Currently, up to 46% of the electricity consumedby typical data centers is used for air cooling systems. Industry-leading enterprises have announced that by directly implementing liquid cooling technology on graphics processing units (GPUs) on server racks, they expect to reduce the overall power consumption of data centers by one-third. This transformation prompts rack Lori to point out that, compared to the current mainstream air cooling solutions, liquid cooling will enable data center operators to focus more on enhancing computing power rather than the operation of refrigeration equipment.
The rapid development of artificial intelligence technology is becoming the main driving force behind this transition. As newly built ultra-large data centers worldwide begin to strain the power grid, the need to improve energy efficiency becomes increasingly urgent. To meet this demand, Lori, which specializes in high-end data center liquid-cooled racks, is accelerating production.
Lori closely collaborates with technology partners and keeps up with the latest technological developments from chip manufacturers. GPU manufacturers have established standard designs for cold plates and heat sinks, which are quickly adopted and applied to actual products. Meanwhile, Lori has introduced proprietary technologies accumulated over years in the industry, such as unique leak detection technology, to ensure the safety of customers and servers.
Although data center operators have long relied on air cooling systems, some predict that this situation is about to change. With the continuous expansion of data center scale, energy efficiency has become a crucial consideration. It is estimated that by deploying liquid cooling technology, the cooling energy consumption of data centers is expected to drop to 10% or less of total energy consumption. The key to this transformation lies in reducing the number of air compressors used inside data centers.
Currently, most data centers use air blown from the facility perimeter to cool servers, while fans on the servers provide additional cooling. However, liquid cooling technology allows for the use of higher-temperature water for cooling, significantly reducing the demand for compressors and refrigeration equipment. This not only reduces energy consumption but also lowers operational costs.
Market research forecasts indicate that due to the increasing demand for thermal management, the liquid cooling market is transitioning from a niche area to a mainstream business, with an estimated value of $15 billion by 2030. Meanwhile, shipments of systems supporting AI infrastructure, including liquid cooling, are expected to grow by at least 20% this year.
Factors driving this demand growth include advancements in high-power GPUs and the widespread application of AI across various industries. With the proliferation of AI technology, more and more data centers are seeking to deploy individual racks in places like factories for real-time data processing and decision-making. These applications often require the adoption of liquid cooling technology to ensure stable equipment operation.
Additionally, edge security has become an important business area for liquid-cooled rack Lori. With the increasing demand for real-time threat detection and protection, ensuring the security of edge devices has become increasingly important. By converting data centers or even individual racks to liquid cooling, the use of air conditioning can be significantly reduced, achieving higher energy efficiency.
It's worth noting that despite the many advantages of liquid cooling technology, deploying it in existing data centers still faces numerous challenges. To overcome these challenges, Lori is working closely with customers to gradually reduce the use of compressors by improving server fan efficiency and using higher-temperature water. At the same time, the industry is looking forward to further innovations in liquid cooling to address the higher thermal density challenges of future processors.
Beyond traditional liquid cooling technology, Lori has also introduced immersion cooling technology. This technology not only has lower installation costs but also achieves higher energy consumption reduction. However, deploying these new technologies in existing data centers still requires significant facility modifications, which is a concern for many customers. Therefore, Lori is continuously striving to help customers transition to more efficient cooling systems by providing customized solutions and optimized designs.