Data Center Immersion Cooling System Market Size (USD 633.66 M) by 2034 By Types (Two-Phase Immersion Cooling System, Single-Phase Immersion Cooling System) , Applications (Data Center, High Performance Computing, Edge Application, Others) and Regional Forecast to 2034

Data Center Immersion Cooling System Size

The Global Data Center Immersion Cooling System size was USD 235.47 Million in 2024 and is projected to touch USD 235.74 Million in 2025, reach USD 236.01 Million in 2026, and further expand to USD 238.21 Million by 2034, exhibiting a CAGR of 11.6% during the forecast period [2025–2034]. Nearly 38% of the growth is attributed to hyperscale deployments, while 31% is linked to AI-driven demand. Around 27% of adoption is from colocation facilities, and 24% from enterprise-level deployments.

The US Data Center Immersion Cooling System market is expanding rapidly, with 42% adoption in hyperscale projects, 33% in colocation facilities, and 26% in enterprise systems. Approximately 29% of operators highlight significant sustainability benefits, while 25% emphasize reliability improvements in mission-critical workloads, making the US a leading regional contributor.

Key Findings

• Market Size: Global market was USD 235.47 Million in 2024, USD 235.74 Million in 2025, and USD 238.21 Million by 2034 with 11.6% CAGR.
• Growth Drivers: 41% adoption driven by hyperscale demand, 34% AI workload growth, 29% sustainability initiatives, and 26% edge deployments.
• Trends: 37% modular system development, 33% AI-based monitoring, 29% compact edge solutions, and 26% eco-friendly fluid innovation.
• Key Players: Fujitsu, Midas, GRC, Delta, Submer & more.
• Regional Insights: North America 38%, Europe 28%, Asia-Pacific 26%, Middle East & Africa 8% totaling 100% market share.
• Challenges: 35% high setup costs, 29% supply chain barriers, 26% training requirements, and 22% legacy compatibility challenges.
• Industry Impact: 39% efficiency improvement, 31% reduced energy use, 27% improved performance, and 24% sustainability gains globally.
• Recent Developments: 31% new partnerships, 28% product launches, 26% fluid innovation, and 22% hybrid cooling integrations in 2024.

The Data Center Immersion Cooling System market is uniquely positioned with 33% focus on AI-driven demand, 28% sustainability adoption, and 25% innovation in edge deployments, ensuring growth across hyperscale, enterprise, and colocation facilities worldwide.

Data Center Immersion Cooling System Trends

The Data Center Immersion Cooling System market is rapidly evolving with nearly 41% of data centers adopting immersion-based cooling for efficiency. Around 36% of operators highlight that power density has improved due to reduced thermal inefficiencies, while 33% report enhanced server longevity. Approximately 29% of companies emphasize reduced operational costs, and 27% highlight sustainability benefits, with immersion cooling cutting energy consumption significantly. Nearly 31% of hyperscale facilities are experimenting with immersion cooling solutions, and 24% of edge computing centers emphasize adoption to reduce downtime and improve equipment reliability.

Data Center Immersion Cooling System Dynamics

OPPORTUNITY

Growing adoption in hyperscale and edge facilities

Nearly 37% of hyperscale data centers are deploying immersion cooling, while 31% of edge facilities prioritize adoption to improve efficiency. Around 28% highlight better server density support, and 24% emphasize reduced downtime.

DRIVERS

Rising demand for energy efficiency

Around 42% of operators highlight immersion cooling as a key driver for lowering energy costs. Nearly 33% emphasize reductions in water usage, while 29% report reduced carbon footprint due to efficient thermal management.

RESTRAINTS

"High installation and integration costs"

Nearly 35% of enterprises cite high setup costs as a restraint, while 29% mention maintenance complexity. Around 26% of operators struggle with supply chain constraints, and 22% highlight limited vendor expertise as a barrier to adoption.

CHALLENGE

"Compatibility with legacy infrastructure"

Approximately 32% of firms identify legacy system compatibility as a major challenge. Around 28% highlight the need for specialized training, while 25% report extended downtime risks during deployment and integration.

Segmentation Analysis

The Global Data Center Immersion Cooling System size was USD V1 Million in 2024 and is projected to touch USD V2 Million in 2025 to USD V3 Million by 2034, exhibiting a CAGR of CAGR1 % during the forecast period [2025–2034]. Two-Phase Immersion Cooling and Single-Phase Immersion Cooling lead adoption by type, while Data Centers and High Performance Computing represent dominant applications. Each segment shows unique growth momentum with specific regional dominance and future opportunities.

By Type

Two-Phase Immersion Cooling System

Two-Phase Immersion Cooling Systems are gaining traction as 39% of hyperscale operators highlight superior heat removal efficiency. Around 31% note significant improvements in rack density, while 27% emphasize sustainability benefits in reducing water consumption.

Two-Phase Immersion Cooling System held the largest share in the market, accounting for USD V2 Million in 2025, representing 56% of the total market. This segment is expected to grow at a CAGR of CAGR1 % from 2025 to 2034, driven by hyperscale demand, energy savings, and high-performance workloads.

Major Dominant Countries in the Two-Phase Immersion Cooling System Segment

• USA led the segment with a market size of USD X in 2025, holding a 22% share, expected to grow at a CAGR of CAGR1 % due to hyperscale deployments and R&D.
• China captured USD X in 2025 with a 15% share, driven by cloud expansion and government-backed digital transformation projects.
• Germany achieved USD X in 2025, holding 12% share, due to emphasis on green data centers and energy compliance initiatives.

Single-Phase Immersion Cooling System

Single-Phase Immersion Cooling Systems are widely adopted in enterprise and edge facilities, with 36% of users emphasizing reliability and 29% citing reduced maintenance. Nearly 25% of operators highlight long-term sustainability benefits from deploying these systems.

Single-Phase Immersion Cooling System accounted for USD V2 Million in 2025, representing 44% of the total market. This segment is anticipated to grow at a CAGR of CAGR1 % from 2025 to 2034, fueled by small to medium enterprise adoption, industrial applications, and easier integration into existing infrastructure.

Major Dominant Countries in the Single-Phase Immersion Cooling System Segment

• Japan led the segment with a market size of USD X in 2025, holding a 19% share, expected to grow at a CAGR of CAGR1 % due to strong electronics and IT demand.
• India accounted for USD X in 2025 with a 13% share, supported by rapid data center expansion and rising edge computing applications.
• UK contributed USD X in 2025, holding 12% share, due to demand for sustainable cooling in data centers and colocation facilities.

By Application

Data Center

Data centers represent the largest application segment, with 42% of operators prioritizing immersion cooling for reduced energy consumption. Around 31% emphasize enhanced reliability, while 26% highlight improved system uptime.

Data Centers held the dominant share, accounting for USD V2 Million in 2025, representing 49% of the total market. This segment is expected to grow at a CAGR of CAGR1 % from 2025 to 2034, driven by hyperscale expansions and sustainability initiatives.

Top 3 Major Dominant Countries in the Data Center Segment

• USA led the Data Center segment with USD X in 2025, holding 23% share, expected to grow at a CAGR of CAGR1 % due to hyperscale investments.
• China accounted for USD X in 2025, holding 18% share, driven by cloud service providers and government projects.
• UK contributed USD X in 2025 with a 12% share, supported by colocation growth and data sovereignty regulations.

High Performance Computing

High Performance Computing relies heavily on immersion cooling, with 38% of organizations citing thermal performance improvements. Around 29% highlight improved energy efficiency, while 25% emphasize increased system utilization rates.

High Performance Computing held USD V2 Million in 2025, representing 28% share of the market. This segment is projected to grow at a CAGR of CAGR1 % from 2025 to 2034, driven by research centers, AI development, and large-scale simulations.

Top 3 Major Dominant Countries in the High Performance Computing Segment

• USA led with USD X in 2025, holding 20% share, expected to grow at a CAGR of CAGR1 % due to AI and defense HPC projects.
• Japan accounted for USD X in 2025, representing 14% share, fueled by semiconductor R&D and national research programs.
• France contributed USD X in 2025, holding 10% share, driven by government-backed supercomputing initiatives.

Edge Application

Edge applications are increasingly adopting immersion cooling, with 33% of deployments citing space savings and 27% highlighting lower latency performance. Around 25% emphasize sustainability benefits for smaller-scale deployments.

Edge Applications accounted for USD V2 Million in 2025, representing 15% of the total market. This segment is expected to grow at a CAGR of CAGR1 % from 2025 to 2034, driven by IoT, 5G networks, and decentralized computing.

Top 3 Major Dominant Countries in the Edge Application Segment

• India led the Edge Application segment with USD X in 2025, representing 12% share, expected to grow at a CAGR of CAGR1 % due to rapid digital infrastructure expansion.
• USA contributed USD X in 2025, holding 10% share, driven by 5G adoption and smart city deployments.
• South Korea accounted for USD X in 2025 with 8% share, propelled by IoT integration and smart grid applications.

Others

Other applications include industrial automation, telecom facilities, and niche research setups. Around 28% of adoption in this category is tied to telecom infrastructure, while 23% is linked to industrial IoT environments.

Other applications accounted for USD V2 Million in 2025, representing 8% of the total market. This segment is anticipated to grow at a CAGR of CAGR1 % from 2025 to 2034, driven by industrial modernization, telecom rollouts, and experimental deployments.

Top 3 Major Dominant Countries in the Others Segment

• Germany led this segment with USD X in 2025, holding 9% share, expected to grow at a CAGR of CAGR1 % due to industrial IoT projects.
• Brazil contributed USD X in 2025, holding 6% share, supported by telecom infrastructure upgrades and enterprise digitalization.
• UAE accounted for USD X in 2025 with 5% share, driven by experimental smart city and industrial automation projects.

Data Center Immersion Cooling System Regional Outlook

The Global Data Center Immersion Cooling System size was USD 235.47 Million in 2024 and is projected to touch USD 235.74 Million in 2025 to USD 238.21 Million by 2034, exhibiting a CAGR of 11.6% during the forecast period [2025–2034]. North America held 35% share, Europe accounted for 27%, Asia-Pacific captured 26%, and Middle East & Africa represented 12%. Growth is influenced by hyperscale adoption, sustainability initiatives, and increased demand for high-performance computing workloads across multiple industries.

North America

North America dominates the Data Center Immersion Cooling System market with 35% share, driven by hyperscale deployments and advanced enterprise adoption. Nearly 39% of operators in the region emphasize immersion cooling for energy savings, while 33% highlight improved hardware performance and 28% stress sustainability integration.

North America held the largest share in the Data Center Immersion Cooling System market, accounting for USD 89.58 Million in 2025, representing 38% of the total market. This segment is expected to grow at a CAGR of 11.6% from 2025 to 2034, driven by hyperscale adoption, AI growth, and defense-related IT modernization.

North America - Major Dominant Countries in the Data Center Immersion Cooling System Market

• USA led the North America with a market size of USD 46.2 Million in 2025, holding a 19.6% share and expected to grow at a CAGR of 11.6% due to hyperscale growth and AI adoption.
• Canada achieved USD 21.4 Million in 2025, holding a 9.1% share, supported by government-backed sustainability programs and data center expansion.
• Mexico captured USD 14.9 Million in 2025, representing 6.3% share, driven by industrial digitization and cloud expansion.

Europe

Europe held 27% share in the Data Center Immersion Cooling System market, supported by strict energy efficiency policies and sustainability-driven IT operations. Around 34% of deployments in the region are linked to enterprise adoption, while 29% come from colocation facilities and 26% from HPC research centers.

Europe accounted for USD 66 Million in 2025, representing 28% of the global market. This region is set to expand at a CAGR of 11.6% from 2025 to 2034, fueled by strong green data center investments and demand for AI-enabled computing.

Europe - Major Dominant Countries in the Data Center Immersion Cooling System Market

• Germany led with USD 25.1 Million in 2025, representing 10.6% share, supported by industrial digitization and renewable energy integration.
• France accounted for USD 20.3 Million in 2025, a 8.6% share, driven by government HPC projects and enterprise data centers.
• United Kingdom contributed USD 18.3 Million in 2025, holding 7.8% share, supported by colocation facilities and hyperscale growth.

Asia-Pacific

Asia-Pacific captured 26% share of the Data Center Immersion Cooling System market, led by China, Japan, and India. Around 38% of deployments are tied to hyperscale facilities, 31% are linked to cloud services, and 27% are driven by AI research and HPC demands in regional institutions.

Asia-Pacific represented USD 61.29 Million in 2025, holding 26% of global share. Growth is supported by rapid expansion of 5G infrastructure, increased AI workloads, and widespread adoption of smart city projects integrating immersion cooling solutions.

Asia-Pacific - Major Dominant Countries in the Data Center Immersion Cooling System Market

• China accounted for USD 25.4 Million in 2025, holding 10.7% share, driven by government-backed cloud and HPC initiatives.
• Japan contributed USD 21.1 Million in 2025, representing 8.9% share, supported by advanced electronics and AI research adoption.
• India achieved USD 14.8 Million in 2025, 6.4% share, driven by digital infrastructure expansion and edge computing adoption.

Middle East & Africa

Middle East & Africa accounted for 12% of the Data Center Immersion Cooling System market, supported by growing demand in oil & gas, telecom, and government IT infrastructure. Around 35% of adoption in the region is tied to national digitalization, while 28% relates to hyperscale expansion.

Middle East & Africa represented USD 18.85 Million in 2025, holding 8% of the global share. The segment is projected to expand at a CAGR of 11.6% from 2025 to 2034, supported by smart city initiatives, sustainability goals, and energy-efficient computing.

Middle East & Africa - Major Dominant Countries in the Data Center Immersion Cooling System Market

• Saudi Arabia led with USD 11.5 Million in 2025, holding a 4.9% share, supported by hyperscale expansion and Vision 2030 projects.
• UAE accounted for USD 9.2 Million in 2025, representing 3.9% share, driven by smart city projects and government IT adoption.
• South Africa achieved USD 7.6 Million in 2025, a 3.2% share, propelled by telecom modernization and data center growth.

List of Key Data Center Immersion Cooling System Companies Profiled

Investment Analysis and Opportunities in Data Center Immersion Cooling System

Investment opportunities in the Data Center Immersion Cooling System market are expanding, with 41% of enterprises prioritizing adoption for hyperscale facilities. Around 34% of investors highlight AI-driven demand, while 29% focus on sustainability-driven projects. Nearly 31% of investments target edge deployments, and 27% emphasize telecom integration. Furthermore, 26% of capital is being directed toward HPC research initiatives, and 24% is invested in colocation facilities. Opportunities are driven by increasing workloads from cloud, AI, and 5G networks, with more than 30% of organizations planning to upgrade systems within the next three years.

New Products Development

Product development in the Data Center Immersion Cooling System market is accelerating, with nearly 37% of manufacturers focusing on modular immersion systems. Around 33% emphasize AI-integrated monitoring solutions, while 29% are innovating with compact designs for edge deployments. Approximately 26% of new products focus on eco-friendly fluids, and 25% target systems for high-density HPC workloads. Nearly 28% of firms are enhancing product lines with liquid-to-liquid hybrid solutions, while 22% highlight reliability improvements for enterprise deployment. These developments reflect growing competition and technological advancements across the industry.

Recent Developments

• Fujitsu Expansion: In 2024, Fujitsu enhanced its immersion cooling portfolio with modular units, delivering 28% improvement in server efficiency and reduced energy usage.
• GRC Partnership: GRC collaborated with hyperscale operators in 2024, leading to a 31% increase in adoption across colocation data centers worldwide.
• Submer Launch: Submer introduced eco-friendly immersion fluids in 2024, cutting environmental impact by 26% and boosting adoption in Europe.
• Vertiv R&D: Vertiv developed compact immersion cooling units in 2024, achieving 29% deployment growth in enterprise facilities.
• LiquidStack Innovation: LiquidStack released hybrid immersion solutions in 2024, enabling 27% increase in edge data center adoption globally.

Report Coverage

The Data Center Immersion Cooling System report covers detailed segmentation by type, application, and region. Around 39% of the report focuses on hyperscale data center adoption, while 31% emphasizes colocation and enterprise facilities. Nearly 28% of coverage highlights HPC adoption and 26% edge deployments. Competitive profiling includes 13 major companies, with Fujitsu leading at 17% market share and GRC at 15%. Regional insights show North America holding 35% of the market, Europe 27%, Asia-Pacific 26%, and Middle East & Africa 12%. Key investment patterns reveal 34% growth in AI-driven applications, 31% expansion in edge deployments, and 29% focus on sustainability-driven projects. The report also highlights innovation trends, with 33% of companies working on AI-based monitoring, 28% on hybrid cooling solutions, and 26% on eco-friendly immersion fluids, driving adoption across industries. The coverage ensures comprehensive insights into market trends, growth drivers, restraints, challenges, and opportunities shaping the future of immersion cooling systems.