2025: The Turning Point for Advanced Liquid Cooling

BY Ian Ferguson,  Director of Sales, EMEA.

  • Sunday, 5th January 2025 Posted 2 days ago in by Phil Alsop

The data centre industry stands on the brink of change in 2025. Confronted with the dual challenges of rapidly increasing AI-driven demand and the pressing urgency of climate change, the sector must take decisive action. Net-zero commitments risk becoming empty rhetoric unless immediate and substantial changes are implemented. The way forward necessitates bold initiatives and the adoption of technologies that fundamentally transform our approach to efficiency, sustainability and growth.

Global data generation is projected to exceed 180 zettabytes by 2025, bringing the potential to push data centre infrastructure to its limits. This staggering volume of data affirms the critical need for more efficient and sustainable data centre solutions. Traditional cooling methods are struggling to cope with escalating rack densities and the heat generated by AI and machine learning workloads. This challenge cannot be addressed through minor improvements alone; it demands a full industry shift.

The Need for Immediate Action

Many organizations continue to prioritize perceived short-term economic performance over environmental, social and governance (ESG) responsibilities. However, this mindset is quickly becoming outdated and economically unsound. The cost of inaction, particularly in cooling AI workloads using conventional air cooling methods, threatens the competitiveness of data centre operators. While air cooling can technically manage these loads, the power consumption and space utilization costs are prohibitively high, making it unsustainable as a long-term strategy.

Advanced liquid cooling technologies are set to redefine data centre efficiency, sustainability and performance in 2025. Unlike air cooling, liquid cooling technologies such as Precision Liquid Cooling offer superior thermal management by directly and uniformly cooling high-heat-generating components. This approach benefits every rack, server and facility, unlocking unprecedented efficiency and sustainability.

As AI workloads become increasingly dense and more complex, demanding unparalleled megawatts of power and generating more heat, conventional cooling systems will prove inadequate, wasting energy and resources. Advanced liquid cooling technologies rise to meet this challenge, significantly reducing energy consumption, cutting water usage and minimizing the environmental footprint of operations, positioning it as a critical enabler for future data centres.

The Liquid Cooling Breakthrough

Advanced liquid cooling technologies offer a quantum leap in thermal management. The industry's acknowledgment of this technology is evident in the market's projected expansion from $4.9 billion to $21.3 billion by 2030. Among the advanced cooling technologies, Precision Liquid Cooling offers:

● Reduction of energy consumption by up to 40%

● Potential elimination of water for cooling

● Sixfold power density improvement per square meter

● Extension of component lifespan, with failures reduced by 30%

It is essential to build infrastructure that evolves alongside technological advancements while focusing on environmental responsibilities. By addressing the core inefficiencies of traditional cooling systems and optimizing every facet of thermal management, advanced liquid cooling technologies will create a pathway where sustainability and high performance are not mutually exclusive.

Strategic Implementation for Maximum Impact

While a complete overhaul of data centre cooling systems may seem daunting, a targeted approach can yield substantial benefits. International Data Corporation (IDC) estimates that nearly 20% of total data centre capacity is already used for AI. By enhancing this AI-specific sector with advanced liquid cooling technologies, data centres can manage the transition more efficiently and economically. This targeted strategy allows operators to address the most heat-intensive and power-hungry operations first, maximizing the impact of cooling upgrades.

Adopting advanced liquid cooling technologies will be part of a broader, integrated approach that emphasizes holistic efficiency and aims to create scalable, sustainable data centres capable of meeting the demands of today – and tomorrow. Achieving net-zero goals will require collaboration across the industry, a commitment to innovation and a readiness to rethink established norms. This shift calls for redefining the value proposition of data centres to create a more sustainable and efficient future.

Global Data Centre Landscape

As we transition into 2025, the global data centre market is experiencing explosive growth, underscoring the critical need for advanced cooling technologies. Projections indicate the market will reach USD $364.62 billion by 2034, expanding at a CAGR of 11.39%. This rapid expansion, driven by increasing demand for cloud services and digital transformation initiatives, places immense pressure on existing infrastructure and cooling systems.

The global scale of this challenge is evident in the geographical distribution of data centres, with more than 10,000 data centres worldwide. North America leads the market, holding a 36.24% revenue share, while the Asia-Pacific region emerges as the fastest-growing market. Europe, though not the largest market, is making significant strides in sustainability and technological innovation, particularly in AI integration and hybrid cloud solutions.

This global landscape illustrates the urgent need for more efficient and sustainable cooling solutions. As data centres continue to proliferate and expand, the limitations of traditional cooling methods become increasingly apparent. Advanced liquid cooling technologies offer a

promising solution to this challenge, providing the means to support the industry's growth while significantly reducing energy consumption and environmental impact.

The adoption of these technologies is not a matter of efficiency, but of necessity. As we look towards a future of continued digital transformation and data-driven innovation, the sustainability and scalability of data centres will depend largely on our ability to implement advanced cooling solutions like Precision Liquid Cooling.

Gaining a Competitive Edge

As the industry undergoes this transformation, it's important to recognize the changing landscape of customer expectations. Enterprises now demand infrastructure that is reliable, scalable and sustainable. They seek solutions that allow them to innovate while reducing operational costs and environmental impact. Advanced liquid cooling technologies meet these expectations head-on, offering efficiency gains that translate to real-world benefits—both financially and ecologically. Contrary to traditional beliefs, advanced cooling technologies are not a trade-off between environmental responsibility and business performance. Instead, they represent a strategic opportunity for economic optimization.

Early adopters of liquid cooling technologies will unlock a powerful competitive edge by simultaneously addressing three critical business imperatives: operational efficiency, technological capability and environmental stewardship.

A Call to Embrace Change

While the challenge may seem immense, so is the opportunity. Advanced liquid cooling is one part of a broader movement toward intelligent, efficient and sustainable data centre operations. Achieving real, lasting change will require collaboration and innovation, making 2025 the year we have to set a new standard for what data centres can achieve, showing the world that technological innovation and environmental stewardship can go hand in hand.

This is a call to action for data centre operators, manufacturers and stakeholders across the value chain: we must make sustainability a foundational principle, not an afterthought because our customers, our communities and our planet deserve nothing less. By acting now to implement advanced liquid cooling in AI-focused data centres, we can lead the change in creating a more sustainable, efficient and competitive future for the industry.