Analyst(s): Ron Westfall, Steven Dickens
Publication Date: October 22, 2024
This report delves into how AI is driving unprecedented demands in data centers, requiring more compute power and significantly more energy to support the scale of systems. Add in the requirements for addressing energy efficiency and CO2 reduction and the situation becomes considerably difficult to manage alongside meeting key objectives such as improving security and data center network automation.
Key Points:
- Liquid cooling technology is becoming a key enabler for handling the performance and thermal challenges of AI and high-performance computing (HPC) workloads.
- As energy efficiency and carbon reduction become critical, liquid cooling may become a non-negotiable part of server infrastructure in the near future.
- Major vendors such as Lenovo, HPE, IBM, and Dell are leading the shift with innovative cooling solutions that increase data center efficiency and sustainability.
- Smaller, independent players such as Submer, LiquidStack, CoolIT, and Asperitas are also contributing to the evolution, bringing a focus on custom solutions and open infrastructure.
Overview:
AI workloads, particularly those involving large-scale model training and inference, generate enormous heat and consume significant electricity. This has pushed traditional air cooling methods to their limits, prompting a shift toward more efficient liquid cooling solutions, especially direct liquid cooling (DLC), to handle the thermal output of high-density servers.
The Futurum Group’s latest insights report ‘Is Liquid Cooling the Future of Server Infrastructure?’ spotlights how the drivers behind liquid cooling, such as managing increasingly dense and powerful computing environments, are spurring demand for DLC innovation and adoption. However, this time, it’s not just about supercomputing or the mainframes. AI model training, HPC workloads, and dense cloud computing infrastructures are pushing DLC solutions as advantageous solutions in relation to traditional air-cooling systems.
Futurum Intelligence data indicates the global data center GPU market is set to experience rapid expansion, driven by increasing demand for AI and machine learning applications, cloud-based services, and evolving competitive dynamics. This is a major impetus for greater investment in liquid cooling solutions.
According to forecasts from Futurum Intelligence, GPU revenue is projected to grow at a 29.9% CAGR over the next five years, reaching $103 billion by 2028. Starting from $27.7 billion in 2023, revenue is expected to rise to $41.5 billion in 2024 (49.6% growth), $54.7 billion in 2025 (31.8%), and $72.7 billion in 2026 (33.0%), eventually slowing to 16.2% by 2028.
However, today the key power issue lies in the increasing power demands of GPUs, specifically the energy needed to operate each chip. A decade ago, power levels typically stayed in the lower hundreds of watts, but now chipmakers are releasing GPUs that demand 1,000 watts or more. The surge in power requirements is causing significant issues with power supply and spurring demand for innovative cooling systems.
Key takeaways from Is Liquid Cooling the Future of Server Infrastructure? include:
- Fanless Fanning Innovation: Fanless systems deliver better results than hybrid or fan-based systems. We see this shift happening swiftly, so vendors need to be ready to adapt.
- Edge Computing and 5G: As edge data centers proliferate, the demand for compact and efficient cooling will rise. Vendors offering modular liquid cooling solutions will likely gain traction in this space.
- Sustainability as a Competitive Differentiator: Expect liquid cooling to be positioned more heavily in marketing materials as a key differentiator (i.e., liquid cooling offers 3-5 times the cooling efficiency compared to air-based systems) in meeting sustainability goals, especially with regulatory pressures mounting on data center energy usage.
- Evolving Cooling Technologies: Keep an eye on the development of immersion cooling technologies, which fully submerge servers in a liquid dielectric to further improve efficiency especially in regard to edge use cases where other approaches are less viable.
The resurgence of liquid cooling is creating new opportunities for innovation and market expansion of liquid cooling systems. AI, HPC, and cloud computing workloads have reached a level of performance where air cooling is an increasing liability. Liquid cooling solutions from vendors such as IBM, Dell, Lenovo, and HPE offer compelling benefits in terms of performance, sustainability, and energy efficiency. We expect this space to become a stronger focus for vendors in the months ahead, and vendors will be well-placed in the minds of buyers if they have an expanded fanless portfolio. As AI adoption grows, particularly in enterprise environments, the need for liquid cooling will become even more pronounced, making it a critical technology in the future of server infrastructure.
If you are interested in learning more, be sure to download your copy of Is Liquid Cooling the Future of Server Infrastructure? today. The full report is available via subscription to Futurum Intelligence—click here for inquiry and access.
Disclosure: The Futurum Group is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of The Futurum Group as a whole.
Other insights from The Futurum Group:
Liquid Cooling: How Deep Expertise Enables Energy Efficient Computing for AI and Beyond
Will HPE’s Cooling Revolution Truly Redefine AI Infrastructure?
The Oracle & AWS Collaboration: A True Hybrid Multi-Cloud World Takes Shape
Author Information
Ron is an experienced, customer-focused research expert and analyst, with over 20 years of experience in the digital and IT transformation markets, working with businesses to drive consistent revenue and sales growth.
He is a recognized authority at tracking the evolution of and identifying the key disruptive trends within the service enablement ecosystem, including a wide range of topics across software and services, infrastructure, 5G communications, Internet of Things (IoT), Artificial Intelligence (AI), analytics, security, cloud computing, revenue management, and regulatory issues.
Prior to his work with The Futurum Group, Ron worked with GlobalData Technology creating syndicated and custom research across a wide variety of technical fields. His work with Current Analysis focused on the broadband and service provider infrastructure markets.
Ron holds a Master of Arts in Public Policy from University of Nevada — Las Vegas and a Bachelor of Arts in political science/government from William and Mary.
Regarded as a luminary at the intersection of technology and business transformation, Steven Dickens is the Vice President and Practice Leader for Hybrid Cloud, Infrastructure, and Operations at The Futurum Group. With a distinguished track record as a Forbes contributor and a ranking among the Top 10 Analysts by ARInsights, Steven's unique vantage point enables him to chart the nexus between emergent technologies and disruptive innovation, offering unparalleled insights for global enterprises.
Steven's expertise spans a broad spectrum of technologies that drive modern enterprises. Notable among these are open source, hybrid cloud, mission-critical infrastructure, cryptocurrencies, blockchain, and FinTech innovation. His work is foundational in aligning the strategic imperatives of C-suite executives with the practical needs of end users and technology practitioners, serving as a catalyst for optimizing the return on technology investments.
Over the years, Steven has been an integral part of industry behemoths including Broadcom, Hewlett Packard Enterprise (HPE), and IBM. His exceptional ability to pioneer multi-hundred-million-dollar products and to lead global sales teams with revenues in the same echelon has consistently demonstrated his capability for high-impact leadership.
Steven serves as a thought leader in various technology consortiums. He was a founding board member and former Chairperson of the Open Mainframe Project, under the aegis of the Linux Foundation. His role as a Board Advisor continues to shape the advocacy for open source implementations of mainframe technologies.
