These data centers consume massive quantities of water daily to cool next-generation AI servers that, with each new chatbot iteration, demand increasing amounts of power. This rising energy demand has rendered open-air cooling systems obsolete, pushing liquid cooling technologies to the forefront.

We first identified the stunning water consumption problem of data centers at the start of the year, as well as penned a note over the summer about a "chilling opportunity" in data center liquid cooling after UBS forecasted that thermal loads could exceed 200kW to 1,000 kW per rack by the end of the decade. This means air cooling is quickly becoming obsolete as new chatbots demand higher compute power, and therefore more advanced AI chips, driving higher demand for liquid cooling technologies.

The pace of data center development is accelerating, as we previously pointed out in our discussion of the "circular economy" of AI, calling it, quite aptly, a stunning "circle jerk"... 

... that has ushered in an unprecedented era of Big Tech CapEx to build out AI infrastructure.