Data Center Immersion Cooling Market - By Component, By Cooling Technique (Single-phase Cooling, Two-phase Cooling), By Cooling Fluid (Mineral Oil, Synthetic Fluid, Fluorocarbons-based Fluid), By Organization Size, By End-Use, Forecast 2024 - 2032

Global Data Center Immersion Cooling Market will witness over 17% CAGR between 2024 and 2032, driven by innovations and launches from leading players. Companies like 3M, Asperitas, and Submer are introducing cutting-edge solutions to enhance the efficiency and sustainability of data center cooling. Immersion cooling, which involves submerging IT hardware in dielectric fluid, is gaining popularity due to its ability to significantly reduce energy consumption and improve thermal management.

For instance, in January 2023, NTT Ltd. announced that it is dedicated to promoting green practices in the data center industry. Its latest effort in this direction was the implementation of Liquid Immersion Cooling (LIC) and Direct Contact Liquid Cooling (DCLC) technologies. The company completed its first such deployment, the largest in the Asia-Pacific region, at its Navi Mumbai Data Center.

These innovations include advancements in fluid formulations, system designs, and management software. As data center operators seek to optimize performance and reduce costs, they are increasingly turning to immersion cooling solutions. With leading players continuously pushing the boundaries of technology, the demand for immersion cooling in the data center market is poised for substantial growth.

The overall Data Center Immersion Cooling Industry is classified based on component, cooling technique, cooling fluid, organization size, end-use, and region.

The supercomputing segment will record a modest valuation by 2032. Supercomputers, with their high computational capabilities, generate substantial heat loads, making efficient cooling crucial. Immersion cooling, which involves submerging hardware in dielectric fluid, offers superior thermal management compared to traditional air-based cooling methods. This technology ensures optimal operating temperatures, enabling supercomputers to perform at their best while reducing energy consumption and costs. As supercomputing applications continue to grow in fields like scientific research, artificial intelligence, and weather forecasting, the demand for immersion cooling solutions in the data center market, particularly for supercomputing facilities, is on the rise.

Data Center immersion cooling market share from the two phase cooling segment will register a notable CAGR from 2024 to 2032. Two-phase cooling, involving the use of a liquid coolant that vaporizes upon contact with hot components, offers significant advantages in cooling efficiency and energy savings. As data centers face increasing power densities and heat loads, traditional air-based cooling methods are becoming inadequate. Two-phase cooling solutions, such as immersion cooling, provide a more effective way to dissipate heat, ensuring optimal performance and reliability of IT equipment. With the growing need for efficient cooling solutions, the demand for two-phase cooling in the data center market continues to rise.

Asia Pacific data center immersion cooling market will capture a sizeable market share by 2032. With the rapid expansion of digital infrastructure and the growing adoption of cloud computing and big data analytics across various industries, data centers in the region are facing escalating heat loads and energy consumption.

Immersion cooling offers an efficient solution to manage heat while reducing energy consumption, making it increasingly popular in Asia-Pacific data centers. Moreover, initiatives to improve energy efficiency and reduce environmental impact are driving the adoption of immersion cooling technologies, further fueling the demand in the region. For instance, in October 2023, Mitsubishi Heavy Industries, Ltd. (MHI) introduced a new 12ft container-type 40kVA-class data center equipped with an immersion/air-cooled hybrid cooling system. This innovative system can accommodate servers using three different cooling methods simultaneously.