Investments in the first 3Q’s of 2024 nearly doubled 2023, according to Cleantech Group
SAN FRANCISCO, November 12, 2024 — Novel liquid cooling solutions are poised for growth and innovation as data centers experience a boom driven by exploding demand for AI and hyperscale computing, according to Cleantech Group.
Liquid cooling technology innovators are seen as a beneficiary as data centers face new challenges of managing more sophisticated and higher-cost IT infrastructure and maintaining high performance levels. According to Goldman Sachs, ChatGPT-based searches, for example, consume nearly 10X more electricity than a simple Google search, and training generative AI models consume orders of magnitude more energy than training incumbent AI models. This, in turn, is expected to double electricity consumption at data centers by 2026, drastically raising demand for more efficient cooling technologies.
“Cooling solutions that can compete on performance, address the needs of higher-powered GPUs, and be easily integrated into data center infrastructure will see near-term growth,” said Cleantech Group Associate, Energy & Power, Zainab Gilani.
“Direct-to-chip cooling technologies have steadily been gaining traction and innovators in this field are exploring various ways to improve heat transfer properties and operations. Examples of innovative direct-to-chip solutions include Accelsius’s two-phase direct-to-chip cooling technology and JetCool’s microconvective liquid cooling platform,” Gilani added.
Other key findings include:
Policy support is encouraging new sustainable solutions and designs. The UK and Germany are among countries that are supporting reuse of waste heat generated by data centers and setting new power usage efficiency standards. Initiatives in Sweden and the U.S. aim to phase out coolants that use PFAS that threaten to pollute food chains, while Chile has focused on environmental concerns arising over high levels of water requirements. Iceland is leveraging its renewable energy mix and lower ambient temperatures, while China experiments with underwater modules.
Stakeholders bank on partnerships. Chipmakers Nvidia and Intel are among key innovators that have chosen partnerships as the way forward. Nvidia is collaborating with CoolIt Systems, Schneider Electric, and Vertiv to advance liquid cooling. Intel has a key deal with CoolIT and with oil major ExxonMobil to develop cooling fluid for data centers.
Liquid cooling’s time has come. Rack densities that surpass 100kW cannot be managed by air cooled systems alone. They will require liquid cooling, which can be up to 300X more efficient. These technologies are especially needed for chips with high thermal design, or high-cost GPUs and other computing infrastructure that cannot risk breakdown. Liquid cooling can be combined with incumbent air-cooling technologies, whose limitations include an inability to manage higher rack densities and an inability to scale.
Momentum with direct-to-chip cooling technology. Besides high cooling efficiency, direct-to-chip technology offers a number of advantages. It mitigates risks associated with leaks and hardware/IT equipment reliability.
Multiple funding deals have jump-started this segment. LiquidStack raised $35M from investors such as Tiger Global, while JetCool closed a $17M Series A for a microconvective form of direct-to-chip cooling. Installation expenses will not be a near-term barrier in an industry with low-cost sensitivity and tech companies racing to scale up AI infrastructure.
For more on this subject, register for our complimentary webinar Decarbonizing Data Centers: Integrating Renewables and Optimizing Resource Efficiency on December 3rd at 11:00 EDT | 5:00 CEST.
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