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When power is a constraint, cooling is an opportunity
In this article for DCNN, ExxonMobil’s Glen Sharkowicz (Director Strategic Market Development, Immersion Cooling) and Betsy Cossette (Immersion Cooling Market Development Manager) assess how immersion cooling could help data centre operators overcome power constraints, improve thermal efficiency, and extract more compute capacity from existing infrastructure:
Immersion cooling offers relief from the growing energy bottleneck
AI is accelerating demand for one of the industry’s most constrained resources: power. Across the United States, major players are aggressively pursuing the energy needed for ambitious new projects. If accessing enough power is difficult now, forecasts do not show much relief ahead. The International Energy Agency projects that global data centre electricity consumption will more than double by 2030, reaching roughly 945TWh, with the United States accounting for nearly half of the electricity demand growth over that period.
When power becomes a bottleneck, timelines slip, expansion costs rise, and access to compute is constrained. In the AI race, those delays can set companies back years. CBRE has reported that power availability can extend data centre construction timelines by two to four years and, in some cases, by as many as six. The logic is simple: when power is the primary constraint, every megawatt counts. As processor power rises and AI deployments scale, operators are re-evaluating long-held assumptions about how data centres should be cooled. Direct-to-chip moved the market forward; AI is now changing that equation.
Modern systems are generating more heat in less space, and thermal pressure now extends beyond CPUs and GPUs to memory, power delivery, and other system elements. Heat affects how much supporting infrastructure must be built around the IT load. It influences how much of a site’s total power can be directed to compute rather than cooling overhead.
Direct-to-chip cooling has been an important bridge technology for high-density environments. McKinsey notes that compared with air cooling, operators can run the same tasks on the same equipment with a 31% lower energy bill using direct-to-chip cooling. But, as densities continue to rise, the limitations of cooling only certain hot components become more apparent. For one, liquid cooling systems can introduce significant plumbing complexity. In 2024, Uptime Institute data cited by industry observers showed that liquid cooling system failures contributed to 13% of significant outages.
Immersion extends the opportunity
Instead of targeting only the hottest chips, immersion cooling places the system in a thermally stable liquid environment designed to cool the full assembly more comprehensively, which itself can reduce temperature variation, lower dependence on fans and heavy air handling, and simplify the environment needed to support high-density compute. With immersion becoming more mainstream, the most likely path forward is a hybrid approach in which cooling strategies are tailored to specific business and application needs.
What’s more, immersion cooling can reduce TCO compared with direct-to-chip and air cooling. When AI is driving revenue, the ability to shift energy from cooling to compute can have outsized business impact. A recent survey by KPMG found that 55% of hyperscalers and data centre developers would be willing to pay up to 50% more on electricity costs to expand capacity. When power is the limiting factor in data centre growth, the central question becomes how to get the most compute from the power already available. Immersion cooling is an answer.
Immersion cooling can offer meaningful savings relative to cold plate cooling in AI-focused environments. If less power must be devoted to cooling overhead, more can be directed to compute. Power is scarce and time is expensive, so these effects can materially change the return profile of an AI infrastructure investment.
Reliability is part of the ROI equation
Operators need confidence that the environment will be stable, maintainable, and supportable over time. Downtime, service complexity, and unplanned maintenance can quickly erode the value of any savings. Immersion cooling can help address those concerns by creating a more thermally stable operating environment and reducing some of the infrastructure complexity that contributes to service burden.
At the 2025 OCP EMEA Summit, findings presented showed that immersion cooling offered the following advantages:
• Higher server reliability• Reduced downtime• Lower maintenance requirements
The case extends beyond the rack
Water use, physical footprint, and local operating impact of data centres are becoming more prominent considerations in siting, permitting, and long-term planning. Immersion cooling can potentially lower water consumption compared to other cooling strategies, alongside improved thermal management and lower cost. A 2025 Nature study found that advanced cooling methods such as cold plates and immersion cooling can reduce blue water consumption by 31–52% in data centres, depending on conditions.
Traditional fan-heavy data centre environments can create significant noise pollution. Immersion cooling can help reduce that burden by lowering reliance on fan-driven airflow. In some configurations, immersion systems have been measured below 50dB, which is materially quieter than conventional data centre cooling environments.
Immersion cooling can help maximise power to revenue
It’s important to consider how much value a cooling strategy can unlock from the power, space, water, and capital already available. Implementing immersion cooling can help address thermal management at the system level and ties that improvement to core business outcomes: lower operating costs, less infrastructure burden, improved reliability, and the potential for more compute capacity within the same power envelope.
Immersion cooling offers a way to turn constrained power into scalable growth, and it belongs in today’s infrastructure planning discussion. For organisations exploring how to maximise performance from constrained power, it is a conversation worth having now.
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Joe Peck - 1 September 2026