An Nvidia partner claims technology capable of reducing data center energy consumption by 50% amid rising power grid strain from AI infrastructure expansion.
Sustainable Metal Cloud, a Singapore-based data center company, is leveraging advanced immersion cooling technology to address the surging energy demands of artificial intelligence infrastructure. The company's HyperCubes contain servers fitted with Nvidia processors that are submerged in a synthetic oil called polyalphaolefin, which draws heat away more efficiently than air. According to SMC, this platform reduces energy consumption by up to 50% compared to traditional air cooling technology typically used in data centers. The immersion cooling technology is also 28% cheaper to install than other liquid-based solutions, and the containerized HyperCubes are designed to be deployed in unused spaces within existing data centers.
"It enables high density hosting for GPUs. It enables the sort of hosting that we need to see for platforms like [Nvidia's] Grace Blackwell," said Tim Rosenfield, co-founder and co-CEO of Sustainable Metal Cloud, referring to the new generation of AI graphics processors Nvidia announced in March. The company operates "sustainable AI factories" made up of its HyperCubes in Singapore and Australia, and has already established partnerships with major enterprises including Nvidia and Deloitte. In July, SMC announced a partnership with Deloitte in which it will provide access to Nvidia's GPU computing infrastructure for the consultancy's clients to build AI applications. SMC is also expanding into other markets like Thailand and India.
Recognizing the opportunity created by booming data center demand, Sustainable Metal Cloud has secured significant backing for its expansion. The firm received funding from Singapore state investor Temasek-backed ST Telemedia Global Data Centres, one of Asia's largest data center operators. SMC is currently raising $400 million in equity and $550 million in debt, with the funds going toward its data center expansion beyond Singapore, according to Bloomberg. Singapore itself has committed more than 500 million Singapore dollars ($379.7 million) to support "green" data centers as part of its AI ambitions.
The broader technology industry is increasingly adopting liquid cooling solutions to manage overheating risks associated with higher performance demands. At Computex Taipei in June, Nvidia CEO Jensen Huang championed the benefits of Supermicro's direct liquid-cooling technology, which he said saves energy and lowers costs in AI data centers. Supermicro CEO Charles Liang told CNBC in June that liquid cooling has greater power efficiency leading to better performance, less pollution and lower energy costs. Giordano Albertazzi, CEO of digital infrastructure provider Vertiv, told CNBC in June that liquid-cooling adoption could accelerate in 2024, with Vertiv offering hybrid air- and liquid-cooling as well as fully liquid-cooled data centers.
Despite industry enthusiasm, significant deployment challenges persist. "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," said Rosenfield. Vertiv's Albertazzi noted, "There is still a lot of air cooling that still happens in the data center and will continue to happen even in the full high-density AI data center." "Our solution being containerized means we can go anywhere very quickly. And we can open up new availability zones in response to demand from customers," Rosenfield added, highlighting SMC's competitive advantage in addressing these market dynamics.