Data Center Cooling Infrastructure: The Global Constraint for Next-Generation AI Computing
This article is the second in a two-part series examining critical data center infrastructure. Part 1 focused on power infrastructure.
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What You'll Learn
How cooling systems consuming up to 40% of data center energy impact operational costs worldwide
Why traditional air cooling physically cannot support next-generation AI hardware in any climate
How cooling challenges manifest differently across developed and emerging markets
Which cooling technologies are best suited for diverse geographical contexts
What strategic considerations should guide cooling infrastructure investment decisions globally
How NVIDIA's March 2025 announcements fundamentally change data center design requirements
Introduction
At NVIDIA's GTC conference in March 2025, Jensen Huang revealed plans for the Vera Rubin Ultra architecture requiring racks supporting an extraordinary 600kW of power by 2027.
This announcement represents more than an incremental advancement.
It establishes cooling infrastructure as the critical constraint for next-generation AI computing worldwide.
The thermal profile of data centers has evolved dramatically in recent years. Where traditional servers once generated 3-5 kW per rack, today's AI and high-performance computing environments produce 30-150+ kW.
This exponential increase has transformed cooling from a background utility to a strategic differentiator that directly determines which facilities can host the most valuable workloads.
This challenge manifests differently across global markets.
In temperate regions, the primary concern is achieving sufficient cooling density. In tropical climates like Southeast Asia, South America, and Africa, facilities must contend with ambient temperatures exceeding 30°C and humidity levels above 90%, which fundamentally reduce cooling efficiency.
In water-stressed regions, cooling solutions that consume millions of liters daily face both practical and social license constraints.
This article analyzes how cooling technologies are evolving globally, examines the diverse challenges across regions, and offers strategic considerations for stakeholders navigating this rapidly changing environment.
This is the second in a two-part series examining critical data center infrastructure. Part 1 focuses on power infrastructure.
The Thermal Economics Framework
According to the Uptime Institute's 2022 Global Data Center Survey, cooling systems consume up to 40% of data center energy worldwide. This substantial proportion makes cooling efficiency a primary determinant of operational costs and environmental impact across all markets.
The industry standard for measuring efficiency is Power Usage Effectiveness (PUE), calculated as the ratio of total facility energy to IT equipment energy. Uptime Institute's research indicates the average data center PUE has improved marginally to 1.55, down from 1.57 in 2021.
However, hyperscale operators have achieved PUEs as low as 1.2, creating a significant competitive advantage in operational costs. For large-scale facilities, this efficiency differential represents millions of dollars annually in energy expenditure.
Beyond direct energy costs, cooling infrastructure limitations create substantial hidden costs through constraints on computing capacity. The physics of heat transfer has established a new global market segmentation based on cooling capabilities:
Tier 1: Liquid-cooled facilities capable of supporting 30-150+ kW racks where high-margin AI workloads run
Tier 2: Enhanced air-cooled facilities maxing out at 15-20 kW per rack, competing for increasingly commoditized general workloads
Tier 3: Legacy facilities with standard cooling struggling to maintain relevance as compute densities increase
This three-tier segmentation has significant implications for facility valuation and investment returns across all markets. While advanced cooling technologies require higher initial capital expenditure, they enable higher revenue potential through increased compute density and the ability to host premium AI workloads.
Google's implementation of AI-optimized cooling demonstrates the potential return on investment.
According to a case study published by Google in 2023, the company achieved approximately 40% reduction in cooling energy by using neural networks to optimize cooling operations.
This approach represents a particularly attractive investment profile: software-based optimization that enhances the performance of existing physical infrastructure.
Regional Cooling Challenges and Solutions
Cooling challenges vary significantly across global regions, requiring tailored approaches to address local conditions.
Developed Markets (North America, Western Europe)
In temperate regions like North America and Western Europe, the primary cooling focus has been achieving extreme density capabilities for AI acceleration.
Urban space constraints in major data center hubs drive the need for efficiency and higher rack densities. These regions benefit from cooler climates that enable free cooling opportunities for substantial portions of the year, significantly reducing operational costs.
According to the U.S. National Renewable Energy Laboratory, data centers in northern climates can achieve free cooling for 75% or more of annual operating hours, compared to less than 25% in tropical regions. This natural advantage is increasingly factored into site selection decisions for high-performance computing facilities.
The major challenge in these markets is transitioning from traditional air cooling to liquid-based methodologies to support next-generation AI hardware. Retrofitting existing facilities presents significant challenges, while new purpose-built data centers increasingly incorporate liquid cooling from initial design.
Tropical Emerging Markets (Southeast Asia, parts of South America, Africa)
Tropical regions face compound challenges of high ambient temperatures (often exceeding 30°C year-round, with peaks up to 40°C) and extreme humidity levels frequently above 90%.
Research from the Sustainable Tropical Data Centre Testbed (STDCT) demonstrates that this high humidity fundamentally reduces the effectiveness of evaporative cooling, a common efficiency technology in developed markets.
In Singapore, cooling towers struggle to reject heat effectively in humid environments, forcing systems like compressors to work harder and increasing energy consumption.
According to studies published by STDCT, maintaining a Power Usage Effectiveness (PUE) of ≤1.3 is challenging in Singapore due to heat rejection difficulties in high-humidity conditions.
Malaysia's data centers face thermal runaway risks from AI workloads, necessitating specialized solutions.
According to research from the National University of Singapore, a 100 MW data center in Malaysia uses approximately 4.2 million liters of water daily—equivalent to a city of 10,000 people—creating substantial sustainability concerns.
Arid Emerging Markets (Middle East, parts of Africa)
Water scarcity presents a critical challenge in arid regions. Traditional cooling towers can consume millions of gallons of water annually, creating both environmental and operational risks.
For instance, Google's planned data center in Uruguay, projected to consume 7.6 million liters of potable water daily, has faced local opposition, highlighting the social license issues surrounding water-intensive cooling.
In water-stressed regions, closed-loop systems that minimize or eliminate water consumption are gaining traction. According to case studies documented by SkyCool Systems, their passive cooling panels can eliminate water use while cutting energy consumption by 50–70% in appropriate climates.
These regions are also exploring integration of thermal storage solutions to shift cooling loads to nighttime hours when ambient temperatures are lower and electricity is potentially less expensive.
The Cooling Technology Spectrum
Data center cooling technologies exist along a spectrum from traditional air-based approaches to advanced liquid cooling methodologies, each with different capabilities, efficiency profiles, and density limitations.
Air Cooling Approaches
Traditional air cooling remains the predominant approach in existing facilities worldwide.
These systems utilize Computer Room Air Conditioners (CRAC) or Computer Room Air Handlers (CRAH) to maintain appropriate temperature and humidity levels.
According to Vertiv's educational materials on data center cooling systems, modern implementations incorporate hot/cold aisle containment, variable frequency drives, and sophisticated airflow management to optimize efficiency.
However, air cooling faces fundamental thermodynamic limitations in all climates.
According to engineering principles documented by ASHRAE, air has approximately 3,500 times less heat capacity than water, creating inherent inefficiency when removing heat from densely packed equipment.
These limitations become particularly apparent in racks exceeding 15-20 kW, where ensuring adequate airflow without hotspots becomes progressively more challenging.
Liquid Cooling Technologies
The thermal limitations of air have accelerated adoption of various liquid cooling methodologies globally:
Direct-to-Chip Liquid Cooling delivers coolant directly to heat-generating components through specialized plates attached to processors, GPUs, and memory modules.
According to research published by Flex in their "Future of Data Centers" report, this targeted approach eliminates the inefficiency of cooling entire air volumes and can operate with higher temperature coolant, increasing overall system efficiency.
In tropical regions like Malaysia, Iceotope's hybrid cooling approach combines direct-to-chip with immersion cooling, reducing water use by 91% and operating efficiently at ambient temperatures of 28–29°C.
Immersion Cooling submerges IT equipment in dielectric fluids that directly contact components without causing electrical damage.
According to a study published in the ASME Digital Collection on InterPACK 2022, single-phase systems maintain the coolant in liquid form, while two-phase systems utilize the phase change from liquid to vapor for enhanced heat transfer.
These approaches are particularly effective for AI workloads, with immersion cooling supporting rack densities exceeding 150 kW. In the UAE, Green Revolution Cooling (GRC) and Dell have deployed immersion-cooled modular data centers targeting 48% lower energy footprints compared to traditional approaches.
Hybrid Cooling Systems combine air and liquid approaches, allowing operators to tailor solutions based on workload intensity and regional conditions.
According to Utility Dive's 2025 outlook report on data center cooling, air cooling might suffice for lower-density applications like archived data, while liquid cooling is deployed for high-performance tasks like generative AI.
In regions with unstable power like parts of Africa and Southeast Asia, hybrid systems ensure resilience during fluctuations.
The efficiency differences between these technologies are substantial across all climates.
Research from the ASME Digital Collection indicates that transitioning to 75% liquid cooling can reduce facility power use by 27% and total site energy by 15.5%. For large-scale operations, these savings translate to millions of dollars annually while simultaneously enabling higher compute densities.
Global Leaders and Regional Specialists
The data center cooling market features established global providers alongside specialized technology firms and regional players addressing market-specific constraints.
Established Global Providers
Several global companies have established dominant positions in data center cooling:
Schneider Electric (France) leverages its broad energy management expertise to provide integrated cooling solutions, including its EcoStruxure platform that combines hardware, software, and services for optimized thermal management across diverse environments.
Vertiv (US) has evolved from its legacy as Emerson Network Power to focus on critical digital infrastructure, with cooling systems representing a core offering. According to ABI Research's list of top data center cooling companies, Vertiv provides solutions ranging from traditional computer room air conditioning to advanced liquid cooling technologies, with implementations in both developed and emerging markets.
IBM (US) integrates advanced cooling technologies with IT infrastructure, particularly for high-performance computing environments, drawing on its extensive supercomputing experience.
Rittal GmbH & Co. KG (Germany) specializes in precision cooling systems with a strong focus on modular design and manufacturing quality, deployed across global markets.
Specialized Cooling Technology Innovators
A new generation of companies focused specifically on advanced cooling methodologies is reshaping the competitive landscape:
LiquidStack (US) has pioneered two-phase immersion cooling systems optimized for high-density computing environments. According to Intellectual Market Insights' analysis of the global data center liquid cooling market, their technology uses environmentally friendly fluids that change phase from liquid to vapor when absorbing heat.
Green Revolution Cooling (GRC) (US) focuses on single-phase immersion cooling technologies that can be implemented across various data center scales and climatic zones.
ZutaCore (US) has developed HyperCool, a direct-on-chip waterless liquid cooling technology that addresses thermal management at the component level while also offering capabilities for repurposing captured heat.
Regional Cooling Specialists
Emerging market specialists are developing solutions tailored to specific regional challenges:
ReadyPod Technologies (India) manufactures smart containment pods integrating power, cooling, monitoring, and security systems for modular data centers, addressing rapid deployment needs in developing markets.
GreenSquareDC (Australia) provides hybrid cooling technologies for hyperscale data centers with a strong focus on sustainability in the Asia-Pacific region, as documented in Data Centre Magazine's list of top emerging data centre companies.
GREENTECH Technologies (Netherlands) develops modular immersion-cooled data centers with heat recovery technology achieving ultra-low PUE ratings, with applications across European and emerging markets.
The cooling technology sector is characterized by increasing partnership activity as hardware manufacturers collaborate with cooling specialists to address thermal challenges in next-generation computing.
Companies like Schneider Electric have formed strategic relationships with NVIDIA to optimize infrastructure for AI workloads, while others partner with regional data center operators to pilot technologies in diverse environmental conditions.
Case Studies: Cooling Success Stories Across Markets
Innovative cooling approaches are being implemented across diverse geographical contexts, providing valuable insights into effective strategies for different environments.
Singapore's Sustainable Tropical Data Centre Testbed (STDCT)
The STDCT, a 770 square meter facility opened in November 2021, serves as a living laboratory for cooling technologies in tropical climates. According to the National University of Singapore, the project represents over S$30 million (US$22.5 million) in investment from private and government sources, testing multiple advanced cooling approaches including:
StatePoint Liquid Cooling (SPLC)
Desiccant-coated heat exchangers
Direct-to-chip hybrid cooling
Immersion cooling systems
The facility aims to achieve up to 40% energy reduction and a PUE below 1.2, demonstrating viable approaches for the challenging high-humidity environment. Partners include Meta, Intel, and Dell Technologies, focusing on reducing operational costs and carbon emissions in tropical regions.
MTN's Solar Cooling System in Johannesburg
According to Data Centers' news report on sustainability trends, MTN installed Africa's first solar cooling system at their Johannesburg headquarters, using 242 solar mirrors to generate cold air for their data center.
This innovative approach reduces reliance on traditional power sources in a region facing persistent energy reliability challenges. The system demonstrates how renewable energy can be directly integrated with cooling infrastructure to enhance sustainability and operational resilience in emerging markets.
SpaceDC's Jakarta Campuses
SpaceDC's JAK1 (2.6MW) and JAK2 (24MW) data center campuses in Indonesia implement specialized cooling designs to address tropical climate challenges. According to SpaceDC's documentation, their approach includes:
Fan walls for continuous cooling
No raised floors, reducing air circulation inefficiencies
Gas-powered generators with absorption chillers
Systems designed to operate efficiently at high ambient temperatures
These facilities maintain reliability despite Jakarta's grid issues like low voltages and high harmonics through on-site power generation using natural gas-driven reciprocating engines. This approach ensures continuous cooling operation in a challenging infrastructure environment.
Google's Approach to 600kW Infrastructure
Google's preparation for ultra-high-density computing includes a multi-faceted cooling strategy:
AI-driven cooling optimization using neural networks to predict and manage thermal conditions
Implementation of liquid cooling technologies across new facilities
Temperature increases to 26.7°C (80°F) to enhance cooling efficiency
Integration of cooling considerations into site selection decisions
According to BMC Software's analysis of data center cooling, this comprehensive approach demonstrates how leading hyperscalers are preparing for next-generation computing requirements across their global footprint.
The Global Cooling Adaptation Framework
Based on the analysis of cooling challenges and solutions across diverse markets, a four-phase framework emerges for organizations addressing thermal management for next-generation computing:
Phase 1: Assessment of Regional Climate Constraints and Opportunities
The first phase involves systematic evaluation of location-specific factors that influence cooling strategy:
Climate classification (temperate, tropical, arid)
Temperature and humidity profiles throughout the year
Water availability and regulatory constraints
Power reliability and cost structure
Free cooling potential based on ambient conditions
According to the U.S. National Renewable Energy Laboratory, this assessment should quantify the proportion of operating hours where free cooling can be leveraged, along with extremes that must be accommodated.
Phase 2: Technology Selection Based on Local Conditions and Future Requirements
The second phase involves matching cooling technologies to both current requirements and future expansion plans:
Determining maximum rack densities needed to support anticipated workloads
Selecting appropriate cooling methodologies (air, liquid, hybrid)
Evaluating water use requirements against local constraints
Assessing compatibility with regional power characteristics
Planning for phased implementation where appropriate
According to Utility Dive's 2025 outlook report, this phase should account for the rapid evolution of AI hardware requirements and establish a thermal roadmap aligned with compute density projections.
Phase 3: Implementation Strategy with Timeline and Capital Planning
The third phase creates a structured approach to cooling infrastructure deployment:
Developing detailed capital expenditure projections
Creating phased implementation timelines aligned with IT refreshes
Identifying retrofit requirements for existing facilities
Establishing construction and commissioning schedules
Sourcing critical components with consideration of supply chain constraints
According to JLL's data center outlook report, implementation timelines must account for extended lead times on specialized cooling equipment, which can exceed 12 months for some components.
Phase 4: Operational Optimization and Continuous Adaptation
The final phase focuses on ongoing refinement of cooling performance:
Implementing AI-driven management systems for real-time optimization
Developing metrics and monitoring frameworks for efficiency tracking
Creating feedback mechanisms for continuous improvement
Establishing adjustment protocols for seasonal variations
Planning for technology refresh cycles
According to Google's published case studies, continuous optimization through AI-driven systems can deliver up to 40% improvements in cooling efficiency beyond initial design parameters.
This framework requires adaptation to regional conditions.
In tropical regions, Phase 1 assessment must account for limited free cooling opportunities and high humidity challenges.
In water-stressed regions, Phase 2 technology selection must prioritize water efficiency, potentially accepting higher energy consumption to reduce water usage.
Strategic Decisions for Global Investors and Operators
For stakeholders evaluating data center investments or operations, cooling infrastructure decisions carry significant strategic implications that extend beyond technical specifications and must account for regional variations.
Geographic Determinants: Location fundamentally shapes cooling requirements and opportunities. Beyond the traditional focus on power availability and connectivity, cooling capability has emerged as a primary site selection factor.
According to the consulting firm Colliersengineering's challenges of data center site selection, the cooling approach must align with local climate conditions, water availability, and power reliability.
Infrastructure Adaptability: Data center technology refreshes typically occur every 1.5 to 2.5 years, while cooling infrastructure is expected to function effectively for 10-15 years.
According to Vertiv's guide to data center cooling systems, this temporal mismatch creates the challenge of designing systems flexible enough to accommodate multiple generations of IT equipment with varying thermal characteristics.
Economic Analysis Framework: Cooling decisions involve complex tradeoffs between capital investment and operational expenses, with considerations that vary by region.
According to McKinsey's insights on expanding data center capacity, in developed markets, higher energy costs may justify more substantial capital investments in efficiency. In emerging markets, factors like power reliability, water availability, and skilled maintenance resources influence the economic equation.
Risk Assessment: When evaluating cooling technologies, stakeholders must assess multiple risk dimensions, including technical reliability, operational complexity, vendor stability, and implementation disruption.
According to Dark Reading's analysis of liquid cooling systems, these assessments must account for local conditions - solutions proven in temperate climates may face challenges in tropical or arid environments.
Cooling-Based Market Segmentation: Cooling capabilities have emerged as a significant factor in determining which market segments a facility can effectively serve globally.
According to analysis from Data Center Frontier, the highest-value AI workloads increasingly require liquid cooling solutions capable of managing extreme heat loads. Facilities with limited cooling capabilities may find themselves at a disadvantage when competing for this premium market, regardless of other attributes or location.
Conclusion and Strategic Outlook
Cooling infrastructure has emerged as the critical constraint for next-generation AI computing across global markets.
As thermal densities increase exponentially with advanced processors like NVIDIA's Vera Rubin architecture announced at GTC in March 2025, cooling technology decisions directly determine which facilities can host the most valuable workloads, regardless of geographical location.
For investors and operators, several key insights should guide strategic planning:
First, cooling capabilities now create market segmentation more profound than traditional differentiators like location or connectivity. According to the three-tier framework outlined in this analysis, the ability to support high-density AI infrastructure through advanced cooling represents the new dividing line between premium and commodity data center space worldwide.
Second, cooling approaches must be tailored to regional conditions while addressing universal thermal management principles. Solutions that succeed in temperate climates may require significant adaptation for tropical or arid environments, but the fundamental need to manage increasingly dense computing remains consistent globally.
Third, cooling decisions have far-reaching implications for facility design, site selection, and long-term flexibility. Infrastructure choices made today will determine a facility's ability to accommodate future technologies and computing demands in a rapidly evolving global market.
Finally, as computational requirements, energy costs, and environmental regulations evolve, proactive investment in efficient cooling technologies represents both a competitive necessity and a prudent risk management strategy across all markets.
The data center operators who thrive in the AI-driven future will be those who recognize cooling infrastructure not as a necessary utility but as a strategic asset that enables technological advancement, operational excellence, and environmental leadership.
By applying the Global Cooling Adaptation Framework to their specific regional context, stakeholders can position their facilities for sustainable success in an increasingly compute-intensive marketplace.
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