Sustainable cooling powers the future of data centers

As artificial intelligence (AI) and computational demands soar, data centers are becoming the backbone of our digital world. However, with great power comes great heat. The rapid increase in heat generated by advanced CPUs and GPUs is pushing the limits of traditional cooling methods. In 2025, companies like Panasonic and Samsung are stepping up with innovative cooling solutions to keep data center efficient, sustainable, and reliable. 

The Growing Need for Advanced Data Center Cooling

Data centers are multiplying globally, driven by the rise of generative AI and other high-performance technologies. These facilities house servers that generate immense heat due to complex computations. Traditional air cooling, once the go-to solution, is struggling to keep up with the cooling demands of modern chips. Liquid cooling is emerging as a game-changer, offering superior efficiency to handle the heat.

According to the report by Next Move Strategy Consulting, the global Data Center Cooling Market is predicted to thrive at a CAGR of 13% valued at USD 42.67 billion by 2030. 

This rapid growth reflects the urgent need for innovative cooling solutions as data centers scale to meet AI-driven demands.

Key Takeaways:

• Data centers face increasing heat loads from advanced chips.

• Liquid cooling is gaining traction for its high efficiency.

• The cooling market is expected to grow by 18% annually through 2030.

Panasonic’s Next-Generation Cooling Pump

Panasonic, celebrating 70 years of its pump business in 2025, has entered the data center cooling market with a cutting-edge cooling water circulation pump. Designed for Coolant Distribution Units (CDUs), this pump integrates advanced technologies to address the unique challenges of data center cooling.

Features of Panasonic’s Cooling Pump

• High Performance: Using advanced simulation technologies like magnetic field and fluid dynamics analysis, Panasonic’s pump achieves a 75% performance boost, increasing flow from 40 to 70 liters per minute without increasing size. This enhances energy efficiency and simplifies system design.

• Compact Design: The pump’s compact housing, honed through decades of design expertise, fits within space-constrained CDUs, offering greater layout flexibility.

• Long Service Life: Submersible sliding bearings and optimized structural design ensure stable operation and reduced maintenance, supporting reliable data center operations.

Panasonic’s entry into data center cooling aligns with its goal to reach 100 million cumulative pump shipments by 2035. With a history of supplying pumps for water heaters, heating appliances, and now data centers, Panasonic is leveraging its expertise to drive sustainable cooling solutions.

Panasonic’s cooling pump offers high performance, compactness, and durability, making it a vital component for modern data center cooling systems.

Why Is the Data Center Cooling Market So Competitive?

The promising growth prospects in the data center cooling industry have fueled intense competition among key players. Notable companies in this space include Asetek, Black Box Corporation, Emerson Electric Co., Fujitsu Limited, Hitachi Ltd., Nortek Air Solutions, Rittal GmbH & Co. KG, Stulz GmbH, Schneider Electric, and Vertiv Co., among others. To sustain their market leadership, many of these firms rely on strategies such as strategic partnerships and acquisitions.

Samsung’s Strategic Acquisition of FläktGroup

On May 14, 2025, Samsung Electronics signed an agreement to acquire FläktGroup, a leading global HVAC solutions provider, for €1.5 billion. The transaction is expected to close within 2025, subject to regulatory approvals. This acquisition strengthens Samsung’s position in the fast-growing data center cooling market.

FläktGroup’s Expertise in Cooling Solutions

• Diverse Portfolio: Based in Herne, Germany, FläktGroup delivers high-reliability HVAC systems for data centers, museums, hospitals, airports, and other mission-critical environments. Its liquid and air cooling solutions are tailored for energy efficiency and performance.

• Award-Winning Innovation: FläktGroup won the 2024 DCS Cooling Innovation of the Year Award for its advanced data center cooling technologies, reinforcing its reputation for industry-leading innovation. 

• Global Reach: With over 60 major clients, including pharmaceutical and biotech firms, FläktGroup has seen significant revenue growth over the past three years.

Samsung aims to combine FläktGroup’s expertise with its building integration control solution (b.IoT) and FläktGroup’s HVAC control system (FläktEdge) to offer comprehensive cooling and energy management solutions. This strategic move positions Samsung to capitalize on the growing demand for data center cooling driven by AI, robotics, and other technologies.

Samsung’s acquisition of FläktGroup enhances its HVAC portfolio, offering innovative cooling solutions for data centers and beyond.

Liquid Cooling vs. Air Cooling: A Paradigm Shift

The shift from air cooling to liquid cooling is transforming data center operations. Air cooling, reliant on air conditioners and fans, struggles to manage the heat generated by next-generation chips. Liquid cooling, which uses water or other coolants, offers superior heat dissipation, making it ideal for high-performance computing environments.

Both Panasonic and Samsung are capitalizing on this trend. Panasonic’s cooling pump is designed for liquid-based CDUs, while FläktGroup’s solutions include both liquid and air cooling systems. Liquid cooling’s higher efficiency reduces energy consumption, aligning with sustainability goals and lowering operational costs.

Comparison Table: Liquid Cooling vs. Air Cooling

Liquid cooling is becoming the preferred choice for data centers due to its efficiency, compactness, and sustainability benefits.

Sustainability and Efficiency in Focus

Both Panasonic and Samsung emphasize sustainability in their cooling solutions. Panasonic’s pump improves energy efficiency by 75%, reducing the environmental impact of data centers. FläktGroup’s solutions help customers achieve lower carbon footprints, a critical factor as data centers face increasing scrutiny for their energy use.

By adopting liquid cooling and advanced control systems, these companies are addressing the dual challenges of performance and environmental responsibility. Efficient cooling not only ensures stable operations but also aligns with global sustainability goals.

Sustainability is a core focus, with energy-efficient cooling solutions reducing environmental impact while maintaining performance.

Next Steps for Data Center Operators

To stay competitive in the rapidly evolving data center landscape, operators can take the following actionable steps:

• Evaluate Liquid Cooling Options: Assess the feasibility of transitioning to liquid cooling systems, such as Panasonic’s cooling pumps or FläktGroup’s solutions, to handle high heat loads efficiently.

• Prioritize Energy Efficiency: Invest in cooling technologies that reduce power consumption, aligning with sustainability goals and lowering operational costs.

• Partner with Trusted Providers: Collaborate with established companies like Panasonic and Samsung, which offer reliable, innovative cooling solutions backed by decades of expertise.

• Monitor Market Trends: Stay informed about the growing data center cooling market, projected to grow at 18% annually, to make strategic investment decisions.

• Integrate Smart Controls: Leverage advanced control systems like Samsung’s b.IoT or FläktEdge to optimize cooling and energy management.

Final Thoughts

The data center cooling landscape is evolving rapidly, driven by the demands of AI and high-performance computing. Panasonic and Samsung are leading the charge with innovative, sustainable solutions that address both performance and environmental concerns. By adopting these cutting-edge technologies, data center operators can ensure reliability, efficiency, and a greener future.

Source: https://www.nextmsc.com/blogs/data-center-cooling-innovations-for-a-sustainable-future