The global immersion cooling market is projected to grow from USD 0.29 billion in 2024 to USD 1.48 billion by 2031, at a compound annual growth rate (CAGR) of 22.50%, according to a new report by Verified Market Research. This growth is driven by increasing energy efficiency demands, expanding high-performance computing (HPC) workloads, and sustainability-focused regulatory frameworks.
The report highlights that immersion cooling offers significant reductions in energy use and enhanced thermal performance, particularly in hyperscale data centers, edge computing sites, and blockchain applications. The technology is gaining momentum as organizations seek to meet green energy compliance targets and reduce operational costs.
Key drivers include the growing deployment of AI and machine learning in industries such as oil & gas, healthcare, and aerospace, which require dense, high-heat computing environments. Immersion cooling supports these workloads by eliminating airflow dependence and enabling consistent performance without thermal throttling.
Regulatory mandates, such as Europe's Climate Neutral Data Centre Pact and energy efficiency programs in the United States, are also accelerating adoption. The report notes that immersion cooling can reduce cooling energy usage by over 90%, extend hardware lifespan, and support heat reuse—attributes increasingly important for meeting ESG goals.
However, challenges persist. The report identifies high upfront costs, complex infrastructure retrofits, and a lack of hardware and system standardization as barriers to widespread adoption. Concerns over the reliability and longevity of dielectric fluids, as well as hardware compatibility, further complicate deployment, especially in mission-critical environments.
North America is expected to remain the dominant regional market, supported by early adoption, robust data center infrastructure, and strong government backing for energy-efficient technologies.
The report features profiles of key players including LiquidStack, Fujitsu, Green Revolution Cooling, Submer, Asperitas, Midas Green Technologies, Iceotope Technologies, LiquidCool Solutions, DUG Technology, and DCX.