The Next Generation of Battery Storage

Submerge the Battery.
Eliminate the Fire Risk.

Immersion cooling submerges battery cells and modules directly in a non-conductive dielectric fluid — delivering unmatched safety, longer life, and denser deployments than air or cold-plate cooling.

<3°CCell-to-cell temp delta
10–20×Heat removal vs. air
ZeroThermal-runaway propagation
$8.9BMarket by 2033 (CAGR 15%)

How Immersion Cooling Works

The entire battery module — cells, busbars, interconnects — sits in a dielectric fluid. Heat is absorbed directly from every surface; oxygen is excluded at the cell level.

💧

Single-Phase

Cells are fully submerged in a non-boiling dielectric fluid (synthetic ester or PAO-based). A heat exchanger circulates the fluid to remove thermal energy. Simple, reliable, with biodegradable options available.

♨️

Two-Phase

Cells sit in a low-boiling fluorocarbon that vaporizes at the cell surface and condenses on external coils. Delivers the flattest temperature distribution of any BESS cooling method — ideal for high C-rate applications.

🔥

Fire-Safe by Design

The fluid blocks oxygen at the cell surface and absorbs thermal-runaway energy. In UL 9540A testing, adjacent cells stayed below 50°C while a failing cell reached 500°C — zero propagation.

Why Immersion Cooling Is the Answer — Now

BESS is moving into cities, basements, substations, and commercial buildings — where electricity has its highest value but fire perception has blocked deployment.

The Problem

~100 active BESS moratoriums in New York alone. The 2025 Moss Landing fire in California. Batteries in dense urban spaces carry unacceptable fire risk with air or cold-plate cooling.

The Solution

Immersion cooling structurally eliminates thermal-runaway propagation. It's not a suppression add-on — it's inherent to the design. The dielectric fluid is present from cell to module to rack, creating a continuous fire barrier.

The Result

Longer cycle life (uniform temperature = slower aging), no derating at high charge/discharge rates, 30–50% smaller footprint, and access to building types previously off-limits to battery storage.

Immersion vs. Air vs. Cold-Plate Cooling

Three cooling architectures compete in BESS. Only immersion eliminates thermal-runaway propagation structurally.

Air Cooling
Cold-Plate
Immersion
Heat removal
Baseline (1×
3–5×
10–20×
Cell temp uniformity
±8–12°C delta
±4–6°C delta
<3°C delta
Fire propagation risk
High — hot-spot spread
Moderate
Zero propagation
O&M complexity
Low
Moderate
Moderate
Footprint density
Lowest
Medium
30–50% smaller
Cycle life impact
Derated at high C-rate
Moderate improvement
Full C-rate, longer life

Where Immersion Cooling Shines

From AI data centers to remote mines — any space where a battery fire is not an option.

🖥️

Data Centers

In-rack batteries for AI load buffering (millisecond GPU swings). UPS companion systems. Zero-fire-risk deployments in occupied buildings.

🏭

Industrial

Enclosed manufacturing spaces, mines, oil & gas platforms. High-C-rate load leveling where fire exposure to production is unacceptable.

Grid Storage

Urban substations, frequency regulation, renewable firming. The largest immersion market segment at 32.5% of total.

🔋

EV Charging

High-power fast-charging stations with immersion-cooled buffer batteries. Compact, safe, no derating during peak demand.

🏝️

Microgrids

Island-mode storage where a battery fire destroys the only power source. Military, campus, and remote community deployments.

📡

Telecom

5G/6G base stations in weather-exposed cabinets. Longer life in extreme temperatures, no maintenance access needed.

The Market Is Ripe

Four analyst estimates span a wide range — but all agree on one thing: immersion cooling is entering exponential growth.

Estimate 2025 Forecast CAGR Source
Broadest — full immersion storage market $2.8B $8.9B (2033) 15.2% Dataintelo
Mid — liquid cooling rack systems (immersion = fastest) $340M ~$1.4B+ (2030) 28% DataHorizon
Narrow — immersion-cooled BESS systems $136M $932M (2035) 21.4% Emergen Research
Narrowest — cooling hardware only $23.4M $68.6M (2032) ~17% Coherent Insights

🌍 Growth by Geography

Immersion cooling penetration is nascent everywhere, but growth trajectories diverge sharply by region — driven by data-center density, regulatory pressure, and BESS deployment velocity.

Region 2025 Market 2030 Forecast CAGR Global Share Key Drivers
APAC $112M $890M 45% 38.7% China 167 GWh BESS in 2025 (+85% YoY); AI data-center boom; PFAS-free fluid mandates accelerating
North America $89M $520M 38% 30% ERCOT 13.9 GW / 22,853 MWh operational; IRA 45X $35/kWh credits; 100+ BESS moratoriums driving safety-first procurement
Europe $56M $310M 35% 22% EU 27.1 GWh new 2025; PFAS restrictions (EU 2026) forcing fluid transition; grid-connected BESS now 55% of EU additions
LatAm $8M $55M 32% 5.6% Chile solar+storage auctions; Brazil microgrid mandates; mining-sector demand
MEA $5M $35M 40% 3.5% NEOM 2 GW BESS; UAE Masdar gigafactory; high-temp climates favor immersion efficiency; GRC/Mindstream sovereign AI partnerships

⚡ Growth by Utilization (Application)

Immersion cooling serves multiple BESS applications. Below is total addressable BESS deployment in MWh, penetration rates for immersion, and the corresponding cooling-market value.

Application Total BESS
2025 (GWh)
Immersed
2025 (MWh)
Penetration Cooling $
2025
Cooling $
2030
Notes
Grid Storage 246.5 50–100 <0.1% $32M $210M ERCOT 22,853 MWh; CAISO 17 GW; China 167 GWh. Moratoriums & urban siting drive demand.
Data Centers 12–18 300–1,500 ~3–8% $45M $340M AI GPU density 1,000W/rack mandates liquid cooling. Dell'Oro: liquid cooling grew 52% in 2023 ($745M total).
C&I ~50 10–50 <0.1% $15M $100M Commercial buildings, factories, mines. 30–50% footprint reduction critical for urban sites.
Telecom / EV ~15 5–20 <0.1% $8M $45M 5G/6G base stations; fast-charging buffer. Huawei/ZTE outdoor cabinet deployments.

📊 Global BESS Deployment Context

Total BESS deployment is growing explosively — immersion cooling is at <2.5% penetration. The addressable opportunity is enormous.

Metric 2025 2026E Source
Global BESS deployed 275.3 GWh 353.4 GWh IEA / InfoLink
China BESS (only) 167 GWh 203.5 GWh InfoLink — 61% of global total
EU BESS new 27.1 GWh (+45%) 35.1 GWh SolarPower Europe
US utility-scale 18.9 GW 24 GW planned EIA / IndexBox
ERCOT operational 13.9 GW / 22,853 MWh ~20 GW End-2025 — nearly doubled from 7.8 GW
Turnkey BESS system cost $117/kWh $108/kWh BNEF ESS Cost Survey 2025
Immersion cooling delivered (total) 0.37–1.67 GWh 0.4–2.0 GWh All applications combined — <1% penetration

💡 What It Means

The directional picture is consistent across all four estimates: high-teens CAGR, still a tiny slice of the $77B stationary BESS market, with data centers and grid storage as the leading applications. Immersion cooling is at the same inflection point as lithium-ion batteries were in the early 2010s — proven technology, scaling rapidly, and about to become the default for safety-critical deployments.

Key Players

The immersion cooling ecosystem spans startups and incumbents — all racing to standardize and scale.

EticaAG

Fortis Series — first commercial immersion-cooled BESS line for data centers. LiquidShield™ fluid + HazGuard™ gas mitigation. UL 9540A no-propagation results. Available Q4 2026.

Submer

Pioneer of dielectric-fluid immersion with HPC heritage. Listed among immersion storage market leaders. Scaling from server racks to battery storage.

Green Revolution Cooling

Two-phase immersion-cooling leader with LiquidStack platform. Strong in HPC, expanding into BESS for high-performance energy storage.

Shell · CATL · Vertiv

Shell (certified battery dielectric fluid), CATL (5 MWh EnerD line), and UPS majors (Schneider, Vertiv, Eaton) transitioning data-center battery lines toward lithium and higher-safety chemistries.

Ready to Go Deeper?

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