Data Center Thermal Management Meets Its Hottest Test!

Data center thermal management is reaching a breaking point. As AI workloads surge across the Middle East and globally, traditional air cooling can no longer handle the heat. AI servers now push rack densities far beyond historic norms. The global average rack runs at 12 kW. AI workloads are driving this figure toward 150 kW per rack.

This shift is forcing data center operators to rethink cooling from the ground up. Liquid cooling adoption reached 22% of data centers by 2025, driven almost entirely by AI. Air systems simply cannot remove heat fast enough. The result is a rapid move toward immersion cooling, where servers are dipped directly into special liquids called dielectric fluids.

Why AI Changes Everything in Data Center Thermal Management

AI data centers consume enormous power. In 2021, data centers already used 1.5-2% of global electricity. This figure is expected to double by 2026 as AI expands. In some markets, projections are even more dramatic, with data center electricity use potentially reaching double-digit shares within a few years.

As power rises, heat follows. Air cooling fails in these conditions, even in hyperscale facilities. Raising temperature setpoints beyond 70°F helps slightly, but it does not solve the core issue. This is why liquid-based thermal management is no longer optional for AI facilities, but is becoming the default.

Immersion Cooling for Data Center Thermal Management

Immersion cooling is the most radical solution now gaining traction. In this setup, servers are fully submerged in dielectric fluids. These liquids safely transfer heat away from chips without conducting electricity.

Single-phase immersion cooling is especially suited for AI hardware like GPUs and TPUs, which generate extreme thermal design power. This method reduces electricity use, cuts water consumption, and shrinks infrastructure needs. Compared to air-cooled systems, immersion cooling can reduce a data center’s physical footprint by one-third.

Today, less than 10% of data centers use immersion cooling. But growth is rapid, especially in AI-focused facilities where efficiency and sustainability are critical.

The Lubricant Industry’s High-Margin Pivot

Lubricant blenders are pivoting away from traditional products and moving into dielectric fluids. These fluids require specialized formulation and strict performance standards, making them premium products. And while detailed regional margin data is limited, dielectric fluids are widely seen as the highest-margin new segment for lubricant producers in the Middle East. The global liquid cooling market was already nearing $1 billion in 2023, signaling strong demand and pricing power.

As AI data centers multiply, demand for these fluids will grow faster than standard lubricants. For blenders, this is not just diversification. It is a strategic upgrade into a technology-driven, high-value market.

A Fast-Growing Market With Clear Signals

The numbers point in one direction. Revenue from data center thermal management reached $7.7 billion in 2023, growing at 26% per year. Liquid cooling adoption is accelerating. Electricity demand is surging.

Together, these forces are reshaping how data centers are built and how supporting industries respond. Air cooling is no longer enough. Immersion cooling fluids are moving from niche to necessity.

Strategic Support for Data Center Thermal Management

As data center thermal management becomes a core strategic issue, companies need deep market insight. Middle East Lubricants by Eurogroup Consulting brings 40 years of distinguished experience, excelling in strategic consulting and market research across the region. Our team supports businesses navigating fast-changing sectors like advanced cooling fluids, positioning us as the essential partner for succeeding in the region’s evolving data center and energy landscape.