The data center liquid immersion cooling market involves submerging servers, networking equipment, and other hardware in a non-conductive liquid such as fluorocarbon liquid or synthetic hydrocarbon oil to remove heat more effectively than air cooling. This reduces energy consumption significantly as the liquid medium has higher heat transfer properties than air. It also lowers failure rates and costs associated with hardware maintenance as components are not exposed to particulate build-up. With growing data volumes and increased computing power needs, large colocation firms and cloud service providers are adopting liquid immersion cooling systems in their mega data centers to boost energy efficiency. The global data center liquid immersion cooling Market is estimated to be valued at US$ 167.07 Mn in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The increasing need for eco-friendly cooling solutions is expected to drive the growth of the data center liquid immersion cooling market over the forecast period. Immersion cooling minimizes energy consumption substantially by using a liquid-based thermal exchange medium instead of fans and chillers for cooling servers. This improves Power Usage Effectiveness (PUE) which is a key metric for measuring data center efficiency. With growing environmental regulations to curb carbon emissions from enterprise IT infrastructure, liquid immersion cooling is gaining traction among cloud and colocation service providers. Additionally, the reduced maintenance costs associated with this cooling approach also promotes its adoption. However, high initial capital investments remain a hurdle, though total lifetime costs are lower than traditional air-cooled systems. Nevertheless, growing research into less expensive fluorocarbon liquid alternatives can help address this challenge.
Segment Analysis
Data Center Liquid Immersion Cooling Market is dominated by single-phase immersion cooling sub-segment. It currently occupies around 60-65% share owing to its simpler design and ability to handle moderate heat load. However, two-phase immersion cooling adoption is expected to gain traction given its higher heat dissipation capacity required for supporting high performance computing workloads.
PEST Analysis
Political: There are no significant political risks affecting the market currently. However, policies around data protection, right to repair, and environmental sustainability can potentially influence the adoption of immersion cooling technology.
Economic: Inflationary pressure and rising energy costs are prompting data center operators to adopt more energy efficient cooling solutions like liquid immersion. The total cost of ownership over the solution’s lifetime also drives its demand.
Social: Growing digitalization, cloud computing, and AI needs are generating more heat in data centers. This is raising awareness around sustainable and eco-friendly cooling methods. Customer preference for sustainable sourcing and operations also motivate vendors.
Technological: Advances in immersion-compatible components, refrigerants, and sealants help overcome past engineering challenges. Improved material science enhances reliability and lifespan. Standardization efforts can further reduce installation and maintenance costs.
Key Takeaways
The Global Data Center Liquid Immersion Cooling Market Demad is expected to witness high growth over the forecast period supported by the need for sustainable and energy efficient cooling of modern hyperscale data centers.
Regional Analysis: North America currently dominates owing to early commercialization and significant enterprise deployments. The region is however expected to see fastest growth in APAC over the coming years led by China, owing to policy pushes for localized data storage and widespread data center construction.
Key players operating in the Data Center Liquid Immersion Cooling Market are Novo Nordisk A/S, Eli Lilly and Company, Sanofi S.A., Julphar Gulf Pharmaceutical Industries, Biocon Limited, Bioton S.A., Gan & Lee Pharmaceuticals, Ltd., Zhuhai United Laboratories Co., Ltd., Wanbang Biopharmaceuticals Co., Ltd., and Dongbao Enterprise Group Co., Ltd. Novo Nordisk A/S and Eli Lilly dominated market in 2021 with over 30% share each. Gan & Lee, Sanofi and Biocon are expected witness fastest growth between 2023-2030 backed by their focus on immersion solutions compatible with OCP racks.
