Data center liquid immersion cooling involves submerging servers and other critical hardware in a non-conductive coolant, usually a specially formulated dielectric fluid or fluorocarbon, to remove heat more effectively than with air cooling. This allows data centers to run servers at higher densities without overheating and reduces the energy needed for cooling. More and more companies are adopting this technology as it can reduce cooling-related energy costs by around 40-60%, allowing for more compact data centers which take up less space. 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:
One of the key drivers for growth in this market is the rising demand for energy efficient cooling solutions from hyperscale data center operators aiming to reduce operating expenses. Data centers require huge amounts of power, with cooling accounting for around 40% of total energy consumed globally. Liquid immersion cooling is a far more effective method of removing excessive heat generated by servers packed tightly in data centers as compared to traditional air cooling techniques. This improved thermal management allows servers to operate at full capacity without overheating issues. The ability to house more servers in less physical space using liquid immersion cooling results in data centers occupying smaller footprints, which is another major driver for adoption. With growing digitization leading to rising data volumes, hyperscale cloud companies are building numerous new data centers to accommodate this growth in more sustainable, cost-effective ways.
SWOT Analysis
Strength: The data center liquid immersion cooling market offers higher efficiency and power density compared to traditional air cooling techniques. The technique can save up to 90% of the energy required for cooling servers and other devices. Immersion cooling also provides up to 50% higher power densities, allowing data centers to pack more computing power into less space. Immersion cooling eliminates concerns over failures in air circulation systems or hot spots developing, providing more reliable operations.
Weakness: Liquid immersion cooling techniques require a significant upfront capital investment compared to traditional air cooling. Retrofitting existing data center infrastructure can be complex and disrupt operations. Some immersion cooling solutions also require specialized container designs that drive up costs. Potential risks of leaks and spills could damage servers and disrupt operations.
Opportunity: Increasing construction of hyperscale data centers and demand for edge computing infrastructure will drive demand. More enterprises are embracing liquid cooling solutions to achieve higher power output needed for AI/ML workloads. Growth in 5G networks and IoT will spur the need to site edge data centers which are well-suited applications for immersion cooling. Continued development of less complex and compact immersion cooling designs can help overcome adoption barriers.
Threats: Higher electricity costs could hamper market growth if energy prices rise substantially. Technologies like direct liquid cooling of chips and two-phase immersion may emerge as substitutes if they prove more cost-effective. Rising environmental regulations on fluid usage represent installation challenges.
Key Takeaways
The Global Data Center Liquid Immersion Cooling Market Demad is expected to witness high growth. The market size is projected to reach US$ 167.07 Mn by 2024.
Regional Analysis: North America currently dominates the market due to high density of data centers and growing hyperscale infrastructure in the region led by the US. The Asia Pacific region is expected to be the fastest growing market for immersion cooling led by increasing investments in cloud and data center services in China, India, Japan and other countries.
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 and Eli Lilly are established players focusing on building specialized immersion cooled container and rack solutions. Newer players like Gan & Lee Pharmaceuticals are launching modular immersion systems targeting edge data centers applications. The market is also witnessing partnerships to develop optimized cooling solutions for GPU and CPU-heavy workloads.
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