June 13, 2024

Data Center Liquid Immersion Cooling is Estimated to Witness High Growth Owing to Increasing Adoption of Green Data Centers

Data center liquid immersion cooling is a technique used for efficient cooling of data centers by complete submerging servers, networking equipment and other hardware in a non-conductive liquid. This technique delivers much higher throughput as compared to traditional air cooling systems making it an attractive option for large cloud based data centers. The increasing need to lower energy consumption and improve efficiency of data centers has boosted the adoption of green technologies like liquid immersion cooling. The Global Data Center Liquid Immersion Cooling Market is estimated to be valued at US$ 662.27 Mn in 2030 and is expected to exhibit a CAGR of 26.1% over the forecast period 2023-2030.

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. These players are focusing on developing innovative immersion cooling solutions for hyperscale data centers.

The growing need for eco-friendly data center solutions presents significant growth opportunities for liquid immersion cooling technology. Adoption of immersion cooling can help data center operators lower PUE ratios and energy costs substantially.

Technological advancements like two-phase liquid cooling solutions provide higher heat transfer efficiency. Solutions combining dielectic fluids, misting and two-phase systems are gaining traction in the market.

Market Drivers
Increasing carbon footprint of traditionally cooled data centers is a major concern driving adoption of green technologies. Data centers account for 1-2% of global electricity use pushing operators to explore solutions like liquid immersion cooling to improve efficiency. Liquid immersion cooling solutions offering up to 50% reduction in energy consumption over air cooling are stimulating market growth.

Challenges
Some key challenges being faced by the data center liquid immersion cooling market include the high initial investment required as compared to traditional air cooling systems. As this technology is relatively new, there are also concerns regarding reliability and compatibility issues with existing data center infrastructure and server components. Ensuring strict quality control during the immersion process to prevent liquid leakage and associated electrical/mechanical failures inside servers is another challenge area. Infrastructural and design modifications required for liquid containment and drainage systems also increase complexity.

SWOT Analysis
Strength: High heat transfer efficiency, much more compact cooling solution with significant space savings.
Weakness: High upfront and maintenance costs compared to air cooling. Technical complexity of liquid containment and drainage.
Opportunity:Growing demand for compact, energy efficient cooling from hyperscale cloud operators. Increasing rack densities driving need for higher heat transfer methods.
Threats: Conventional air cooling suppliers capturing market with incremental efficiency gains. Compatibility issues delaying broader adoption.

Geographical Regions of Concentration
In terms of value, the North American region currently accounts for the largest share in the data center liquid immersion cooling market owing to strong presence of leading hyperscale cloud and internet companies. The U.S. alone contributes over 50% of the global market revenues currently led by states like Virginia, Oregon and others with sizable data center concentrations.

Fastest Growing Regions
The Data Center Liquid Immersion Cooling Market Asia Pacific region is projected to witness the fastest growth during the forecast period led by countries like China, India, Japan and South Korea. This is attributed to the exponential data usage growth, development of native cloud and internet giants, and construction of new large-scale hyperscale data center parks supporting the digital economy.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it