DATA CENTER LIQUID IMMERSION COOLING MARKET ANALYSIS

The Global Data Center Liquid Immersion Cooling market was valued at US$ 264 Million in 2022, exhibiting a compound annual growth rate (CAGR) of 26.1% from 2023 to 2030.

Liquid immersion cooling is the most commonly used technology for cooling data centers, and it is increasing in popularity. Data center liquid immersion cooling entails directly immersing IT hardware such as memory, discs, and CPUs in non-conductive dielectric liquids that serve as coolants for the system. The heat generated by these systems is transported to coolants immediately, effectively, and efficiently, avoiding the need for active cooling components such as heat sinks, fans, and interface materials, which are usually employed for air cooling.

Liquid cooling technologies offer low-carbon cooling, and the growing number of hyper scale data centers is driving demand for direct liquid cooling solutions in the Data Center Liquid Immersion Cooling Market. Furthermore, the benefits provided by these systems, such as efficient cooling for high-speed computing, are projected to boost market expansion. Increased data center construction, reduced data center power usage, and a preference for data center liquid immersion cooling due to rising water scarcity will provide enormous growth prospects. However, the availability of alternate cooling technologies, a lack of demand and awareness, and expensive maintenance costs may stymie market expansion.

Global Data Center Liquid Immersion Cooling Market- Regional Insights

The global data center liquid immersion cooling market is classified into five regions, namely, North America, Asia Pacific, Europe, Latin America, and Middle East and Africa. North America is expected to emerge as maximum revenue-generating region in global data center liquid immersion cooling market in future owing to increased presence of data centers in countries such as the U.S and Canada. Asia Pacific is anticipated to witness significant growth in global market in the coming years because of continuous technological developments witnessed in countries such as India and China. Ease of availability of key resources such as land and labor in countries such as India could help leading market players to establish research and development centers in Asia Pacific, which could assist market growth in the region. Europe is projected to witness moderate growth in overall data center liquid immersion cooling market in the years ahead due to reduced presence of prominent players in countries such as the U.K. and Germany.

Other regions of the world such as Latin America and Middle East and Africa are expected to witness sluggish growth in overall market, in the coming years.

Figure 1. Global Data Center Liquid Immersion Cooling Market Share (%), By Region, 2022

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Global Data Center Liquid Immersion Cooling Market- Impact of Coronavirus (COVID-19) Pandemic

The data center liquid cooling market was negligibly affected by the COVID-19 pandemic. Activities done by enterprises such as data center consolidation were on temporary hold and physical movement of servers, closing buildings, and opening new spaces had more complications due to mandatory social distancing regulations. One major change brought about by COVID-19 pandemic is the remote working facility provided by companies to their employees across the globe. This has resulted in a huge upsurge in demand for data centers globally. The COVID-19 pandemic created a paradigm shift in how people interact with each other. Majority interactions between people and businesses shifted to the digital form. As a result, there was a noticeable increase in internet traffic, collaborative software, and data security. This in turn increased the load on data centers throughout 2020 and 2021. As a result, there was a high demand for cooling in these data centers. Thus, the COVID-19 pandemic increased the demand for data center liquid cooling solutions.

Global Data Center Liquid Immersion Cooling Market- Drivers

Dealing with High-density Power Consumption Driving the Market:

On the energy absorption front, liquid immersion cooling submerges all electrical components in a dialectic liquid, thus, reducing the energy footprint of IT alone by between 10% and 45%, as per Asperitas, a Dutch startup selling plug-and-play liquid immersion cooling modules to data centers. It further highlighted that suitable dielectric liquids absorb approximately 1,500 times more heat energy than air with the same volumes and temperatures.

Increasing Adoption of Cloud-Based Services:

With the growing adoption of cloud-based services, there is a need for data centers to scale up their operations quickly and efficiently. Liquid immersion cooling technology can help data centers meet these demands by providing the necessary cooling for high-density computing equipment.

For instance, in June 2022, Redington, a technology products and services provider, partnered with Amazon Web Services, Inc. to promote the adoption of cloud computing in India. 

Global Data Center Liquid Immersion Cooling Market- Opportunities

AI and other high-performance computing technologies:

Artificial intelligence and other high-performance computing technologies are being adopted at an increasing rate, which is driving demand for more robust and effective data center infrastructure. By enabling denser server configurations and using less energy, liquid immersion cooling can assist in meeting this demand. For instance, Meta, technology company plans shift to liquid cooling in AI-centric data center redesign and this strategic shift in Meta's data center design is focused on optimizing new facilities to better support artificial intelligence

Growing Investment in Liquid Immersion Cooling for data center :

There is a growing investment in Liquid Immersion Cooling for data center, which includes cooling solutions, as a result of the rising demand for cloud computing and data storage. For instance, LiquidStack, the global leader in liquid immersion cooling for data centers, has received an investment from Trane Technologies, a global climate innovator, Trane Technologies, through its strategic brand Trane®, is a global leader in sustainable heating, ventilation and air conditioning (HVAC) and one of the data center industry’s most prominent suppliers of mission-critical infrastructure.

Global Data Center Liquid Immersion Cooling Market- Trends

The growing need to reduce carbon footprint is the primary trend in the global data center liquid immersion cooling market. In a data center environment, the operation of components such as IT servers, generators, and building shell emits carbon dioxide. Carbon emissions can be determined by the amount of power consumed by these facilities. In a year, data centers consume 2.5% to 4.5% of the power generated globally, while they emit 1.5% to 2.5% of greenhouse gas. The demand for the data center is growing at a significant phase. Many large organizations are forced to develop new data centers to power their business efficiently.

The installation of efficient liquid immersion will aid in reducing power consumption as well as carbon emissions in the facilities. The PUE generated by Carnot Jet System is significantly lower than the air-cooling data centers, thereby helping in reducing carbon emission. The direct reduction in carbon emissions associated with cooling energy reduction also helps enterprises achieve better scores on the Carbon Disclosure Project (CDP) and reach carbon reduction goals. Therefore, as the need to reduce carbon footprint is increasing, it is expected that the global market in focus will witness high growth during the forecast period.

Global Data Center Liquid Immersion Cooling Market- Restraints

Although the global data center liquid immersion cooling market is expected to grow significantly in the coming years, there are some restraints that may impact this growth. Some of the key restraints of this market include:

High Capital Expenditure:

The initial investment required to implement liquid immersion cooling technology in data centers is higher than that of traditional cooling solutions. This may deter some organizations from adopting this technology, especially smaller ones with limited budgets.

Limited Awareness:

The awareness of liquid immersion cooling technology is still limited in many regions, especially in emerging economies. This lack of awareness may hamper the adoption of this technology and slow down the growth of the market.

Compatibility Issues:

Liquid immersion cooling technology may not be compatible with all types of IT equipment. As a result, organizations may need to replace some of their equipment to adopt this technology, which can add to the overall cost of implementation

Figure 2. Global Data Center Liquid Immersion Cooling Market Share (%), By Segment, 2022  

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Among the liquid cooling solutions type, two phase immersion cooling system dominates single phase immersion cooling system as in a two-phase immersion cooled system, electronic components are submerged into a bath of dielectric heat transfer liquid, which is a much better heat conductor than air, water or oil. With a low boiling point at 50°C, the fluid boils on the surface of heat generating components, and rising vapor passively takes care of heat transfer. 

The Global Data Center Liquid Immersion Cooling Market report is segmented into liquid cooling solutions type, data center size type, industries, and region.

Based on liquid cooling solutions type, the market is segmented into Single phase immersion cooling system and Two phase immersion cooling system.

Based on Data Center Size, the market is segmented into Small and Mid-size data centers and Large data centers.

Based on Industries, the market is segmented into Banking, Financial Services, and Insurance IT and Telecom, Healthcare, Research and Academic, Energy, Manufacturing, Others.

Global Data Center Liquid Immersion Cooling Market: Key Developments

In June 2021, Iceotope Technologies announced the launch of a liquid-cooled modular data center. This product is integrated by Avnet and contains chassis-level immersion cooling from Iceotope. This prefabricated module allows the most CPU- and GPU-intensive high-performance computing (HPC) edge applications to be deployed with greater reliability in harsh and remote environments.

In August 2021, Submer announced its collaboration with Intel to set and standardize the adoption of immersion liquid cooling solutions.

April 2022: Green Revolution Cooling (GRC), Computer hardware manufacturer in Austin, Texas, raised US$ 28 million in a Series C funding round. The event was led by SK Lubricants, a South Korean conglomerate SK Group subsidiary that manufactures a wide range of oil products and dielectric mineral oils essential for immersion cooling systems.

March 2022: SK Lubricants, a U.S.-based liquid immersion cooling solution provider for data centers, made an equity investment of US$ 25 million in GRC. The investment would increase SK Lubricant’s liquid-based thermal management operations and execution of the green ESG strategy. As part of this collaboration and investment, the companies would develop high-grade single-phase immersion coolants and liquid immersion cooling systems for data centers, working together to increase the commercialization and rapid standardization of these systems.

January 2022: GIGABYTE, a computer technology provider, teamed up with fellow industry leaders to build a “Two-phase Immersion Cooling Data Center” for the prominent IC foundry giant.

Global Data Center Liquid Immersion Cooling Market: Key Companies Insights

The “Global Data Center Liquid Immersion Cooling Market” study report will provide a valuable insight with an emphasis on the global market including some of the major players such as Alfalava, Asetek, CoolIT Systems, Green Data Center LLP, Green Revolution Cooling Inc., Horizon Computing Solutions, IBM Corporation, Midas Green Technologies, LLC, Rittal GmbH & Co. Kg., and Schneider Electric SE.

*Definition: Data center liquid cooling uses a liquid, such as water, or a refrigerant, rather than air, to cool the data canter. This allows the cooling solution to be brought closer to the heat source, thus requiring less, if any, fan power.