US Immersion Cooling Market Outlook 2025: Trends, Share, and Opportunities
The US immersion cooling market is witnessing robust growth fueled by an uptick in energy-efficient cooling needs for data-intensive workloads. This market encompasses a diverse spectrum of systems—ranging from single-phase and two-phase technologies to modular and hybrid setups—servicing an array of applications, including data centers, blockchain processing, AI, HPC, and cryptocurrency mining. As demand for high-density computing rises, the industry is seeing innovation from leading players focusing on sustainability and operational efficiency. Immersion cooling stands out for reducing power usage effectiveness (PUE), enabling cost savings, lower carbon footprints, and supporting the scalability mandates of enterprises migrating to edge and hyperscale data models.
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Latest Market Dynamics
Key Drivers
- Explosive data center growth driven by AI and HPC workloads is rapidly increasing the demand for energy-efficient and high-performance cooling solutions. Leading data center providers, such as Equinix and Digital Realty, are partnering with cooling technology firms to deploy immersion cooling for next-gen infrastructure in 2025.
- Stringent environmental regulations and sustainability initiatives are prompting enterprises to adopt greener cooling methods. Companies like Submer and Green Revolution Cooling are offering advanced immersion cooling platforms to meet ESG requirements while cutting operational costs.
Key Trends
- Accelerated adoption of modular and scalable immersion cooling systems is evident as enterprises seek flexible and rapid-deployment solutions. Vertiv has recently launched modular immersion cooling products tailor-fit for colocation and edge data centers.
- Collaboration between hardware OEMs and immersion cooling specialists is increasing, with Dell Technologies and CoolIT Systems debuting turnkey liquid-cooled server solutions targeted at AI and blockchain processing environments in 2025.
Key Opportunities
- Expansion of high-performance computing and AI infrastructure across the US is creating vast opportunities for immersion cooling vendors, with data center operators investing heavily in liquid cooling retrofits and new builds.
- The cryptocurrency mining sector is presenting lucrative opportunities for immersion cooling market growth, driven by ongoing mining difficulty boosts and the need for more efficient thermal management, as evidenced by Midas Green Technologies’ expanding footprint in the US mining ecosystem.
Key Challenges
- Integrating immersion cooling systems with existing legacy data center architectures can be complex and costly, especially for operators lacking standardized rack and server designs.
- Educating end-users and dispelling misconceptions about the long-term reliability and maintenance of immersion cooling remains a persistent challenge, with market leaders engaging in targeted awareness campaigns and pilot deployments to build trust.
Key Restraints
- High upfront capital investment required for implementing immersion cooling as compared to traditional air or chilled-water systems can deter smaller enterprises from adoption.
- Limited availability and higher cost of high-quality dielectric fluids can restrict market scalability. Vendors such as Iceotope are actively investing in R&D to develop more affordable, environmentally friendly fluids.
US Immersion Cooling Market Share by Type, 2025
Single-phase immersion cooling leads the US market, capturing a significant portion of deployments due to its ease of setup and favorable cost-to-performance ratio. Two-phase solutions are rapidly gaining traction for high-density workloads, particularly in AI and HPC. Hybrid and modular systems appeal to operators requiring scalability and customization. As sustainability takes center stage, dielectric fluid-based and custom solutions are being adopted selectively for mission-critical operations.
US Immersion Cooling Market Share by Application, 2025
Data centers remain the primary application segment, holding nearly half of the total market, as operators transition toward energy-efficient and high-density environments. AI and HPC deployments constitute a growing share, reflecting the surge in machine learning and scientific computing needs. Cryptocurrency mining is also significant but trails the others due to ongoing regulatory and market volatility.
US Immersion Cooling Market Revenue (USD Million), 2020–2035
The US immersion cooling market has exhibited a strong compound annual growth, rising sharply from $270 million in 2020 to an expected $1,860 million by 2035. The upward trajectory is fueled by the evolving landscape of digital infrastructure, surging AI workloads, and heightened sustainability mandates. Key investments, technological advances, and edge data center buildouts are expected to sustain double-digit growth well past 2030, solidifying the US as a global innovation hub for immersion cooling.
US Immersion Cooling Market YOY (%) Growth, 2020–2035
Year-over-year growth rates are expected to peak in the mid-2020s as AI, blockchain, and edge computing fuel demand, followed by a gradual tapering in the 2030s as the market matures. Between 2025 and 2030, annual YOY growth averages around 17%, reflecting large-scale retrofits and new deployments. As saturation approaches by 2035, the YOY rate moderates to around 7%.
US Immersion Cooling Market Share by Region, 2025
The West region dominates the US immersion cooling market in 2025, backed by hyperscale data center investments and major technology hubs. The Midwest shows strong adoption driven by large entitlement sites and mining operations, while the South benefits from industrial blockchain installations and expanding colocation provider networks. The strategic distribution reflects localized digital infrastructure demand and power market dynamics.
US Immersion Cooling Market Player Share, 2025
Green Revolution Cooling and Submer lead the US market, together accounting for about half of all deployments. Vertiv, LiquidStack, and Midas Green Technologies round out the top five, driving innovation and strategic partnerships with data center operators. Intense competition is accelerating technological differentiation, ecosystem collaboration, and expansion into adjacent cooling services.
US Immersion Cooling Market Buyers Share, 2025
Hyperscale data center operators and large colocation providers form the major buying group, capturing over two-thirds of the market. Innovative enterprises with AI, blockchain, or HPC needs represent a robust secondary segment. SMEs are increasingly exploring modular and value-added solutions, though adoption is still eclipsed by large-scale buyers due to cost and integration considerations.
Study Coverage
| Metrics | Details |
|---|
| Years | 2020-2035 |
| Base Year | 2025 |
| Market Size | Revenue (USD Million) |
| Regions | West, Midwest, South & Other |
| Segments | By Type (Single-phase, Two-phase, Hybrid Type, Modular Systems, Dielectric Fluid-based, Customized Solutions), By Application (Data Centers, Blockchain, Edge Computing, High Performance Computing, Artificial Intelligence, Cryptocurrency Mining) |
| Players | Asperitas, Submer, Green Revolution Cooling, LiquidStack, Midas Green Technologies, Fujitsu, Wiwynn, ExaScaler, DownUnder GeoSolutions (DUG), Iceotope, DCX The Liquid Cooling Company, CoolIT Systems, Dell Technologies, Vertiv, Schneider Electric |
Key Recent Developments
- June 2024: Vertiv launched its Vertiv Liebert system, an advanced modular immersion cooling solution for AI and HPC deployments, targeting hyperscale operators.
- July 2024: Submer announced a new US headquarters and expanded lab for R&D in modular immersion cooling to accelerate product innovation.
- August 2024: Green Revolution Cooling signed a strategic partnership with Digital Realty to retrofit existing data centers with state-of-the-art immersion cooling tanks.
- September 2024: Dell Technologies and CoolIT Systems unveiled a joint liquid immersion server platform optimized for enterprise AI workloads in North America.
- October 2024: LiquidStack secured a $50M investment round to expand the production of dielectric fluids and develop next-gen immersion cooling platforms.
