Data Center Immersion Cooling Fluids Market
Data Center Immersion Cooling Fluids Market Size, Share, Competitive Landscape and Trend Analysis Report by Technology, Cooling Fluid and Application: Global Opportunity and Industry Forecast (2025-2030).
Report ID:
1116
Industry:
Chemicals & Materials
Published on:
Dec 2025
Data Center Immersion Cooling Fluids Market Summary
Global Data Center Immersion Cooling Fluids Market was a value of USD 0.15 Billion in 2024 and expected it to hit USD 0.54 Billion by 2030, with a CAGR of 23.9 % during the forecast period (2025-2030).
Data Center Immersion Cooling Fluids Industry Trends and Analytical Insights –
North America dominated the Data Center Immersion Cooling Fluids Market in 2024, driven by strong hyperscale data center growth, early adoption of immersion cooling, and major investments from cloud and AI companies.
Single-phase fluids held the largest Data Center Immersion Cooling Fluids Market share, supported by lower cost, easier operation, and increasing use in hyperscale and colocation facilities.
Leading Data Center Immersion Cooling Fluids players like 3M, Shell, ExxonMobil, Castrol, and Engineered Fluids focused on improving thermal performance, extending fluid lifespan, and expanding production capacity to meet rising demand from AI and high-density computing environments.
Market Size & Forecast
Market Size 2024: USD 0.15 Billion
Projected Market Size 2030: USD 0.54 Billion
CAGR (2024-2030): 23.9%
North America: Dominating market in 2024
Data Center Immersion Cooling Fluids Market Overview
Data centers are a major energy consumer, and cooling represents a significant portion of that usage. According to the U.S. Department of Energy (DOE), data centers account for roughly 2% of total U.S. electricity consumption, with cooling systems often making up to 40% of that energy use. This has led to federal funding programs aimed at developing more efficient cooling technologies, including liquid and immersion cooling approaches to reduce energy usage and carbon emissions, which significantly boosts the Data Center Immersion Cooling Fluids Market growth. Immersion cooling (including immersion cooling fluids) is being driven by limits of traditional air-based systems. Legislative findings from the “Liquid Cooling for AI Act of 2025” (H.R.5332) note that air-cooled systems are reaching limits in handling the heat generated by high-density AI and compute workloads, and liquid cooling systems — which include immersion cooling fluids — are increasingly necessary for high-performance data centers.
Adoption of liquid/immersion cooling aligns with national sustainability and energy goals. DOE funding initiatives have committed tens of millions of dollars to energy-efficient data center cooling projects — many of which explore advanced techniques beyond conventional air systems to lower carbon emissions and operational costs in data centers. Government energy efficiency metrics support immersion cooling’s effectiveness, which is expected to boost the Data Center Immersion Cooling Fluids Market growth. According to energy efficiency metrics such as Power Usage Effectiveness (PUE), advanced liquid cooling techniques — including two-phase immersion systems — have enabled facilities to achieve some of the lowest reported PUE values, demonstrating improved energy efficiency compared to traditional cooling.
Data Center Immersion Cooling Fluids Market Dynamics
Rising Data Center Energy Consumption & Efficiency Mandates to boost Data Center Immersion Cooling Fluids Market growth
Data centers consume a growing share of electricity, with cooling alone accounting for a large portion of overhead energy use. U.S. DOE and federal efficiency programs emphasize improved cooling technologies to reduce energy demand and emissions, encouraging adoption of advanced cooling like liquid and immersion systems. With the proliferation of AI, machine learning, and high-performance computing (HPC) applications, data center racks are seeing much higher power densities that traditional air cooling cannot efficiently manage. This heat load intensification is a key driver for immersion cooling, which handle very high thermal loads and helps to boost Data Center Immersion Cooling Fluids Market growth. Immersion cooling significantly reduces power usage overhead compared with air-based systems and contributes toward more favorable PUE metrics. This aligns with data center sustainability commitments and regulatory energy-efficiency goals.
The Data Center Immersion Cooling Fluids market presents strong opportunities driven by the global shift toward high-density computing, AI, and hyperscale data center expansion. As artificial intelligence, machine learning, and HPC workloads continue to surge, operators increasingly require cooling systems capable of handling extreme thermal loads—positioning immersion cooling fluids as a critical technology. Sustainability mandates and government-supported energy-efficiency programs, such as the U.S. Department of Energy’s initiatives to reduce data center power consumption, further create opportunities for wider adoption of advanced liquid and immersion cooling solutions. Emerging Data Center Immersion Cooling Fluids Market in Asia-Pacific, the Middle East, and Latin America are investing in new digital infrastructure, allowing immersion cooling systems to be integrated into data center designs from the ground up. Additionally, ongoing innovation in dielectric fluid formulations—such as biodegradable, long-life, and higher-thermal-stability fluids—creates scope for specialized product development. The rise of edge computing, remote installations, and cryptocurrency mining also opens niche but rapidly growing opportunities, as immersion cooling offers a compact, low-maintenance, and energy-efficient solution suitable for non-traditional data facility environments.
Expert Insight:
Industry experts highlight that immersion cooling fluids are becoming essential as AI and high-density compute workloads push traditional air cooling to its limits. Growing government focus on energy efficiency and sustainability is accelerating adoption, while innovations in dielectric fluid chemistry are creating new performance and environmental advantages.
Data Center Immersion Cooling Fluids Market Segment Analysis
Based on Technology, the market is segmented into Single Phase and Two Phase. Single Phase segment dominated the market in 2024 and is expected to hold the largest Data Center Immersion Cooling Fluids Market share over the forecast period. Single-phase systems do not require vapor management, sealed enclosures, or pressure controls. This simplicity makes them easier to install, operate, and maintain, especially for large data centers.
The fluid absorbs heat directly from servers and then dissipates it through a heat exchanger, without boiling, evaporating, or changing phase. This makes the system mechanically simpler and easier to operate than two-phase systems. Because there are fewer components and no boiling/vapor cycles, the total system cost is significantly lower. Fewer moving parts also translate into higher reliability and longer equipment life. Many dielectric fluids used in single-phase cooling—such as synthetic hydrocarbons or biodegradable esters—are easier to source, more stable, and safer to handle compared to engineered two-phase fluids.
Data Center Immersion Cooling Fluids Market Regional Analysis
North America dominated the market in 2024 and is expected to hold the largest Data Center Immersion Cooling Fluids Market share over the forecast period. The Data Center Immersion Cooling Fluids market shows strong regional variation, with North America leading in adoption, driven by large hyperscale data center clusters in the United States, rapid deployment of AI and high-performance computing infrastructure, and strong federal emphasis on energy-efficient cooling technologies. Europe follows with significant growth due to strict sustainability regulations, high electricity costs, and strong commitments to carbon-neutral data center operations, particularly in countries like Germany, the Netherlands, and the Nordic region. Asia-Pacific is the fastest-growing region, fueled by major data center investments in China, India, Japan, and Singapore, where rising digitalization and cloud expansion push operators to adopt advanced cooling solutions for dense computing environments.
Data Center Immersion Cooling Fluids Market Competitive Landscape
The competitive landscape of the Data Center Immersion Cooling Fluids market is shaped by a mix of global chemical giants and specialized immersion-cooling innovators. Large multinational companies such as 3M, with reported revenues of around USD 33 billion in 2023, have historically supplied engineered dielectric fluids used in immersion and electronics cooling applications. ExxonMobil, generating over USD 340 billion in revenue in 2023, and Shell and BP/Castrol, each exceeding USD 200–300 billion, leverage their extensive chemical and lubricant production capabilities to supply high-stability base oils and synthetic fluids suitable for single-phase immersion cooling systems.
Cargill, a major privately held industrial company with revenues above USD 170 billion, contributes to the Data Center Immersion Cooling Fluids industry through bio-based fluid formulations and large-scale chemical processing capacity. Alongside these major corporations, specialized companies such as Engineered Fluids, Submer, Green Revolution Cooling (GRC), and Asperitas play a critical role by focusing exclusively on immersion cooling systems and purpose-built dielectric fluids. Though their revenues are not publicly disclosed due to private ownership, these firms lead in innovation, system integration, and direct deployment within hyperscale, AI, and HPC environments. Together, large chemical manufacturers provide production scale and material science expertise, while niche immersion-cooling companies drive technological refinement—creating a competitive landscape that blends industrial capacity with specialized thermal-management innovation.
Data Center Immersion Cooling Fluids Market Scope:
Major Data Center Immersion Cooling Fluids Market Key Players
2. ExxonMobil
3. Castrol
4. Shell
5. Dynalene, Inc.
6. The Chemours Company
7. STULZ GMBH
8. Submer
9. E-Control Devices
10. E-Abel
11. Shanghai Shenglin M&E Technology Co., Ltd
12. Dow
13. Chemours
14. Engineered Fluids
15. MIVOLT (M&I Materials)
16. Lubrizol
17. BASF
18. Petro-Canada Lubricants
19. SK Lubricants
20. TotalEnergies
21. FUCHS
22. Henkel
Frequently Asked Questions:
1. Which region dominated the Data Center Immersion Cooling Fluids market in 2024?
Ans: North America dominated due to hyperscale data center growth, early adoption of immersion cooling, and government-backed energy-efficiency programs.
2. Which technology segment leads the Data Center Immersion Cooling Fluids market?
Ans: The single-phase immersion cooling segment leads because it is simpler, cheaper, easy to maintain, and widely adopted by hyperscale and colocation facilities.
3. What are the main drivers of the Data Center Immersion Cooling Fluids market?
Ans: Key drivers include growing data center energy consumption, sustainability and efficiency mandates, and the need for high-performance cooling for AI and HPC workloads.
4. Which companies are major players in the Data Center Immersion Cooling Fluids market?
Ans: Key players include 3M, Shell, ExxonMobil, Castrol, Dow, Chemours, Engineered Fluids, Submer, GRC, Cargill, MIVOLT, and others.
5. What types of fluids are commonly used in immersion cooling
Ans: Common fluids include mineral oils, synthetic oils, fluorocarbon-based fluids, and biodegradable dielectric fluids, chosen for their thermal stability and non-conductive properties.