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Balancing Efficiency and Sustainability: The Role of Liquid Cooling in Data Centers
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Balancing Efficiency and Sustainability: The Role of Liquid Cooling in Data Centers

Balancing Efficiency and Sustainability: The Role of Liquid Cooling in Data Centers

  • Updated on September 28, 2023
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  • Written by Jenny Gerson
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  • 6 min read

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Balancing Efficiency and Sustainability: The Role of Liquid Cooling in Data Centers

By Eric Swartz, vice president of engineering, and Jenny Gerson, senior director of sustainability – DataBank

With great power comes great responsibility. The growing demand for compute power brings greater demand for associated cooling – and the ability to do so sustainably. This blog addresses current and potential cooling options, and we’d like to know your thoughts, too. In fact, we’re planning an event on the topic and will use your feedback to build one that’s relevant to your business. Please share your thoughts at feedback@databank.com.

Demand is escalating rapidly for data centers to provide cooling solutions that keep pace with the dramatic adoption of artificial intelligence, High-Performance Computing, and graphics-intensive applications. At the same time, low-latency needs are driving the stacking of compute resources in the smallest footprint possible to maximize compute output and reduce the cost of expensive cabling.

These workloads require High-Density server racks that go beyond the capacity of air cooling. As a result, enterprises and colocation data center providers are looking toward liquid cooling options. In the past, the lack of an absolute need (paired with a generally negative perception within a multi-tenant environment) for liquid cooling limited development and resulted in few options and high set-up costs.

However, systems have become so power-dense that there is just no other option, thus driving the need for liquid cooling. Fortunately, today’s technologies make it possible to efficiently deploy piping and fittings that encase liquids and deliver cooling closer to CPUs, GPUs, and memory chips.

3 Ways to Leverage Liquid Cooling
  • One common cooling approach is liquid-to-the-rack, which uses cooling coils inserted into the rear doors of rack cabinets connected to the data center’s chilled water loop. This advances the technique of running chilled water through a Computer Room Air Handler (CRAH) on the perimeter and blowing cold air into a data hall. The chilled liquid goes directly to the back of the cabinet doors. The hot air is cooled as it comes out the back of the cabinet—instead of having to travel all the way to a CRAH to get cooled.
  • For additional cooling capacity, some enterprises are turning to servers with direct-to-chip cooling. Inside the servers, tubes filled with liquid connect to cold plates sitting on top of the chips.

Instead of a fan blowing air over a heat sink to disperse heat, liquid runs through micro-channels within the cold plates — without touching the server — to extract heat from the chips. Servers with these designs attach the cold plates to high heat loads like CPUs, GPUs, and memory chips. Components generating low heat, such as capacitors, are still cooled by air.

  • The most advanced technique is immersion cooling—the servers sit in a tub of thermally conductive dielectric liquid, typically a mineral oil substance:

All the heat created by the server components is captured by direct contact with the dielectric liquid, which is capable of absorbing significantly more heat than air, for the same volume. Through convection, the warm liquid rises in the tub and flows over the top into a vat, where it is cooled by pumping through a heat exchanger and back into the bottom of the tub.

All three cooling approaches can use a closed-loop heat rejection system to reduce water consumption and operational costs. Once a loop has been filled, the liquid would need to be replaced only if there’s a leak or during maintenance. During maintenance, the systems might lose just a few gallons of liquid, but the rest can be continuously recycled.

A Comparison of Kilowatt Capacities

In today’s colocation facilities, when creating an environment for an application workload in a High-Density rack that requires liquid cooling, the chosen technique is usually based on what the data center provider can bring online quickest. Looking ahead, colocation providers will pre-design data hall cooling systems based on the density levels they want to offer to their customers.

As an example of the densities that the various cooling techniques can handle, a standard air-cooled rack would max out at around 40 kilowatts. Racks with chilled-liquid doors can push to 60 kilowatts or even more, depending on the conditions. Chip and immersion cooling take racks even further to 100 kilowatts and beyond.

A Positive Impact on the Environment

A key sustainability benefit for purpose-built data centers offering immersion cooling is the reduced environmental impact. Because the dielectric liquid is in direct contact with every component of the server and captures heat better than air, the liquid can run at significantly higher temperatures than air-cooled systems.

Consider how chips within High-Density environment servers can run upwards of 150° Fahrenheit. Because the liquid in which the servers are immersed is so much more efficient than air at absorbing heat, it can comfortably run at temperatures of over 110° compared to the 70°-80° at which air conditioners must run to cool servers. The high operating temperature allows outside air to be used for heat rejection using nothing more than pumps and fans to reject heat outside.

This enables some immersion systems to be deployed in a way that eliminates the need for refrigerant-based mechanical cooling.

Pioneer Breakthroughs Rely on Combination of Air and Liquid

Some data centers are considering innovative uses of the heat that their water and liquid cooling systems absorb from server racks. It’s possible, for example, for a data center to pump heat to nearby buildings to keep them warm during the winter, as we have put in place at neighboring office space at our ATL1 facility.

Air Is Still Here to Stay

Air cooling is not expected to go away completely. Given the highly specialized requirements for deployments like direct to chip and immersion cooling, not everybody will be able to make the switch to these cooling techniques. Also, most data centers will always have low-density servers and secondary server components of High-Density racks that can be cooled with air.

To provide sufficient cooling for all densities of server racks (while also conserving energy), data centers will ultimately need to deploy a combination of liquid and air-based systems. As rack density increases, the key will be to move the cooling mechanism closer to the server or the chips in order to sufficiently remove the heat.

To learn more, watch for an upcoming DataBank event on data center cooling techniques. In the meantime, we would like to hear from you about your experiences with air, water, and liquid cooling: Is one technique working better for you? Do you rely on a combination of cooling techniques? What have you done to control costs?

Remember to share your thoughts and questions about cooling your own IT environments by emailing us today at feedback@databank.com.

See these related sources:

Colocation for High-Performance Computing (HPC) DataBank’s Universal Data Hall Design

It’s a Hot Market, but How Cool Are These Doors? DataBank Uses Unique Cooling Solution in Georgia Tech Data Center

Colocation – Flexible Space with Scalable Power and Cooling

About the Author

Jenny Gerson senior director of sustainability

Jenny Gerson

Jenny Gerson, Senior Director of Sustainability
Jenny Gerson, Senior Director of Sustainability at DataBank, leads ESG initiatives, aiming for net zero scope 1 and 2 emissions by 2030. With 20+ years in sustainability and 10+ in data centers, she specializes in corporate sustainability, cleantech research, and environmental management.
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Frequently Asked Questions


  • What is liquid cooling and how does it work in data centers?
    Liquid cooling is a technology that uses fluids such as water or dielectric coolants to absorb and transfer heat away from IT equipment more efficiently than traditional air cooling. In data centers, liquid cooling can be implemented through direct-to-chip systems, immersion cooling, or rear-door heat exchangers. These systems circulate coolant close to or around high-performance components like CPUs and GPUs, capturing heat directly at the source. The warmed liquid is then pumped to a heat exchanger or cooling tower to dissipate energy. This process enables greater thermal control, higher equipment density, and improved overall cooling efficiency.
  • How does liquid cooling improve energy efficiency compared to air cooling?
    Liquid cooling offers superior thermal conductivity, allowing heat to be removed more effectively and with less energy than air-based systems. Because liquids can absorb and transfer heat hundreds of times more efficiently than air, fans and air conditioners work less, reducing overall power consumption. This results in a lower Power Usage Effectiveness (PUE) ratio and decreased operational costs. Liquid cooling also supports denser server configurations without overheating risks, maximizing data center capacity. By targeting hot spots directly and reducing reliance on large-scale air circulation, it delivers higher efficiency and performance stability.
  • What industries benefit most from liquid cooling technology?
    Industries that rely on high-performance computing and intensive data processing benefit most from liquid cooling. These include artificial intelligence (AI), machine learning, scientific research, financial modeling, and cloud computing. Sectors such as healthcare, automotive, and manufacturing also use liquid cooling to support simulations, 3D modeling, and edge computing workloads. Additionally, hyperscale data centers and cryptocurrency mining operations leverage liquid cooling to maintain optimal performance while reducing energy costs. Essentially, any industry running dense, heat-generating workloads gains improved efficiency, reliability, and sustainability from adopting liquid cooling solutions.
  • What are the challenges of implementing liquid cooling in large-scale data centers?
    Implementing liquid cooling at scale involves overcoming significant technical and financial challenges. Upfront costs for specialized infrastructure, retrofitting existing systems, and coolant management can be high. There are also concerns about leaks, maintenance complexity, and the need for staff training. Compatibility with legacy equipment and ensuring uniform cooling across diverse workloads adds to the difficulty. Additionally, data centers must establish reliable fluid containment, monitoring, and emergency protocols.
  • What environmental benefits does liquid cooling offer?
    Liquid cooling significantly reduces energy consumption by minimizing reliance on power-hungry fans and air conditioning systems. This lower energy usage translates into reduced carbon emissions and operational costs. Many liquid cooling systems use closed-loop designs, conserving water and preventing waste. The captured heat can even be repurposed for district heating or industrial processes, further improving sustainability. By enabling higher server density in smaller spaces, liquid cooling also reduces the physical footprint of data centers. Building smaller data centers both reduces the need for construction materials and lowers the level of resources needed to run them.

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