Data Center Liquid Immersion Cooling Market Growth Accelerated by Energy Efficiency Improvements
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| Data Center Liquid Immersion Cooling Market |
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.
Get More Insights Here
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