Data Center Immersion Cooling Market – Growth, Trends, Impact of COVID-19 and Forecast (2022)



Global Data Center Immersion Cooling Market was valued at USD 399.9 Million in 2021 and is projected to reach USD 1596.1 Million by 2027, registering an estimated CAGR of 26.06% during the period 2022 -2027.

New York, April 29, 2022 (GLOBE NEWSWIRE) — announces the publication of the report “Immersion Cooling Market in Data Centers – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027)” –
The growing carbon footprint of data centers is one of the main reasons driving the increased adoption of advanced liquid cooling technologies, such as immersion cooling. In a recent study conducted by 3M, a leading supplier of synthetic coolant in the immersion cooling market, it was identified that 38% of the electricity needed in data centers equipped with traditional cooling technologies air base is used only to cool electronic components.

Increase in the number of hyperscale data centers is driving the market as hyperscale data centers are widely used in different industries to increase the computing capacity, memory, network infrastructure or resources of storage. The different characteristics of large-scale data centers include physical infrastructure and distribution systems that support data centers to maximize cooling efficiency, as well as the ability to scale computing tasks faster and faster.
High-density power consumption management is driving the market, as many industry estimates place cooling costs at around 40% of data center power consumption. Immersion cooling can reduce data center power consumption by more than 60%, with some systems indicating that it could be a reduction of up to 95%. For many data centers, this represents millions of dollars in savings per year.
The growing carbon footprint of data centers is another major issue leading to increased adoption of advanced liquid cooling technologies, such as immersion cooling. In a recent study conducted by 3M Corporation, a leading supplier of synthetic coolant in the immersion cooling market, it was identified that 38% of the electricity needed in data centers equipped with air cooling technologies traditional is used to cool electronic components.
High investments with higher capital expenditures are restraining the growth of the market, as a specialized infrastructure requirement is needed and hence should be justified keeping in mind a longer term return on investment.
The recent outbreak of the COVID-19 pandemic has put additional pressure on several economies in various sectors. This has shifted attention to a digital economy. Given the role of immersion cooling, as data centers handle more next-gen applications such as the Internet of Things and artificial intelligence, they require higher-density processors, which produce more heat , thus requiring more cooling power.

Main market trends

High performance computing will drive the market

There has been a growing increase in investment in high density data centers and high performance computing applications. Additionally, due to advances in technology, faster microprocessors will become available every year, and inexpensive HPC systems with a few processors will provide performance that previously could only be achieved by expensive vector computers or MPP systems. Thus, high-performance computers are no longer limited to specialized architectures, but contribute to the high end of a continuum of fast desktop and server systems.
The advent of the Internet of Things (IoT) has enabled the interconnectivity of all devices, turning each device into a data point that can be tracked and translated into insights and learning. This is enabling many organizations to invest in automation and artificial intelligence, conjuring up new ways to make users’ work and personal lives more efficient. The rapid development of the manufacturing sector and Industry 4.0 trends are also responsible for the rise of HPC applications.
With many IT processes migrating to cloud platforms and increasingly standardized software systems, companies are looking for ways to integrate HPC into their data operations. The biggest challenge associated with data center HPC is power requirements.
The growing complexity of high-performance computing (HPC) applications requires the mathematical genius of GPUs working side-by-side with a server’s main processor to accelerate crucial algorithms. These compute-intensive applications have brought GPU-accelerated servers, and they are causing heat dissipation issues in many data centers around the world.
As electrical and thermal loads are increasingly pushed into the data center, more sophisticated cooling, such as immersion, is required by data centers to meet these demands. LiquidStack, launched in March 2021 as a standalone company with $10 million in Series A funding from utility-scale hardware maker Wiwynn, is ambitious to address growing cooling challenges in cloud data centers and high-computing. performance (HPC).

North America will hold the dominant share

North America dominates the liquid immersion cooling market mainly due to the presence of large number of data centers in the region, as well as the growing popularity of these cooling methods for data centers, in particularly in the United States.
The American company 3M Company is a major supplier of fluids related to immersion cooling technology. 3M Fluorinert fluids have the highest dielectric strength and electrical resistivity of any organic fluid, far better than air. And unlike hydrocarbon-based fluids such as mineral oil, 3M Fluorinert fluids are fully fluorinated.
Additionally, mobile data traffic in the United States has grown significantly over the years, from 1.26 exabytes per month of data traffic in 2017 to 7.75 exabytes per month of data traffic by 2022, as reported by Cisco Systems. According to Ericsson, this data traffic is expected to triple again by 2030. Thus, the distributed cloud that can guarantee the low latency and high bandwidth needed to easily connect such a scale comes into action.
Companies are rigorously investing in data centers to meet the growing demand of respective operations. For example, in April 2021, Microsoft announced the installation of new liquid immersion cooling infrastructure in a data center in Washington, which saves water and reduces energy costs. This shift to two-stage liquid immersion cooling provides increased flexibility for the proper management of cloud resources. For example, software that manages cloud resources can allocate sudden spikes in data center compute demand to liquid-cooled tank servers because these servers can run at high power, a process called overclocking, without risk of overheating. .
Additionally, in March 2021, Submer, a leading provider of immersion cooling solutions, announced its latest agreement with SYNNEX Corporation, a provider of distribution, system design and integration services for the technology industry. . In the agreement, Submer’s portfolio of liquid cooling and edge-ready solutions will be manufactured in the United States and distributed by SYNNEX. The agreement will allow Submer to continue to expand its presence in the United States, improving its reach.

Competitive landscape

The degree of competition in the market studied is high and is expected to increase over the forecast period. The current market includes a number of companies vying for attention where the total addressable market is high. However, some companies are heavily backed by government funding or investors. For example, Iceotope is backed by Schneider Electric, which also offers data center cooling solutions. GRC also recently acquired its series funding to become a total fund of $15 million.

August 2021 – SUBMER, a leading creator of sophisticated immersion cooling solutions for Cloud and Edge computing data centers, announced a partnership with Hypertec. Liquid immersion cooling allows data centers to meet the growing demand for better power density while providing protection from outside elements that could damage hardware.
August 2021 – Green Revolution Cooling (GRC), in collaboration with Intel, announced a partnership to test the reliability and security of this technology and to optimize system performance of immersion-cooled racks powered by Intel Xeon Scalable processors.

Additional benefits:

The Market Estimate (ME) sheet in Excel format
3 months of analyst support
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