The global immersion cooling market size was estimated at USD 286.8 million in 2024 and is projected to reach USD 1,006.6 million by 2030, growing at a CAGR of 23.6% from 2025 to 2030. One of the key factors driving this rapid growth is the establishment of data centers worldwide, a trend accelerated by the increasing adoption of artificial intelligence (AI) tools across industries. Data centers are among the most energy-intensive facilities, with cooling and computing systems accounting for the bulk of their consumption, and immersion cooling has emerged as an efficient alternative to tackle these operational challenges.

Compared to conventional air-based cooling technologies, immersion cooling systems can reduce energy consumption by nearly 50%, making them a highly attractive option for operators seeking to lower costs and meet environmental standards. In response to global concerns around energy efficiency and sustainability, governments across multiple regions are implementing regulatory policies and efficiency mandates targeting data center operations. This regulatory push is compelling facility owners to adopt advanced solutions like immersion cooling in order to comply with evolving standards while maintaining high performance.

Traditionally, immersion cooling (or liquid submersion cooling) has been applied in cooling power distribution components, such as transformers. However, in recent years, its scope of application has broadened significantly. The rise of big data, 5G, AI, cloud computing, and the Internet of Things (IoT), combined with the establishment of large-scale, innovative data centers, has created a greater need for high-performance, energy-efficient cooling methods. The constant surge in demand for computational power, particularly with the growing reliance on cloud services and edge computing, has further emphasized the importance of immersion cooling as an enabling technology for next-generation digital infrastructure.

According to the International Energy Agency (IEA), global data centers consumed 460 Terawatt hours (TWh) of electricity in 2022, with consumption expected to rise dramatically to 1,000 TWh by 2026. Cooling and computing remain the most energy-intensive processes in these facilities, and the increasing deployment of resource-intensive graphics processing units (GPUs) for AI and high-performance computing is likely to sustain these high energy requirements in the future. Consequently, the demand for immersion cooling solutions is expanding at an accelerated pace. Data center operators are also exploring heat reuse strategies and advanced cooling technologies to maximize efficiency, underscoring the role of immersion cooling in meeting the growing energy and performance demands of the digital era.

Key Market Trends & Insights:

• The North America immersion cooling market emerged as the leading regional contributor, accounting for a global revenue share of 35.4% in 2024. Within the region, the U.S. dominated the market, holding a substantial portion of the revenue due to its well-established data center infrastructure, high adoption of advanced technologies, and growing investments in artificial intelligence and high-performance computing applications.

• By product type, the single-phase immersion cooling segment accounted for the largest revenue share of 70.6% in the global market in 2024. This dominance can be attributed to the cost-effectiveness, operational simplicity, and reliability of single-phase systems, which make them a preferred choice for data center operators.

• In terms of application, the high-performance computing (HPC) segment led the market in 2024, contributing the largest revenue share. The growing need for efficient cooling in handling massive computational workloads, particularly in sectors like AI, machine learning, and scientific research, has been a significant driver behind the adoption of immersion cooling in HPC environments.

• By cooling liquid, the mineral oil segment accounted for the leading revenue share in 2024. Its wide availability, cost-effectiveness, and proven effectiveness in heat management have made mineral oil the most widely adopted cooling liquid across immersion cooling systems.

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Market Size & Forecast:

• 2024 Market Size: USD 286.8 Million

• 2030 Projected Market Size: USD 1,006.6 Million

• CAGR (2025-2030): 23.6%

• North America: Largest market in 2024

• Asia Pacific: Fastest growing market

Key Companies & Market Share Insights:

Some of the major companies operating in the global immersion cooling industry include DUG Technology, Submer, and Midas Immersion Cooling, along with several other emerging players contributing to the market’s expansion.

Submer, headquartered in Barcelona, Spain, is a leading innovator specializing in the development of advanced immersion cooling solutions tailored for data centers and IT infrastructure. Over the past decade, the company has launched several significant products, such as the SmartPod modular immersion cooling system, designed for large-scale data centers, and the MicroPod solution, which specifically addresses the requirements of edge computing applications. To strengthen its production capabilities and global presence, Submer inaugurated a gigafactory in Houston, Texas, in March 2022. This facility has enabled the company to fulfill orders of up to one gigawatt annually, highlighting its ability to serve large-scale customer demand while supporting the growing need for energy-efficient data center cooling.

Midas Immersion Cooling, based in Texas, U.S., is another prominent player in the industry, focusing on immersion cooling technologies designed for both data centers and Bitcoin mining operations. The company has gained recognition for its flagship product, the Midas XCI Immersion Cooling system, which is reported to deliver significant efficiency improvements. According to the company, the system reduces total power consumption by more than 40%, lowers capital expenditure by 50%, and provides space savings of around 60% compared to traditional air cooling methods. In addition, Midas offers a diverse range of tank solutions that cater to varying operational needs. Its portfolio includes the 12U Midas XCI Mini Tank, the 50U Midas XCI Tank, the Midas ASICE 2.0 Tank specifically designed for ASIC mining, and the Midas XCI Containerized Data Center, which supports scalable and flexible deployment models.

Through continuous innovation and specialized product offerings, these companies are playing a pivotal role in driving the adoption of immersion cooling technologies and advancing the market’s transition toward more efficient, cost-effective, and sustainable data center solutions.

Key Players

• Fujitsu

• DUG Technology

• Green Revolution Cooling, Inc.

• Submer

• LiquidStack Holding B.V.

• Midas Immersion Cooling

• Aecorsis BV

• DCX POLSKA SP. Z O.O.

• LiquidCool Solutions

• STULZ GMBH

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Conclusion:

The global immersion cooling market is experiencing significant growth, driven by the increasing demand for energy-efficient cooling solutions in data centers and high-performance computing applications. This growth is primarily attributed to the rising energy consumption associated with traditional cooling methods and the need for more sustainable alternatives. Immersion cooling offers advantages such as reduced energy usage, smaller physical footprints, and enhanced thermal management. North America currently leads the market, while the Asia Pacific region is expected to witness the fastest growth due to expanding data center infrastructure and technological advancements.