Rising AI loads force Asia data centre cooling shift

Expanding capacity and hotter climates push operators toward advanced cooling technologies.

Asia-Pacific’s data centre industry is undergoing a fundamental cooling overhaul as artificial intelligence workloads drive up rack densities and energy use, forcing operators to adopt more advanced thermal management systems. With regional data centre capacity projected to more than double to 26.1GW by 2028, cooling—already responsible for up to 40% of total energy consumption—has emerged as a critical constraint and opportunity.

Traditional air-based cooling is proving inadequate in much of Asia, where hot and humid climates limit free-cooling options. This has accelerated demand for high-efficiency and liquid-based solutions designed to support AI-driven computing. “We call it an aero lift bearing, to enable water free cooling more efficiently. And it's particularly applicable in warmer climates, like most of the APAC countries,” said Abel Gnanakumar, Vice President, Commercial HVAC - Asia, Middle East & Africa at Copeland.

AI adoption is also reshaping data centre formats, boosting demand for modular and edge facilities across dense urban markets. Gnanakumar noted that variable-speed compressors combined with inverter drives allow faster deployment and improved efficiency compared with conventional systems.

Liquid cooling is expected to become the dominant technology supporting high-density AI racks. “These technologies are critical to support the cooling needs of high density racks, where the capacity have already reached 100 kilowatt and now will be, is expected to reach 400 kilowatt with increasing AI workloads,” said Shaik Safik, Principal Consultant at Frost & Sullivan, adding that liquid cooling solutions are “no longer considered optional, but they are the future of sustainable high density cooling for data centers in the Asia Pacific market.”

Despite surging demand, manufacturers face several supply-side constraints. Safik cited operator resistance to shifting away from cheaper legacy systems, rising logistics costs linked to US-China tariffs, and microchip shortages affecting smart controllers. “Without diversifying sources and partnerships, these next generation cooling technologies will simply not grow fast enough to meet with the increasing demand,” he said.

The opportunity remains substantial. Frost & Sullivan estimates Asia-Pacific will command 48% of the global data centre cooling market by 2030, representing more than $9 billion in potential revenue.