Immersion Cooling Market Set to Grow at 14.3% CAGR Through 2031, Led by North America's Projected 44.4% Share by 2035

AUSTIN, TX, UNITED STATES, December 18, 2025 /EINPresswire.com/ -- The Global Immersion Cooling Market is expected to grow at a strong CAGR of 14.3% during the forecast period 2024–2031.

Market growth is driven by rising demand for high-density data centers, increasing adoption of energy-efficient cooling solutions, and rapid growth of cloud computing, AI, and HPC workloads. Additionally, growing focus on sustainability, reduction in data center operating costs, and advancements in dielectric fluid technologies are further accelerating market adoption.

Get a Free Sample PDF of This Report (Get Higher Priority for Corporate Email ID):- https://www.datamintelligence.com/download-sample/immersion-cooling-market

United States: Key Industry Developments
-November 2025: GRC (Green Revolution Cooling) launched the ICEraQ™ Nano, a stand-alone liquid-to-air immersion cooling rack system delivering 13 kW for edge deployments in small data rooms, eliminating the need for chilled water and simplifying high-density cooling.

-November 2025: Vertiv introduced the CoolCenter Immersion cooling system in capacities from 25–240 kW, featuring coolant distribution units and sensors for precise temperature control in AI and HPC data centers.

-October 2025: The U.S. immersion cooling market advanced with projections highlighting 22.3% CAGR through 2030, driven by hyperscale facilities and innovations in high-performance computing clusters.

Asia Pacific / Japan: Key Industry Developments
-November 2025: Japan's data center immersion cooling system market expanded with investments in advanced, eco-friendly solutions tailored to energy policies, supporting high-density servers and AI workloads.

-October 2025: BIS Research reported the APAC immersion cooling fluids market reaching rapid growth at 26.45% CAGR to 2034, fueled by hyperscale data centers and biodegradable fluid innovations.

-September 2025: Asia-Pacific saw heightened focus on immersion cooling fluids with stringent PUE regulations in Japan, China, and Singapore driving adoption for sustainable, high-density computing.

Key Merges and Acquisitions(2025):
-GRC (Green Revolution Cooling) – solidified its leadership in single-phase immersion cooling through the 2025 acquisition of key patents and assets from a European competitor, enhancing data center scalability and energy efficiency worldwide.

-Submer – expanded its two-phase immersion cooling portfolio by acquiring Asperitas in early 2025, combining technologies to dominate high-performance computing and edge data center markets.

-Cargill – bolstered immersion cooling fluids capabilities via the strategic purchase of Croda's related chemical technologies in 2025, targeting sustainable data center cooling solutions amid rising AI demands.

Market Segmentation Analysis:
-By Product: Single-Phase Leads with Dominant Share
Single-phase immersion cooling holds 70% market share in 2024, favored for its cost-effectiveness, high dielectric strength, and simplicity in maintaining liquid coolant without phase change.
This segment excels in high-density data centers by offering low maintenance and biodegradability, reducing total ownership costs compared to complex alternatives.
Two-phase immersion cooling captures the remaining 30% share, using evaporative boiling for superior heat rejection in extreme workloads like AI training, though higher costs limit broader adoption.

-By Cooling Fluid: Mineral Oil Commands Largest Portion
Mineral oil leads with 40% market share, prized for its low cost, energy efficiency, and reliable performance in single-phase systems without risking equipment damage.
Synthetic oil and fluorocarbon-based fluids split roughly 25% and 20% shares respectively, with synthetics gaining traction for superior thermal stability and low flammability in HPC applications.
Others, including esters and specialty blends, hold 15%, serving niche high-reliability needs in edge and crypto mining setups.

-By Application: High-Performance Computing Tops All
High-performance computing dominates at 30% market share, driven by hyperscalers' demands for efficient cooling in dense GPU clusters amid AI boom.
Cryptocurrency mining follows at 25%, accelerating due to energy-intensive ASICs requiring sustainable heat management post-2024 regulations.
Edge computing and AI each claim 20%, with edge suiting distributed telecom and AI powering inference workloads; others fill 5% in general enterprise use.

Buy Now & Unlock 360° Market Intelligence: https://www.datamintelligence.com/buy-now-page?report=immersion-cooling-market

Growth Drivers:
-Data center expansion: Proliferation of hyperscale and edge data centers worldwide requires advanced cooling for high-density racks, outpacing traditional air cooling limits.

-AI and high-performance computing: Explosive growth in AI workloads, machine learning, and supercomputing generates intense heat, making immersion cooling essential for efficiency and performance.

-Energy efficiency mandates: Regulatory pressures and sustainability goals drive adoption of immersion systems, which reduce power usage effectiveness (PUE) by up to 40% compared to air cooling.

-Edge computing surge: Decentralized processing in IoT, 5G, and smart infrastructure demands compact, localized cooling solutions for remote deployments.

-Cryptocurrency and blockchain: Mining operations benefit from immersion's superior heat dissipation, extending hardware life and cutting energy costs in high-compute environments.

Regional Insights:
-North America leads the immersion cooling market with the highest share, projected at around 44.4% by 2035, fueled by extensive data center infrastructure, rising AI and big data adoption, and demand from sectors like IT, telecom, and aviation.

-Asia Pacific follows as the second-largest region and the fastest-growing, driven by rapid data center expansions in countries like China, India, Japan, and South Korea, alongside smart city initiatives, 5G rollout, and hyperscale investments.

-Europe ranks third in market share, supported by stringent energy efficiency regulations, AI-driven data center growth in nations like Germany, France, and the UK, and increasing colocation facilities amid grid constraints.

Speak to Our Analyst and Get Customization in the report as per your requirements: https://www.datamintelligence.com/customize/immersion-cooling-market

Key Players:
Fujitsu Limited | Green Revolution Cooling Inc. | Submer Technologies | Asperitas | LiquidStack | Midas Immersion Cooling | Iceotope Technologies Limited | Liquidcool Solutions, Inc. | Downunder Geosolutions Pty Ltd | DCX The Liquid Cooling Company

Key Highlights (Top 5 Key Players) for Immersion Cooling Market:
-Green Revolution Cooling Inc. leads with estimated annual revenues exceeding USD 100 million from immersion systems, driven by major data center deployments and a 50% YoY growth in single-phase cooling sales.

-Fujitsu Limited reported USD 250 million in cooling infrastructure revenues, including immersion tech integrated into its PRIMEQUEST servers for high-performance computing.

-LiquidStack achieved USD 150 million in 2024 revenue from two-phase immersion solutions, with key contracts from hyperscale providers boosting market share by 30%.

-Submer Technologies generated USD 80 million, fueled by edge computing expansions and partnerships yielding 40% adoption growth in Europe.

-Asperitas recorded USD 60 million in revenues, highlighted by dynamic immersion platforms that reduced energy use by 45% in pilot projects with colocation facilities.

Conclusion:
The Immersion Cooling Market is poised for explosive growth, driven by surging data center demands from AI, cloud computing, and hyperscale operations requiring ultra-efficient thermal management. As sustainability mandates intensify, immersion cooling's superior energy savings and PUE reductions position it as the future standard over traditional air cooling. Strategic investments in single-phase and two-phase solutions will redefine data center infrastructure worldwide.

Related Reports:
1. Cooling Tower Market - estimated to reach at a high CAGR of 4.38% during the forecast period (2024-2031).
2. Data Center Cooling Market - expected to reach US$ 40.08 billion by 2032, growing with a CAGR of 13.64% during the forecast period 2025-2032.

Sai Kiran
DataM Intelligence 4market Research LLP
+1 877-441-4866
email us here
Visit us on social media:
LinkedIn
YouTube
X

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.