by 
Data center liquid immersion cooling is a process of submerging servers, networking equipment and other hardware in a non-conductive liquid coolant to remove heat. It provides effective thermal management for data centers with high density computing loads in a compact footprint. The use of specialized coolants enables higher processor power and memory densities within a rack environment. Offering energy savings of over 50% and a smaller footprint than traditional cooling systems, liquid immersion cooling is increasingly being adopted by large data center operators.
The globalData Center Liquid Immersion Cooling Market is estimated to be valued at US$ 419.79 Mn in 2023 and is expected to exhibit a CAGR of 26.1% over the forecast period of 2023-2030.
Key Takeaways
Key players operating in the data center liquid immersion cooling market are Alfalava, Asetek, CoolIT Systems, Green Data Center LLP and Green Revolution Cooling Inc.
The market offers growth opportunities in developing specialized liquid coolants for immersion cooling applications. Liquid immersion cooling provides up to 50% reduction in PUE making it attractive for greenfield investments.
Leading data center operators are expanding their footprint of liquid cooled facilities globally to cater to increasing workload capacities. The technology offers the promise of seamless scaling with density and a smaller physical footprint compared to traditional air cooling.
Market drivers
Easy scalability of servers and components submerged in liquid coolant is a key driver for adoption of liquid immersion cooling technology. It allows data centers to rapidly increasecompute density within the same physical space to meet growing workload demands. The use of engineered liquids with high heat transfer coefficients enables higher power usage effectiveness. This reduces both capital and operating costs of data centers through energy savings of over 50% compared to air cooling.
PEST Analysis
Political: Data protection laws and regulations impact the adoption of data center liquid immersion cooling technology. Countries are framing new data protection acts to safeguard customer data locally.
Economic: Rising energy costs for powering conventional air cooling systems in data centers is driving organizations to adopt energy-efficient liquid immersion cooling solutions.
Social: growing digitization trends and increasing data generated from connected devices are raising the demand for data storage. This is boosting investments in hyperscale data center capacity expansion.
Technological: Ongoing innovations to develop less power-consuming immersion cooling systems with improved performance and installation flexibility compared to traditional air cooling are boosting the market growth. Advancements in refrigerants, direct liquid cooling technology etc. are also propelling the market.
Geographical Regions of Concentration
North America currently holds the largest share of the data center liquid immersion cooling market in terms of value, owing to extensive investments in hyperscale data center construction. The region is recognized as the early technology adopter. Asia Pacific is also among the leading regional markets, triggered by the expanding 5G infrastructure and internet penetration in countries such as China, India, and Japan.
Fastest Growing Regional Market
The Data Center Liquid Immersion Cooling Market in Asia Pacific region is estimated to witness the highest CAGR during the forecast period. This is attributed to ongoing development of new data center parks, government initiatives for digitalization, and growing foreign direct investments. Rapid increase in data traffic volumes from mobile users and enterprises is accelerating the deployment of advanced cooling technology like liquid immersion in this region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
