Advancements in computing technology demand that it runs ever faster and hotter. In turn, the immersion cooling market is poised for incredible growth.
Valued at $302M worldwide as of 2022, the market is expected to grow at a whopping 24.2% CAGR (compound annual growth rate) to reach $1.71B by 2030.
What’s driving this?
- High-performance computing for artificial intelligence
- Data mining for cryptocurrency
- Electric vehicle processors and batteries
Advancements like these are driving manufacturers across several industries, such as automotive and industrial lubricants, to invest heavily in immersion cooling products.
Is your supply chain ready?
The Computing World Is Leaning Into Immersion Cooling
As the heat generated from high-performance computing and power supply increases, air-cooling cannot keep up. Highly-refined, dielectric mineral oils and liquid natural gas derivatives are evolving into good options for immersion cooling.
NVIDIA, AMD, Intel
Advances in generative AI (artificial intelligence) are pushing the biggest names in computing to develop new software and hardware to support the computing demand.
Air cooling has traditionally been an inexpensive and simple method to prevent overheating of the data centers that house graphics processing units (GPUs) like NVIDIA’s H100 GPU with 80,000 transistors.
But as demand for image-generating AI increases, air cooling units are getting overtaxed.
Like NVIDIA and AMD, Intel is clocking this sea change:
“It’s always that thing we’re going to do in the future. We believe we’ve reached a time where liquid cooling has to play a much bigger role in the data center. I believe there’s been more energy around immersion cooling in the last year that I’ve heard in a very long time. I think the time is now.” – Zane Ball, Intel’s Corporate VP and General Manager Datacenter Engineering and Architecture
Crypto Data Miners
Many technologically-inclined investors who predict a bright future for cryptocurrency are taking on the challenge of data mining to earn their currency of choice, e.g. Bitcoin, Ethereum, etc. The idea is to trade time and computational effort for crypto rather than traditional currency.
To be successful, data miners must invest in sophisticated hardware capable of incredibly complex computation at high speeds. Advanced heat management for these “mining rigs” is becoming increasingly essential.
The search for more efficient cooling methods has led mining operations (like this one in Texas) to adopt immersion cooling techniques. By submerging servers and computer chips in non-conductive liquids, they cite not only superior cooling but increased performance as well.
Electric Vehicles
One of the strongest drivers of the immersion cooling market is electric vehicles (EVs). Both the computational complexity and the power supply (batteries) will require sophisticated cooling techniques that haven’t been needed for internal combustion engine (ICE) vehicles.
This shift is causing lubricant makers to pivot from ICE oils toward the development of EV fluids, such as those that can be used for immersion cooling.
Synthetic isoparaffins such as Shell’s GTL (gas-to-liquid) products, for example, are already being used for immersion cooling. These highly-refined hydrocarbons offer several benefits for EV and data center applications that make GTL a strong player in this burgeoning market.
How to Prepare Your Supply Chain
As the immersion cooling market heats up, the best-supplied companies will lead the pack. The time to strengthen your supply chain is now, before competition becomes fierce.
But competition isn’t the only reason to prepare.
The pandemic taught the world just how fragile the global supply chain can be. In times of economic disarray, natural disaster, and political unrest, tightening up your supply chain network will be essential to stay competitive.
Here are four ways you can protect your supply of immersion cooling oils and fluids over the next decade:
- Invest in additional insurance. Consider adding contingent business interruption (CBI) insurance, which can provide protection for unforeseen scenarios.
- Run crisis management drills. Plan for every emergency scenario you can by making sure everyone knows their crisis roles and responsibilities.
- Increase your inventory investment. Bulk up your redundancy or work with a supplier (like us) that maintains a deep inventory for you.
- Diversify your sources. Sign a contract for regular supply with your primary supplier, and develop relationships with several secondary suppliers as well.
Signal Fluid Solutions: Your Partner in the Future of Immersion Cooling
For nearly four decades, we’ve partnered with a variety of industries to supply them with the base oils and specialty oils needed today, always with an eye on tomorrow.
Shell GTL is one of several product lines we carry that has many important applications today, from cosmetics to household products, adhesives, paints, and much more.
Products like these are also part of an exciting future in technology advancement.
Learn more about our expertise in emerging markets, logistics services, and network of supply points across the U.S. and Europe to keep you moving forward.
