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Data center liquid immersion cooling is a promising technique for efficiently managing the rising heat generated by high-performance servers and networking equipment within data centers. This technique involves submerging servers and other infrastructure in a non-conductive coolant liquid, like mineral oil or fluorocarbon fluids, that absorbs and transfers heat away more effectively than conventional air cooling. Liquid immersion cooling helps reduce power consumption for cooling and optimizes server rack density, enabling data centers to house more computing capacity within the same footprint.
The rising need for data centers, especially edge facilities, to optimize rack space and energy efficiency has boosted the adoption of liquid immersion cooling solutions. This technique allows data centers to deploy around 10 times as many servers in the same space compared to traditional air cooling.
The global Data Center Liquid Immersion Cooling Market is estimated to be valued at US$ 419.79 Mn in 2024 and is expected to exhibit a CAGR of 26% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increased deployment of edge data centers to support 5G networks and IoT applications is a major trend fueling demand for space and energy-efficient liquid immersion cooling solutions. As more data traffic shifts to the edge of networks with the proliferation of hyperscale cloud providers, edge facilities play a vital role. Liquid immersion cooling is well-suited for optimizing the density and reliability of edge data centers in space-constrained urban environments. Several major data center operators are trialing liquid immersion cooling techniques to scale up edge infrastructure in a sustainable way. Its advantages over air cooling are expected to see wider adoption at the network edge over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the data center liquid immersion cooling market is moderate. High initial capital investment is required for infrastructure setup and technological expertise. Existing players have strong brand presence and supply contracts with datacenter operators.
Bargaining power of buyers: The bargaining power of buyers in the data center liquid immersion cooling market is high. Buyers have a variety of options and demand customized solutions. They can negotiate on pricing and service parameters.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to differentiated components and expertise required. However, established suppliers have significant influence on pricing and supply agreements.
Threat of new substitutes: Substitutes threat is low to medium as liquid immersion cooling provides effective thermal management solution compared to tradition air-based cooling. However, free cooling solutions offer cost-effective alternative.
Competitive rivalry: The competitive rivalry is high due to presence of numerous global and regional players. Companies compete on product performance, pricing, certifications, and aftersales services to gain market share.
Key Takeaways
The global data center liquid immersion cooling market is expected to witness high growth over the forecast period. The global Data Center Liquid Immersion Cooling Market is estimated to be valued at US$ 419.79 Mn in 2024 and is expected to exhibit a CAGR of 26% over the forecast period 2024-2031.
North America region currently dominates the market attributed to high concentration of data centers in the US. Growing hyperscale deployment and focus on low power consumption is fueling regional market growth.
Key players operating in the data center liquid immersion cooling market include 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. Companies are investing in developing advanced solutions with increased cooling capacity and efficiency. Strategic partnerships are helping players to strengthen global footprint andcustomer base.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
