Data Center Immersion Cooling Market Revenue to Attain USD 7.17 Bn by 2033
26 Sep 2025
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Data Center Immersion Cooling Market Revenue and Trends 2025 to 2033
The global data center immersion cooling market revenue reached USD 1.81 billion in 2025 and is predicted to attain around USD 7.17 billion by 2033 with a CAGR of 18.81%.
Data Center Immersion Cooling Market Industry Outlook: Key Drivers & Opportunities
On-premise data centers are becoming an expensive concern for many businesses worldwide due to the increasing volume of data produced by AI, big data analytics, and the Internet of Things (IoT). Consequently, most companies have begun transitioning to cloud storage for their data via service providers like Microsoft Azure, Amazon Web Services, and Google. Worldwide, the rising count of data centers will enhance the market share for data center cooling in the upcoming years. The possible application of immersion cooling outside of data centers, including cryptocurrency mining and electric vehicle battery uses, presents additional market growth possibilities.
Segmental Insights
By product/cooling technology, single-phase immersion segment led the market in 2024, due to its cost-effectiveness, operational simplicity, and ease of integration into existing infrastructures.
By deployment/form factor, rack-level / in-rack tanks segment dominated the market, because it directly addresses the rising heat loads from dense, AI/ML-driven computing by placing the cooling system close to the heat source within the same physical rack.
By cooling fluid, mineral oil / hydrocarbon-based fluids segment held the largest share in 2024, due to their cost-effectiveness, optimal heat dissipation, dielectric properties that prevent short circuits, and proven material compatibility with existing infrastructure.
By application, High-Performance Computing (HPC) / AI and related high-density workloads segment dominated the market. AI, machine learning, and HPC workloads require immense computational power, leading to significantly higher power consumption and heat generation compared to traditional applications.
By power density, medium–high (10–100 kW/rack) deployments segment led the market, driven by the increasing power demands of AI and HPC workloads which exceed air cooling capabilities, requiring efficient liquid cooling solutions.
By business model, OEM direct sales + system integrator retrofits segment dominated the market, because high-density computing for AI/ML requires advanced, efficient cooling solutions that air cooling cannot provide.
Regional Insights
North America dominated the market in 2024. The region’s robust IT and telecommunications infrastructure, along with growing competition among technology firms to offer innovative solutions to clients, has resulted in the extensive use of high-performance computing systems. This has increased the demand for more efficient and sustainable cooling methods in data centers.
The Asia Pacific immersion cooling sector is set for swift expansion, propelled by the increasing need for data centers resulting from digital transformation, 5G, cloud computing, and artificial intelligence. Major factors consist of governmental initiatives supporting digital infrastructure and eco-friendly technologies, especially in nations such as India, Japan, and China.
Data Center Immersion Cooling Market Coverage
Report Attribute
Key Statistics
Market Revenue in 2025
USD 1.81 BIllion
Market Revenue by 2033
USD 7.17 BIllion
CAGR from 2025 to 2033
18.81%
Quantitative Units
Revenue in USD million/billion, Volume in units
Largest Market
North America
Base Year
2024
Regions Covered
North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa
In April 2025, Oleon, a subsidiary of Avril and a global leader in natural-based oleochemicals, is proud to announce the launch of Qloe, a pioneering brand dedicated to revolutionizing data center cooling solutions through immersion cooling. These biobased immersion cooling fluids offer a groundbreaking solution to growing data consumption challenges. (Source: https://www.datacenterdynamics.com)
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