Data Center Immersion Cooling Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 4.87 Billion |
| Market Size (2030) | USD 11.10 Billion |
| Growth Rate (2025 - 2030) | 17.91% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Data Center Immersion Cooling Market Analysis by Mordor Intelligence
The data center immersion cooling market is valued at USD 4.87 billion in 2025 and is forecast to reach USD 11.10 billion by 2030, registering a 17.91% CAGR. This rapid climb mirrors the industry’s response to soaring rack power densities driven by AI and machine-learning workloads that regularly exceed 50 kW per rack. Operators view immersion technology as a route to maintain performance, shrink facility footprints, and comply with upcoming restrictions on PFAS-based coolants. North America anchors adoption through production-scale rollouts by the hyperscale cloud providers, while Asia-Pacific exhibits the steepest growth as Japan, China, and South Korea champion liquid-cooled AI clusters. On the technology front, single-phase systems retain the lion’s share because of installation familiarity, yet two-phase designs are winning pilots where extreme density and pump-free architectures are essential.
Key Report Takeaways
- By technology, Single-phase systems accounted for 80.9% of the data center immersion cooling market share in 2024; two-phase systems are poised to expand at a 21.6% CAGR to 2030.
- By application, High-performance computing held 34.2% revenue share in 2024, whereas AI/ML training is projected to accelerate at 26.9% CAGR through 2030.
- By data-center type, Hyperscale and self-built facilities represented 52.9% of the data center immersion cooling market size in 2024; enterprise and edge sites show the fastest trajectory at 20.7% CAGR.
- By cooling fluid, Synthetic hydrocarbons led with a 41.2% share in 2024; mineral oil formulations are forecast to grow at an 18.4% CAGR.
- By geography, North America dominated with 44.8% market share in 2024; Asia-Pacific is advancing at 19.6% CAGR to 2030.
Global Data Center Immersion Cooling Market Trends and Insights
Drivers Impact Analysis
| Driver | (~)% Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Proliferation of hyperscale data centers | +4.2% | Global, concentrated in North America and Asia-Pacific | Medium term (2-4 years) |
| Rising rack-power densities from AI/ML workloads | +5.8% | Global, led by North America and China | Short term (≤ 2 years) |
| Superior energy-efficiency and PUE gains over air cooling | +3.1% | Global, strongest in Europe due to regulations | Medium term (2-4 years) |
| Regulatory push toward PFAS-free, bio-based coolants | +2.4% | Europe and North America, expanding to Asia-Pacific | Long term (≥ 4 years) |
| Expansion of edge micro-data-centers for 5G/IoT | +1.8% | Asia-Pacific core, spill-over to MEA | Medium term (2-4 years) |
| Launch of immersion-ready silicon packages greater than 1 kW TDP | +3.2% | Global, concentrated in advanced manufacturing hubs | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Proliferation of Hyperscale Data Centers
Surging demand for generative-AI services compels the leading cloud providers to erect new hyperscale sites that often target rack densities above 100 kW. Google’s use of immersion-cooled TPU pods illustrates how large providers are standardizing liquid technologies to curtail real-estate requirements and capex for building expansion. Microsoft has validated production two-phase tanks at its Quincy, Washington, campus, citing easier density scaling and favorable total-cost-of-ownership metrics. When applied atthe portfolio level, immersion cooling enables operators to pack 10–15× more compute into the same footprint, directly translating into faster time-to-revenue for AI services. The ability to drive higher utilization from every square foot remains the strongest economic lever motivating hyperscale adoption.
Rising Rack-Power Densities from AI/ML Workloads
Field data from KDDI’s containerized sites shows single-phase immersion cutting server-rack power draw by 43% while achieving PUE below 1.07. Operators in energy-constrained locales exploit such savings to offset rising electricity tariffs and carbon taxes. European facilities face the EU Energy Efficiency Directive’s mandated 11.7% reduction in energy use by 2030; immersion’s ability to hit sub-1.1 PUE values provides a practical compliance pathway.[1]Directorate-General for Energy, “Energy Efficiency Directive 2024 Revision,” European Commission, europa.eu Further benefits emerge at the server level, as sustained higher boost frequencies translate into more compute per watt.
Regulatory Push Toward PFAS-Free, Bio-Based Coolants
Legislation curbing PFAS accelerates the shift toward hydrocarbon and bio-derived dielectrics. TotalEnergies’ BioLife fluid, co-developed with Green Revolution Cooling, delivers ISCC PLUS certified biodegradability without sacrificing thermal performance. Lubrizol’s CompuZol product line offers synthetic hydrocarbon blends optimized for GPU clusters while meeting material-compatibility standards.[2]Rob Swan, “CompuZol High-Performance Fluids for Immersion Cooling,” Lubrizol, lubrizol.comSuppliers that quickly align with these rules secure long-term share, whereas operators reliant on legacy fluorinated fluids face retrofit costs and supply-chain uncertainty.
Expansion of Edge Micro-Data Centers for 5G/IoT
Telecom carriers and industrial firms are rolling out micro-modules close to end-users to meet 5G latency targets. In regions with limited HVAC infrastructure or hostile climates, sealed single-phase tanks enable autonomous edge nodes that run without chilled-water plants. Early pilots across Southeast Asia illustrate that immersion systems can survive dust, humidity and temperature swings that cripple traditional air-cooled racks.
Restraints Impact Analysis
| Restraint | (~)% Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High upfront CAPEX and facility-redesign costs | -3.8% | Global, particularly acute in retrofit scenarios | Short term (≤ 2 years) |
| Fragmented standards and vendor interoperability gaps | -2.1% | Global, most pronounced in multi-vendor environments | Medium term (2-4 years) |
| Supply-chain risk for fluorinated dielectrics | -1.9% | Global, concentrated in PFAS-dependent regions | Medium term (2-4 years) |
| Material-compatibility concerns voiding warranties | -1.4% | Global, especially critical in enterprise deployments | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Fragmented Standards and Vendor Interoperability Gaps
Although ASHRAE and the TIA have released guidance, disparate connector formats, sensor protocols and coolant chemistries still hinder multi-vendor procurement.[3]Technical Committee 9.9, “Liquid Cooling Guidelines for Datacom Equipment Centers,” ASHRAE, ashrae.org The Open Compute Project’s immersion spec is gaining traction, but until uniform safety and maintenance practices emerge, operators risk lock-in to proprietary ecosystems that impede future upgrades or expansions.
High Upfront CAPEX and Facility-Redesign Costs
Comprehensive immersion deployments require specialized tanks, load-bearing supports, leakage-detection systems and coolant-handling equipment that collectively push per-rack installation costs past USD 50,000, roughly triple an equivalent air system. Retrofitting live sites compounds complexity because floor plenums, cable trays and power paths must be rerouted while maintaining uptime. For many brownfield owners, a phased migration strategy or greenfield build becomes the only viable route, delaying near-term adoption.
Segment Analysis
By Type: Two-Phase Systems Drive Innovation
Single-phase systems dominated 2024 with 80.9% share; however, two-phase designs are forecast to compound at 21.6% annually to 2030. That acceleration reflects superior heat-flux removal through low-pressure boiling, which allows passive condensers to reject heat without pumps or secondary loops. Microsoft’s Quincy deployment showcases how phase-change tanks sustain 100 kW racks in production.
In enterprise pilots, operators prefer single-phase solutions for ease of maintenance and established supply chains, particularly where mineral oil or synthetic hydrocarbons offer predictable viscosity and broad component compatibility. Yet AI fabs built on the latest 1 kW GPUs increasingly select two-phase setups to eliminate pump failures and tap datacenter waste heat for district-heating schemes. As suppliers shrink tank footprints and introduce pre-charged cassettes, the learning curve shortens, setting the stage for two-phase systems to claim incremental share over the forecast horizon. The data center immersion cooling market consequently evolves toward a dual-track ecosystem where single-phase dominates legacy refresh spend while two-phase captures new-build footprints geared for extreme density.
Note: Segment shares of all individual segments available upon report purchase
By Cooling Fluid: Synthetic Hydrocarbons Lead Market
Synthetic hydrocarbon fluids held 41.2% of 2024 revenue thanks to their low viscosity and strong material compatibility, making them the de-facto baseline across most single-phase deployments. Mineral oils, once relegated to cryptocurrency mines, re-enter mainstream consideration and are projected to grow 18.4% through 2030 as refiners deliver cleaner cuts that meet extended service-life targets. In comparison, fluorocarbon blends face heightened scrutiny under PFAS regulation, a headwind that propels bio-derivatives into pilot stages.
Lubrizol’s CompuZol family demonstrates synthetic hydrocarbons pushing thermal conductivity to 0.15 W/m-K while preserving flash points above 170 °C. TotalEnergies’ BioLife products illustrate how traceable plant-based stocks can equal petrochemical performance yet biodegrade rapidly, satisfying EU waste directives. Because coolant selection dictates seal compatibility, dielectric strength and disposal pathways, operators continue to conduct lengthy qualification programs, reinforcing fluid suppliers’ influence over the data center immersion cooling market trajectory.
By Application: AI Training Transforms Market Dynamics
High-performance computing retained 34.2% revenue in 2024, but AI/ML training workloads will expand at 26.9% CAGR to 2030, shifting purchase criteria from absolute FLOPS to sustained performance per watt. Supermicro’s rack-scale GPU platforms illustrate how immersion cooling keeps junction temperatures below 65 °C during multi-week transformer-model training, avoiding frequency throttling that prolongs job duration. Consequently, cloud providers are embedding liquid-ready bays into new availability zones, converting thermal management from a cost center into an enabler for premium AI services.
Cryptocurrency miners still favor immersion because higher hash rates translate directly into revenue, yet their share of the overall data center immersion cooling market shrinks as regulated enterprises enter. Edge and telecom deployments add diversity, leveraging sealed tanks to bring compute close to end-users without extensive HVAC infrastructure. The technology’s versatility therefore positions it as a universal solution wherever sustained high-density compute converges with space or energy constraints.
Note: Segment shares of all individual segments available upon report purchase
By Data Center Type: Enterprise Adoption Accelerates
The data center immersion cooling market size for hyperscale and self-built facilities amounted to more than half of 2024 revenue. These operators dictate fluid standards and drive volume economics. Nevertheless, enterprise and edge facilities exhibit a 20.7% CAGR, propelled by turnkey tank modules that mitigate onsite retrofitting complexity. LiquidStack and Submer have introduced ISO-shipping-container-based pods that arrive factory-sealed, enabling deployment in weeks.
Colocation providers now differentiate via immersion-ready suites, anticipating customer demand for racks exceeding 50 kW. In manufacturing and energy sectors, edge nodes powered by immersion cooling manage real-time analytics under harsh conditions where air filters clog rapidly. As corporate AI agendas mature, immersion cooling’s role broadens from niche high-density enabler to mainstream design choice across new enterprise IT rooms.
Geography Analysis
North America captured 44.8% of 2024 revenue, underpinned by hyperscale capital expenditure and an innovation culture that embraces pilot-to-production transitions rapidly. LiquidStack’s new Texas facility triples local tank output, shortening lead times and reinforcing domestic supply chains Policy frameworks focused on voluntary efficiency goals rather than prescriptive equipment mandates grant operators leeway to trial immersion without regulatory delays.
Asia-Pacific is the fastest-growing region at 19.6% CAGR, spurred by government-backed AI supercomputers and data-sovereignty initiatives. Japan’s KDDI recorded PUE values approaching 1.05 after deploying containerized single-phase rigs, validating immersion for telecom edge use cases. China’s coastal underwater data center proofs of concept illustrate novel siting strategies that rely on immersion to mitigate corrosion and humidity.
Europe leans on regulation as the primary adoption driver. The 2024 EU sustainability disclosure requirement pushes operators to cut both energy and water usage, making immersion attractive. The Netherlands enforces 27 °C supply-air ceilings that air-cooling systems struggle to meet, accelerating liquid retrofits in Amsterdam facilities. Heat-reuse pilots, such as feeding swimming pools in Denmark, further improve immersion project economics, enabling operators to recoup costs via heat-offtake agreements.
Competitive Landscape
The vendor arena blends specialty immersion pioneers with diversified electrical-infrastructure incumbents and chipmakers entering vertically integrated cooling stacks. Green Revolution Cooling leverages over a decade of field data to win utility rebates tied to energy-saving guarantees. Schneider Electric’s acquisition of Motivair signals large OEM appetite for turnkey liquid portfolios that slot into existing prefabricated-module lines.
Strategic alliances shape product roadmaps: Submer collaborates with Castrol to co-engineer fluids, while Stellium pairs Submer tanks with its UK colocation campus to showcase open-compute-based immersion rooms. Chip suppliers such as NVIDIA and Intel increasingly bundle validated liquid-ready reference designs, blurring lines between server vendor and cooling provider.
As intellectual property around corrosion inhibitors, sensor calibration and coolant reclamation matures, consolidation will likely center on firms holding patented dielectric formulations or integrated tank-plus-controls solutions. The data center immersion cooling market thus moves toward a moderate-concentration structure where top players possess multi-segment portfolios and large installed bases yet still face niche innovators in edge and modular spaces.
Data Center Immersion Cooling Industry Leaders
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Fujitsu Limited
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Green Revolution Cooling (GRC) Inc.
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Submer Technologies SL
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LiquidStack Inc.
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Asperitas
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- June 2025: Supermicro released NVIDIA Blackwell rack-scale solutions with a 250 kW coolant distribution unit doubling previous capacity.
- June 2025: UNICOM Engineering and Lubrizol unveiled a validated Tier-1 immersion solution for enterprise sites.
- May 2025: Fixstars, Getworks and NTTPC began joint development of water-cooled GPU clusters in Japan.
- March 2025: LiquidStack inaugurated its Carrollton, Texas headquarters, tripling production capacity.
Global Data Center Immersion Cooling Market Report Scope
Immersion cooling involves the installation of IT hardware, similar to memory, CPUs, and drives, directly into non-conductive dielectric liquids that cool the system. The heat generated from these systems is directly transferred to coolants, reducing the need for active cooling factors, similar to heat sinks, fans, and interface materials commonly used for air cooling.
The immersion cooling market in data centers is segmented by type (single-phase immersion cooling system and two-phase immersion cooling system), cooling fluid (mineral oil, deionized water, fluorocarbon-based fluids, and synthetic fluids), application (high-performance computing, edge computing, cryptocurrency mining, artificial intelligence, and other applications), and geography (North America, Europe, Asia-Pacific, Australia and New Zealand, Latin America, and Middle East and Africa). The market size and forecasts are provided in USD for all the above segments.
| Single-Phase Immersion Cooling System |
| Two-Phase Immersion Cooling System |
| Mineral Oil |
| De-ionized Water |
| Fluorocarbon-based Fluids |
| Synthetic Hydrocarbon Fluids |
| Bio-based Fluids |
| High-Performance Computing (HPC) |
| Edge Computing |
| Artificial Intelligence and Machine Learning |
| Cryptocurrency Mining |
| Cloud and Hyperscale Data Centers |
| Other Applications |
| Hyperscale/Self-Built |
| Colocation / Wholesale |
| Enterprise/Edge Data Centers |
| North America | United States | |
| Canada | ||
| Mexico | ||
| South America | Brazil | |
| Argentina | ||
| Rest of South America | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Netherlands | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| Japan | ||
| India | ||
| South Korea | ||
| Australia and New Zealand | ||
| Rest of Asia-Pacific | ||
| Middle East and Africa | Middle East | United Arab Emirates |
| Saudi Arabia | ||
| Turkey | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Egypt | ||
| Nigeria | ||
| Rest of Africa | ||
| By Type | Single-Phase Immersion Cooling System | ||
| Two-Phase Immersion Cooling System | |||
| By Cooling Fluid | Mineral Oil | ||
| De-ionized Water | |||
| Fluorocarbon-based Fluids | |||
| Synthetic Hydrocarbon Fluids | |||
| Bio-based Fluids | |||
| By Application | High-Performance Computing (HPC) | ||
| Edge Computing | |||
| Artificial Intelligence and Machine Learning | |||
| Cryptocurrency Mining | |||
| Cloud and Hyperscale Data Centers | |||
| Other Applications | |||
| By Data Center Type | Hyperscale/Self-Built | ||
| Colocation / Wholesale | |||
| Enterprise/Edge Data Centers | |||
| By Geography (Value) | North America | United States | |
| Canada | |||
| Mexico | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Netherlands | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| Japan | |||
| India | |||
| South Korea | |||
| Australia and New Zealand | |||
| Rest of Asia-Pacific | |||
| Middle East and Africa | Middle East | United Arab Emirates | |
| Saudi Arabia | |||
| Turkey | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Egypt | |||
| Nigeria | |||
| Rest of Africa | |||
Key Questions Answered in the Report
What is the forecast growth rate for the data center immersion cooling market to 2030?
The market is projected to expand at a 17.91% CAGR, climbing from USD 4.87 billion in 2025 to USD 11.10 billion by 2030.
Which application will grow the fastest within the data center immersion cooling market?
AI and machine-learning training workloads are set to grow at 26.9% CAGR because they demand sustained high power densities that immersion cooling handles efficiently.
How do sustainability regulations influence adoption in Europe?
The EU Energy Efficiency Directive and reporting mandates require operators to cut energy and water use; immersion cooling’s sub-1.1 PUE and zero-water operation help meet these targets.
What role do bio-based coolants play in this market?
Bio-derived fluids such as TotalEnergies’ BioLife comply with PFAS-phase-out rules and provide traceability and biodegradability without sacrificing thermal performance, making them attractive replacements for fluorinated alternatives.
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