Air-based cooling has long been the standard approach for managing server rack temperatures in data centers, but that model is being challenged as artificial intelligence workloads increase heat output and density. Operators are looking to liquid cooling as a more efficient way to handle the thermal demands associated with these higher-intensity deployments.
A recently released report from JLL highlights that liquid cooling can deliver meaningful power-efficiency gains. According to the report, these systems can reduce overall energy use and generate substantial cost savings for operators that adopt them, positioning liquid cooling as a strategic tool in managing operating expenses.
Liquid cooling is no longer experimental. Data center operator Equinix is already rolling out the technology across more than 100 of its facilities, signaling early mainstream adoption. In parallel, Digital Realty has launched a high-density colocation product that leverages liquid cooling to support workloads of up to 70 kilowatts per rack.
The ecosystem is also evolving at the hardware level. Nvidia is supplying next-generation servers specifically engineered to capitalize on liquid cooling, enabling its equipment to better manage the heat generated by power-hungry CPUs and GPUs. This alignment between data center operators and chip manufacturers underscores how thermal management is becoming integral to infrastructure design.
JLL’s report notes that liquid cooling can reduce dependence on traditional air-cooling systems and the large equipment they require. By shrinking the footprint of air-handling infrastructure, data centers can free up valuable floor area that may be converted into additional data hall capacity.
The report also points out that liquid cooling systems typically require a lower floor-to-ceiling height. This design characteristic offers additional flexibility in how interior space is configured and may open up options in buildings where vertical clearances are limited.
However, the transition is not straightforward. Incorporating liquid cooling often demands a significant overhaul of existing data center infrastructure and design, particularly in older buildings that were not built with these systems in mind. Retrofitting can be constrained by existing infrastructure and power limitations, and operators must carefully assess how these changes might affect service levels in other data halls.
JLL further cautions that rapid technology evolution introduces the risk of premature obsolescence. As liquid cooling solutions and related hardware continue to advance, operators face decisions about when to invest and how to future-proof deployments while balancing the operational gains against potential upgrade cycles.


