Liquid Cooling: Powering India’s Next-Gen Data Centers

AI and HPC workloads demand enormous computing power. Rack densities that were once manageable with air cooling now exceed those limits, creating a need for more advanced solutions. At the same time, operators face growing scrutiny over energy use, as net-zero targets and sustainability commitments gain momentum.

November 04, 2025. By News Bureau

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articles

Chris Carreiro

Park Place Technologies

Sustainable infrastructure

Liquid Cooling

Next-generation data centres

Sustainable digital innovation

Leapfrog Opportunity

The explosion of artificial intelligence (AI), high-performance computing (HPC), and massive data generation are transforming the requirements of modern data centers. Traditional air-cooling systems, once sufficient, are now struggling to keep up as rack densities rise and workloads intensify. In India, where the data center market is expanding rapidly, the need for energy-efficient and sustainable infrastructure is pressing. In this context, liquid cooling has emerged as a pivotal innovation in thermal management—supporting both the country’s digital growth and its sustainability ambitions.

Why Cooling Needs Are Changing

AI and HPC workloads demand enormous computing power. Rack densities that were once manageable with air cooling now exceed those limits, creating a need for more advanced solutions. At the same time, operators face growing scrutiny over energy use, as net-zero targets and sustainability commitments gain momentum. Rising power costs only add urgency, making efficient cooling not just a performance requirement but also a financial and environmental necessity.

Liquid Cooling: A Proven Alternative

While not a new concept, liquid cooling has matured into a proven solution for high-density computing. Two main approaches are gaining traction:

Direct-to-chip cooling, where liquid flows through cold plates attached directly to CPUs and GPUs.
Immersion cooling, where servers are fully or partially submerged in a thermally conductive liquid.

Both methods outperform traditional air cooling by dissipating heat more effectively, reducing energy use, and extending hardware lifespans by minimising thermal stress. At scale, these benefits make liquid cooling a clear answer to both immediate performance needs and long-term sustainability goals.

India’s Leapfrog Opportunity

With cities like Mumbai, Chennai, Bengaluru, and Hyderabad emerging as global data center hubs, India is uniquely positioned to adopt liquid cooling at scale. Data localisation requirements are further driving demand for new capacity. Unlike established markets where legacy infrastructure can slow change, India has the opportunity to leapfrog directly into next-generation cooling technologies, strengthening its position as both a consumer and a pioneer of sustainable digital infrastructure.

Roadblocks to Adoption

The transition, however, comes with challenges. Initial deployment costs for liquid cooling remain higher than for traditional systems, and retrofitting existing facilities requires careful planning. Skilled resources to install, operate, and maintain these systems are limited, and India’s vendor ecosystem is still developing. Standardisation and hardware compatibility also need to mature. Addressing these gaps will require collaboration across technology providers, operators, and policymakers.

Lessons from Global Deployments

In North America, Europe, and parts of Asia, hyperscalers and cloud service providers have already integrated liquid cooling to support AI workloads—both in new builds and retrofits. These deployments demonstrate feasibility and scalability across diverse operating environments. By learning from these global models, Indian operators can accelerate adoption while avoiding common pitfalls.

The Way Forward

Liquid cooling represents an investment in efficiency, sustainability, and future readiness. As India’s data center landscape evolves to support AI-driven growth, policymakers can encourage adoption through targeted incentives and streamlined regulations. Technology providers and partners can accelerate innovation and bring global best practices into the Indian market.

Equally important, data center optimisation firms will play a vital role in ensuring successful adoption. From specialised maintenance and performance improvement to lifecycle support, they bridge the gap between advanced technology and operational reliability. Their expertise ensures that liquid-cooled facilities achieve maximum uptime and efficiency.

Conclusion

India stands at a defining moment in shaping its digital infrastructure. With efficiency, sustainability, and scalability as its advantages, liquid cooling is set to become the backbone of next-generation data centres. By embracing this shift, India can not only meet the demands of AI-driven growth but also establish itself as a global leader in sustainable digital innovation.

- Chris Carreiro, Chief Technology Officer, Park Place Technologies