As AI Demands Soar, Sustainable Metal Cloud’s Immersion Cooling Technology Promises Significant Energy Savings
As the artificial intelligence (AI) boom continues to escalate, the strain on global power grids is becoming more pronounced. Major tech giants like Microsoft, Alphabet, and Meta are pouring billions into data center infrastructure to support the surging demand for generative AI. However, the rapid proliferation of data centers has led to a sharp increase in energy consumption, raising concerns about sustainability.
Enter Sustainable Metal Cloud (SMC), a Singapore-based data center company and Nvidia partner, which claims its innovative immersion cooling technology can reduce data center energy consumption by up to 50%. This breakthrough comes as data centers worldwide grapple with the challenge of efficiently cooling increasingly powerful processors necessary for AI applications.
SMC’s HyperCube: A Game-Changer in Data Center Cooling
SMC’s flagship product, the HyperCube, is a containerized system designed to house servers equipped with Nvidia processors. These servers are submerged in polyalphaolefin, a synthetic oil that draws heat away far more effectively than traditional air cooling methods. According to Tim Rosenfield, co-founder and co-CEO of SMC, this technology is 28% cheaper to install than other liquid-based cooling solutions, making it a cost-effective option for data centers looking to reduce their energy footprint.
“It enables high-density hosting for GPUs, which is crucial for platforms like Nvidia’s Grace Blackwell,” Rosenfield explained, referring to the latest generation of AI processors launched by Nvidia in March. The containerized nature of the HyperCube also allows for rapid deployment in any data center, even in unused spaces, providing flexibility in meeting customer demands.
Global Expansion and Strategic Partnerships
SMC is not only innovating in technology but also expanding its footprint. With existing HyperCubes in Singapore and Australia, the company is now moving into markets like Thailand and India. This expansion is backed by significant funding, with SMC currently raising $400 million in equity and $550 million in debt to fuel its growth.
The firm’s partnership with Nvidia and Deloitte further solidifies its position as a leader in sustainable data center solutions. In July, SMC announced a collaboration with Deloitte to provide access to Nvidia’s GPU computing infrastructure, allowing Deloitte’s clients to develop AI applications more efficiently.
The Growing Trend of Liquid Cooling in Data Centers
As AI continues to drive up performance needs, traditional air-cooling methods in data centers are becoming less viable due to the risk of overheating. Liquid cooling, particularly immersion cooling, is emerging as a more efficient alternative, enabling data centers to pack more servers into their existing spaces without compromising performance.
Despite its potential, SMC’s Rosenfield acknowledges that the market is still adapting to liquid cooling technologies. “Most data centers are not ready for liquid of any type, whether it is immersion or direct chip cooling. The market is figuring out the best way to employ this, and I think there’ll be multiple ways,” he said.
Nevertheless, industry experts like Giordano Albertazzi, CEO of digital infrastructure provider Vertiv, anticipate a significant uptick in liquid cooling adoption by 2024. Nvidia CEO Jensen Huang has also praised the energy-saving benefits of liquid cooling, highlighting its potential to lower costs and reduce pollution in AI-driven data centers.
The Future of Sustainable Data Centers
As the AI revolution continues to unfold, the need for sustainable and energy-efficient data centers will only grow. Companies like SMC are at the forefront of this transformation, offering innovative solutions that not only meet the demands of today’s technology but also address the environmental challenges of tomorrow.
With its cutting-edge HyperCube technology and strategic partnerships, SMC is well-positioned to lead the charge toward a more sustainable future in the AI-driven data center industry.
Global Data Center Energy Consumption: A Growing Concern
Data centers are known to be some of the largest consumers of electricity worldwide. According to the International Energy Agency (IEA), data centers and data transmission networks accounted for nearly 1% of global electricity use in 2022. With the rise of AI, this figure is expected to increase significantly. Some estimates suggest that AI-related data centers could contribute up to 3% of global electricity consumption by 2030 if no energy-saving measures are implemented.
Enter Sustainable Metal Cloud (SMC), a Singapore-based data center company and Nvidia partner, which claims its innovative immersion cooling technology can reduce data center energy consumption by up to 50%. This breakthrough comes as data centers worldwide grapple with the challenge of efficiently cooling increasingly powerful processors necessary for AI applications.
SMC’s HyperCube: A Game-Changer in Data Center Cooling
SMC’s flagship product, the HyperCube, is a containerized system designed to house servers equipped with Nvidia processors. These servers are submerged in polyalphaolefin, a synthetic oil that draws heat away far more effectively than traditional air cooling methods. According to Tim Rosenfield, co-founder and co-CEO of SMC, this technology is 28% cheaper to install than other liquid-based cooling solutions, making it a cost-effective option for data centers looking to reduce their energy footprint.
The effectiveness of SMC’s HyperCube can be illustrated by comparing it to traditional cooling methods. Conventional air-cooling systems typically use around 40% of a data center’s total energy consumption. By switching to immersion cooling, data centers can reduce this figure to less than 20%, translating to substantial savings in both energy and operational costs.
“It enables high-density hosting for GPUs, which is crucial for platforms like Nvidia’s Grace Blackwell,” Rosenfield explained, referring to the latest generation of AI processors launched by Nvidia in March. The containerized nature of the HyperCube also allows for rapid deployment in any data center, even in unused spaces, providing flexibility in meeting customer demands.
Global Expansion and Strategic Partnerships
SMC is not only innovating in technology but also expanding its footprint. With existing HyperCubes in Singapore and Australia, the company is now moving into markets like Thailand and India. This expansion is backed by significant funding, with SMC currently raising $400 million in equity and $550 million in debt to fuel its growth.
The firm’s partnership with Nvidia and Deloitte further solidifies its position as a leader in sustainable data center solutions. In July, SMC announced a collaboration with Deloitte to provide access to Nvidia’s GPU computing infrastructure, allowing Deloitte’s clients to develop AI applications more efficiently. SMC’s strategic alignment with Nvidia is particularly noteworthy, as Nvidia is a dominant player in the AI chip market, holding over 80% of the global market share for AI processors.
The Growing Trend of Liquid Cooling in Data Centers
As AI continues to drive up performance needs, traditional air-cooling methods in data centers are becoming less viable due to the risk of overheating. Liquid cooling, particularly immersion cooling, is emerging as a more efficient alternative, enabling data centers to pack more servers into their existing spaces without compromising performance.
Despite its potential, SMC’s Rosenfield acknowledges that the market is still adapting to liquid cooling technologies. “Most data centers are not ready for liquid of any type, whether it is immersion or direct chip cooling. The market is figuring out the best way to employ this, and I think there’ll be multiple ways,” he said.
Industry-wide, the adoption of liquid cooling is on the rise. A report by MarketsandMarkets projects that the global data center liquid cooling market will grow from $1.2 billion in 2023 to $6.3 billion by 2028, reflecting a compound annual growth rate (CAGR) of 38.4%. This growth is driven by the increasing demand for energy-efficient solutions in high-density computing environments, particularly those supporting AI and machine learning workloads.
Nevertheless, industry experts like Giordano Albertazzi, CEO of digital infrastructure provider Vertiv, anticipate a significant uptick in liquid cooling adoption by 2024. Nvidia CEO Jensen Huang has also praised the energy-saving benefits of liquid cooling, highlighting its potential to lower costs and reduce pollution in AI-driven data centers.
The Future of Sustainable Data Centers
As the AI revolution continues to unfold, the need for sustainable and energy-efficient data centers will only grow. Companies like SMC are at the forefront of this transformation, offering innovative solutions that not only meet the demands of today’s technology but also address the environmental challenges of tomorrow.
With its cutting-edge HyperCube technology and strategic partnerships, SMC is well-positioned to lead the charge toward a more sustainable future in the AI-driven data center industry.
