Nvidia Partner Promises 50% Energy Savings with New Immersion Cooling Tech Amid AI Data Center Boom
As the demand for artificial intelligence (AI) drives a surge in data center infrastructure investments by tech giants like Microsoft, Alphabet, and Meta, the strain on power grids has intensified. In response, Sustainable Metal Cloud (SMC), a key player in sustainable data center technology, claims it can cut energy consumption by up to 50% with its innovative immersion cooling solutions.
Tim Rosenfield, co-founder and co-CEO of SMC, revealed that the company’s immersion cooling technology is not only significantly more energy-efficient but also 28% cheaper to install than traditional liquid-based cooling systems. This technology involves submerging servers, including those equipped with Nvidia’s GPUs, in polyalphaolefin oil. This synthetic oil dissipates heat more effectively than air, facilitating high-density GPU hosting required for advanced AI applications.
SMC operates its “sustainable AI factories,” known as HyperCubes, in Singapore and Australia. These HyperCubes are designed to integrate seamlessly into existing data centers and can be deployed in unused spaces, allowing for rapid expansion and flexibility. The firm is expanding its reach to new markets like Thailand and India to meet growing global demand.
In July, SMC announced a strategic partnership with Deloitte, providing access to Nvidia’s GPU computing infrastructure for AI applications. SMC’s innovative cooling solutions have attracted significant investment, including funding from Temasek-backed ST Telemedia Global Data Centres, one of Asia’s leading data center operators.
The global push for greener data centers is reflected in countries like Singapore, which has committed over 500 million Singapore dollars ($379.7 million) to support eco-friendly AI infrastructure. SMC is currently raising $400 million in equity and $550 million in debt to further its expansion beyond Singapore, according to Bloomberg.
Liquid cooling technologies are gaining traction as data centers strive to improve performance while managing increased overheating risks. Giordano Albertazzi, CEO of digital infrastructure provider Vertiv, anticipates a rise in liquid cooling adoption in 2024. Vertiv offers hybrid air-liquid cooling solutions, while Supermicro’s direct liquid-cooling technology, endorsed by Nvidia CEO Jensen Huang, promises energy savings and cost reductions.
However, challenges remain in widespread adoption of liquid cooling. Many data centers are not yet equipped for liquid cooling, whether immersion or direct chip methods. Rosenfield acknowledges that the industry is still exploring the most effective ways to implement these technologies. Meanwhile, air cooling remains prevalent in many data centers and is expected to continue alongside high-density AI deployments.