The Future of Data Center Cooling: Why Immersion Cooling is the Sustainable Choice

B y 2030, data centers are projected to consume over 4% of the world’s electricity. With rising energy costs and climate concerns, traditional air cooling is no longer sustainable. The growing demand for high-performance computing, artificial intelligence, and big data analytics is pushing data centers to their limits. With this surge in computational power comes a significant challenge – heat management. Traditional air-cooling methods are becoming increasingly unsustainable due to their high energy and water consumption. As the industry seeks more efficient and environmentally responsible solutions, immersion cooling is emerging as a game-changer.

A Market on the Rise

The adoption of immersion cooling technology is gaining momentum, driven by the need for improved energy efficiency and sustainability. The data center industry currently consumes approximately 2% of the world’s electricity; a figure projected to increase significantly in the coming years. As computing density rises, traditional cooling methods struggle to keep up, leading to inefficiencies and escalating operational costs. Immersion cooling, by directly submerging electronic components in specially designed dielectric fluids, offers a more effective way to manage heat while reducing energy consumption.

Immersion cooling can cut cooling energy use by up to 95% and reduce total energy consumption by 30-50%, depending on the efficiency of the existing air-cooled system. This substantial reduction in energy consumption translates to fewer carbon emissions, making immersion cooling a smart choice for sustainability.

Fiber Optical cables connected to an optic ports and Network cables connected to ethernet ports.

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Beyond efficiency gains, immersion cooling aligns with corporate sustainability initiatives. Organizations are under growing pressure from stakeholders to minimize their carbon footprint. With sustainability presently as a boardroom priority, immersion cooling presents an opportunity to meet ambitious environmental targets, including reductions in greenhouse gas emissions and water usage.

Connection network in servers data center room storage systems.

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The Role of Sustainability in Adoption

Sustainability is no longer just a consideration—it is a primary driver of technological change in the data center industry. Two key factors make immersion cooling an attractive option: energy efficiency and water conservation. Traditional cooling methods rely on air conditioning and evaporative cooling, which consume vast amounts of electricity and billions of gallons of water annually. In contrast, immersion cooling significantly reduces Power Usage Effectiveness (PUE) and Water Use Efficiency (WUE) metrics, making it a preferred choice for companies looking to improve their environmental footprint.

Immersion cooling can cut cooling energy use by up to 95% and reduce total energy consumption by 30-50%, depending on the efficiency of the existing air-cooled system. This substantial reduction in energy consumption translates to fewer carbon emissions, making immersion cooling a smart choice for sustainability. By eliminating the need for extensive air conditioning infrastructure and reducing reliance on fossil fuel-powered electricity, data centers can lower their carbon footprint. Moreover, immersion cooling enables higher computing density, allowing for more computing power per unit of space. This increased density translates to more efficient resource utilization and reduced overall infrastructure needs, further contributing to sustainability goals.

The adoption of immersion cooling technology is driven by its ability to enhance energy efficiency, reduce water consumption, and lower carbon emissions.

Additionally, immersion cooling has a positive impact on Carbon Usage Effectiveness (CUE) by reducing overall carbon emissions associated with cooling operations. The direct and efficient heat removal by dielectric fluids used in immersion cooling systems results in improved PUE values, which can be as low as 1.02 to 1.04, compared to higher values for air-cooled systems. This improvement in PUE is due to the elimination of the need for complex and power-hungry air-cooling infrastructure, allowing data centers to use power more efficiently for actual computing rather than for cooling.

Furthermore, immersion cooling can reduce water use by as much as 91%, making it a highly water-efficient cooling method. This is particularly important as data centers collectively use billions of gallons of water each year for their cooling and power generation. By adopting immersion cooling, data centers can significantly reduce their water consumption, contributing to water conservation efforts and aligning with sustainability targets.

In summary, the adoption of immersion cooling technology is driven by its ability to enhance energy efficiency, reduce water consumption, and lower carbon emissions. These benefits make it a compelling option for modern data centers looking to reduce their environmental impact and operational costs while achieving higher computing density and efficiency.

Regulatory Drivers in the EU and Beyond

The European Union has set ambitious goals for data centers to become carbon-neutral by 2030. The topic of energy-efficient cloud computing has become a priority for the EU, and the European Commission is exploring measures to improve sustainability in cloud computing and data centers due to the expansion of cloud services in Europe. Data centers need to become more energy efficient, reuse waste energy such as heat, and use more renewable energy sources to achieve carbon neutrality by 2030. To meet this goal, the Commission will rely on a mix of existing instruments, reviews of functioning legislation, and new initiatives.

The Climate Neutral Data Centre Pact, launched in January 2021, is a significant initiative developed by the industry with the support of the European Commission. It engages data center operators and cloud infrastructure providers towards climate neutrality by 2030, with clear metrics to achieve by 2025 and 2030 on energy efficiency, clean energy, water conservation, circular economy, and circular energy systems. The commitments under this pact include matching data center electricity demand with 75% renewable energy or hourly carbon-free energy by December 31, 2025, and 100% by December 31, 2030.

Additionally, the European Commission is linking energy-efficient data centers to policy and funding initiatives through proposals such as the Directive on Energy Efficiency. This directive introduces new elements to improve the energy efficiency and sustainability monitoring of data centers. Over 100 data center operators and trade associations are committed to the European Green Deal, aiming to achieve the ambitious greenhouse gas reductions outlined in the climate law and leveraging technology and digitalization to make Europe climate neutral by 2050.

Beyond the EU, other regions are also prioritizing sustainable data center initiatives. In the United States, the Department of Energy is pushing for energy-efficient computing through research and incentives that promote immersion cooling adoption. Similarly, in the Asia-Pacific region, countries like Japan and Singapore are accelerating their transition to immersion cooling due to rising energy constraints and land scarcity, making efficient cooling methods essential. With global regulatory bodies recognizing the need for sustainable cooling solutions, immersion cooling is becoming a key consideration for data center operators worldwide.

By implementing these measures, the EU and other leading economies aim to ensure that data centers contribute to the broader goals of reducing carbon emissions and promoting sustainability across the digital infrastructure. The focus on energy efficiency, renewable energy sources, and waste energy reuse will play a crucial role in achieving these targets and setting a global standard for sustainable data center operations.

The Importance of Fluid Chemistry

Several chemistries are already used and deployed, with immersion cooling solution providers still assessing alternative chemistries. The phase-out of polyfluoroalkyl substances (PFAS) discredits some of the fluids used until now. The main factors that will determine chemistries for immersion cooling fluids are current and future chemical regulation, component manufacturer specifications, and customer preferences. Adoption of chemistries may vary between geographical markets, and we predict several chemistries to be in use in the future.

The main factors that will determine chemistries for immersion cooling fluids are current and future chemical regulation, component manufacturer specifications, and customer preferences.

To complement this, different fluid technologies offer various benefits and challenges. Synthetic esters (Group V) are highly regarded for their renewable feedstock, biodegradability, fire safety, low temperature rheology, oxidation stability, and low viscosity. Polyalphaolefin (Group IV) and Polyalkylene Glycol (Group V) also offer good performance but with varying degrees of biodegradability and fire safety. Silicone oil (Group V) and mineral oil (Group II & III) can be used but have limitations in terms of biodegradability, fire safety and sustainability.

Synthetic esters are likely to become one of the predominant chemistries due to their biodegradability, renewability, and fire safety advantages. Regulatory changes, such as the phase-out of PFAS-based fluids, further reinforce the need for environmentally friendly alternatives.

Fluid Approval and Barriers to Entry

As immersion cooling technology continues to develop and evolve, partnerships and collaboration are essential for any player entering this space. Navigating the value chain for fluid approval involves multiple stakeholders, including Graphics Processing Unit/ Central Processing Unit (GPU/CPU) manufacturers, cooling service providers, cooling system manufacturers, server manufacturers, big data center operators/owners, and system integrators/total solution providers. Each of these stakeholders has specific requirements and standards that must be met, making the approval process intricate and multifaceted.

Different approval routes may include:

• Direct Collaboration: Working closely with GPU/CPU manufacturers and cooling system manufacturers to ensure compatibility and performance standards are met.

• Third-Party Testing: Utilizing independent testing laboratories to validate fluid performance and safety.

• Regulatory Compliance: Ensuring that the fluids meet all relevant chemical regulations and environmental standards.

• Customer Trials: Conducting pilot projects with data center operators to demonstrate the efficacy and benefits of the fluids in real-world conditions.

By leveraging these various approval routes and fostering strong partnerships across the value chain, companies can successfully navigate the complexities of fluid approval and establish themselves as key players in the immersion cooling market.

Overcoming Barriers to Adoption

Despite its advantages, immersion cooling still faces barriers to widespread adoption. The transition from air to liquid cooling requires significant infrastructure changes, which can be costly and complex. Additionally, industry-wide standards and fluid approval processes are still evolving, meaning close collaboration between fluid manufacturers, data center operators, and technology providers is crucial.

The good news is that adoption is accelerating, with early adopters in fintech, blockchain, and AI demonstrating the benefits of immersion cooling. As more data centers undergo digital transformation, the cost-benefit analysis of immersion cooling is becoming more favorable. Companies that invest in immersion cooling today are positioning themselves ahead of regulatory requirements and future-proofing their operations against rising energy and water costs.

The Path Forward

The tipping point for immersion cooling adoption is approaching. As sustainability metrics become more critical to business decision-making, data center operators will need to consider long-term solutions that align with environmental goals. With ongoing innovation in fluid technology, infrastructure design, and operational best practices, immersion cooling is poised to become a mainstream solution for the next generation of data centers.

As the industry evolves, collaboration and investment in environmentally friendly technologies will be key to ensuring a more sustainable and efficient future for data centers worldwide..