Artificial intelligence (AI) is driving an unprecedented transformation in data centers, pushing computing demands beyond what traditional cooling methods can manage. In just the past five years, data center rack densities have surged dramatically, with average rack power densities projected to reach or exceed 50 kW by 2027. These are levels that were previously uncommon but are rapidly becoming standard due to the energy profiles of next-generation GPUs, the IT compute hardware designed for the intensive AI workloads that are beginning to proliferate.

As we accelerate deeper into the AI era, the data center industry faces a crucial decision: rapidly embrace advanced liquid cooling technologies or risk being left behind. With global energy use by data centers expected to double by 2030, immediate innovation in cooling isn’t just an option; it’s an imperative.

Historically, air-based cooling was sufficient, relying on circulating chilled air through server racks to manage moderate heat loads. But as powerful GPUs and CPUs—central components of AI and machine learning applications—generate increasingly intense heat, traditional air cooling methods are reaching their limits. This escalating thermal challenge underscores the critical need for more advanced and targeted cooling solutions.

Direct Liquid Cooling: Potential vs. Reality

Direct liquid cooling (DLC), involving specialized coolants directly interfacing with high-heat components via cooling distribution units (CDUs) and cold plates, is emerging as a highly effective approach and its ability to operate within recognized server form factors has given it a significant advantage. CDUs meticulously control coolant flow to and from the cold plate via hoses connected via a manifold in the back of the server rack, maintaining stable temperatures even under demanding conditions. Despite increased complexity and upfront costs, DLC’s performance gains under heavy workloads are undeniable.

Yet, despite DLC’s significant benefits, the broader data center industry has yet to fully embrace its potential. Initially, liquid cooling promised dramatic energy efficiency improvements by operating at higher temperatures, theoretically reducing reliance on chillers. However, rising global ambient temperatures and the need for air-based cooling to take care of peripheral heat loads within the rack, have tempered these expectations, complicating cooling strategies and underscoring the industry’s need to adapt more swiftly.

Acknowledging these challenges does not diminish DLC’s essential role. Many high-density chips designed for advanced AI applications now explicitly require liquid cooling. Air cooling remains viable for lower-density workloads, including peripheral heat loads from high density racks, but DLC is becoming indispensable wherever thermal densities surpass traditional cooling capabilities. The future involves strategically integrating DLC alongside air cooling, optimizing each approach’s strengths.

Looking forward, two-phase immersion cooling presents another promising technology. Servers submerged in dielectric fluids efficiently dissipate heat through evaporation and condensation. Already successful at smaller, edge deployments, immersion cooling demonstrates substantial scalability potential. Although logistical challenges persist, immersion cooling’s anticipated mainstream adoption within five to ten years could significantly transform data center design and operations.

Meeting Environmental and Operational Demands

The data center industry must also confront increasingly extreme external environmental conditions. Rising ambient temperatures, sometimes exceeding 130°F, challenge cooling system effectiveness. At Airedale by Modine’s testing facilities, we simulate conditions up to 145°F, ensuring systems remain resilient under demanding climates. Such rigorous preparation should become an industry standard.

Simultaneously, data centers face the dual challenge of managing power and water consumption efficiently. Ironically, reducing electricity use often involves increased water consumption, which conflicts with environmental goals in water-scarce regions. Intelligent hybrid cooling strategies that optimize resource usage are essential, balancing efficiency gains with responsible environmental stewardship.

Advancing cooling strategies extends beyond implementing new technologies. Integrating IoT sensors, advanced analytics, and intelligent controls allows real-time optimization of cooling systems, greatly enhancing efficiency and sustainability. Automated cooling management aligns with aggressive industry-wide sustainability objectives, ensuring data center reliability and operational excellence.

Edge computing’s rapid growth further emphasizes the necessity of advanced cooling. Smaller, decentralized data centers located closer to end-users face unique cooling challenges. Innovative solutions such as modular liquid cooling units and compact immersion tanks offer practical, efficient cooling for edge facilities, ensuring their operational viability and efficiency.

Renewable energy integration further enhances cooling strategies, allowing data centers to pair advanced cooling methods with sustainable energy sources like solar or wind. Such integrated approaches significantly reduce carbon footprints, aligning operational efficiency with sustainability goals.

Accelerating Adoption through Collaboration and Training

Industry collaboration can accelerate innovation and adoption rates. Shared research projects, joint pilots, and collective standard-setting efforts could address common challenges, promoting quicker adoption of advanced cooling technologies. Collaboration rather than competition is key to maximizing the industry’s collective impact.

Moreover, investment in research and development will be essential to overcoming the technical barriers currently limiting widespread adoption of liquid cooling technologies. Funding for ongoing innovation can drive breakthroughs in coolant materials, containment methods, and cooling system integration, providing clearer pathways to adoption.

Finally, educating and training industry professionals about advanced cooling technologies will significantly ease the transition. Industry-wide training programs, certification courses, and awareness initiatives can empower data center operators and engineers, ensuring they are well-equipped to implement and manage new cooling solutions effectively.

Ultimately, embracing liquid cooling isn’t just about keeping pace with technology—it’s about leading responsibly into the future. As industry leaders, we have the opportunity, and indeed the responsibility, to transform how data centers operate, balancing explosive computing demands with sustainable growth.

The time for hesitation has passed. Now is the moment for decisive action, collaborative innovation, and bold investment in advanced cooling technologies. By fully committing to liquid cooling solutions today, the data center industry will not only secure its operational future but also set a compelling example for sustainability and efficiency that other industries can follow.

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About the Author

Darren is Group Strategy Director at Airedale, responsible for developing their long-term growth plans and assessing new markets, technologies and territories in line with parent company Modine’s 80/20 operating system.

He has a degree in Marketing with Innovation from the University of Huddersfield, a HNC in Electrical and Electronic Engineering and a 17-year career spent in global engineering businesses.