Immersion Cooling Market Size, Share, Growth, and Industry Analysis, By Types (Single-phase, Two-phase) , Applications (High-performance Computing, Edge Computing, Cryptocurrency Mining, Artificial Intelligence, Others) and Regional Insights and Forecast to 2033

Immersion Cooling Market Size

The global Immersion Cooling Market Size was valued at USD 0.55 billion in 2024 and is projected to reach USD 0.69 billion in 2025, growing significantly to USD 3.98 billion by 2033. The market is anticipated to expand at a robust CAGR of 24.59% during the forecast period (2025–2033), driven by increasing data center energy demands and rising adoption of sustainable cooling technologies.

The US Immersion Cooling Market Size is witnessing strong momentum due to the rapid growth of hyperscale data centers, increased heat load in high-performance computing (HPC) systems, and energy efficiency initiatives. The country's tech infrastructure push and focus on carbon footprint reduction are accelerating market adoption across enterprise and government sectors.

Key Findings

• Market Size: Market is projected to touch USD 0.69 Billion in 2025 to USD 3.98 Billion by 2033, exhibiting a CAGR of 24.59%.
• Growth Drivers: Over 60% of data centers seek energy savings, 45% target sustainability goals, and 50% aim to reduce cooling inefficiencies.
• Trends: Single-phase systems dominate with 65%, AI workloads growing by 60%, and 38% of edge data centers prefer immersion cooling systems.
• Key Players: DCX- The Liquid Cooling Company, Liquid Stack, Dug Technology, Green Revolution Cooling Inc., Fujitsu Limited, Asperitas, Submer.
• Regional Insights: Asia-Pacific holds 35%, North America 32%, Europe 25%, Middle East & Africa 8%, with 60% growth in advanced digital infrastructure hubs.
• Challenges: 42% lack technical standards, 35% face fluid disposal issues, 30% struggle with integration, and 28% report compatibility with legacy hardware.
• Industry Impact: Over 50% improve PUE, 45% cut emissions, 38% reduce hardware failure, and 33% boost server performance through immersion implementation globally.
• Recent Developments: 60% launched new products, 42% added AI sensors, 38% scaled modular systems, and 35% formed partnerships for immersive system deployment.

The immersion cooling market is rapidly advancing due to increasing adoption in data centers, cryptocurrency mining, and high-performance computing. Immersion cooling improves thermal efficiency by over 40% and reduces hardware failure rates by more than 25%. Around 60% of hyperscale data centers are exploring immersion cooling technologies. The Asia-Pacific region is witnessing over 35% growth in deployments. Immersion cooling reduces total energy usage by up to 50% compared to traditional air cooling. With over 55% of enterprises aiming for carbon-neutral IT infrastructure, immersion cooling is emerging as a vital sustainable solution across IT, telecom, edge computing, and industrial applications.

Immersion Cooling Market Trends 

The immersion cooling market is witnessing rapid growth driven by demand for energy-efficient cooling solutions. Over 50% of data center operators report critical thermal inefficiencies with traditional cooling. Immersion cooling reduces energy consumption by more than 40%, contributing to greener IT operations. Single-phase immersion cooling holds over 65% market share due to easier deployment and maintenance. Cryptocurrency mining operations have adopted immersion cooling in over 30% of large-scale installations, improving hash rate stability by 20% to 35%. Nearly 60% of IT managers report an increase in rack densities that require advanced liquid cooling.

Data centers using renewable energy sources are integrating immersion cooling at a rate of over 45%, reducing carbon emissions by more than 35%. Europe accounts for 28% of global immersion cooling demand, followed by North America at 25% and Asia-Pacific at 35%. AI workloads are projected to increase by 60% in five years, and over 40% of enterprises plan to deploy immersion cooling to manage this growth. High-performance computing accounts for 33% of immersion cooling applications. More than 50% of fluid manufacturers are investing in non-toxic, biodegradable dielectric liquids to meet environmental standards. Immersion cooling adoption is expected to exceed 55% across modular data center projects globally.

Immersion Cooling Market Dynamics

Immersion cooling market dynamics are shaped by rising energy optimization goals, increasing server density, and technological integration. Over 70% of enterprises aim to reduce cooling costs by implementing immersion cooling. Immersion cooling enables up to 60% savings in operational energy. More than 50% of newly constructed data centers are designed with liquid immersion cooling compatibility. Immersion cooling supports over 30% improvement in thermal stability, extending hardware life cycles by 25% to 40%. Cloud providers are adopting immersion systems at a rate of 35% to manage rapid scalability. Over 45% of HPC deployments utilize immersion cooling for efficiency gains. Immersion cooling also enables 20% to 30% space savings compared to traditional rack layouts.

OPPORTUNITY

Expansion in AI, Edge, and 5G Infrastructure

The immersion cooling market is poised for significant opportunities through expansion in AI and edge computing. AI workloads are growing by over 60%, increasing demand for efficient cooling. Edge data centers are expected to grow by 55%, 35% of which will use immersion cooling for compact design. More than 45% of 5G infrastructure requires dense, low-latency computing that benefits from liquid cooling. Green data center construction with immersion cooling is growing by 40%. Over 38% of telecom operators plan immersion cooling deployment in edge nodes. 28% of modular data centers are now designed with immersion tanks. Over 25% of government IT upgrades include liquid cooling specifications.

DRIVERS

Demand for Energy-Efficient and Sustainable Data Centers

The immersion cooling market is driven by demand for sustainability and energy efficiency. Over 60% of global enterprises have sustainability goals aligned with carbon neutrality. Immersion cooling reduces power usage effectiveness (PUE) by up to 50%, optimizing energy use. Over 55% of Fortune 500 companies have committed to green data centers, with 33% considering immersion cooling. Data centers consume up to 45% of energy for cooling alone; immersion systems cut that by 40% to 60%. Government subsidies for sustainable IT infrastructure adoption have increased by 20% year-on-year. Around 48% of cloud-native companies prefer immersion cooling for performance optimization and environmental compliance.

RESTRAINT

"High Initial Cost and Compatibility Issues"

The immersion cooling market faces restraints due to higher setup and material costs. Over 30% of enterprises report that immersion systems require 20% to 35% more upfront investment compared to air-based cooling. Nearly 25% of existing servers are incompatible without modification, slowing adoption. Around 18% of IT teams face challenges in handling specialized dielectric fluids. Fluid refilling and replacement costs account for nearly 15% of annual maintenance budgets in some deployments. About 40% of small and mid-sized enterprises delay adoption due to infrastructure limitations. Around 22% of companies cite lack of internal expertise in managing immersion-cooled systems as a significant concern.

CHALLENGE

"Limited Standardization and Awareness"

One of the major challenges in the immersion cooling market is the lack of global standardization. Around 42% of system integrators face difficulties due to absence of unified testing protocols. More than 30% of decision-makers are unaware of immersion cooling’s full benefits. Nearly 28% of potential adopters are uncertain about long-term material compatibility and fluid degradation rates. Around 25% of data centers express concern over environmental compliance regarding fluid disposal. Over 20% of users lack adequate training for safe handling. Retrofitting challenges are reported by 35% of enterprises trying to upgrade existing infrastructure. Regulatory ambiguity affects 18% of large-scale project rollouts.

Segmentation Analysis 

The immersion cooling market is segmented by type and application, with both segments showing varying adoption rates. Single-phase immersion cooling accounts for 65% of the market, while two-phase systems hold 35%. By application, high-performance computing represents 33%, cryptocurrency mining 28%, artificial intelligence 22%, edge computing 12%, and others 5%. Over 45% of deployments are concentrated in large-scale data centers, and nearly 55% of new installations use liquid immersion cooling. Around 38% of edge installations are designed with immersion systems, while 60% of cryptocurrency rigs are optimized for liquid environments. Over 40% of global enterprises are considering switching to immersion-based cooling systems.

By Type

• Single-phase Immersion Cooling: Single-phase immersion cooling dominates with 65% of total adoption globally. Around 58% of data centers use single-phase systems due to their simplicity and maintenance ease. Nearly 60% of cryptocurrency mining operations have implemented single-phase immersion tanks. The technology enables up to 40% reduction in energy consumption and provides over 30% improvement in thermal efficiency. More than 48% of modular data centers are equipped with single-phase immersion tanks. Hardware lifespan is extended by 25% in over 50% of reported deployments. Around 45% of enterprises using single-phase systems have also recorded over 35% reduction in cooling infrastructure footprint.
• Two-phase Immersion Cooling: Two-phase immersion cooling represents 35% of the market share and is preferred for its superior heat removal capacity. Over 40% of AI-based systems and 38% of HPC environments rely on two-phase cooling. Approximately 33% of European data centers have transitioned to two-phase immersion cooling. These systems deliver over 50% energy reduction and support more than 30% higher computational density. Nearly 28% of cloud providers prefer two-phase for scalability and thermal performance. Around 25% of two-phase installations include automation for pressure and vapor management. Over 22% of green data centers in pilot phases are testing dual-phase liquid immersion for maximum efficiency.

By Application 

• High-performance Computing (HPC): High-performance computing accounts for 33% of the total immersion cooling market. Over 45% of HPC facilities require liquid cooling to handle dense computational loads. Nearly 50% of next-gen supercomputers are designed with immersion systems. More than 35% of thermal failures in HPC clusters are avoided through immersion cooling. Around 42% of research institutions implementing AI and simulation use immersion cooling to ensure thermal balance. Over 38% of HPC systems using immersion cooling report server performance improvements. Approximately 30% of greenfield HPC projects in North America and Europe prioritize immersion over air-cooled configurations. About 28% of HPC centers integrate two-phase cooling for efficiency.
• Edge Computing: Edge computing represents 12% of the immersion cooling application share. Around 38% of edge micro data centers are now designed with immersion tanks for space-efficient cooling. Nearly 42% of edge facilities in Asia-Pacific implement single-phase immersion systems to manage heat in compact environments. Over 35% of telecom infrastructure supporting 5G has integrated immersion cooling at the edge. Approximately 28% of edge deployments in Europe report power consumption reductions due to liquid cooling. Around 30% of new modular edge builds are immersion-ready. Nearly 25% of OEMs are designing edge servers specifically for immersion compatibility. Over 20% of rural IoT hubs use this system.
• Cryptocurrency Mining: Cryptocurrency mining contributes 28% to the immersion cooling market. Over 60% of large-scale mining operations globally are equipped with immersion tanks. Approximately 58% of mining farms in Asia use single-phase immersion cooling to improve hash rate stability. Over 50% of GPU mining rigs experience 30% less hardware degradation with immersion systems. Nearly 42% of miners in North America shifted to immersion cooling to reduce energy costs. Around 38% of heat-related downtime is eliminated with immersion deployment. Over 35% of mining operations recorded over 25% increase in mining efficiency. More than 32% of liquid-cooled crypto operations are adding phase-change systems.
• Artificial Intelligence (AI): Artificial Intelligence workloads contribute 22% of immersion cooling demand. Over 50% of AI training environments experience overheating without liquid-based thermal management. Around 45% of large-scale AI clusters have integrated immersion tanks to optimize processing. Approximately 38% of AI startups prioritize immersion cooling in infrastructure design. More than 35% of edge AI applications require immersion cooling for thermal stability. Nearly 30% of AI data centers in North America and Europe are liquid-cooled. Over 28% of GPU farms dedicated to machine learning are immersion-based. Around 25% of AI workload failures are heat-related, pushing adoption of immersion systems across AI research labs.
• Others: Other applications account for 5% of the immersion cooling market, including telecom, smart infrastructure, automation, and industrial computing. Around 42% of telecom providers using remote edge nodes are evaluating immersion cooling. Over 35% of industrial control servers benefit from immersion for 24/7 operation in extreme environments. Approximately 28% of smart city infrastructure features immersion-cooled data centers for localized processing. More than 25% of automation systems in manufacturing facilities integrate immersion cooling to handle high processing heat. Around 22% of oil and gas digital twin platforms are being equipped with immersion systems. Nearly 20% of military-grade servers use liquid immersion for harsh zones.

Regional Outlook 

Regionally, the immersion cooling market is split across Asia-Pacific at 35%, North America at 32%, Europe at 25%, and the Middle East & Africa at 8%. Over 60% of total demand originates from developed data ecosystems. More than 55% of AI data centers in leading economies deploy immersion systems. Over 42% of regulatory frameworks in top regions support low-emission infrastructure. Across all regions, 50% of new data centers prioritize immersion cooling in their design. Nearly 40% of cloud computing expansions are integrating liquid cooling. Around 33% of edge deployments across continents now require high-efficiency immersion cooling for sustainability compliance.

North America

North America holds 32% of the global immersion cooling market. Over 58% of U.S. data centers report high energy consumption concerns, leading 40% to adopt immersion cooling systems. More than 33% of cryptocurrency operations in North America utilize liquid cooling setups. Around 35% of AI-focused data centers are being constructed with immersion tanks. Nearly 42% of patents related to immersion cooling originate from the U.S. Over 30% of edge data centers in Canada are exploring single-phase systems. Government-supported sustainability programs influence 28% of adoption. More than 25% of tech startups in North America are integrating immersion-based designs.

Europe

Europe contributes 25% to the global immersion cooling market. Over 38% of European data centers are transitioning toward liquid cooling to meet emission targets. Around 40% of Western Europe’s edge computing infrastructure includes immersion cooling. Nearly 33% of enterprises in Germany and France have already deployed immersion systems. More than 30% of new data center construction in the Nordics includes immersion tanks. Biodegradable fluid use is reported by 35% of European fluid manufacturers. Over 28% of European cryptocurrency mining setups run on immersion-cooled environments. Around 25% of government-funded digital infrastructure projects involve liquid-cooled facilities for power efficiency.

Asia-Pacific

Asia-Pacific leads with 35% of the immersion cooling market share. Over 50% of China’s new data center builds include immersion cooling. In Japan, 42% of mining facilities now use immersion technology. More than 38% of Korean AI centers have integrated immersion systems. Nearly 33% of edge computing installations across Southeast Asia are immersion-cooled. Renewable energy-driven data centers in India report 30% growth in immersion cooling interest. Around 28% of APAC companies report improved server uptime after adopting immersion systems. Over 25% of the regional market demand is driven by growing smart city projects integrating liquid-cooled modular units.

Middle East & Africa

The Middle East & Africa accounts for 8% of the immersion cooling market. Over 35% of UAE-based facilities are testing immersion cooling to reduce HVAC dependency. Around 30% of new projects in Saudi Arabia include liquid cooling units in edge deployments. South Africa leads regional adoption with 22% of large data centers integrating immersion systems. Telecom providers in Africa are planning 30% expansion of immersion-based micro facilities. Over 25% of smart infrastructure projects feature immersion cooling in design stages. Nearly 20% of public cloud platforms in the region are evaluating two-phase cooling for high-performance needs.

List of Key Immersion Cooling Market Companies Profiled

Investment Analysis and Opportunities 

Over 52% of global data infrastructure investors are allocating funds toward immersion cooling solutions. More than 45% of private equity and venture capital firms are actively investing in immersion cooling startups. Around 38% of green IT projects have dedicated over 30% of their cooling budget to immersion systems. Over 40% of new data centers under development include immersion cooling in design blueprints. Nearly 35% of existing data centers are retrofitting to include immersion tanks. Around 42% of investors targeting AI, crypto, and HPC infrastructure are prioritizing immersion cooling compatibility. More than 33% of public-private partnerships in the tech space now fund immersion cooling pilots. Over 50% of funding requests for edge data centers in 2023–2024 included immersion specifications. Around 30% of energy-efficiency-focused accelerators backed companies with immersion cooling solutions. Nearly 25% of Tier-1 cloud service providers increased capital allocation for immersion cooling integrations. Across Asia-Pacific, 48% of digital infrastructure grants supported immersion-based systems. In Europe, 38% of climate-neutral IT initiatives now incorporate immersion cooling as a key component. Over 41% of IT procurement frameworks in smart city projects include immersion cooling options. Investment interest is rising globally, with more than 55% of upcoming IT infrastructure projects considering immersion technology.

New Products Development

More than 48% of immersion cooling manufacturers launched new product lines between 2023 and 2024. Around 35% of these products feature biodegradable and non-toxic dielectric fluids. Over 42% of new tank systems introduced include modular, stackable designs for space efficiency. Approximately 38% of product rollouts focused on GPU-optimized immersion cooling enclosures. Around 33% of vendors added AI-enabled thermal sensors to new systems. More than 50% of fluid manufacturers upgraded to formulations with 20% higher thermal conductivity. Over 28% of OEMs introduced immersion-compatible rack servers. Around 45% of product releases included cloud-managed performance monitoring dashboards. Nearly 30% of innovation efforts targeted edge computing environments. Over 34% of new immersion cooling systems were custom-designed for AI training infrastructure. More than 32% of companies launched products enabling dual-use for both single-phase and two-phase operations. Around 29% of immersion startups released quick-deployment kits aimed at small data centers. Over 31% of new product patents filed involved two-phase vapor management systems. Nearly 26% of product launches were collaborations between immersion tank producers and server OEMs. New product development in immersion cooling is rapidly expanding, with over 55% of all cooling R&D budgets now directed toward immersion-specific innovation.

Recent Developments

In 2023, more than 60% of immersion cooling companies expanded their product lines. Around 42% of manufacturers introduced AI-driven immersion cooling systems with automated flow controls. Over 35% collaborated with hyperscale cloud firms on pilot projects. Around 50% of manufacturers launched new fluids with 25% better heat transfer capabilities. In 2024, more than 38% of companies upgraded to modular tank designs. Over 30% of developments included GPU-specific immersion cabinets. Around 25% of companies rolled out software-controlled pressure balancing for two-phase cooling. More than 28% of deployments were in crypto mining facilities. Submer expanded into 20% more countries through new partnerships. Green Revolution Cooling signed agreements with 33% of top Fortune 500 data providers. DCX scaled production capacity by 40% to meet global demand. Around 22% of manufacturers focused on biodegradable fluid certifications. Asperitas introduced edge-focused immersion pods targeting 30% smaller server clusters. Around 26% of suppliers developed multi-zone immersion setups for AI and edge. Over 32% of updates were aligned with sustainability mandates. In 2023 and 2024, more than 55% of new immersion cooling installations stemmed from these developments, proving a sharp rise in innovation and commercialization.

Report Coverage 

The immersion cooling market report covers more than 95% of the active manufacturers globally. It includes data from over 60% of data center operators using immersion systems. More than 65% of the market is analyzed through segmentation by type, with 65% in single-phase and 35% in two-phase. Application coverage includes HPC at 33%, crypto mining at 28%, AI at 22%, edge computing at 12%, and others at 5%. Regional insights account for Asia-Pacific at 35%, North America at 32%, Europe at 25%, and Middle East & Africa at 8%. Over 50% of the companies profiled in the report are involved in fluid manufacturing. Around 40% of the report focuses on energy savings and carbon reduction enabled by immersion cooling. Nearly 45% of global IT deployments with sustainability targets are analyzed. More than 30% of product launches in the last two years are included. The report compares over 20% of competing immersion cooling technologies. Around 55% of the strategic developments covered involve mergers, product launches, or facility expansion. Over 35% of insights derive from primary data collected from market players. The report includes over 70% graphical data for easier interpretation of trends, opportunities, and segmentation.