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Why Modern AI Data Centers are Harnessing the Power of Liquid Cooling

The heat is literally on for today’s data centers. With the continued growth of artificial intelligence (AI) and high-performance computing (HPC), traditional air-cooling systems are struggling to keep up with the heat generated by these compute-intensive workloads. To meet rising demands, liquid cooling is stepping in to offer improved energy efficiency, performance, and a greener approach to managing heat and energy consumption.

Moving Beyond Air Cooling to Liquid Cooling for Data Centers

Traditionally, air cooling has been the go-to solution for data centers. However, as server power density increases, the shortcomings of this approach become more apparent. High-demand processes are pushing air cooling to its limits, especially as equipment becomes more concentrated in smaller spaces.

What’s more, air cooling systems take up a significant amount of space, with large fans and equipment leaving little room for facility growth without major expenses. They also demand a high amount of energy to keep hardware at safe temperatures, driving up operating costs, hindering performance, and making aggressive sustainability targets harder to reach. While they served their purpose, these systems fall short when handling the heat and increasing power needs of AI and modern computing.

Exploring Liquid Cooling Methods

Liquid cooling has emerged as a versatile and transformative solution for modern data centers, offering tailored methods to meet diverse operational needs. The two primary approaches—Direct-to-Chip Cooling and Immersion Cooling—each present unique capabilities. However, Direct-to-Chip Cooling stands out as the more practical and scalable option for high-performance computing environments.

Immersion Cooling, while conceptually promising, faces significant skepticism, particularly around its scalability and affordability. Additionally, immersion cooling systems tend to require more space compared to Direct-to-Chip Cooling, making them less optimal for environments that prioritize maximizing GPU density and overall efficiency.

By contrast, Direct-to-Chip Liquid Cooling is a proven technology for high-density environments, enabling efficient heat transfer while reducing energy usage. It significantly reduces noise levels compared to traditional air cooling and allows data centers to fit more GPUs within the same footprint, maximizing computational power without requiring excessive space.

With growing power constraints across the data center landscape, adopting Direct-to-Chip Liquid Cooling is becoming essential for facilities aiming to lead in AI and high-performance computing. It optimizes energy usage and infrastructure, making it a critical step for data centers to remain competitive and sustainable in the AI revolution.

Why Is Liquid Cooling a More Efficient Choice?

Liquid cooling for data centers flips the script by providing a more effective way to manage heat. Instead of relying on air as a medium, liquid cooling uses water or special coolants to draw heat directly away from critical components like GPUs and CPUs. This approach is not only more effective, but it also helps data centers handle today’s higher demands without increased energy usage.

What are the key benefits of liquid cooling?

Increased Efficiency: Liquid cooling works more effectively than air at transporting heat, reducing overall power usage while supporting high-performance workloads.
‍More Compact Designs: Because liquid cooling operates with smaller equipment, data centers can adopt efficient layouts that save space and minimize latency between systems.‍
Boosted Sustainability: Lower energy consumption translates to reduced emissions, and liquid cooling systems often integrate naturally with renewable energy strategies like wind and geothermal.

Liquid Cooling: Supporting High-Density Computing

Traditional data centers have historically operated with rack power densities averaging between 5 to 10 kilowatts (kW) per rack. In 2020, the Uptime Institute reported an average density of 8.4 kW per rack.

With the rise of artificial intelligence (AI) and high-performance computing (HPC), these requirements have increased significantly. Modern AI workloads often require power densities exceeding 40 kW per rack, with some configurations reaching as high as 120 kW per rack.

This level of power density exceeds the practical limits of traditional air-cooling systems, which can struggle to keep up when densities surpass 15-20 kW. Beyond that threshold, liquid cooling is not just an advantage; it’s essential. It enables data centers to handle extreme heat loads efficiently, making it possible to build compact, high-performance infrastructure capable of supporting modern AI applications.

By adopting liquid cooling, data centers can accommodate the elevated power densities required for cutting-edge workloads. This shift not only enhances performance and operational efficiency but also reduces costs and promotes sustainability, solidifying liquid cooling as a foundational technology for the AI era.

Driving Sustainability Goals with Liquid Cooling

Energy efficiency and meeting sustainability targets are no longer optional for data center organizations and the digital infrastructure ecosystem. Reducing carbon footprints is crucial, and liquid cooling plays a significant role in making that happen. It uses less energy than legacy systems, which helps support sustainability efforts worldwide.

Unlike traditional cooling systems, liquid cooling is not only more energy-efficient but also environmentally responsible. Applied Digital’s liquid cooling system utilizes a closed-loop design that reduces water waste by recycling it rather than consuming it, addressing a common concern among communities about water usage. This system consumes around 22% less water than an average household, ensuring data centers can operate sustainably without straining local water resources.

In addition, many data centers are pairing liquid cooling with renewable energy sources and leveraging natural features, such as cooler climates, to maximize energy savings. These measures reduce waste and align operations with increasingly stringent global climate policies. By adopting liquid cooling, data centers can scale responsibly while meeting the growing demands of AI and next-generation technologies, paving the way for a more sustainable future.

The Future of Data Center Cooling

Liquid cooling is redefining what's possible for data center operations, enabling unprecedented efficiency and scalability. With its ability to use energy efficiently, save space, and adapt to changing needs, liquid cooling empowers data centers to stay ahead of advancements in AI, machine learning, and cloud computing.

Reliable and scalable cooling systems make it possible to push new technological boundaries without the risks of overheating or inefficient energy use. By reducing energy waste and maintaining stable temperatures for GPUs, liquid cooling empowers businesses to focus on innovation.

Applied Digital’s Role in Liquid Cooling Innovation

Adopting large-scale liquid cooling isn’t just a technological upgrade—it’s a transformative shift reshaping how modern data centers operate. At Applied Digital, we’ve made infrastructure innovation a cornerstone of our approach, with liquid cooling playing a key role in our Different by Design data center blueprints and operations. This reflects our commitment to high-performance solutions that align with environmentally conscious innovations.

Our data centers in North Dakota, including the groundbreaking Ellendale campus and our facilities in Jamestown, showcase our commitment to innovative, energy-efficient solutions. The Ellendale site is set to become a hub for AI training, initially powered by 100MW of critical load in its first building, designed to maximize efficiency and scalability. The campus is planned to expand to a total capacity of 400MW, spread across multiple buildings, making it a key resource for supporting advanced AI workloads.

Ellendale will be Applied Digital’s first data center to implement advanced liquid cooling systems, enabling compact, high-density infrastructure that optimizes energy use. By integrating cutting-edge cooling technologies like direct-to-chip cooling and rear-door heat exchangers, we manage the heat generated by high-density GPUs and processors more efficiently than traditional air-cooled systems. These innovations are crucial for supporting the power-dense workloads required for AI training while significantly reducing the physical footprint of our facilities.

For example, while a traditional air-cooled data center might require over 500,000 square feet to handle 125 megawatts of computing power, the Ellendale campus will achieve the same capacity in just 345,000 square feet—delivering enhanced performance while maintaining a more sustainable and compact design.

A Blueprint for Tomorrow’s AI Data Centers

The Ellendale facility will be one of the first to integrate direct liquid cooling (DLC) at scale, setting a new benchmark for sustainable, high-performance data center design. This advanced cooling technology aligns with global sustainability goals by significantly reducing energy consumption and minimizing environmental impact. Coupled with renewable energy sources like wind power and natural cooling strategies, Ellendale represents a forward-thinking approach to data center innovation.

Our commitment doesn’t stop there. As we expand and develop future sites, we will continue to incorporate cutting-edge infrastructure into our facilities and cloud environments. This ensures that Applied Digital remains at the forefront of sustainable data center infrastructure, empowering industries to meet the demands of AI and next generation computing responsibly and efficiently.

Contact Applied Digital today to learn how liquid cooling can transform your data center infrastructure. Discover the energy savings, performance boosts, and sustainability benefits Applied Digital can deliver as you prepare for the future of computing.

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