Data Center Liquid Immersion Cooling Market Report 2026

Data Center Liquid Immersion Cooling Market Overview

• Data Center Liquid Immersion Cooling market size has reached to $3.3 billion in 2025 • Expected to grow to $10.55 billion in 2030 at a compound annual growth rate (CAGR) of 26.1% • Growth Driver: Surge In Cloud-Based Services Boosts The Data Center Liquid Immersion Cooling Market Growth • Market Trend: DLC Fluid S3 To Enhance Data Center Cooling For High-Performance Computing And AI • North America was the largest region in 2025.

What Is Covered Under Data Center Liquid Immersion Cooling Market?

Data center liquid immersion cooling is a method that involves immersing electronic components in a thermally conductive liquid for efficient heat transfer. This system uses a tank to manage the liquid, enhancing thermal management and allowing for higher hardware density and performance. It reduces reliance on air cooling and supports more compact, efficient data center designs. The main types of data center liquid immersion cooling are single-phase immersion cooling systems and two-phase immersion cooling systems. Single-phase immersion cooling immerses electronic components in a liquid that absorbs heat, enhancing thermal management, reducing energy costs, and boosting equipment reliability in data centers. It offers different types of cooling fluids, such as mineral oil, deionized water, fluorocarbon-based fluids, and synthetic fluids, within various data centers, including enterprise, colocation, wholesale, hyperscale, and others. It is applied for several applications, such as high-performance computing, edge computing, artificial intelligence, cryptocurrency mining, and others, and is used by several end-use industries, including banking, financial services and insurance (BFSI), manufacturing, information technology (IT) and telecommunication (telecom), healthcare, government and defense, retail, energy, and others.

What Is The Data Center Liquid Immersion Cooling Market Growth Forecast?

The data center liquid immersion cooling market size is expected to see exponential growth in the next few years. It will grow to $10.55 billion in 2030 at a compound annual growth rate (CAGR) of 26.1%. The growth in the forecast period can be attributed to growing hyperscale and edge data centers, advancements in two-phase immersion cooling, regulatory focus on energy efficiency, integration with ai-driven data center management, rising adoption in telecom and it sectors. Major trends in the forecast period include high-density data center deployment, energy-efficient thermal management, reduced air cooling dependence, compact and modular data center design, advanced liquid cooling technologies.

Global Data Center Liquid Immersion Cooling Market Segmentation

1) By Type: Single-Phase Immersion Cooling System, Two-Phase Immersion Cooling System 2) By Cooling Fluids: Mineral Oil, Deionized Water, Fluorocarbon-Based Fluids, Synthetics Fluids 3) By Data Center: Enterprise, Colocation, Wholesale, Hyperscale, Other Data Centers 4) By Application: High-Performance Computing, Edge Computing, Artificial Intelligence, Cryptocurrency Mining, Other Applications 5) By End-Use Industry: Banking, Financial Services, And Insurance (BFSI), Manufacturing, Information Technology (IT) And Telecommunication (Telecom), Healthcare, Government And Defense, Retail, Energy, Other End-User Industries Subsegments: 1) By Single-Phase Immersion Cooling System: Closed-loop Systems, Open-loop Systems 2) By Two-Phase Immersion Cooling System: Single-Phase to Two-Phase Transition Systems, Passive Two-Phase Cooling, Active Two-Phase Cooling

What Is The Driver Of The Data Center Liquid Immersion Cooling Market?

The increasing adoption of cloud-based services is expected to drive the growth of the data center liquid immersion cooling market going forward. Cloud-based services deliver computing resources and applications over the internet rather than through local servers or personal devices. The demand for cloud-based services is driven by their ability to offer scalable, cost-effective, and accessible computing resources and applications. Cloud-based services use data center liquid immersion cooling to manage the increased heat from high-density servers efficiently, optimizing performance and energy use while reducing space requirements.For instance, in December 2023, Eurostat, a Europe-based statistical office of the European Union (EU), reported that in 2023, 45.2% of EU enterprises purchased cloud computing services such as software, computing power, and storage over the internet representing a 4.2 percentage point increase from previous years. Therefore, the increasing adoption of cloud-based services drives growth in the data center liquid immersion cooling industry.

Key Players In The Global Data Center Liquid Immersion Cooling Market

Major companies operating in the data center liquid immersion cooling market are Intel Corporation, Schneider Electric SE, Fujitsu Limited, Solvay SA, Delta Electronics Inc., Alfa Laval AB, Rittal GmbH & Co. KG, Boyd Group Services Inc., Wiwynn Corporation, Kaori Heat Treatment Co. Ltd., Submer Technologies SL, Asetek A/S, STULZ GMBH, CoolIT Systems, DUG Technology, Midas Immersion Cooling, Prasa Infocom & Power Solutions Pvt. Ltd., Green Revolution Cooling Inc., Motivair Corporation, Iceotope Technologies Ltd., LiquidCool Solutions Inc., Asperitas, LiquidStack Holding BV, Chilldyne Inc., Vertiv Group Corp., DCX Liquid Cooling Systems

Global Data Center Liquid Immersion Cooling Market Trends and Insights

Major companies in data center liquid immersion cooling are developing advanced solutions to support the rising demands of high-performance computing and AI. For instance, in June 2025, Shell plc, a UK-based oil company, introduced DLC Fluid S3, a propylene glycol-based direct liquid cooling fluid designed for high-performance computing and AI data centers. The fluid efficiently cools critical heat-generating components like CPUs and GPUs, improving power usage effectiveness (PUE) by up to 27% compared to traditional air cooling. It provides long-term corrosion protection for various materials, freeze protection down to -10°C, a lifespan of over six years, and easy leak detection with its fluorescent green dye. Compliant with Open Compute Project PG25 standards, DLC Fluid S3 enhances data center efficiency, reliability, and sustainability while supporting higher heat loads. This launch broadens Shell’s liquid cooling portfolio, offering both direct-to-chip and immersion cooling solutions for modern digital infrastructure.

What Are Latest Mergers And Acquisitions In The Data Center Liquid Immersion Cooling Market?

In January 2024, Modine Manufacturing Company, a US-based thermal management solutions provider, acquired TMG Core for an undisclosed amount. The acquisition strengthens Modine's capabilities in the fast-growing data center market by integrating advanced liquid immersion cooling technologies. This move expands Modine's product range, positioning it as a comprehensive cooling solutions provider for high-density computing. The deal also supports critical applications such as generative AI, 5G, and other advanced technologies that demand efficient heat management. TMG Core is a US-based provider of single- and two-phase liquid immersion cooling technology for data centers.

Regional Outlook

North America was the largest region in the data center liquid immersion cooling market in 2025. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Defines the Data Center Liquid Immersion Cooling Market?

The data center liquid immersion cooling market consists of revenues earned by entities by providing services such as space optimization, energy efficiency, noise reduction, and simplified maintenance. The market value includes the value of related goods sold by the service provider or included within the service offering. The data center liquid immersion cooling market also includes sales of tanks, pumps, and non-conductive cooling liquids. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Data Center Liquid Immersion Cooling Market Report 2026?

The data center liquid immersion cooling market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the data center liquid immersion cooling industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.