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The data center liquid immersion cooling market involves submerging servers, networking equipment and other hardware in specialized non-conductive coolants like mineral oil or fluorocarbon liquid to dissipate heat more effectively. This novel cooling technique is gaining popularity as it offers up to 90% higher cooling efficiency compared to traditional air-based cooling systems, thereby helping to significantly reduce energy consumption and costs for data center operators. The availability of proven commercial products and growing awareness about the technology’s eco-friendly credentials are propelling mainstream adoption.
The global Data Center Liquid Immersion Cooling Market is estimated to be valued at US$ 419.79 Mn in 2023 and is expected to exhibit a CAGR of 26.1% over the 2023-2030 forecast period.
Key Takeaways
Key players operating in the data center liquid immersion cooling market are Alfalava, Asetek, CoolIT Systems, Green Data Center LLP, Green Revolution Cooling Inc. These leaders are focusing on innovations to develop newer immersion cooling solutions with enhanced thermal and electrical properties.
The rapid growth of hyperscale cloud and colocation facilities worldwide presents significant opportunities for liquid immersion cooling vendors. As mega data centers strive for maximum power utilization effectiveness, liquid cooling is emerging as a compelling option to handle ever-increasing computing loads sustainably.
North American and European players are partnering with Asian liquid cooling specialists to strengthen their presence in lucrative APAC markets like China, India and Southeast Asia where data center investments are rising exponentially. New facility setups in these regions are prioritizing highly efficient cooling architectures.
Market Drivers
Space and power consumption savings offered by liquid immersion cooling systems compared to traditional air-based racks enable up to 20% higher server density. This significant capital expenditure reduction serves as a key driver for the market.
Market Restraints
High initial installation and switchover costs pose challenges for existing legacy data centers to migrate to liquid immersion infrastructure. However, the far superior total cost of ownership over the solution’s lifespan is outweighing this restraint.
Segment Analysis
The data center liquid immersion cooling market is dominated by the single-phase sub segment due to the significant advantages it offers over two-phase immersion cooling. Single-phase immersion cooling completely submerges servers, storage devices and other IT components in a tank of non-conductive liquid like mineral oil or fluorocarbon liquid. Since the liquid has higher heat transfer properties than air, it is able to extract more heat from submerged servers and other IT components resulting in improved efficiency. Single-phase cooling is also easier and more cost-effective to deploy compared to two-phase systems as it does not require pumps, condensers and other complex components.
Global Analysis
The Data Center Liquid Immersion Cooling Market North America region currently dominates the data center liquid immersion cooling market and is expected to continue its dominance during the forecast period. This is owing to the presence of major tech companies such as Microsoft, Amazon and Google in the U.S. who are significantly investing in deploying large scale immersion cooled data centers. The Asia Pacific region is anticipated to witness the highest growth during the forecast period. Rapid growth of digital services in countries such as China and India is leading to construction of new data centers. The APAC countries are also focusing on utilizing energy efficient cooling solutions like liquid immersion to reduce operational costs of data centers.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
