Immersion Cooling Market Size, Share, and Industry Analysis By Product (Single-phase and Two-phase), By Cooling Liquid (Mineral Oil, Fluorocarbon-based Fluids, Deionized Water, and Others), By Application (High-performance Computing, Edge Computing, Cryptocurrency Mining, Artificial Intelligence, and Others), and Regional Forecast, 2026-2034

The global immersion cooling market size was valued at USD 361.37 million in 2025. The market is projected to grow from USD 447.99 million in 2026 to USD 2498.88 million by 2034, exhibiting a CAGR of 23.97% during the forecast period.

The global immersion cooling market has been growing with increased demand for high-performance computers and artificial intelligence technology, along with sustainable cooling technologies. Immersion cooling introduces electronic components inside a non-conductive liquid for efficient dissipation of heat, thereby increasing data center efficiency.

One of the reasons liquid cooling solutions are becoming popular is that they facilitate the diversion of waste heat for use in other applications. This, however, has become more apparent in North America, where the repurposing of heat has been seeing some significant increase in market growth.

Immersion Cooling Market Driver

AI, Sustainability, And Regulations Drive Market Growth

The incrementation of AI and high-density computing has stimulated the adoption of immersion cooling; immersion cooling operates effectively in heat management and improves server performance. Sustainability issues likewise bring operators toward energy-efficient cooling, whereby immersion cooling is able to cut energy consumption by as much as 50% against air cooling. With regulatory support for energy-efficient data centers, the market growth is further propelled.

Immersion Cooling Market Restraint

Supply Chains, Costs, And Standards Hinder Market Growth

While immersion cooling's benefits are numerous, various obstacles remain. Procuring specialized parts gets complicated by supply chain issues, potentially resulting in delays and price hikes. Additionally, the lack of universal standards creates concerns around combining diverse products, making the unification of distinct systems problematic. Costs for the immersion approach are also steep up front. Though savings accrue eventually, the preliminary expenses can discourage smaller and medium businesses from adopting the technology, especially given the current economic turbulence. Further educational initiatives and financing options may help boost adoption levels in the long run.

Immersion Cooling Market Opportunity

Market Growth Driven By Edge Computing And Cooling Innovations

The compelling growth trajectories for edge computing have come in scenarios where space and cooling efficiency are of the utmost importance. Market growth may also be fostered by industry-purpose-built immersion cooling solutions catered for telecom, healthcare, and finance. Added to this, innovations in the cooling fluid technology will also contribute to efficiency and costing factors, thus rendering immersion cooling more affordable.

Key Insights

The report covers the following key insights:

• Data Center Expansion Trends, By Key Regions
• Drivers, Restraints, Trends, and Opportunities
• Energy Efficiency Regulations and Sustainability Initiatives, By Key Countries
• Consolidated SWOT Analysis of Key Players
• Key Industry Developments (Mergers, Acquisitions, Partnerships)
• Overview: Regulatory and Compliance Landscape

Segmentation

Analysis by Product

By product, the market is divided into single-phase and two-phase.

The single-phase immersion cooling is expected to capture the immersion cooling market space owing to its cost-effectiveness and simpler implementation. It transfers heat well using a dielectric liquid without requiring complex infrastructure, making it more effective for high-computational workload data centers. Besides, the rising data center cooling market in Europe is going to add significant growth opportunities for this segment.

On the other hand, two-phase Immersion Cooling is projected to exhibit significant growth owing to its high thermal efficiency and less energy usage. It uses a phase-changing dielectric fluid to improve cooling, making this segment ideal for AI and machine learning-aided advanced applications.

Analysis by Cooling Liquid

By cooling liquid, the market is divided into mineral oil, fluorocarbon-based fluids, deionized water, and others.

Mineral Oil based cooling is set to dominate the Immersion Cooling Market, thanks to its economic viability and heat-dissipating capabilities. Its use is, therefore, popular in data centers and high-performance computing applications, where thermal management is an important concern.

Fluorocarbon based fluids are seen to grow significantly, primarily due to their chemical stability and very good heat transfer skills. These fluids are especially suited for extreme working conditions in high-performance computing, where temperature control must be exact.

Analysis by Application

By application, the market is divided into high-performance computing, edge computing, cryptocurrency mining, artificial intelligence, and others.

High-Performance Computing (HPC) is expected to be an important segment of the existing Immersion Cooling Market, mainly taking up energy-saving techniques to cool AI workloads. The North American market shows the demand for optimized solutions regarding climate control associated with high-performance computing applications.

The Edge Computing segment is anticipated to expand tremendously, considering its growing application in decentralized and far-flung operations. Immersion cooling's low footprint and effectiveness are sufficient to demonstrate that it is extremely specialized to facilitate cramped thermal management applications in edge data centers.

Regional Analysis

Based on geography, the market has been studied across North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.

North America would continue leading the immersion cooling market as an increased focus on sustainability and increased efficiency of data centers. Additional investments by major tech firms regarding liquid-cool infrastructure further accelerate market growth.

In the meantime, however, Europe is significantly increasing its market in Immersion Cooling through stringent energy efficiency regulations and sustainability commitments. Already, these data centers are somehow speeding towards implementing immersion cooling in their facilities. This regulatory push has been observed at the scale of the continent.

Asia Pacific, however, is proving to be a key area for expansion along with accelerated digitalization and growing data center infrastructure within the region, particularly in nations such as China and India that are leaders in this context. Asia Pacific presently has around 788 data centers, according to Data Center Map, and this figure keeps on rising, proving to be an increasingly crucial aspect for the processing of international data.

Key Players Covered

The report includes the profiles of the following key players:

• Fujitsu (Japan)
• DUG Technology (Australia)
• Green Revolution Cooling (U.S.)
• Submer (Spain)
• LiquidStack Holding B.V. (Netherlands)
• Midas Immersion Cooling (U.S.)
• DCX POLSKA SP. Z O.O. (Poland)
• LiquidCool Solutions (U.S.)
• STULZ GMBH (Germany)
• UNICOM Engineering Inc. (U.S.)

Key Industry Developments

• In October 2024, Foxconn, which entered into a partnership with Nvidia, began manufacturing the GB200 Series AI servers in Taiwan and Mexico using their advanced liquid cooling systems. The main objective for this collaboration is to improve data center efficiency and grade the scalability of AI and cloud applications within high-performance computing demands.
• In August 2024, Nvidia showcased the next GB200 racks for servers, specifically designed with liquid cooling technology to confront the increasing power demand and cooling inefficiencies encountered in data centers. In so doing, energy efficiency is intended to be improved, and at the same time, it will enhance computing quality via the medium of artificial intelligence driving the transition toward immersion cooling.
• Between June and July 2024, Super Micro Computer installed over 1,000 units of AI liquid cooling racks, which represents an amount exceeding 15% of the newly installed global data centers during the period. This mass deployment is an indication that systems are increasingly being adopted for AI architecture installation under liquid cooling.