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Over the past decade, cloud computing and data center infrastructure has witnessed substantial growth. The increasing demand for data storage due to the proliferation of IoT, Big Data analytics and the adoption of digital technologies has led to a rise in data center infrastructure worldwide. However, conventional air cooling techniques struggle to efficiently cool today’s dense compute infrastructure. Liquid immersion cooling provides significant benefits over traditional air cooling methods by fully submerging servers and other IT equipment in a non-conductive coolant like mineral oil or fluorocarbon liquids.
This allows for higher power densities and nearly 100% of waste heat removal from electronics. 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 forecast period 2023-2030.
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.
The growing demand for cost-effective and energy-efficient cooling of hyperscale data centers is a major factor driving market growth. With increasing construction of large data centers globally, adoption of liquid immersion cooling techniques is expected to rise significantly over the coming years.
Growing popularity of edge computing and the need for efficient cooling of small data centers located in various geographic regions will further support market expansion.
Growing demand in market
The increasing deployment of immersion cooling by hyperscale cloud providers and internet companies is expected to propel market growth. Growing construction of large data centers housing thousands of servers will fuel the adoption of liquid cooling solutions to efficiently manage the significant heat load. Additionally, the need for effective thermal management without environmental hazards and rigid specifications on carbon footprint is increasing the implementation of immersion cooling systems in new data center builds.
Global expansion of market
North America currently dominates the global market owing to massive investments in artificial intelligence, HPC and cloud infrastructure. However, Asia Pacific is emerging as a major market due to rapid growth in digital services. The region is witnessing extensive construction of hyperscale data center facilities. This is positively impacting the liquid immersion cooling market. Furthermore, growing penetration of liquid cooling in telecom cloud deployments across Europe and MEA is expected to support the global expansion of the market.
Market key trends
One of the major trends gaining traction is the use of mineral oil-based immersion cooling for managing extreme heat loads produced by GPU-based computing at HPC facilities. Mineral oil offers higher heat transfer properties and cooling density compared to other fluids. Leading server manufacturers are developing specialized hardware for mineral oil-based submersion cooling to promote adoption in GPU and AI computing domains. Moreover, growing R&D towards new immersion cooling coolants such as synthetic hydrocarbon oils, dielectric liquids and fluorocarbon liquids indicates promising innovative opportunities in materials innovation.
Porter’s Analysis
Threat of new entrants: New entrants face high initial investments and expertise required for research, development, and innovation. Bargaining power of buyers: Buyers have medium bargaining power due to availability of a few alternatives for data center cooling. Bargaining power of suppliers: Suppliers have medium bargaining power due to availability of component parts from different manufacturers. Threat of new substitutes: Substitute solutions like air based cooling offer alternatives with varying effectiveness. Competitive rivalry: Intense competition between existing players to gain market share.
The geographical region where the data center liquid immersion cooling market is concentrated in terms of value is North America. The region accounts for the largest share of the global data center liquid immersion cooling market owing to presence of a large number of data centers, innovation in cooling technologies, and initiatives taken by governments to promote use of energy efficient solutions.
The fastest growing region for the Data Center Liquid Immersion Cooling Market is Asia Pacific. This is due to increasing adoption of immersion cooling as a more efficient alternative, growing construction and establishment of hyperscale data centers to accommodate increasing data traffic, rising digitalization, and progressive economic growth in countries such as China and India.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
