Designed to make market research more actionable and strategically valuable, The Business Research Company’s 2026 market reports feature market attractiveness scoring, total addressable market sizing, company benchmarking matrices, interactive Excel dashboards, deeper supply chain intelligence, emerging startup tracking, and granular product-level insights.
How Big Is The Data Center Liquid Immersion Cooling Market In 2026, And How Fast Will It Grow?
The data center liquid immersion cooling market size has experienced significant expansion in recent years. It is anticipated to increase from $3.3 billion in 2025 to $4.17 billion in 2026, achieving a compound annual growth rate (CAGR) of 26.4%. This historical growth can be linked to factors such as rising server heat generation, escalating demand for HPC and AI workloads, the inherent limitations of traditional air cooling methods, the proliferation of enterprise and colocation data centers, and its early implementation in cryptocurrency mining operations.
The data center liquid immersion cooling market is projected to experience substantial expansion over the upcoming years. This market is forecast to reach $10.55 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 26.1%. This expansion during the projection period stems from factors such as the proliferation of hyperscale and edge data centers, progress in two-phase immersion cooling technologies, increased regulatory emphasis on energy efficiency, the incorporation of AI-driven data center management, and heightened adoption across the telecom and IT industries. Key developments anticipated in this period encompass the deployment of high-density data centers, the implementation of energy-efficient thermal management solutions, a decrease in reliance on air cooling, the emergence of compact and modular data center designs, and the innovation of advanced liquid cooling technologies.
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Data Center Liquid Immersion Cooling Market Growth Driver: The Key Factor Behind Rising Demand
The anticipated expansion of the data center liquid immersion cooling market is significantly influenced by the increasing adoption of cloud-based services. Cloud services deliver computing resources and applications via the internet, bypassing the need for local servers or personal devices. Their widespread demand is due to their capacity to provide scalable, cost-effective, and easily accessible computing solutions. These services leverage data center liquid immersion cooling to efficiently manage the heightened thermal output from high-density servers, thereby optimizing performance, reducing energy consumption, and saving space. For example, in December 2023, Eurostat, the Europe-based statistical office of the European Union (EU), disclosed that 45.2% of EU enterprises procured cloud computing services, including software, computing power, and storage over the internet, in 2023, indicating a 4.2 percentage point increase from preceding years. This upward trend in cloud-based service adoption thus propels growth within the data center liquid immersion cooling market.
Data Center Liquid Immersion Cooling Market Segmentation: Key Segments And Subsegments Covered
The data center liquid immersion cooling market covered in this report is segmented –
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
Data Center Liquid Immersion Cooling Market Trends: Key Developments Shaping 2026 And Beyond
Leading firms in data center liquid immersion cooling are creating sophisticated solutions to meet the growing needs of high-performance computing and artificial intelligence. As an example, in June 2025, Shell plc, a UK-based oil company, launched DLC Fluid S3. This direct liquid cooling fluid, based on propylene glycol, was developed specifically for high-performance computing and AI data centers. It effectively cools essential heat-producing components such as CPUs and GPUs, boosting power usage effectiveness (PUE) by up to 27% when contrasted with conventional air cooling methods. The fluid offers extended corrosion defense for diverse materials, freeze protection reaching -10°C, a durability exceeding six years, and simple leak identification via its fluorescent green dye. Adhering to Open Compute Project PG25 standards, DLC Fluid S3 improves data center efficiency, reliability, and sustainability, simultaneously managing increased heat loads. This introduction expands Shell’s liquid cooling offerings, providing both direct-to-chip and immersion cooling solutions suitable for contemporary digital infrastructure.
Leading Companies Operating In The 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
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Data Center Liquid Immersion Cooling Market Regional Analysis: Largest Region And Key Geographies Covered
North America was the largest region in the data center liquid immersion cooling market in 2025. The regions covered in the data center liquid immersion cooling market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
