Immersion Cooling Fluids Market

Immersion Cooling Fluids: Revolutionizing Data Center Efficiency

In the fast-paced digital era, data centers play a pivotal role in handling the ever-increasing demands of information storage and processing. To ensure optimal performance and prevent overheating of critical hardware components, cooling solutions are of paramount importance. Among various cooling methods, immersion cooling has gained significant attention for its ability to maximize energy efficiency and minimize operational costs. This essay explores immersion cooling fluids, their impact on data center efficiency, and relevant government policies shaping this emerging technology.

Immersion Cooling Fluids: A Breakthrough in Cooling Technology

Immersion cooling involves submerging server components directly into a dielectric liquid, eliminating the need for traditional air-based cooling systems. The choice of immersion cooling fluids is crucial to achieve efficient and safe cooling performance. These fluids serve as both coolants and dielectric agents, effectively dissipating heat from the immersed components.

Top Impacting Factors in Immersion Cooling Fluids

Thermal Conductivity: The ability of an immersion cooling fluid to efficiently absorb and transfer heat is a vital factor. High thermal conductivity fluids, such as engineered oils and synthetic dielectric fluids, optimize cooling performance and enhance overall efficiency.

Dielectric Properties: Immersion cooling fluids must possess high dielectric strength to insulate and protect the submerged components from electrical hazards. Dielectric oils and synthetic fluids with excellent electrical properties are commonly used in immersion cooling setups.

Environmental Impact: The environmental sustainability of immersion cooling fluids is a growing concern. The industry is transitioning towards environmentally friendly options, such as biodegradable oils and non-toxic synthetic fluids, to minimize their carbon footprint.

Government Policies Promoting Immersion Cooling

Energy Efficiency Standards: Governments worldwide are implementing regulations and standards to encourage energy-efficient practices in data centers. Immersion cooling technologies align with these policies due to their ability to significantly reduce power consumption compared to traditional air-based cooling methods.

Research and Development Funding: Governments recognize the potential of immersion cooling to revolutionize data center efficiency. Consequently, they provide research grants and financial incentives to encourage innovation in the development of immersion cooling fluids and related technologies.

Environmental Regulations: To address environmental concerns, governments are imposing stricter regulations on the use of cooling agents. This encourages the adoption of immersion cooling fluids with lower environmental impact and promotes sustainable practices within the data center industry.

Benefits of Immersion Cooling Fluids

Enhanced Cooling Efficiency: Immersion cooling fluids offer superior heat dissipation, enabling higher power densities and reducing the risk of equipment failures due to overheating. This results in improved data center performance and reduced downtime.

Energy Savings: By eliminating the need for energy-intensive air cooling systems, immersion cooling fluids can significantly reduce energy consumption and associated costs. This provides substantial financial savings for data center operators.

Scalability and Density: Immersion cooling allows for greater flexibility and scalability in data center design, as it eliminates the constraints of traditional air cooling. With improved cooling efficiency, data centers can accommodate higher server densities, optimizing space utilization.

Dynamics of Immersion Cooling Fluids Market

Drivers in Immersion Cooling Fluids Market

The growing need for high-performance computing and data-intensive applications has generated a higher demand for denser data centers. Immersion cooling fluids present an efficient cooling solution, surpassing traditional air cooling methods and enabling greater power densities and enhanced performance. By eliminating the reliance on mechanical cooling systems, immersion cooling proves to be a more energy-efficient solution, leading to notable cost savings in terms of energy consumption and infrastructure requirements. These fluids excel at uniformly dissipating heat, resulting in lower operating temperatures for electronic components. This improved thermal management elevates the reliability and lifespan of equipment, minimizing the risk of failures caused by overheating. Immersion cooling fluids, especially those with low global warming potential and biodegradability, align with the growing emphasis on environmental sustainability. They provide a more eco-friendly alternative to conventional cooling approaches and support initiatives focused on reducing carbon footprints in data centers. Continual research and development endeavors have yielded advancements in immersion cooling fluid formulations, enhancing heat transfer capabilities, stability, and compatibility with a wide range of electronic components. These technological advancements are propelling the adoption of immersion cooling across various industries.

Restrictions in Immersion Cooling Fluids Market

Environmental concerns surrounding the usage of mineral oil in transformers

Mineral oil has traditionally been the preferred cooling oil for transformers due to its efficient cooling capabilities, ready availability, and favorable chemical properties such as low pour point and excellent thermal cooling capacity. However, these oils are highly non-biodegradable after being processed and purified, posing challenges in terms of recycling and disposal. Consequently, the environmental concerns associated with the use of mineral oil will hinder the growth of the immersion cooling fluids market, resulting in a negative impact on the demand for such fluids.

Opportunities in Immersion Cooling Fluids Market

Increasing demand for bio-based oils in immersion cooling

Bio-based transformer oil is derived from vegetable oil feedstock. This type of oil possesses high fire resistance, biodegradability (due to the absence of silicone, petroleum hydrocarbons, and halogens), and superior dielectric breakdown compared to mineral oil. Moreover, bio-based oil serves as an eco-friendly immersion cooling fluid, presenting an opportunity for its utilization in various applications, including transformers and data centers.

Challenges in Immersion Cooling Fluids Market

Fluctuating crude oil prices

Crude oil plays a crucial role in the production of oils used as immersion cooling fluids. Immersion cooling fluids like transformer oil are highly refined, processed, and purified derivatives of crude oil. Therefore, fluctuations in the price of crude oil directly impact the cost of immersion cooling fluids. Since 2016, crude oil prices have been subject to constant fluctuations, posing a challenge for the use of mineral oil in transformer immersion cooling solutions.

Ecosystem of Immersion Cooling Fluids Market

During the forecast period, mineral oil emerged as the leading player in the industry, capturing 41.3% of the global revenue share. In comparison to traditional air conditioning systems, mineral oil offers higher efficiency, simplifies facility design, and leads to cost savings. Its high boiling point, transparency, and oily nature make it an ideal choice as a single-phase dielectric.

The versatility of mineral oil, allowing for combination from various sources and batches, provides greater flexibility in deployment and operations. While mineral oil has been historically used as a dielectric cooling liquid for immersion cooling, its application in the IT industry has been limited due to issues such as low flash point, inconsistent quality, and material incompatibility.

The demand for fluorocarbon-based fluids, including hydrofluoroethers (HFEs), perfluorocarbons (PFCs), perfluoropolyethers (PFPEs), and fluorketones (FKs), is expected to witness significant growth with a projected compound annual growth rate (CAGR) of 26.5% over the forecast period. These fluorocarbon molecules are commonly used in immersion cooling liquids due to their high chemical and thermal stability, high dielectric strength, and relatively high vapor pressure. These properties make them suitable for effectively regulating IT equipment temperatures.

Deionized water cooling systems find applications in various fields such as electrical, metallurgy, electronics, research, nonelectric, and medical. The demand for deionized water is projected to increase due to its ability to prevent the risk of electrical arcing caused by static charge in the cooling circuit and the deposition of minerals that could hinder coolant flow.

In terms of technology, the single-phase immersion cooling segment dominates the market during the forecast period. Single-phase immersion cooling involves submerging the equipment entirely in the cooling fluid, which remains in liquid state throughout the cooling process. This system is cost-effective and maintenance-free, as there is no loss of immersion cooling fluids. The factors driving the market for single-phase immersion cooling include its low tank and coolant costs, high dielectric strength, low environmental impact, high coolant heat capacity, and high biodegradability. Single-phase immersion cooling accounts for 67.6% of the global revenue share, making it the leading technology in the industry.

The single-phase system is an efficient and economical cooling technique where electrical components and devices are fully immersed in a single-phase dielectric heat transfer fluid, which remains in liquid state throughout the cooling process.

On the other hand, the demand for two-phase systems is expected to grow at a CAGR of 21.7% over the forecast period. Two-phase systems offer improved reliability, high energy efficiency, deployment flexibility, and low maintenance requirements. With a power use effectiveness of 1.01, which is 5% lower than single-phase systems, two-phase systems are a suitable cooling solution for hyperscale data centers.

However, two-phase systems require complex setups with significant safety features due to the significant pressure needed when the coolants transition to the gaseous phase. This increases the overall maintenance and operation costs of the cooling system. Additionally, the fluorinated fluids used in two-phase systems are more expensive compared to those used in single-phase systems, making replacements costlier due to fluid loss.

In terms of end use, the transformer segment is expected to dominate the market during the forecast period. The increasing demand for electric grid infrastructure, particularly transformers, is driving the market. Regions like Asia Pacific, North America, and Europe are witnessing a rise in electricity demand, leading to initiatives to build power-efficient and sustainable infrastructure. Immersion cooling systems for transformers enhance their efficiency and effectiveness, resulting in a higher demand for immersion cooling fluids used in transformers.

In the high-performance computing (HPC) sector, immersion cooling fluids have revolutionized the way HPC systems are cooled. With the demand for enhanced computing power continuously growing, specialized fluids such as engineered fluids or mineral oils offer exceptional thermal management capabilities. Immersion cooling enables efficient heat dissipation by immersing the computing components directly in the cooling fluid. This approach ensures optimal operating temperatures for high-performance computing systems, resulting in improved energy efficiency, extended hardware lifespan, and superior performance. Immersion cooling fluids have become a game-changer in unleashing the full potential of high-performance computing applications.

Regional Insights

Asia Pacific emerged as the dominant region in the immersion cooling market, closely followed by North America, in terms of value, during the forecast period.

The Asia Pacific region is experiencing substantial growth in the immersion cooling market, driven by the rapid expansion of data centers and high-performance computing applications in countries like China, India, and Japan. The market in Asia Pacific is projected to reach $167.9 million, growing at a CAGR of 10.2% during the forecast period. Factors such as increasing investments in data centers, the demand for energy-efficient cooling solutions, and government initiatives promoting sustainable technologies contribute to the market's growth in this region.

Furthermore, the rising energy demand in the Asia Pacific region necessitates effective immersion cooling solutions for transformers in power transmission infrastructure. The region has also witnessed a surge in demand for electric vehicles, and ongoing research and development for EV batteries create opportunities for the utilization of immersion cooling fluids. The growing demand for data centers also contributes to the expanding market for immersion cooling fluids in the region.

In Europe, there has been significant adoption of immersion cooling solutions across various industries, including data centers and high-performance computing. The European immersion cooling market was valued at $90.8 million and is expected to grow at a CAGR of 16.4% during the forecast period. The increasing demand for energy-efficient cooling solutions and the focus on reducing carbon footprints are key drivers behind the growth of immersion cooling fluids in the European market.

The South American market for immersion cooling is still in its early stages but is gradually gaining attention, particularly in data center applications. Due to the lack of specific statistics, it is challenging to provide an accurate market size or growth rate for immersion cooling fluids in South America. However, as the demand for high-performance computing and data centers increases in the region, the adoption of immersion cooling solutions is expected to grow.

Similarly, the immersion cooling market in Africa is also emerging, with limited adoption of these technologies. Due to the lack of specific statistics, it is difficult to provide precise market size or growth rate figures for immersion cooling fluids in Africa. However, as the demand for advanced computing systems and data centers grows in the region, there is potential for increased adoption of immersion cooling solutions.

Dominating Companies in Immersion Cooling Fluids Market

• NYNAS AB
• ERGON, INC.
• PETROCHINA COMPANY LIMITED
• APAR INDUSTRIES
• SINOPEC LUBRICANT COMPANY
• SOLVAY
• LANXESS
• 3M
• CHEMOURS
• SHELL PLC
• FUCHS PETROLUB SE
• GREEN REVOLUTION COOLING INC.
• SUBMER
• ENGINEERED FLUIDS
• M&I MATERIALS LIMITED.
• ZHEJIANG NOAH FLUOROCHEMICAL CO., LTD.
• SANMING HEXAFLUO CHEMICALS CO., LTD.
• THE LUBRIZOL CORPORATION
• CASTROL
• CARGILL, INCORPORATED
• DOBER
• FLUOREZ TECHNOLOGY INC.
• TOTALENERGIES
• GUANGDONG GIANT FLUORINE ENERGY SAVING TECHNOLOGY CO., LTD
• HONEYWELL INTERNATIONAL INC.
• SHENZHEN HUAYI BROTHER TECHNOLOGY CO., LTD

Recent Developments in Immersion Cooling Fluids Market

• In 2021, Nortek Air Solutions, a leading provider of custom air handling solutions, announced its acquisition of Qcooling, a German-based company specializing in immersion cooling technologies. This strategic acquisition allows Nortek Air Solutions to expand its product portfolio and offer innovative solutions in the field of immersion cooling fluids.
• In 2020, Green Revolution Cooling (GRC), a provider of immersion cooling solutions, announced a partnership with Core Scientific, a leading provider of AI and blockchain infrastructure and software solutions. This partnership aimed to deploy GRC's immersion cooling technology in Core Scientific's data centers, enabling high-performance computing with improved energy efficiency and reduced environmental impact.
• In 2019, 3M, a global science and technology company, announced the acquisition of Acelity, a leading provider of advanced wound care and regenerative medicine solutions. This acquisition included Acelity's subsidiary, CoolSystems Inc., which specializes in the development of immersion cooling fluids for medical applications. The acquisition strengthened 3M's position in the healthcare industry and expanded its portfolio of innovative solutions.
• In 2019, Iceotope, a UK-based company specializing in liquid cooling solutions, announced a partnership with Schneider Electric, a global leader in energy management and automation. The partnership aimed to integrate Iceotope's immersion cooling technology into Schneider Electric's data center infrastructure solutions, providing customers with more efficient and sustainable cooling options for their IT systems.
• In 2018, Allied Control, a provider of liquid cooling technologies, announced its acquisition by BitFury Group, a leading blockchain technology company. Allied Control's expertise in immersion cooling played a crucial role in BitFury's focus on energy-efficient mining operations for cryptocurrencies. This acquisition allowed BitFury to enhance its capabilities in the field of immersion cooling and strengthen its position in the blockchain industry.
• In 2021, Submer, a Spanish company specializing in immersion cooling solutions, announced a strategic partnership with Hewlett Packard Enterprise (HPE). The partnership aimed to integrate Submer's immersion cooling technology into HPE's high-performance computing systems, providing customers with more efficient and sustainable cooling options for their data centers.
• In 2020, GRC (Green Revolution Cooling) announced a partnership with Fujitsu, a global information and communication technology company. The partnership focused on leveraging GRC's immersion cooling technology to enhance the energy efficiency and performance of Fujitsu's data centers, supporting their sustainability goals and reducing environmental impact.
• In 2019, Schneider Electric partnered with Iceotope to develop innovative liquid cooling solutions for data centers. The collaboration aimed to combine Schneider Electric's expertise in energy management and automation with Iceotope's immersion cooling technology, providing customers with highly efficient and reliable cooling solutions for their IT infrastructure.
• In 2018, CoolIT Systems, a provider of liquid cooling solutions, announced a partnership with Hewlett Packard Enterprise (HPE). The partnership aimed to deliver high-performance computing solutions with advanced liquid cooling technologies, improving energy efficiency and enabling higher density computing for HPE's customers.
• In 2018, Asperitas, a Dutch company specializing in immersion cooling systems, announced a partnership with Boston Limited, a UK-based provider of high-performance computing solutions. The collaboration focused on integrating Asperitas' Immersed Computing technology into Boston Limited's data center solutions, offering customers highly efficient and sustainable cooling options for their computing infrastructure.

Immersion cooling fluids are revolutionizing the data center industry by providing energy-efficient, cost-effective, and high-performance cooling solutions. The choice of suitable immersion cooling fluids is crucial to maximize the potential benefits of this technology. Government policies promoting energy efficiency and sustainability further encourage the adoption of immersion cooling in data centers, driving innovation and shaping the industry's future. As the demand for data storage and processing continues to grow, immersion cooling will play a pivotal role in meeting these challenges head-on.