Immersion Cooling Market in Data Centers Size, Share & Trends Analysis Report By Type (Single-phase Immersion Cooling System, Two-phase Immersion Cooling System), By Cooling Fluid (Mineral Oil, Deionized Water, Fluorocarbon-based Fluids, Synthetic Fluids), By Application (High-performance Computing, Edge Computing, Artificial Intelligence, Cryptocurrency Mining, Other Applications) and By Region (North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2026-2034

Immersion Cooling Market in Data Centers Size

The global immersion cooling market in data centers size was valued at USD 4.98 billion in 2025 and is projected to grow from USD 5.89 billion in 2026 to USD 22.44 billion by 2034, registering a CAGR of 18.21% during the forecast period from 2026 to 2034. North America dominated the immersion cooling market in data centers with a market share of 38.6% in 2025.

As data centers continue to increase in power density, traditional air cooling methods struggle to effectively dissipate heat. Immersion cooling offers a more efficient solution by directly immersing servers in a dielectric fluid, providing superior heat transfer capabilities. The concept of liquid immersion cooling has been familiar in the global IT infrastructure market for a long time. High-performance computing (HPC) operators, such as Intel, have been experimenting and using the technology since 2012. Dealing with high-density power consumption is driving the market, as many industry estimates put cooling costs at around 40% of the data center's energy consumption. The immersion cooling can reduce the data center's energy usage by over 60%, with some systems stating it could be as much as a 95% reduction. For many data centers, this provides millions of dollars in savings annually.

However, the recent surge in the data center construction activities, majorly targeted toward serving high-traffic zones with minimum latency, forced the data center operators to expand beyond a suitable environment into complex urban facilities. This increased the demand for server cooling technology that involves the environmental and space constraints that traditional air and liquid cooling practices pose. The increasing need for solutions may significantly reduce the data center's physical footprint and simultaneously accommodate high-density operations, bolstering the demand for immersion cooling.

Type Insights

By type, the global immersion cooling market in data centers is segmented into single-phase and two-phase immersion cooling systems. The two-phase immersion cooling system segment accounted for the largest market share and is estimated to grow at a CAGR of 26.7% during the forecast period. It is expected to register a CAGR of 31.1% during the forecasted period. Two-phase immersion cooling (TPIC) primarily involves storing IT hardware in an open tank filled with a dielectric fluid coolant with a low boiling point. When the hardware heats the tank, it boils the fluid, causing a state change and enabling heat transfer. The fluid converts into a vapor and rises to eventually condense on a water-cooled condenser coil and fall back into a tank without employing pumps. According to Schneider, a key supply chain partner in the immersion cooling market in data centers, a streamlined system delivers up to 95% cooling energy savings with minimal fluid loss. Such characteristics drive segment growth.

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Cooling Fluid Insights

By cooling fluid, the global immersion cooling market in data centers is segmented into mineral oil, deionized water, fluorocarbon-based fluids, and synthetic fluids. The mineral oil segment accounted for the largest market share during the forecast period. Oil immersion cooling of data centers offers enhanced reliability with even temperature conditions in operations by minimizing common operational issues like overheating and temperature swings in the system, fan failures in servers, noise, dust, air quality, corrosion, and electrochemical migration. Mineral and white oils were used as a dielectric for immersive server cooling. Still, material compatibility issues, inconsistencies during quality control, and lower flash points caused the IT industry to move away from their use. Such features drive market growth.

Application Insights

By application, the global immersion cooling market in data centers is segmented into high-performance computing, edge computing, artificial intelligence, cryptocurrency mining, and other applications. The high-performance computing segment accounted for the largest market share during the forecast period. To facilitate its expansion, immersion is ideal for cooling GPU-accelerated servers. It can handle up to 100 kW/rack, which is almost ten times that of some air-cooled racks, allowing immersion-cooled racks to be fully loaded with GPU-based servers. As power and heat loads are increasingly pushed within the data center, more sophisticated cooling, such as immersion, is required by data centers to meet those demands. In November 2020, Asperitas was selected by Shell to provide an infrastructure upgrade for Shell’s HPC cluster in Amsterdam. The deployment of the AIC24 solution will meet Shell’s HPC team’s demands for efficient high-density and performance computing on both a system and server level within a sustainable data center environment. The system will facilitate both CPU and GPU-driven applications and offers the flexibility to scale quickly with future demands and hardware generations.

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Regional Analysis

North America accounted for the largest market share and is estimated to grow at a CAGR of 26.7% during the forecast period. Newer technologies are quickly adopted in North America. Datacenter investors are investing more money into direct-to-chip and liquid immersion cooling technologies. The worldwide development of 5G networks of which the United States is one of the early adopters has boosted the significance of edge data centers. Many American operators have begun investing in these centers, including EdgePresence, EdgeMicro, and American Towers.

Additionally, according to Cisco Systems, mobile data traffic in the United States has grown significantly over time, from 1.26 exabytes of data traffic per month in 2017 to 7.75 exabytes per month by 2022. By 2030, this data traffic is anticipated to have tripled, according to Ericsson. Additionally, individuals and businesses are using the internet more frequently in the United States. The nation is the largest market for data center operations, and it is still expanding due to the increased data consumption by end users. Now more facilities can support exabytes of data generated by both business users and consumers thanks to the growing popularity of the Internet of Things (IoT), which is a significant driver for the US hyper-scale data center market.

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Asia-Pacific Market Trends

Asia-pacific is the second largest region. It is estimated to reach an expected value of USD 955 million by 2030 at a CAGR of 26.5%. The data center industry is witnessing significant growth and is focusing more on efficiency and maximum uptime. China is highly concentrating on taking the lead over global peers in data center construction, with larger enterprises looking to scale up their data centers to ensure stability and reliability of data services, such as the application of 5G, wearable devices, the internet of things, and artificial intelligence spurs a burgeoning demand for computing power. As artificial intelligence and similar loads become standard practice across several industry verticals in China, accelerator processors are making their way into the enterprise data center. Technologies that function at zero-latency process information at astronomical speeds with the help of accelerating systems, which further the requirements of all latency-sensitive services. These hardware accelerators have higher cooling requirements, so much so that they need about 200W or more for cooling. Along with a high-performance server, the cooling need of the individual system can be almost 1kW. Thus, driving the usage of immersive cooling technology in the region's data centers.

Europe Market Trends

Europe is the third largest region. The proliferation of AI, Edge computing, 5G, reduced carbon emissions, and more throughout Europe presents new challenges for legacy and new data center builds. In November 2020, GRC, a single-phase immersion-cooling authority for data centers, formed a new partnership contract with Total Data Centre Solutions (TDCS), a mission-critical and infrastructure solution provider for Data Centers throughout Europe and the Nordic region focused significantly on energy efficiency and carbon reduction. The proliferation of AI, Edge computing, 5G, reduced carbon emissions, and more throughout Europe presents new challenges for legacy and new data center builds. In November 2020, GRC, a single-phase immersion-cooling authority for data centers, formed a new partnership contract with Total Data Centre Solutions (TDCS), a mission-critical and infrastructure solution provider for Data Centers throughout Europe and the Nordic region focused significantly on energy efficiency and carbon reduction. All such factors contribute to market growth.

List of Key and Emerging Players in Immersion Cooling Market in Data Centers