PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1887063
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1887063
The global two-phase data center liquid immersion cooling market is experiencing accelerated growth as the demand for high-performance computing, AI-driven workloads, and hyperscale data center operations intensifies worldwide. According to the latest industry data, the market was valued at USD 375.45 million in 2024, reflecting rising adoption of advanced cooling technologies to support high-density computing clusters. In 2025, the market is expected to reach USD 431.37 million, driven by expanding cloud services, generative AI requirements, and large-scale data center investments. By 2032, the market is projected to surge to USD 1,188.01 million, showcasing strong momentum with a CAGR of 15.57% during the assessment period.
North America dominated global demand in 2024 with a 41.7% market share, driven by increased deployment of AI infrastructure, rapid hyperscale expansion, and the presence of major technology providers.
Rising Demand for Efficient Cooling in High-Density Data Centers
Two-phase liquid immersion cooling technology is rapidly gaining significance as data centers face rising thermal loads driven by GPUs, AI accelerators, and advanced HPC systems. Traditional air-based cooling methods fall short for next-generation computing equipment, prompting the transition to immersion-based cooling systems. This method is particularly effective for high-density operations where power consumption and heat dissipation reach extreme levels.
Post-pandemic digital acceleration and data consumption growth have fueled investments in new data centers and modernization of existing facilities. Companies such as Delta Electronics, 3M, Giga-Byte Technology, Chemours, and Green Revolution Cooling are expanding product portfolios to cater to both small facilities and massive hyperscale operators.
Impact of Generative AI on Cooling Technology
Generative AI has emerged as one of the most influential factors reshaping thermal management strategies in data centers. AI workloads rely on large GPU clusters that generate significantly higher heat than traditional servers. As enterprises adopt powerful AI-driven systems, cooling infrastructure must adapt accordingly. Two-phase immersion cooling is becoming a preferred solution due to its ability to efficiently dissipate high heat loads while reducing power usage and ensuring sustainability.
In May 2024, LiquidStack demonstrated its cutting-edge two-phase immersion cooling system with Cisco, showcasing its relevance for AI-centric data centers. As AI adoption grows, demand for efficient cooling solutions will continue to rise.
Market Trends and Growth Dynamics
Hyperscale Expansion and 5G Deployment
With rapid growth in hyperscale cloud data centers, operators are adopting immersion cooling to manage high-density racks and AI training loads. According to Synergy Research Group, the number of hyperscale data centers was estimated at 1,136 in 2024, rising sharply from 734 in 2020. The roll-out of 5G networks across major economies further accelerates computing needs at the edge, boosting immersion cooling adoption.
Energy Efficiency and Sustainability as Core Priorities
Organizations are increasingly evaluating cooling efficiency due to rising energy costs and strict environmental regulations. Two-phase immersion cooling improves rack density, reduces power usage, and enhances space efficiency-critical advantages for operators in densely populated urban regions.
Challenges: High Capital Investment and Complex Deployment
Although immersion cooling offers long-term operational savings, initial installation costs remain high. Facilities require infrastructure redesign, specialized tanks, and dielectric fluids, which increases capital expenditure. Environmental concerns over certain cooling fluids may also impact adoption in sensitive regions.
Segmentation Highlights
By Component
By Application
By Cooling Fluid
By Data Center Type
By End Users
North America
Europe
Asia Pacific
Conclusion
Backed by AI acceleration, hyperscale expansion, and energy-efficiency demands, the global two-phase data center liquid immersion cooling market is set for substantial growth-from USD 375.45 million in 2024 to USD 1,188.01 million in 2032. As enterprises embrace sustainable and high-density computing, immersion cooling will play a pivotal role in the global data center ecosystem.
Segmentation By Component
By Application
By Cooling Fluid
By Data Center Type
By End Users
By Region
Key Market Players Profiled in the Report Boyd (U.S.), Delta Electronics, Inc. (Taiwan), GIGA-BYTE Technology Co., Ltd. (Taiwan), Green Revolution Cooling Inc. (U.S.), LiquidStack Holding B.V. (U.S.), Mitsubishi Heavy Industries Group (Japan), 3M (U.S.), The Chemours Company (U.S.), Vertiv Holdings Co. (U.S.), and Wiwynn Corporation (Taiwan)