In a two-phase immersion cooled system, electronic components are submerged into a bath of dielectric heat transfer liquids, which are much better heat conductors than air, water or oil. With their various low boiling points (ie. 49°C vs. 100°C in water), the fluids boil on the surface of heat generating components and rising vapor passively takes care of heat transfer.
In contrast to submersion oil cooling, liquids are clean, environmentally friendly and non-flammable. No heatsinks, pumps and jets are required to keep hardware cool. Circulation happens passively by the natural process of evaporation and without spending any extra energy.
It is this simplicity that eliminates conventional cooling hardware and results in better cooling efficiency. Compared to traditional air, water or oil cooling, this passive process results in the use of much less energy.