July 14, 2024

Projected increased electricity consumption to drive the growth of Data Center Liquid Immersion Cooling Market

The Global Data Center Liquid Immersion Cooling Market is estimated to be valued at US$ 167.70039 Mn in 2023 and is expected to exhibit a CAGR of 26.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Data center liquid immersion cooling involves submerging servers, storage, and networking equipment in a thermally conductive liquid such as 3M Novec Engineered Fluid to remove heat more efficiently than conventional air cooling. The liquid has a higher heat transfer coefficient than air, allowing data centers to reduce energy costs associated with cooling. As data center density increases due to growing computing power needs, liquid immersion cooling is able to support more server rack capacity in less physical space compared to traditional air cooling. It serves as an effective alternative for managing the increased power consumption and heat loads of next-generation hyperscale data centers. The growing reliance on cloud-based services and big data analytics is driving higher electricity consumption by data centers worldwide. Liquid immersion cooling enables facilities to operate more sustainably by improving energy efficiency during cooling.

Market key trends:
The data center liquid immersion cooling market is exhibiting growth due to the rising demand for energy-efficient solutions from hyperscale cloud providers and internet companies. Traditional air cooling is struggling to adequately dissipate the massive heat loads produced by tightly packed server infrastructure scaling to exascale levels. Liquid immersion offers 40-60% improvements in energy efficiency through direct transfer of heat away from components. Colocation data center operators are adopting the technology to increase rack density up to 50-100 kW per cabinet while slashing power usage effectiveness (PUE) ratios. Ongoing developments involve two-phase immersion that combines single-phase liquid with an evaporated coolant to boost cooling capacity. Growing consumption of streaming media, cloud gaming, and other digital services is expected to drive higher deployment of liquid-cooled hyperscale data centers to support this capacity in the most eco-friendly manner.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the data center liquid immersion cooling market is low due to high infrastructure and technology costs associated with establishing liquid immersion cooling systems.

Bargaining power of buyers: The bargaining power of buyers is moderate as there are several solution providers in the market offering a diversified portfolio of liquid immersion cooling systems. However, switching costs for buyers are high since liquid immersion cooling solutions require significant investments and custom designs.

Bargaining power of suppliers: The bargaining power of suppliers is low given the fragmented nature of the market. Additionally, the switching costs from one supplier to another are low owing to the availability of various component suppliers.

Threat of new substitutes: The threat of substitutes is moderate as conventional air cooling and immersion cooling are substitutes for liquid immersion cooling. However, liquid immersion cooling offers higher power efficiency and capacity.

Competitive rivalry: The competitive rivalry is high due to the presence of numerous global and regional players offering similar liquid immersion cooling solutions. Players compete based on product performance, pricing, and customization.

Key Takeaways

The Global Data Center Liquid Immersion Cooling Market is expected to witness high growth, exhibiting CAGR of 26% over the forecast period, due to increasing need to improve power usage effectiveness (PUE) and lower cooling costs.

Regional analysis: North America dominates the global data center liquid immersion cooling market attributed to strong presence of technology giants and initiatives by colocation providers in the region to adopt innovative data center cooling techniques. Asia Pacific is expected to exhibit the fastest growth over the forecast period due to rapid development of hyperscale data centers, especially in China and India.

Key players operating in the data center liquid immersion cooling market are Alfalava, Asetek, CoolIT Systems, Green Data Center LLP, Green Revolution Cooling Inc., Horizon Computing Solutions, IBM Corporation, Midas Green Technologies, LLC, Rittal GmbH & Co. Kg., and Schneider Electric SE.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it