Liquid Cooling: The Sustainable Solution Driving Efficiency in Data Centers

As the demand for cloud services, AI, and big data processing continues to skyrocket, data centers are under immense pressure to handle the heat – literally.

The data center liquid cooling market is emerging as a game-changing solution to keep these massive centers running efficiently. As traditional air-cooling methods struggle to keep up with the rising energy needs, liquid cooling is stepping in to offer a more effective, eco-friendly solution.

Why Data Center Liquid Cooling is a Hot Market

Data centers are power-hungry beasts, and with power comes heat. Traditionally, data centers have relied on air cooling, but that method has its limitations, especially as data centers grow more powerful. More servers mean more heat, and this is where liquid cooling comes into play.

Liquid cooling systems circulate coolant directly to heat-producing components, effectively absorbing heat and removing it from the system faster than air could. This method is more efficient at removing heat, which means servers can operate at higher loads without overheating.

As a result, data centers can cram more processing power into smaller spaces without worrying about breakdowns caused by overheating. According to Vertiv, liquid cooling led to a more than 15% increase in Total Usage Effectiveness and a 10.2% decrease in overall data center power.

Related:Unlocking the Potential of Passive Two-Phase Liquid Cooling

A modular cooling distribution unit from Rittal that delivers a cooling capacity of over 1MW (Image: Rittal)

Liquid Cooling and Data Center Sustainability

One of the biggest challenges for the tech world is energy efficiency. In 2022, there were around 8,000 physical data centers worldwide, according to USITC. Energy consumption is becoming a huge issue. Data centers used an estimated 460 TWh in 2022, which accounted for 2% of the world's total electricity use, according to the research.

Traditional cooling methods burn through tons of energy. Over 50% of all building energy is used by cooling systems. This isn’t great for businesses or the planet. Liquid cooling uses far less energy to achieve the same, or even better, cooling compared to air cooling.

Another big plus of liquid cooling is water conservation. Air-cooled data centers typically require massive amounts of water for their cooling. Liquid cooling, by contrast, is more self-contained and requires much less water. This makes it an attractive option for regions where water is scarce or expensive.

Applications in High Performance Computing (HPC)

Liquid cooling is quickly becoming the go-to solution for high-performance computing (HPC) applications, as it allows HPC systems to operate at maximum efficiency without throttling performance due to overheating.

Related:Liquid Cooling: The Emerging Solution for Data Center Heat Management in India

Liquid cooling is enabling data center operators to manage rising heat and power needs across high-performance infrastructure (Image: Alamy)

Who’s Leading the Liquid Cooling Charge?

Key players in the data center industry are rapidly moving toward liquid cooling solutions. Hyperscalers including Microsoft, Google, and Amazon Web Services (AWS) are investing heavily in liquid cooling technology to manage their massive data centers.

Dedicated data center cooling companies include Schneider Electric, Iceotope, Vertiv, Green Revolution Cooling, Stulz, Sumber, and USystems, among others.

Other specialized companies are also making waves. CoollT Systems, Asetek, and LiquidStack are focusing solely on liquid cooling, creating advanced systems that can be integrated into existing data centers or built into new ones from the ground up.

These companies are pushing the boundaries of what’s possible in data center efficiency and are becoming critical players in the tech landscape.

Regional Liquid Cooling Outlook

The North American market is leading the adoption of liquid cooling systems, owing to the high density of hyperscale data centers like Google and Microsoft. Over 40% of the global data center market is possessed by North America. Over 24,000 MW of new data center developments are planned in the Americas, resulting in a 2.5x increase in data center capacity.

Related:Why Liquid Cooling Systems Threaten Data Center Security

Asia-Pacific is catching up fast. Countries like China, India, and Japan are seeing rapid growth in cloud adoption and digital transformation, which is driving demand for more efficient cooling solutions. Asia is predicted to see a 2.2x growth in data center capacity, with over 13,000 Megawatts now under development.

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Europe, known for its strict environmental regulations, is also turning to liquid cooling as a way to meet energy efficiency standards. With more than 6,500 MW of capacity under development, data center capacity in EMEA is anticipated to rise by a factor of two.

With governments pushing for lower carbon emissions and energy conservation, European data centers are increasingly turning to liquid cooling to stay compliant while maximizing performance.

Cooling Next-Gen Digital Infrastructure

The data center liquid cooling market is no longer just a niche solution. It is quickly becoming a necessity for high-performance computing and large-scale data centers.

As the need for more energy-efficient and sustainable cooling solutions grows, data center liquid cooling is poised to take over a huge chunk of the market. Whether it’s reducing energy consumption, conserving water, or supporting the next wave of tech innovation, liquid cooling is placed at the center of data center infrastructure.

For more information, read Research Nester’s latest Data Center Liquid Cooling Market Report.