Immersion Cooling Market

Market Overview:

The global immersion cooling market size reached USD 367.7 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 1,920.1 Million by 2033, exhibiting a growth rate (CAGR) of 19.15% during 2025-2033. North America dominates the market in 2024, driven by increasing artificial intelligence (AI) usage and extensive research and development (R&D) activities. The growing utilization of advanced technologies in cryptocurrency mining, increasing adoption in data centers, and the rising technique demand in edge computing are some of the major factors propelling the market.

Market Size & Forecasts:

• Immersion cooling market was valued at USD 367.7 Million in 2024.
• The market is projected to reach USD 1,920.1 Million by 2033, at a CAGR of 19.15% from 2025-2033.

Dominant Segments:

• Type: Single-phase immersion cooling leads the market because it offers a simpler design, lower operational risks, and easier maintenance compared to two-phase systems. Its reliability and cost-effectiveness make it ideal for large-scale deployments in data centers.
• Cooling Fluid: Mineral oil dominates the market since it is widely available, non-conductive, and cost-effective, making it a preferred cooling fluid. Its chemical stability and compatibility with a wide range of hardware components support its broad adoption in immersion cooling systems across various industrial applications.
• Application: High-performance computing represents the largest market share as it generates significant heat that traditional cooling systems struggle to manage efficiently. Immersion cooling offers better thermal performance and energy efficiency, making it the most suitable solution for supercomputers and data-intensive computing environments.
• Region: North America leads the immersion cooling market due to strong technological infrastructure, early adoption of advanced data center solutions, and increasing demand from hyperscale cloud providers. Government support for energy-optimized technologies and the presence of major tech firms are further solidifying the region's leadership in the market.

Key Players:

• The leading companies in the immersion cooling market include Asperitas, DCX Polska SP Z O O, Delta Power Solutions, Dug Technology Ltd, Giga-Byte Technology Co. Ltd., Green Revolution Cooling Inc., Iceotope Technologies Ltd, Liquidcool Solutions Inc., Liquidstack Inc., Midas Green Technologies, Submer Technologies SL., Tmgcore Inc., etc.

Key Drivers of Market Growth:

• Rising Adoption of Artificial Intelligence (AI): Increasing utilization of AI is demanding high-performance hardware that generates immense heat. Immersion cooling efficiently manages this thermal load, ensuring stable performance and energy savings, making it ideal for AI-based applications.
•  Increasing Data Center Power Density: As data centers are packing more compute power into smaller spaces, heat concentration is rising, making air cooling inefficient. Immersion cooling handles high thermal loads directly at the source, enabling higher density without overheating risks.
•  Growing Water Scarcity Concerns: With water scarcity becoming a worldwide issue, data centers need to reduce water usage. Immersion cooling offers a waterless or closed-loop alternative to traditional evaporative systems, making it an environmentally responsible and resource-efficient choice for operators aiming to balance performance with sustainability.
•  Technological Innovations: Advancements in dielectric fluids, hardware compatibility, and system automation have made immersion cooling more reliable and easier to deploy. These innovations lower integration risks, improve efficiency, and reduce costs, encouraging broader adoption across industries seeking high-performance cooling solutions for demanding workloads.
•  Growth in Cryptocurrency Mining: Cryptocurrency mining generates intense heat from high-power hardware operation. Immersion cooling efficiently manages this heat, extends equipment lifespan, and minimizes energy costs. Mining operators are turning to immersion cooling to maintain profitability and hardware reliability under heavy workloads.

Future Outlook:

• Strong Growth Outlook: The immersion cooling market is expected to see sustained expansion, owing to the growing requirement for energy-saving cooling solutions. As AI workload is increasing and data centers are becoming denser, the use of immersion cooling is anticipated to rise quickly.
• Market Evolution: The sector is anticipated to shift from a niche solution for experimental setups to a viable mainstream option for data centers and high-performance environments. Advancements in fluid technology, hardware compatibility, and high demand for efficiency are accelerating the acceptance and commercial adoption of immersion cooling solutions.

Immersion cooling refers to an advanced cooling technique used for cooling electronic components, such as computer processors, servers, and other devices. It is comprised of several components, such as tanks, fluids, immersion modules, heat exchangers, pumps, filters, control systems, and temperature sensors. Immersion cooling is widely used in high-performance computing, artificial intelligence (AI) and machine learning (ML), edge computing, data centers, cryptocurrency mining, renewable energy generation, and quantum computing. It provides excellent cooling capabilities, which aids in improving performance, reducing energy consumption, increasing reliability, and lowering noise levels in electronic systems.

The widespread technique utilization in artificial intelligence (AI) and machine learning (ML) applications to enable faster processing speed and reduce the risk of thermal throttling is providing a considerable boost to the market growth. Furthermore, the increasing technique utilization in edge computing to allow efficient cooling of edge devices and provide higher processing power in a smaller footprint is strengthening the market growth. Additionally, the introduction of fifth-generation (5G) communication technology is facilitating technique demand to cool critical components of 5G base stations, such as radio units and processing units. Moreover, growing technique adoption in the healthcare industry to cool sensitive equipment and devices, such as medical imaging systems, laboratory equipment, and diagnostic tools, is contributing to the market growth. Other factors, including the rising demand for efficient cooling systems, increasing investment in the development of advanced techniques, and the growing emphasis on energy sustainability, are anticipated to drive the market growth.

Immersion Cooling Market Trends:

Increasing data center power density

Rising data center power density is positively influencing the market. With the expansion of data centers to meet the growing demands in cloud computing and data analytics, operators are deploying more powerful processors in compact spaces, increasing the thermal load per rack. According to industry reports, as of March 2024, there were around 11,800 data centers globally. This rise in density is creating challenges for air-based systems, which become less efficient and more costly at higher heat levels. Immersion cooling offers a direct fix by dipping components in thermally conductive fluids, enabling more effective and uniform heat dissipation. It allows data centers to maintain performance and reliability while optimizing energy utilization and space. As workloads are becoming more demanding, immersion cooling provides the thermal stability required for high-density infrastructure.

Rising concerns about water scarcity

The growing concerns about water scarcity are offering a favorable market outlook. Traditional cooling systems, especially those relying on evaporative cooling and chilled water loops, employ large amounts of water, contributing to resource stress in regions already facing shortages. According to World Economic Forum’s (WEF) annual Global Risks Report, the number of nations recognizing water supply shortages as a top five risk increased from seven in 2024 to 27 in 2025. As environmental regulations are tightening and public awareness about water conservation is growing, operators are under pressure to reduce their water usage without compromising performance. Immersion cooling offers a compelling alternative by utilizing closed-loop systems with dielectric fluids that do not evaporate and require constant replenishment. This drastically reduces or even eliminates the need for water in the cooling process. By minimizing water dependency while still delivering high thermal efficiency, immersion cooling aligns with both operational goals and environmental responsibility, making it attractive in the modern sustainability-focused infrastructure landscape.

Growing adoption of AI

The rising adoption of AI is fueling the market growth.AI workloads require immense computational power and specialized hardware like graphics processing units (GPUs). These elements produce considerable heat, especially when used continuously for training large models and running real-time inference. Traditional cooling methods often fall short in managing the thermal demands of such high-density processing, leading to inefficiencies, potential throttling, and hardware degradation. Immersion cooling addresses this challenge by directly submerging hardware in dielectric fluids, allowing superior heat transfer and consistent temperature control. As AI is expanding across industries, ranging from healthcare and finance to manufacturing and autonomous systems, the need for reliable cooling solutions is growing. Immersion cooling not only supports the thermal requirements of AI systems but also enables higher density, better performance, and lower operational costs in AI-focused applications. As per the IMARC Group, the global AI market size was valued at USD 115.62 Billion in 2024.

Key Growth Drivers of Immersion Cooling Market:

Innovations in technology

Technological advancements are impelling the market growth. Innovations in dielectric fluids have improved thermal conductivity, chemical stability, and safety, facilitating better heat transfer while protecting sensitive electronic components. Likewise, advancements in server design, including immersion-ready hardware and modular architectures, are simplifying integration and reduced setup complexity. Improvements in monitoring and automation technologies are also enhancing system control, enabling real-time diagnostics and performance optimization in immersion-cooled environments. These innovations lower the barriers to adoption by reducing operational risk. As computing demands are growing with AI and edge deployments, these technological breakthroughs are making immersion cooling not just a niche solution, but a viable mainstream option for data centers seeking higher efficiency, reliability, and long-term sustainability in thermal management.

Increasing investments in cryptocurrency mining

Cryptocurrency mining operations rely heavily on high-performance GPUs and application-specific integrated circuits (ASICs) that run continuously at full capacity, producing substantial thermal loads that are difficult to manage with traditional air cooling. As miners are seeking to maximize efficiency and uptime, immersion cooling provides an ideal solution by submerging equipment in thermally conductive fluids that dissipate heat more effectively and uniformly. This allows higher density setups, reduced hardware failure, and lower energy utilization for cooling. Additionally, immersion cooling supports quieter and more compact operations, which is valuable for industrial-scale mining farms. As the cryptocurrency industry is thriving and becoming more competitive, miners are turning to immersion cooling to maintain performance while decreasing operational and energy costs.

Growing adoption of corporate sustainability goals

Increasing need to meet corporate sustainability goals and environmental, social, and governance (ESG) commitments is bolstering the market growth. With rising requirement to demonstrate environmental responsibility, companies are prioritizing energy efficiency, carbon reduction, and resource conservation in their operations. Immersion cooling aligns with these objectives by significantly lowering power utilization for cooling, eliminating the need for water in the process, and enabling more efficient employment of physical space. It also helps improve power usage effectiveness (PUE), a key metric in sustainability reporting. As ESG reporting is becoming more critical to corporate reputation and financial valuation, immersion cooling offers a tangible way for data centers to meet green targets and align with broader sustainability frameworks, making it a strategic technology investment.

Immersion Cooling Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global immersion cooling market report, along with forecasts at the global, regional, and country levels from 2025-2033. Our report has categorized the market based on type, cooling fluid, and application.

Breakup by Type:

• Single-Phase Immersion Cooling
• Two-Phase Immersion Cooling

Single-phase holds the largest market share.

The report has provided a detailed breakup and analysis of the market based on the type. This includes single-phase and two-phase. According to the report, single-phase represented the largest market segment.

Single-phase immersion cooling is dominating the market as it provides direct contact cooling, where the electronic components are fully immersed in a dielectric fluid. This contact enables efficient heat transfer, as the fluid can extract heat directly from the heat-generating components. Furthermore, it allows higher power density operations by facilitating more effective and efficient heat dissipation. Additionally, single-phase cooling leads to significant cost savings in terms of energy consumption and infrastructure requirements, as it eliminates the need for fans and heat sinks. Along with this, it offers long service life, requires low maintenance, and significantly reduces noise levels. Moreover, single-phase cooling provides effective protection to electronic components against environmental factors, such as dust, humidity, and contaminants, which aids in extending their lifespan and improving reliability.

Breakup by Cooling Fluid:

• Mineral Oil
• Synthetic Fluids
• Fluorocarbon-based Fluids
• Others

Mineral oil dominates the market.

The report has provided a detailed breakup and analysis of the market based on cooling fluid. This includes mineral oil, synthetic fluids, fluorocarbon-based fluids, and others. According to the report, mineral oil represented the largest market segment

Mineral oil offers excellent heat transfer properties, which allows effective heat dissipation while keeping temperatures low and ensuring optimal performance of the cooled devices. It also provides superior dielectric properties, which prevent electrical shorts and enhance the safety of servers, CPUs, and GPUs. Moreover, it is a cost-effective, versatile, and readily available product that offers excellent compatibility with various materials commonly found in electronic devices, such as plastics, metals, and silicones.

Synthetic fluids are formulated with specific thermal properties, such as higher thermal conductivity, which allows for improved heat transfer and more efficient cooling. Furthermore, it exhibits excellent chemical stability, which prevents degradation and maintains optimal properties over an extended period. Moreover, they are environmentally friendly, biodegradable, and aid in reducing global warming potential. Besides this, they can be customized for targeted applications in high-performance computing and data centers.

Breakup by Application:

• High-Performance Computing
• Artificial Intelligence
• Edge Computing
• Cryptocurrency Mining
• Others

High-performance computing holds the largest market share.

The report has provided a detailed breakup and analysis of the market based on application. This includes high-performance computing, artificial intelligence, edge computing, cryptocurrency mining, and others. According to the report, high-performance computing represented the largest market segment.

Immersion cooling is widely used in high-performance computing to enable higher power densities and improve cooling efficiency, which aids in maximizing computing capabilities while maintaining optimal operating temperatures. Furthermore, the increasing technique adoption in supercomputer cooling to efficiently dissipate heat and ensure optimal performance during complex calculations at high speed is strengthening the market growth. Besides this, immersion cooling aids in maintaining lower operating temperatures, preventing thermal throttling, and ensuring accurate and faster processing of algorithms in high-performance computing. Moreover, the growing technique adoption to provide reliable and efficient cooling for research and scientific computing clusters, which enables scientists and researchers to perform complex calculations and accelerate their discoveries, is contributing to the market growth. Apart from this, the widespread technique adoption in high-frequency trading (HFT) systems to enable faster trade execution and improve overall trading performance is acting as another growth-inducing factor.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa

North America exhibits a clear dominance in the market, accounting for the largest immersion cooling market share.

The report has also provided a comprehensive analysis of all the major regional markets, which includes North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America represented the largest market segment.

North America has experienced considerable demand for immersion cooling owing to a robust data center landscape comprising large-scale facilities and high-density computing environments, which creates a substantial demand for efficient and effective cooling solutions. Furthermore, the growing demand for cloud services, big data analytics, artificial intelligence, and other high-performance computing applications is acting as another growth-inducing factor. Additionally, the implementation of supportive policies by regional governments to encourage the adoption of advanced cooling techniques to reduce energy consumption, lower carbon footprint, and promote sustainability is contributing to the market growth. Moreover, the increasing focus on research and development (R&D) activities in aerospace, defense, and quantum technologies is facilitating the market growth. Apart from this, the presence of skilled professionals, investment capital, and manufacturing capabilities in the region is supporting the market growth.

Competitive Landscape:

The leading companies in the market are developing more efficient and cost-effective cooling systems by exploring new cooling mediums, improving heat transfer technologies, and optimizing system designs. Furthermore, several key players are actively engaging in market education and awareness through industry conferences, events, workshops, webinars, white papers, and case studies to educate customers about the advantages of immersion cooling. Additionally, the growing strategic partnership and alliance between top companies, technology providers, and system integrators to leverage complementary strengths, access new markets, and offer integrated solutions to customers is contributing to the market growth. Moreover, key players are offering customized cooling solutions to address the unique needs of various clients.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Asperitas
• DCX Polska SP Z O O
• Delta Power Solutions
• Dug Technology Ltd
• Giga-Byte Technology Co. Ltd.
• Green Revolution Cooling Inc.
• Iceotope Technologies Ltd
• Liquidcool Solutions Inc.
• Liquidstack Inc.
• Midas Green Technologies
• Submer Technologies SL.
• Tmgcore Inc.

Immersion Cooling Market News:

• June 2025: GRC, a supplier of single-phase immersion cooling for data centers, obtained funding from Samsung to aid its expansion. This would enable GRC to keep innovating and enhance its partnerships with strategic collaborators to provide integrated designs that were low in risk, backed by local expertise in installation, operation, and maintenance.
• June 2025: MGH Systems and Dacta unveiled their inaugural proof-of-concept immersion-cooled data center in Italy, utilizing Castrol ON’s 'Immersion Cooling Fluid DC 20'. It sought to demonstrate how the data center sector could prepare for the future and meet rising computing demands.
• May 2025: Shell's immersive cooling liquids achieved the distinction of being the first to obtain official certification from Intel. The solution aimed to establish a standard for effectiveness and functionality. It utilized hardware from Supermicro and Submer and became the inaugural immersion technique for 4th and 5th generation Intel Xeon processors.
• May 2025: The Chemours Company, the prominent chemistry firm, declared a strategic partnership with Navin Fluorine International Limited to produce its Opteon™ two-phase immersion cooling liquid. The solution could greatly lower the total cost of ownership in data centers by minimizing energy, water, space, maintenance, and capital expenditure requirements, while also supporting next-generation chip performance.
• December 2024: Refroid Technologies Private Limited., a pioneer in innovative industrial and comfort cooling technologies, revealed the introduction of India's first locally developed single-phase liquid immersion cooling solutions. This groundbreaking innovation placed Refroid at the leading edge of sustainable data center developments, meeting the vital demand for energy-efficient cooling amid unparalleled data expansion.
• September 2024: Hanwha Aerospace, partnering with SK Enmove, launched the inaugural immersion cooling energy storage system (ESS), representing a major advancement in non-flammable battery technology. The newly designed solution employed state-of-the-art thermal fluid technology to saturate the lithium-ion battery modules, proficiently separating each cell. It could prevent the spread of thermal runaway and address further safety risks, including insulation issues triggered by environmental factors like salt and dust.

Immersion Cooling Market Report Scope:

Key Questions Answered in This Report:

• How has the global immersion cooling market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global immersion cooling market?
• What is the impact of each driver, restraint, and opportunity on the global immersion cooling market?
• What are the key regional markets?
• Which countries represent the most attractive immersion cooling market?
• What is the breakup of the market based on the type?
• Which is the most attractive type in the immersion cooling market?
• What is the breakup of the market based on cooling fluid?
• Which is the most attractive cooling fluid in the immersion cooling market?
• What is the breakup of the market based on the application?
• Which is the most attractive application in the immersion cooling market?
• What is the competitive structure of the global immersion cooling market?
• Who are the key players/companies in the global immersion cooling market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the immersion cooling market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global immersion cooling market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the immersion cooling industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.