North America Immersion Cooling Market is Segmented By Product Type (Single Phase Immersion Cooling, Two Phase Immersion Cooling), By Cooling Fluid Type (Mineral Oil, Fluorocarbon-Based Fluid, Synthetic Oil, Others), By Application (High Performance Computing, Edge Computing, Artificial Intelligence, Cryptocurrency Mining, Others), By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Market Dynamics
The increasing density of servers is expected to drive the North America immersion cooling market
In previous years, data centers were simple and their performance required simple servers without high computational capacity. However, the rise of new technologies such as deep learning, machine learning, Internet of Things (IoT), smart cities, artificial intelligence, cloud computing and blockchain require processing large quantities of data, creating a very high computational capacity. Immersion cooling can be used for higher heat loads than air cooling. Many data centers of the current generation operate at a power density of 5kW/rack, for which a large data hall would be needed to accommodate 200 racks, which occupies a large area of technical space.
Modern data centers with a power density of 60kW/rack require only 17 racks, occupying just a small area of technical space to serve high load density and process vast quantities of data. It increases the heat load and density generated by the data centers. Immersion cooling solutions can provide optimal cooling for such high-density server racks at a lower cost, thereby providing a non-hazardous and environment-friendly approach to data center cooling. The benefits of immersion cooling can, therefore, lead to wider adoption.
The growing density of servers is a key driver for the growth of the North America Immersion Cooling Market
Increasing innovation in digitalization and it infrastructure to boost North America immersion cooling market growth
North America dominated the immersion cooling market and is expected to grow at the highest CAGR during the forecasted period. The growth is due to the high number of hyper-scale data centers in various industries to increase computing ability, memory, networking infrastructure or storage resources. Hyperscale data centers have high availability with the physical infrastructure and distribution systems to maximize cooling efficiency and scale computing tasks quicker and faster. The North American region is well-known for adopting sophisticated technologies early on, fueled by the development of healthy technology in U.S. and Canada.
The growth in big data necessitates the adoption of cutting-edge technologies and the necessity for security, resulting in the deployment of hyperscale data center systems. Furthermore, North America is expected to dominate the HPC market due to rising government investments in R&D activities at the national level. In addition, The need for high-performance computing in the region is predicted to expand significantly due to the presence of key industry participants such as NVIDIA, HPE, IBM, Microsoft and AMD. The White House requested over US$ 475 million in investment in exascale computing in its fiscal year 2021 budget, securing the U.S. position as the world's top supercomputer country. The investment also aims to boost application performance at the Oak Ridge Leadership Computing Facility in U.S. five times over the Summit system. Furthermore, the higher adoption of cloud-based computing by various companies, including Facebook and Apple, shall boost the demand for immersion cooling products in the market.
Furthermore, the data center industry continues to benefit from the region's continuing digitization, spurred by rising consumer demand for e-commerce, the rapid rise of edge computing and other secular trends. Data centers in North America invest in new high-performance computing servers that run fast to keep up with the digital economy's rapid expansion. Consumer demand for cheaper hosting and colocation services forces data centers to adjust. To address these difficulties, data centers in North America are turning to sophisticated immersion cooling systems, which are more efficient than traditional cooling systems. Immersion cooling systems are expected to expand in popularity in the region due to their potential to minimize energy usage and operational and maintenance expenses. Thus tremendous growth in the data center industry is expected to build future business for immersion cooling in the North American region.
In terms of application, high-performance computing segment dominates the market
The North America immersion cooling market in high-performance computing was valued at US$ XX million in 2021 and is expected to reach US$ XX million by 2031 with a CAGR of 21.3% during the forecast period 2024 to 2031. The market share percentage for the High-performance Computing Segment in 2021 was xx% which is expected to reach up to xx% in 2031.
High-Performance Computing (HPC) generally refers to aggregating computing power in a way that offers higher performance than one can get out of a desktop computer or workstation to solve large engineering, science or business problems. As the demand for high throughput in AI and high-performance computing grows, so does the necessity for efficient cooling solutions. Traditional air cooling methods cannot keep working temperatures low enough since modern processors and other active components generate a lot of heat.
Immersion cooling is relatively new in computer cooling, with many major benefits luring new devotees. It can handle far greater power densities, operates cleanly and quietly and costs less than traditional air cooling. Its advantages have added value for high-performance computing, pushing processors and budgets to their limits.
High-performance computing requires intensive power for processors themselves and cooling. Immersion solutions can drastically decrease energy consumption, removing 10-20% server use and 95% cooling. It allows innovative applications as well as makes the physical requirements more manageable. Businesses, as well as scientific and other institutions, use high-performance computers. Immersion cooling is more efficient and cost-effective for enterprise HPC. It results in reduced footprints, lower latency and increased reliability.
Various new products have been launched for high computing applications. In 2021, LiquidStack, the leader in liquid immersion cooling for data centers, edge and High-Performance Computing, showcased the first optimized two-phase liquid immersion cooled OCP Open Accelerator Infrastructure servers. LiquidStack's two-phase immersion cooling technology, combined with advanced hardware, enables unparalleled computing power, efficiency and space savings. HPC servers and chips produce too much heat to be efficient or practical for air cooling. Unlike air-cooled servers modified for immersion cooling, the Wiwynn servers are optimized for two-phase liquid immersion. With industry-leading power and water usage effectiveness, LiquidStack's demonstration is more efficient and dense than air-cooled equivalents: approximately 16 times the heat rejection capacity of typical air cooling.
Market players focus on addressing supply-demand dynamics and supply chain issues amid COVID-19 pandemic
People's social and professional lives were rapidly transferred online due to the COVID-19 outbreak. In-home data consumption has increased due to people working from home, using telemedicine for doctor's appointments and using internet streaming services to stay occupied. The data usage increased by 18% in the in-home segment in the first weeks of March 2020 with respect to the same in 2019, with smartphone data usage increasing by 34%. It's no wonder data centers are working overtime to keep up with the growing demand for data. The enormous amount of energy is a major difficulty operating a data center. The cooling of electronics, in particular, accounts for the majority of data center energy expenses. The CPUs in data centers generate severe heat; without proper cooling, the temperatures inside the devices rise, making them less efficient. Since immersion cooling is a highly efficient cooling system, widespread adoption of the respective technology was witnessed during the pandemic due to the data transfer hike. Similarly, innovations, developments and experiments in the field of immersion cooling are also acting as major drivers for the respective market in the post-COVID-19 market.
Major manufacturers are also taking a series of market tactics to gain a competitive edge in the North America immersion cooling market's post-pandemic period. For instance, on December 13, 2021, GRC (Green Revolution Cooling), a provider of data center immersion cooling, announced the launch of its Global Alliance Partnership. GRC and partners will collaborate on developing immersion cooling technologies for data centers as part of the program. The partners will sell complete solutions comprising ITE hardware and GRC immersion cooling systems. Nonetheless, as the economy and industries return to their former self and are even showing signs of betterment than previous case scenarios, the market prospects for immersion cooling are expected to exceed their former glory. Growing utilization of information technologies such as IoT, machine learning and AI are considered crucial factors expected to boost immersion cooling in the North America market.
DataM Analysis Report
The North America Immersion Cooling market is projected to expand at a significant CAGR during the forecast period. The growing emphasis on introducing new immersion cooling in line with the applications and technological innovation of the evolving market landscape is driving market growth. Market participants are advised to keep a keen eye on the latest trends and shift toward developing products to gain a competitive advantage in the existing North America Immersion Cooling Market landscape.
Market Overview
- A major market driver is a rising breakthrough in the digitalization, automation and telecommunications industry, according to DataM Intelligence's most recent research report on the North America Immersion Cooling Market for the historical era, 2020 and the forecast period 2024–2031. A major factor driving the market is the growing demand for consumer electronics, the biggest end-user of immersion cooling. The North American Immersion Cooling market has new opportunities thanks to AI and unified design architecture. The North American Immersion Cooling market shrank in 2020 due to COVID-19. Despite the immediate obstacles, it is projected that the pandemic will positively influence the North American immersion cooling business. As electronics, cloud computing, big data and other related technologies become more common and powerful and find more applications in daily life, the demand for immersion cooling is likely to increase.
- In terms of revenue, the North America Immersion Cooling Market reached US$ xx Million in 2021 and is expected to reach US$ xx Million by 2031, growing with a CAGR of xx% from 2024 to 2031.
Key Driver
- North America-Pacific Immersion Cooling is expected to grow fastest in the forecast period due to the rapid expansion of industries, technological growth and digitalization.
- On January 17, 2022, Planet First Partners (Planet First), a sustainable investor, became a significant shareholder in Submer. Its pioneering growth stage company is solving an emerging environmental threat–high energy-consuming data centers, joining existing shareholders Norrsken VC, Alma Mundi Ventures and Tim Reynolds. Submer's international development into North America and APAC will be accelerated and R&D activities in next-generation liquid coolants and data center automation will be funded.
- In 2021, LUXXFOLIO Holdings Inc announced its intention to implement an immersion-cooling system at the Company's New Mexico crypto mining facility. LUXX Mining Division has received the Immersion System from the leading North American producer. The Company plans to establish approximately 1,150 miners, scheduled to be delivered in 2022, using the Immersion System.
The rise in applications of artificial intelligence and the growing demand for immersion cooling in the respective sector
- Data is powering dramatic changes world. Adopting digitalization and incorporating technologies such as AI, machine learning, augmented reality or big data rapidly drives the existing infrastructures to their limits regarding cooling capabilities, density and energy demands.
- According to the industry estimate, AI can contribute up to US$ 15.7 trillion by 2030 to the global economy, more than the current output of India and China combined. Of this, US$ 6.6 trillion is likely to come from improved productivity and US$ 9.1 trillion from consumption-side effects.
- Artificial intelligence requires intensive computing resources with the statistical approach (machine learning). The systems often use high-density GPUs, CPUs and custom chips like TPUs. Cooling all the processors has proven challenging for air cooling systems, which has boosted the demand for liquid immersion for handling the heat.
- AI uses powerful processors to perform multiple concurrent computations, drawing several times more electricity than the conventional computer. It uses considerable electricity and generates a lot of heat. As a result, AI data centers have grown in size to meet these demands. AI processors are pushed to their limits by real-time computing. Liquid cooling raises these thresholds, allowing for quicker, more intelligent computation. Immersion in a dielectric fluid allows for almost limitless cooling.
- To run at their designed computational spec, specialized silicon chips executing Machine Learning functions require highly effective temperature management.
- The processing of large data volumes and the I/O latency associated with neural network operations with this data are issued for AI systems. Faster processing necessitates more power and cooling resources to keep chips operating at stable temperatures restricted on both a chip and facility scale.
- Recently, Microsoft investigated liquid immersion as a cooling system for high-performance computing applications such as AI. Among other things, the investigation revealed that two-phase immersion cooling reduced power consumption for any server by 5% to 15%. The findings motivated the Microsoft team to collaborate with Wiwynn, a data center IT system manufacturer, to develop a two-phase immersion cooling solution. The first solution is now operating at Microsoft's data center in Quincy.
- Data centers must address the increased power demands and thermal issues that come with exponentially growing data sets in less time as AI and Machine Learning techniques become more prevalent in high-performance computing systems. An important step towards securing this goal is to embrace high-performance liquid cooling as a thermal control technique.
- The growing demand for faster computation in the AI sector has spawned a slew of novel silicon layouts and form factors, ranging from SoCs and Chiplets to Scale silicon. Each new design necessitates more processing power, resulting in increased heat generation and, as a result, higher silicon temperatures, negatively affecting processor performance and reliability. The growing demand for faster computation in the AI sector has spawned a slew of novel silicon layouts and form factors, ranging from SoCs and Chiplets to Wafer Scale silicon. Each new design necessitates more processing power, resulting in increased heat generation and, as a result, higher silicon temperatures, negatively affecting processor performance and reliability.
Market Competition Landscape
- The report includes comprehensive and in-depth profiles of market participants with sizable market shares in the North America Immersion Cooling Market, as well as analyses of their financials, key product offerings, most recent advancements and strategies.
- Major players operating in the Immersion Cooling market in North America Immersion Cooling Market are Fujitsu Limited, Green Revolution Cooling Inc., Submer Technologies, Asperitas, LiquidStack, Midas Immersion Cooling, Iceotope Technologies Limited, Liquidcool Solutions, Inc., Downunder Geosolutions Pty Ltd and DCX The Liquid Cooling Company.
Strategic Partnerships
- On August 24, 2021, Intel teamed up with Submer, a European immersion cooling firm, to co-develop the precision immersion cooling fluid cloud for next-generation data centers. Intel and Submer demonstrate the reuse of high-grade waste heat generated by computing elements in data centers utilizing Intel Xeon-based immersion-optimized server boards and Summer's precision cooling method. The collaboration between Intel and Submer will help to expedite industry standards for immersion cooling adoption.
- On January 12, 2022, Green Revolution Cooling (GRC), an American firm, teamed up with Intel to develop data center immersion cooling. The two businesses have established a multi-year collaboration to prove the technology's safety and dependability and optimize the system performance of immersion-cooled racks powered by Intel Xeon Scalable processors.
- In June 2021, Submer announced its latest partnership with ASA Computers, a leading IT solution provider delivering innovative systems to rack solutions globally for over 30 years. The relevant fact will enable the company to gain a competitive advantage over its rivals by concentrating on R&D to raise product quality and lower production costs.
