Sector Report

Taiwan datacentre – Hot new thing

by Kevin SW Chen / May 8, 2023


Immersion cooling technology making a splash in the AI era

AI is having its iPhone moment, and surging supercomputing requirements are pushing conventional air cooling to its limits. This comes as datacentres are subject to increased regulation and third-party oversight given the pressing concern of climate change. After several years of trials, immersion cooling is the next step for high-computation-density applications and efficiency in mainstream datacentres.

Thermal management at its limit

Data centres will increasingly face regulation to reduce power consumption just as they are approaching the limit of their air-cooling capability. This comes as demand for AI and supercomputing continues to rise and new and higher-computing-power chips are introduced. As such, thermal management of servers and data centres is the key issue in sustainability and power consumption.

The next wave of cooling technology

Transitional cooling techniques exist, but immersion cooling is the ultimate solution, providing the highest cooling efficiency and cost effectiveness in the total cost of ownership for datacentres. And while there are key barriers to adoption such as the overly expensive fluorinated liquid required and lack of chip warranties, these issues are gradually being worked out. We forecast the market for this technology to increase at a 219% Cagr in 2022-26.

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