Immersion Cooling Market In Data Centers Market Size (2024 - 2029)

Data Center Immersion Cooling Market Analysis

The Immersion Cooling Market In Data Centers Industry is expected to grow from USD 0.79 billion in 2024 to USD 2.52 billion by 2029, at a CAGR of 26.15% during the forecast period (2024-2029).

Owing to the increasing demand for this technology, companies such as Supermicro and Fujitsu offer several server lines ready for immersion cooling. Several hardware manufacturers are launching firmware and BIOS updates to inform servers that fans are not required in immersion-cooling-based installations, primarily indicating the industry's readiness to shift to hardware cooling technologies.

• The increasing carbon footprint of the data centers is another major issue leading to the increased adoption of advanced liquid cooling technology, such as immersion cooling. In a recent study conducted by company 3M, a prominent synthetic coolant provider in the immersion cooling market, it was identified that 38% of the electricity needed in data centers equipped with traditional air-based cooling technologies is utilized to cool the electronic components.
• The developments in the IT structure in emerging economies, such as India and China, are expected to boost the demand for data centers favorably. The demand for data centers is anticipated to increase due to the increasing adoption of the cloud model, which has cost and operational benefits for the IT industry.
• According to an NTT Ltd study, over half of the respondents stated that the cloud model would have the most transformational impact on their organization's business operations. Therefore, the demand for the cooling of data centers is anticipated to increase, leading to the execution of liquid cooling methods based on end-user preferences.
• Uptime launched its recent annual survey, which found that racks consisting of 20 kW and advanced are decreasingly deployed. On a time-over-year base, most respondents highlighted their highest density rack usage in the 10-19 kW range. Direct liquid cooling becomes more economical and effective when rack densities higher than 20- 25 kW are preferred.
• For large enterprises, replacing failed servers more constantly than usual may be less expensive over time than operating a hyperscale facility at lower temperatures. Still, with the growing integration of GPUs in data centers urged by the need for better computing power, large enterprises must move toward an effective cooling technology.
• The outbreak of COVID-19 posed further stress on multiple economies across various sectors. This shifted the focus toward a digital economy. China's top cloud computing provider, Alibaba Cloud, invests billions in building next-generation data centers to support digital transformation needs in a"post-pandemic world."
• Data center energy usage has been compounded due to increased teleworking and other virtual activities brought on by the COVID-19 pandemic. Thus, developments using sustainable cooling technologies are on the rise.

Data Center Immersion Cooling Industry Segmentation

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.