Data Center Liquid Immersion Cooling Market

Data Center Liquid Immersion Cooling Market was valued at USD 640.94 Million in 2023 and is expected to reach USD 3340.83 Million by 2030, exhibiting a CAGR of 26.6 % during the forecast period (2024-2030)

Liquid cooling is another commonly used method for heat management in data centers, alongside air cooling. However, liquid cooling is regarded as more useful than air cooling since water is more effective as a heat removal medium than air and may lower cooling power requirements by up to 70%. Dealing with high-density power consumption is driving the market, as many industry estimates put cooling costs at around 40% of the data center's energy consumption. As data centre operators grew beyond a suitable setting into complicated metropolitan facilities, the need for server cooling technology that addresses the environmental and space limits faced by traditional air cooling and liquid cooling practices increased. Thanks to the increasing demand for this technology, Data Center Liquid Immersion Cooling Market companies such as Supermicro and Fujitsu are offering several server lines ready for immersion cooling.

Another key concern driving the greater usage of advanced liquid cooling technology, such as immersion cooling, is the data center's growing carbon impact. Consolidation operations across data centre operators, as well as increased expenditures in HPC and other high-density applications such as edge computing and crypto mining, are likely to present many potential possibilities for the Data Center Liquid Immersion Cooling Market over the forecast period. Liquid cooling solutions are expected to grow at a faster rate due to rising consumer preference for diverse solutions and more innovation. For instance, Schneider Electric collaborated with Avnet and Iceotope to jointly develop new liquid cooling solutions for data centers.To know about the Research Methodology :- Request Free Sample Report

Emergence of Green Data Center to Fuel Opportunities of Liquid Cooling Such as Immersion Cooling

Benefits from technology and government backing, such as the application of efficiency rules on data centres, are expected to boost the growth of the green data centre industry. China's MIIT (Ministry of Industry and Information Technology), National Energy Administration, and National Government Offices Administration issued a Guideline for Pilot Projects of Green Data Centers (GPPGDC) document outlining how to implement the state council's energy-saving advice. The India Green Building Council (IGBC) approached Uptime Institute, and they are now working on developing a green standard for data centres in India. The European Union produced a digital strategy plan in February 2020 to make data centres more energy-efficient and carbon-neutral by 2030.

Amazon Web Services announced three new renewable energy projects in Ireland, the United States, and Sweden in April 2019 as part of its long-term aim of using 100% renewable energy to power all AWS data centres. Microsoft intends to construct a data centre powered entirely by renewable energy by 2025. It is estimated that servers and data equipment account for around 55% of the energy required by a data centre, with cooling equipment accounting for 30% of the energy used to keep the facility functioning.

Datacenter operators (enterprises and cloud service providers) are incurring huge operational costs (energy accounts for 40% of total costs, according to the network strategy and technology company, Ciena), which can be reduced by replacing the equipment with low-power-consuming devices. Therefore, such development is driving opportunities for liquid immersion cooling technologies in data centers as it is considered one of the best ways to tackle high power density challenges encountered in Data Centers. This is expected to create lucrative opportunities in the Data Center Liquid Immersion Cooling Market.

Data Center Liquid Immersion Cooling Market Dynamics

Increase in the Number of Hyper-Scale Data Centers to drive Data Center Liquid Immersion Cooling Market Growth

Hyperscale data centres provide excellent scalability, allowing enterprises to compete while boosting speed, flexibility, security, and storage. Rising IT infrastructure development in emerging nations such as India, China, and others is expected to enhance demand for data centres. The adoption of the cloud model, which offers economic and operational benefits for the IT sector, is expected to raise demand for data centres. According to an NTT Ltd survey, more than half of respondents (52%) stated that the cloud will have the most revolutionary influence on their organization's business processes. Hence, the demand for the cooling of data centers will increase, leading to the implementation of liquid cooling methods based on enduser preferences.

A report on the Indian data center market by Arizton Advisory and Intelligence estimates that the industry will grow at a CAGR of 12 percent until 2026. Several trends and technologies will drive this growth. Here are the ones we believe will continue to have an influence in 2023. According to a recent Uptime Institute poll, 73% of data centre administrators expect the pandemic to boost their usage of automation. Furthermore, one-third of respondents expected that hiring issues will result in fewer operations teams, even while the number of servers continues to grow. Private equity and major investment groups continued to acquire tens of billions of dollars in data centre market share in 2023, with no intentions to slow down in 2023. Thus, increase in the number of hyper-scale data centers is estimated to drive data center liquid immersion cooling market growth.

Dealing with High-Density Power Consumption to drive Data Center Liquid Immersion Cooling Market Growth

Global space cooling demand rose in 2020, due to increased house cooling as individuals spent more time at home. In 2020, space cooling accounted for around 16% of total building power usage (around 1 885 TWh). With convincing evidence that data centre operators have increased rack density in recent years (according to AFCOM), the requirement for a cooling system to improve efficiency becomes obvious. Then, as the usage of Big Data and AI, to name a few, has grown, enterprises are facing a data crunch dilemma. For instance, the rising demand for cognitive capabilities in the United States led IBM Corporation to build four new cloud data centers in the country. This is likely to encourage the utilization of cooling technologies in these data centers. This is expected to drive the growth of Data Center Liquid Immersion Cooling Market.

As of December 2020, annual survey, which found that racks with densities of 20 kW and higher are increasingly deployed. On a year-over-year basis, most of the respondents highlighted their highest density racks usage in the 10-19 kW range. Direct liquid cooling becomes more inexpensive and efficient when rack densities greater than 20-25 kW are preferred. According to Asperitas Company, it uses liquid immersion cooling to submerge all electrical components in a dialectic liquid, lowering the energy footprint of IT alone by 10% to 45%. It went on to say that appropriate dielectric liquids absorb around 1,500 times more heat energy than air at the same volume and temperature.High Investment with Greater Capital Expenditure to Restraint Data Center Liquid Immersion Cooling Market Growth

Cooling fans are widely available on the market, and their availability implies they are inexpensive. A liquid cooling system's components might be costly. Earlier liquid cooling systems used parts from autos and aquariums, among other things. A number of businesses currently provide liquid cooling components for personal computers. The expense of replacing failing servers more often than normal may be less expensive over time for a big organisation than the cost of maintaining a hyperscale facility at lower temperatures. However, with the increasing integration of GPUs in data centres driven by the need for more computational power, major organisations must shift to an effective cooling system.

When comparing the two-phase immersion cooling system to the single-phase immersion, the upfront expenses of the two-phase immersion are much higher owing to the sophisticated engineering. Because immersion technology is newer than water or air cooling, and cooling technology is continually evolving, the cost is higher than for established methods. Furthermore, the expense of fluorocarbon-based coolants is significant since they must be refilled on a regular basis. These coolants cost hundreds of dollars per gallon, which raises overall running costs and offsets any little increases in power efficiency, not to mention the total cost of ownership (TCO). Thus, high investment with greater capital expenditure is estimated to restraint data center liquid immersion cooling market growth.

Data Center Liquid Immersion Cooling Market Segment Analysis

Data Center Liquid Immersion Cooling Market by Type, the single-phase immersion cooling system segment held the largest share of 67.78% of the market studied in 2023. The segment was valued at USD 271.0 million in 2023, and it is expected to continue to dominate the Data Center Liquid Immersion Cooling Market market by 2030. A two-phase immersion cooling system was valued at USD 128.8 million in 2023, and it is expected to grow at a significant CAGR by 2030. The two-phase Immersion Cooling System segment is expected to register a CAGR of 26.95% in the forecasted period (2024 - 2030).

Cryptocurrency Mining dominated the Data Center Liquid Immersion Cooling Market in 2021. One of the factors that impact the shift to liquid cooling is the cryptocurrency and the bitcoin mining industry, which uses powerful specialized chips to process transactions. With the growing popularity of crypto and its usage in daily lives, more individuals have chosen the profession of mining and enabling the growth of the market. Cryptocurrency mining requires specialized high-performance hardware that can solve the computational algorithms at high speed, with accuracy and efficiency. The demand for this kind of hardware is going up exponentially each day. Along with the demand for specialized hardware, the growing demand for data centers to equip and handle cooling this kind of heat-generating hardware is increasing.

Data Center Liquid Immersion Cooling Market Regional Insights

North America region dominated the Data Center Liquid Immersion Cooling market in 2023 and is estimated to grow at a CAGR of 26.59% during the forecast period. North America is a leader in the adoption of emerging technology. Investors in data centres are increasingly interested in liquid immersion and direct-to-chip cooling methods. The introduction of 5G networks throughout the world has helped the relevance of edge data centres, and the United States is among the early users of the technology. Many US operators, including EdgePresence, EdgeMicro, and American Towers, have begun to invest in these centres.

Immersion cooling implementation in data centres is being investigated by a number of US-based firms, including Microsoft. The introduction of two-phase immersion cooling in the production environment is the next step in Microsoft's long-term plan to meet demand for faster, more resilient data centre computers at a time when dependable developments in air-cooled computer chip technology have stalled significantly. Microsoft investigated liquid immersion as a cooling option for numerous high-performance computer applications, including artificial intelligence. According to the findings, two-phase immersion cooling lowered power usage for every particular server by 5% to 15%.

Asia Pacific Data Center Liquid Immersion Cooling market is estimated to grow at a significant CAGR during the forecast period. The region's data centre industry is expanding rapidly, with an emphasis on efficiency and maximum uptime. Larger organisations are aiming to scale out their data centres to assure stability and dependability of data services, as the use of 5G, wearable devices, the internet of things, and artificial intelligence fuels a booming demand for processing capacity.

Furthermore, in response to India's exponential growth in demand for digital infrastructure, companies such as GRC are establishing their first Asian office in India: propelled by the proliferation of affordable smartphones and connectivity, a growing proportion of India's 1.3 billion population is coming online. The government is also driving digitalization and proposing data location legislation as part of the Digital India Program, which will encourage fast data centre infrastructure construction. Furthermore, the effort for environmental sustainability across Asia is a major component in the region's requirement for immersion cooling.

Because Asia is home to some of the world's fastest-growing economies, and digital infrastructure is quickly rising, the shift to India to service the Asia-Pacific market is primed to bring major prospects. Many Asian markets are confronted with issues that immersion cooling technologies can uniquely handle. Legacy air-cooling is a significant concern for data centre owners because too hot and humid conditions, as well as pricey property and price sensitivity. Immersion-cooling technologies solve all of these problems by having lower operating and power costs as well as a smaller footprint.

Data Center Liquid Immersion Cooling Market Scope: Inquire before buying

Data Center Liquid Immersion Cooling Market, by Region

North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)

Key Players

North America:

Green Revolution Cooling Inc. (U.S.)
Allied Control Ltd. (U.S.)
MIDAS Green Technologies (U.S.)
Liquidcool Solutions, Inc. (U.S.)
Nortek Air Solutions (U.S.)
Vertiv Co. (U.S.)
LiquidStack Inc. (U.S.)

Asia Pacific:

Fujitsu Limited (Japan)
Black Box Corporation (India)
Hitachi, Ltd. (Japan)
Wiwynn Corporation (Taiwan)

Europe:

Submer Technologies (Spain)
Asperitas Company (The Netherlands)
DCX (Poland)
Asetek (Denmark)
Airedale International Air Conditioning (UK)
Rittal GmbH & Co. KG (Germany)
STULZ GmbH (Germany)
Schneider Electric (France)
Iceotope Technologies Limited (UK)

Frequently Asked Questions:

1] What are different types of Liquid Immersion Cooling technologies?
Ans. Single-phase and two-phase are the two main types of immersion cooling technologies.

2] What are the dominant factors driving the growth of the Data Center Liquid Immersion Cooling Market?
Ans. Increase in the number of hyper-scale data centers and dealing with high-density power consumption are the dominant factors driving the growth of the Data Center Liquid Immersion Cooling Market

3] Which are the major countries estimated to fuel the growth of the Data Center Liquid Immersion Cooling Market?
Ans. The immersion cooling market is estimated to grow the fastest in China, India, the Netherlands and USA.

4] What are the new opportunities for the Data Center Liquid Immersion Cooling Market?
Ans. Emergence of green data center to fuel opportunities of liquid cooling such as immersion cooling.

5] What are the major players in the Data Center Liquid Immersion Cooling Market?
Ans. Green Revolution Cooling Inc. (U.S.), Allied Control Ltd. (U.S.), MIDAS Green Technologies (U.S.), Fujitsu Limited (Japan), Black Box Corporation (India), Submer Technologies (Spain), Asperitas Company (The Netherlands), and DCX (Poland) are the major players in the Data Center Liquid Immersion Cooling Market.