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Immersion Cooling Market

The market for Immersion Cooling was estimated at $860 million in 2025; it is anticipated to increase to $2.43 billion by 2030, with projections indicating growth to around $6.87 billion by 2035.

Report ID:DS2405028
Author:Chandra Mohan - Sr. Industry Consultant
Published Date:
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Energy & Power
Battery
Immersion Cooling
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Market Data
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Table of Contents

Global Immersion Cooling Market Outlook

Revenue, 2025

$860M

Forecast, 2035

$6.87B

CAGR, 2026 - 2035

23.1%

The Immersion Cooling industry revenue is expected to be around $859.5 million in 2026 and expected to showcase growth with 23.1% CAGR between 2026 and 2035. This anticipated expansion positions Immersion Cooling as a core pillar of next-generation data center cooling and thermal management solutions, as enterprises seek to curb energy consumption, support data center sustainability, and manage escalating heat loads from AI, cloud, and edge computing deployments. Demand is particularly strong in high-performance computing and cryptocurrency mining, which together account for 65.1% of market applications, while the single-phase cooling technique has emerged as the dominant configuration with $587.05 million in industry revenue in 2025, underscoring the technology’s maturity, reliability, and suitability for large-scale, mission-critical environments.

Immersion Cooling is an advanced liquid cooling system in which high-density servers and IT hardware are fully or partially submerged in engineered liquid dielectric fluids, enabling superior heat transfer, reduced reliance on mechanical air cooling, and significantly improved energy efficiency compared with traditional methods. Its key features include uniform thermal management across components, compact system design enabling higher rack densities, reduced noise and mechanical complexity, and enhanced equipment lifespan, making it ideal for high-performance computing clusters, enterprise and hyperscale data centers, cryptocurrency mining farms, AI and GPU-intensive workloads, and emerging edge computing sites; recent trends such as stricter environmental regulations, rising electricity prices, and the push toward greener, more sustainable digital infrastructure are accelerating adoption of single-phase and advanced Immersion Cooling architectures across global markets.

Immersion Cooling market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2025-2035
Immersion Cooling Market Outlook

Market Key Insights

  • The Immersion Cooling market is projected to grow from $859.5 million in 2025 to $6.87 billion in 2035. This represents a CAGR of 23.1%, reflecting rising demand across High-performance Computing (HPC), Edge Computing, and Cryptocurrency Mining.

  • Green Revolution Cooling Inc., LiquidStack Holding B.V., and Submer are among the leading players in this market, shaping its competitive landscape.

  • U.S. and China are the top markets within the Immersion Cooling market and are expected to observe the growth CAGR of 22.2% to 32.3% between 2025 and 2030.

  • Emerging markets including Brazil, South Africa and Indonesia are expected to observe highest growth with CAGR ranging between 17.3% to 24.0%.

  • Transition like Emergence of High-Performance Computing is expected to add $362 million to the Immersion Cooling market growth by 2030.

  • The Immersion Cooling market is set to add $6.0 billion between 2025 and 2035, with manufacturer targeting Edge Computing & Cryptocurrency Mining Application projected to gain a larger market share.

  • With

    rising demand for high-density data centers and energy-efficient cooling solutions, and

    Expansion of Cryptocurrency Mining Operations Fueling Immersion Cooling Adoption, Immersion Cooling market to expand 699% between 2025 and 2035.

immersion cooling market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Immersion Cooling - Country Share Analysis

Opportunities in the Immersion Cooling

AI-Intensive hyperscale operators in the United States are accelerating data center immersion cooling adoption to manage exploding rack densities and energy costs. Single-phase immersion cooling for AI server cooling is also poised for the fastest uptake, supported by global revenue rising from $587.05 million in 2025 to $1573.67 million by 2030 at 21.8% CAGR. Untapped opportunity lies in retrofitting legacy high-density data centers with modular liquid cooling systems through collaborations between cloud providers, chip manufacturers, and facility engineering firms to deliver green data center solutions.

Growth Opportunities in North America and Asia-Pacific

In North America, Immersion Cooling adoption is primarily driven by high-performance computing and AI data centers that are pushing rack densities beyond the practical limits of traditional data center cooling. Top opportunities include deploying liquid immersion cooling in new AI training clusters, high-frequency trading infrastructures, and government research facilities where reliability, deterministic performance, and advanced thermal management solutions are strategic priorities. Additional upside exists in retrofitting legacy colocation sites with single-phase and two-phase immersion cooling pods to unlock higher power densities without major building upgrades. Competition is intensifying as specialist immersion system OEMs, dielectric fluid providers, and large data center integrators expand their portfolios, prompting differentiation through turnkey engineering, compliance services, and long-term performance guarantees. Key regional drivers include tightening energy-efficiency standards, pressure to deliver sustainable data centers, limited power availability in key metro areas, and the need to minimize cooling-related operating expenses for AI, edge computing, and other compute-intensive workloads.
In Asia-Pacific, Immersion Cooling is gaining momentum across edge computing, AI data centers, and cryptocurrency mining, especially in markets facing high ambient temperatures and constrained urban power grids. Top opportunities center on standardised, modular liquid immersion cooling systems for new hyperscale facilities in major cloud hubs, as well as compact immersion tanks for 5G edge nodes colocated with telecom infrastructure. There is also strong potential in cost-sensitive cryptocurrency mining clusters and industrial AI deployments where energy-efficient cooling and space optimisation are critical. Competition features a mix of established global immersion suppliers and aggressive regional manufacturers that leverage local production, fluid blending, and integration capabilities, increasing price pressure but accelerating ecosystem maturity. Key growth drivers include rapid digitisation, government-backed investments in data center infrastructure, escalating electricity and land costs in tier-1 cities, and corporate mandates for sustainable data centers that reduce water use while delivering higher density than air-based data center cooling.

Market Dynamics and Supply Chain

01

Driver: Rising Demand for High-Density Data Centers and Energy-Efficient Cooling Solutions

The growing adoption of high-density data centers is also a primary driver for immersion cooling technology. As HPC, AI, and cloud computing workloads increase, servers generate higher heat per rack, challenging conventional air-cooling systems. Immersion cooling, particularly single-phase and two-phase dielectric fluid systems, efficiently dissipates heat while supporting compact server layouts. Simultaneously, the push for energy-efficient cooling solutions is also accelerating adoption. Traditional air-conditioning consumes significant electricity and adds operational costs. By submerging IT hardware in dielectric fluids, immersion cooling reduces power usage effectiveness, lowers energy expenses, and enhances hardware longevity. Together, the trends of rising compute density and sustainability goals are also driving demand for immersion cooling in data centers, edge facilities, and cryptocurrency mining operations, enabling reliable high-performance computing while reducing environmental impact and operational expenditure.
Rapid growth in cryptocurrency mining is also significantly boosting the immersion cooling market. Mining rigs, especially high-performance ASICs and GPUs, produce extreme heat that conventional air-cooling cannot efficiently handle. Immersion cooling allows miners to maintain peak hash rates continuously, improves energy efficiency, and prevents hardware degradation. Dielectric fluid systems enable large-scale mining farms to operate sustainably, reduce electricity costs, and extend hardware lifespan. As miners seek higher ROI and reliable continuous operations, immersion cooling has also become a critical solution for scaling cryptocurrency mining while optimizing energy consumption and ensuring consistent performance.
02

Restraint: High Initial Deployment Costs and Complex System Integration Limit Immersion Cooling Adoption

One major restraint for the immersion cooling market is the high initial cost and complexity of integrating these systems into existing IT infrastructure. Deploying immersion cooling requires specialized tanks, dielectric fluids, retrofitting server hardware, and skilled engineering support. For example, HPC and edge data centers often delay adoption because the upfront capital investment can be two to three times higher than traditional air cooling solutions, even though operational savings are later. These barriers slow decision‑making for budget‑constrained organizations, reduce short‑term revenue growth for immersion vendors, and limit deployment primarily to premium or high‑density use cases instead of broader commercial adoption.
03

Opportunity: Two-Phase Immersion Cooling for Cryptocurrency Mining Farms in Canada and Immersion Cooling for Edge Computing and 5G Micro Data Centers in India

Large-scale cryptocurrency mining farms in Canada represent a high-growth niche for two-phase immersion cooling, driven by abundant renewable power and stricter efficiency regulations. Globally, two-phase immersion cooling revenue is projected to increase from $272.47 million in 2025 to $856.00 million by 2030, reflecting a 25.73% CAGR. Miners can unlock untapped profitability by replacing air systems with advanced cryptocurrency mining cooling tanks that enable higher hash density, sustainable thermal management, and quieter operations, especially in cold regions where waste heat can be monetized for nearby facilities.
Immersion cooling for edge computing and 5G micro data centers in India will expand rapidly as operators densify points of presence in hot urban climates. Compact single-phase immersion cooling cabinets offer superior reliability versus air-cooled racks, particularly for latency-sensitive workloads at cell towers and metro aggregation sites. This segment remains underpenetrated despite strong global momentum in data center immersion cooling, presenting room for localized manufacturing, telecom–OEM partnerships, and standardized edge computing infrastructure designs tailored to constrained footprints, inconsistent power quality, and aggressive uptime requirements.
04

Challenge: Limited Industry Standards and Technical Expertise Constrain Market Growth and Scalability

A significant challenge for immersion cooling expansion is the lack of unified industry standards and a shortage of technical expertise. With multiple fluid chemistries, enclosure designs, and cooling architectures available, data center operators can face uncertainty about long‑term performance, maintenance requirements, and interoperability. For instance, some organizations hesitate to adopt two‑phase systems due to unclear reliability benchmarks and limited field support experience. This skill gap increases deployment risk, elongates sales cycles, and deters smaller facilities from adopting immersion cooling, dampening overall demand and slowing market momentum.

Supply Chain Landscape

1

Thermal Fluids Supply

3MExxonMobilEngineered Fluids
2

Liquid Immersion Cooling

Green Revolution Cooling Inc.LiquidStack Holding B.V.Submer
3

Thermal Management Integration

AsperitasMidas Immersion CoolingSchneider Electric
4

End-User Applications

Crypto mining immersion coolingEdge data center coolingHigh-density computing facilities
Immersion Cooling - Supply Chain

Use Cases of Immersion Cooling in High-performance Computing (HPC) & Cryptocurrency Mining

High-performance Computing (HPC) : Immersion cooling is increasingly adopted in high-performance computing environments to manage the extreme heat generated by dense server clusters. Two-phase and single-phase dielectric immersion cooling systems are commonly used for HPC data centers because they provide efficient heat dissipation while maintaining optimal operating temperatures. HPC operators benefit from enhanced computational performance, reduced energy consumption, and lower cooling infrastructure costs. By fully submerging server components in dielectric fluids, immersion cooling minimizes hotspots and allows processors and GPUs to operate at higher frequencies without thermal throttling, enabling faster simulations, advanced AI computations, and large-scale scientific research applications.
Edge Computing : Edge computing facilities are integrating immersion cooling solutions to efficiently handle growing workloads near data sources. Single-phase dielectric immersion cooling is preferred in edge data centers due to its simplicity, reliability, and reduced maintenance requirements. Edge operators benefit from compact, high-density cooling that ensures stable performance even in constrained spaces, such as urban micro data centers or industrial facilities. This technology reduces noise, eliminates air-conditioning dependence, and improves energy efficiency, supporting real-time processing, IoT applications, and latency-sensitive operations without sacrificing system reliability, while allowing flexible deployment in geographically distributed environments.
Cryptocurrency Mining : Immersion cooling has become a key enabler for cryptocurrency mining operations, helping miners manage the substantial heat output of high-density ASIC and GPU rigs. Both single-phase and two-phase dielectric fluids are used depending on scale and cost considerations. Miners benefit from improved energy efficiency, reduced hardware degradation, and the ability to maintain peak hash rates continuously. Immersion cooling also lowers operational expenses by cutting the need for traditional air-conditioning systems and reducing electricity consumption. This allows mining farms to expand sustainably, maintain consistent performance, and achieve higher ROI while supporting large-scale, high-throughput cryptocurrency mining operations.

Recent Developments

The immersion cooling market is gaining traction as data centers, high‑performance computing, and cryptocurrency mining farms seek more efficient thermal management solutions to handle rising power densities and reduce energy consumption. A key trend is the shift toward two‑phase dielectric cooling and modular, scalable systems that improve heat dissipation and lower operational costs. Adoption of liquid cooling infrastructure and real‑time monitoring technologies supports sustainability goals and enhances data center efficiency and hardware longevity in diverse compute environments.

November 2025 : Vertiv Group Corp. expanded its liquid cooling portfolio with the introduction of the Vertiv CoolCenter Immersion system, offering scalable immersion cooling for AI and HPC applications across Europe, the Middle East, and Africa in capacities from 25 kW to 240 kW, supporting high‑density compute environments.
March 2025 : LiquidStack Holding B.V. opened a second manufacturing facility in Carrollton, Texas, expanding production capacity and adding R&D and training capabilities to address strong global demand for immersion cooling systems, particularly driven by AI workloads. This expansion supports meeting larger contracts and faster delivery for hyperscale and enterprise customers.

Impact of Industry Transitions on the Immersion Cooling Market

As a core segment of the Battery industry, the Immersion Cooling market develops in line with broader industry shifts. Over recent years, transitions such as Emergence of High-Performance Computing and Rise of Cryptocurrency Mining have redefined priorities across the Battery sector, influencing how the Immersion Cooling market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Emergence of High-Performance Computing

The emergence of high-performance computing (HPC) is reshaping the Immersion Cooling market from a niche efficiency play into a core enabler of scalable computing, with this transition alone projected to add USD 362 million to market growth by 2030. As HPC data centers in scientific research, quantitative finance, and climate and weather modeling push power densities higher, Immersion Cooling delivers superior thermal management, lowering energy consumption, boosting compute performance, and extending server lifespan versus traditional air-based data center cooling. These benefits are accelerating the shift toward liquid cooling systems as a strategic investment in energy-efficient infrastructure, positioning Immersion Cooling technologies as a critical foundation for next-generation workloads including AI, advanced simulation, and real-time analytics, and structurally elevating long-term demand across HPC-dependent industries.
02

Rise of Cryptocurrency Mining

The rapid growth of cryptocurrency mining has significantly influenced the adoption of immersion cooling technology. High-density ASIC and GPU mining rigs generate immense heat, which traditional air-cooling methods struggle to manage efficiently. Immersion cooling, using single-phase or two-phase dielectric fluids, allows miners to maintain optimal operating temperatures, prevent hardware degradation, and sustain continuous high-performance operations. This transition has impacted related industries such as data center design, power management, and thermal engineering, driving innovation in high-efficiency cooling solutions. Mining farms can now expand capacity with reduced energy costs, while manufacturers of dielectric fluids and immersion tanks have seen increased demand, highlighting the broader ecosystem benefits of this technology.