Pooja Sharma
Senior Project Manager, Energy
Trend 1: Immersion cooling will expand beyond data centers, with power density driving demand
Immersion and other liquid cooling approaches are moving past early trials and into practical deployment for high compute‑density needs. Similar thermal demands are showing up in other emerging applications.
Today, data centers consume ~1.5–2.0% of global electricity, with referenced growth to ~3.0% by 2030. However, this space goes beyond data centers, including battery energy storage systems (BESS), fast‑charging stations/superchargers, and early proof points in electric aviation.
Meaning for 2026: These applications need to be tracked to build future growth strategies, focusing on distinct demand pockets for thermal management fluids and related base fluids. Focus on where deployment is moving from pilot activity to repeatable use cases.
Trend 2: Competition will be fierce and fast evolving, changing the rules of how to win
The immersion cooling market is still complex and is evolving fast, with complexity outweighing scale of operation. This, combined with low standardization and bespoke specifications, leaves room for entrants with differentiated IP, process knowhow, and localization advantages.
This is demonstrated by a marked increase in fluid suppliers over the past 12–18 months, growing partnerships across data center server/chip/tank manufacturers, and increased interest in immersion cooling from private equity firms. There is growing support across the ecosystem, as communities such as OCP support more open development, which can lower barriers.
Meaning for 2026: Winning will depend on ecosystem position, such as partnership access, technical fit, qualification readiness, and a credible go‑to‑market plan, not fluid properties alone.
Trend 3: Connecting the dots will be key to identifying second‑order lubricant demand
Data center growth creates an ecosystem effect that extends beyond cooling fluids into established lubricant categories. As data centers add captive power generation and storage, requirements broaden and evolve.
This is being witnessed across power and transmission buildout, supporting the demand for transformer oils. As the power‑mix shifts, we can see the link to lubricant categories such as natural gas engine oils, wind‑turbine synthetics/PAO, and metalworking fluids tied to solar infrastructure fabrication.
Meaning for 2026: Expanding the planning lens from “cooling fluids” to “infrastructure pull‑through” is crucial. Map where data center growth is likely to drive lubricant demand in adjacent power and industrial categories and build capacity into your planning.
For more insights on 2026 energy trends, explore our Energy Trends series.
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