Immersion cooling market projected to reach $2.7 billion by 2035

The immersion cooling market is projected to grow from $431.6 million in 2025 to $2.709 billion by 2035, representing a compound annual growth rate (CAGR) of 22.6%. This expansion is driven by the rapid adoption of generative AI, machine learning, and high-performance computing (HPC), which have increased server heat densities beyond the capabilities of traditional air-cooling methods.

As AI servers utilizing high-performance GPUs, such as NVIDIA H100 and H200, see increased deployment, rack-level power consumption is rising to between 30kW and 100kW. This shift is forcing cloud providers and hyperscalers to integrate liquid and immersion cooling into their next-generation data center architectures. While single-phase immersion cooling currently holds the largest market share due to its operational simplicity, two-phase immersion cooling is expected to see the highest growth rate through 2035 due to its superior heat exchange performance in ultra-high-density environments.

North America is expected to lead the market in 2025, fueled by massive investments in AI-ready data centers and a robust ecosystem of cooling technology companies in the United States.