The growing use of artificial intelligence (AI) is pushing the traditional air-cooling methods for data centers to their capacity limits. To address this challenge, many data center managers are turning to alternative liquid cooling methods that offer enhanced energy efficiency and sustainability.
This article explores how hyperscale data centers can use liquid immersion technology to meet the rising needs of the AI infrastructure.
What Is Liquid Immersion Cooling?
Liquid immersion cooling is a form of liquid cooling that involves submerging IT hardware in an inert, non-conductive fluid – called a dielectric fluid. This liquid absorbs and dissipates heat that has been generated by the components, effectively cooling them down more efficiently than air exposure.
As the components continue to operate, the fluid absorbs the heat and then transfers it to a cooling system. The cooling system then extracts the heat through heat exchangers or direct liquid-to-liquid cooling. The cooled fluid then goes back into the immersion enclosure as part of a continuous cycle.
According to Anay Arun, an experienced mechanical engineer who specializes in liquid immersion cooling technology and has vide expertise in boiling heat transfer, two phase and three phase heat transfer processes, there are three four aspects of an efficient data center cooling system.
- “The formulation of the dielectric fluid is significant,” says Arun. “It must be proven to be chemically stable and non-conductive.”
- Arun says that the immersion enclosure must be designed for optimal contact between the IT components and the fluid in a controlled environment. “These designs may need to be customized to meet each data center’s specific needs,” he points out.
- Efficient liquid requires a complex exchange between the different mechanisms.
- Increase the heat transfer through phase change process “Enhance surface treatment methodology to increase the critical heat flux (CHF) in boiling heat transfer”. With this methodology we can achieve CHF up to 500W/cm2 .
What Are the Benefits of Liquid Immersion Cooling?
Arun, who has over seven years of experience in data center engineering, a senior Fellow of Hackathon Raptors and Soft Computing Research Society. Based on his experiments and hands-on experience by working to enhance heat transfer process through pool boiling and increasing the surface area of a body, lists the following primary benefits of liquid immersion cooling.
Energy efficiency. Analysis done by Arun shows that “Data centers that switch from air cooling to immersion cooling methods could experience a 50 percent reduction in energy consumption,” Arun states. He adds that immersion operates with less noise than air cooling, eliminating the need for separate noise control systems and comply with Acoustic and Vibration code.
Smaller footprint. When data centers use traditional air cooling, there must be enough physical space for heat dissipation and airflow. On the other hand, immersion cooling systems are more compact, allowing data centers to maximize the utilization of their space. Arun suggests that immersion cooling requires about two-thirds less space than traditional air cooling.
Lower costs. After the initial expenses of installing an immersion cooling system, data centers will see reduced energy expenses. Immersion cooling reduces stress on hardware, potentially reducing costs associated with buying replacement parts and associated downtime.
Scalability. Immersion cooling technology allows data center operators to expand as demand grows. “Each CDU (coolant distribution unit) has a cooling capacity of 200 to 240 kW,” says Arun. “With the innovative modular designs of these systems, large data centers can add an additional one to four tanks per CDU, with each tank supporting up to 100 kW.”
What Does the Future Hold For Liquid Immersion Cooling?
According to BIS Research, the liquid immersion cooling market, which had a global value of $5,655 million in 2024, is estimated to reach $48,427 million by 2034.
This exceptional growth is driven by the increasing demand for efficient and sustainable cooling methods for hyperscale data centers. However, some challenges include high initial investment costs, including specialized tanks, pumps, and heat exchangers. Additionally, there is a need for specialized training, and there are limited standardization rules.
Despite these challenges, existing and emerging liquid cooling technology is essential for addressing the expanding needs of 21st century IT infrastructure, according to Arun. “Liquid immersion cooling promotes sustainability and optimizes performance,” he says. This evolving technology is a game-changer for hyperscale data center operations.”
Anay Arun
Mechanical Engineer with Subject Matter Expertise in Boiling Heat Transfer, Materials and Hyperscale Data Center

















