EV ADOPTION
The Dipping Point: Why Data Centers Are Turning to Immersion Cooling
The world’s demand for data processing is on a seemingly limitless upward trajectory, fueled by the rapid integration of tools like big data, Artificial Intelligence (AI), and edge computing into daily business operations. Data center managers face immense pressure to simultaneously increase physical and virtual capacity while balancing efficiency, running costs, and resource consumption. At the heart of meeting these increasing demands lies the critical challenge of cooling the servers that power this digital age.
For years, traditional air cooling has been the default technology for data centers, but it is fast approaching its limits. Air cooling infrastructure is bulky, noisy, and consumes significant energy and water. It struggles to effectively cool densely stored hardware and the increasingly powerful, heat-intensive chips required for modern applications. The consequences of inadequate cooling are severe: rapid or sustained overheating can cause servers and hardware to malfunction or break, leading to data loss, downtime, and disruptions to critical services. These failures incur significant costs, including hardware replacement and potential fines for failing to meet Service Level Agreements (SLAs). Put simply, if the cooling system fails, the data center fails. This growing challenge necessitates a fundamental change in infrastructure.
Based on a survey conducted by Castrol on data centre cooling, the future of data center cooling is liquid cooling, specifically immersion cooling. This technology involves submerging server components in a thermally conducting, electrically insulating liquid. Far from science fiction, immersion cooling is already a reality for many data centers. The Castrol report, based on a survey of 600 data center industry leaders, including 510 data center experts and 90 chip manufacturers across seven countries, explores this technology’s potential impact and adoption.
The data center experts surveyed are overwhelmingly convinced of immersion cooling’s potential. They see it becoming the dominant technology for data centers at some point in the future. A significant majority, 90%, are considering switching their primary cooling system to immersion cooling between now and 2030.
The benefits highlighted in the report are compelling and address the critical attributes experts value most in data centers: power efficiency, cooling effectiveness, and cost-effectiveness. According to the research, immersion cooling offers significant advantages in all three areas as outlined below:
• Energy Savings: According to the study, data centers that haven’t adopted immersion cooling consume an average of almost 50,000 MWh of energy annually. For those that have adopted it to some extent, this figure drops to an average of 35,000 MWh annually. This represents an average annual energy reduction of 15,000 MWh (approximately 28.5%), equating to roughly 75,000 MWh over five years.
• Water Savings: Data centers relying entirely on air cooling consume an average of almost 4 million litres of water annually. Among facilities using immersion cooling as a primary system, 53% report an overall decrease in water usage. These facilities declare an average water use reduction of 82%. This aligns with industry research suggesting up to an 89% reduction compared to air cooling. This equates to an average annual saving of over 3.5 million litres per data center, totaling approximately 17.7 million litres over five years.
• Improved Performance and Capacity: Immersion cooling is seen as crucial for handling the increasing compute power demands. 74% of experts believe it is now the only option for data centers to meet these demands, and the same number say air cooling will struggle with increased data traffic. 77% believe immersion cooling systems effectively support current network demands, enabling large-scale data processing, storage, and distribution. Experts also believe that, it future-proofs businesses; three-quarters are confident that immersion cooling makes a data center’s virtual capacity fit for current and future software demands, and 73% believe the physical capacity is fit to handle current and future hardware demands.
“Data centers that haven’t adopted immersion cooling consume an average of almost 50,000 MWh of energy annually. For those that have adopted it to some extent, this figure drops to an average of 35,000 MWh annually.
SOURCE | SHUTTERSTOCK/ PANUMAS NIKHOMKHAI
• Extended Lifespan and Reliability: By preventing thermal strain, immersion cooling can prolong hardware lifecycles, reducing the need for frequent replacements. Chip manufacturers in the study echo this, with 75% expecting it to increase the lifespan of chips and 57% believing it will increase the reliability of chips.
Beyond large, centralized facilities, immersion cooling is considered the optimum choice for edge computing-an emerging infrastructure model that deploys smaller, decentralized data centers closer to end-users to reduce latency and improve performance. As local data hubs grow and flex with demand, immersion cooling can comfortably scale up with them, unlike air cooling, which is restrictive due to the space required. Seven out of ten experts believe immersion cooling will be critical to the success of edge computing.
Despite the clear benefits, organizations have hesitated to fully embrace immersion cooling. The top barriers selected by data center experts are:
• The potential for fluid leakages (38%).
• Implementation is time-consuming (31%).
• Maintenance challenges (31%).
In an industry where uptime is critical, the risk of service interruption, such as that required for retrofitting existing facilities, is a valid concern. Implementing immersion cooling requires scheduled downtime, the installation of safety measures to prevent and minimize leaks, and staff training for testing, monitoring, and maintenance. However, the report notes that the relatively even spread of concerns among lower proportions of experts suggests that no single challenge is an insurmountable barrier to adoption.
From a financial perspective, while there are initial acquisition or upgrade costs, immersion cooling is expected to bring down the lifetime cost of data centers. 74% of experts believe transitioning to immersion cooling will result in a lower total cost of ownership compared to remaining with air cooling. Most respondents anticipate seeing a return on their investment in three years or less. Furthermore, 77% of experts believe immersion cooling will drive millions in return across the industry. Long-term savings are expected, particularly from reduced energy, water, and maintenance costs, as well as the benefits of increased scalability and prolonged hardware lifecycles.
76% of experts believe the industry must adopt immersion cooling within the next three years to continue achieving performance improvements.
The industry appears to be approaching a pivotal moment. 76% of experts believe the industry must adopt immersion cooling within the next three years to continue achieving performance improvements. This urgency aligns with Castrol’s prediction for “The Dipping Point” – the year immersion cooling will become the dominant technology for data center cooling, which they identify as 2027. Given the relatively slow adoption rate to date, this prediction suggests a rapid acceleration in implementation may be on the horizon, potentially leaving out organizations not preparing for this shift behind.
Hyperscalers, the operators of massive data centers for cloud service providers, are already leading the charge. Two-thirds (65%) of hyperscalers in the study are already using or experimenting with immersion cooling in some capacity. While hyperscalers share concerns about downtime and the upfront investment, which they expect to increase short-term ownership costs, they recognize that total ownership costs will decrease in the long run due to reduced maintenance and increased scalability.
Chip manufacturers are also preparing for this shift. 81% report a moderate or high market demand for chips optimized for immersion cooling, and 87% are experiencing an uptick in customers requesting more products compatible with the technology. This indicates a growing ecosystem readiness for widespread adoption.
In conclusion, the accelerating pace of technological change, driven by AI and high-density chips, is increasing data centers’ power demand and heat output to a level that traditional air cooling struggles to manage. Immersion cooling emerges as a promising solution with the potential to significantly reduce energy and water consumption, increase efficiency, improve cooling effectiveness, extend hardware lifespan, and lower long-term costs. While barriers like implementation time, maintenance, and perceived risk exist, experts believe they are not insurmountable. To stay ahead and secure the significant return on investment immersion cooling can offer, stakeholders must collaborate on testing, training, and system design to prepare for this transformative shift. The future of data center cooling is liquid. ■