Cooler is compatible with immersion cooling systems, streamlining installation and reducing operational complexity while delivering time and cost savings for high-density computing applications.

• In October 2024, Submer formed a strategic partnership with Zero Two, a UAE-based innovator in advanced data center infrastructure, to support the region’s accelerating growth in artificial intelligence. The collaboration aims to deliver sustainable, high-performance computing solutions optimized for AI workloads, combining Submer’s modular immersion cooling platforms with Zero Two’s rapid deployment capabilities. Developed with a focus on energy efficiency, this initiative employs a zero-water, single-phase immersion cooling system that utilizes specialized cooling fluids instead of traditional water. This offers a scalable and environmentally friendly alternative to conventional cooling methods.

Data Center Liquid Immersion Cooling Report Scope

Global Data Center Liquid Immersion Cooling Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global data center liquid immersion cooling market report based on cooling type, cooling fluid, data center type, end use, and region.

• Cooling Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Single-phase Immersion Cooling System

  • Two-phase Immersion Cooling System

• Cooling Fluid Outlook (Revenue, USD Billion, 2018 - 2030)

  • Mineral Oil

  • Deionized Water

  • Fluorocarbon-based Fluids

  • Synthetics Fluids

• Data Center Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Hyperscale Data Centers

  • Enterprise Data Centers

  • Colocation Data Centers

  • Edge Data Centers

  • High-Performance Computing (HPC) Data Centers

• End Use Outlook (Revenue, USD Billion, 2018 - 2030)

  • IT

  • Telecom

  • Healthcare

  • BFSI

  • Retail & E-commerce

  • Entertainment & Media

  • Energy

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • South Africa