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The data center liquid immersion cooling market provides energy efficient solutions for managing heat load in data centers through submerging servers, networking equipment, and other hardware in a thermally conductive dielectric coolant such as mineral oil or fluorocarbon liquid. This helps remove heat from the electronics and transfer it to the coolant more effectively compared to air cooling.
The global data center liquid immersion cooling market is estimated to be valued at US$ 419.8 Mn in 2024 and is expected to exhibit a CAGR of 26% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the data center liquid immersion cooling market are Alfalava, Asetek, CoolIT Systems, Green Data Center LLP, Green Revolution Cooling Inc., Horizon Computing Solutions, IBM Corporation, Midas Green Technologies, LLC, Rittal GmbH and Co. Kg., and Schneider Electric SE. Major data center operators are opting for liquid immersion cooling solutions to reduce power consumption for cooling by 40%-60% compared to traditional air cooling methods.
The Data Center Liquid Immersion Cooling Market Size And Trends during the forecast period. With rising deployment ofhyper-scale data centers globally, liquid immersion cooling vendors are also expanding their presence across North America, Europe, APAC and other regions.
Market key trends
One of Data Center Liquid Immersion Cooling Market Size is the adoption of direct-to-chip liquid cooling solutions. These solutions involve direct immersion of chips in cooling liquid without any bulky heat sinks. This maximizes heat transfer rate and compaction ratio, allowing deployment of more computation power in less space. Server manufacturers are actively working on direct liquid cooling interface development through advanced nanotube and microchannel technologies on chips. This can help improve efficiencies of immersion-cooled systems significantly over the next few years.
Porter's Analysis
Threat of new entrants: New players may find difficulties in entering this market due to high infrastructural and technological investments required.
Bargaining power of buyers: Buyers have moderate bargaining power given several solution providers in the market offering differentiated technology solutions.
Bargaining power of suppliers: Suppliers have low bargaining power as solution providers source components from multiple component makers.
Threat of new substitutes: Threat of substitution is low as data center liquid immersion cooling is more efficient than conventional air cooling systems.
Competitive rivalry: Intense competition exists among key solution providers to gain higher market share through technological innovation.
Geographical Regions
North America region accounts for the largest market share in terms of value as many large data centers are located in the US. Countries like the US and Canada have adopted liquid immersion cooling at a rapid pace to handle increasing data center workload.
Asia Pacific region is expected to grow at the fastest CAGR during the forecast period owing to increasing construction of hyperscale data centers and rising demand for cost-effective cooling in the region. Countries like China, India are expected to boost the APAC market.
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