Liquid Cooling: A Defining Standard for Sustainable Data Centres in 2025

By Jason Low, APAC Director at Iceotope

The year 2025 will be a pivotal one for the data centre industry. The rapid rise of AI-driven workloads, coupled with stricter sustainability mandates, is driving a fundamental shift in how data centres are designed and operated. AI-supported innovations like ChatGPT now require four to five times more processing power than traditional internet searches, and ASEAN data centre demand is projected to grow at 20% annually over the next five to seven years, according to Maybank.

This explosive growth reveals a critical challenge: traditional cooling systems are no longer sufficient to meet the demands of high-density computing environments. While liquid cooling has yet to achieve widespread adoption, the need for sustainable solutions that balance operational efficiency with environmental goals is accelerating its appeal. As Southeast Asia emerges as a global hub for digital infrastructure, liquid cooling is poised to play a defining role in shaping the next generation of sustainable data centres.

The Growing Urgency for Change

The rise of AI workloads and next-generation chip architectures has brought the limitations of traditional cooling methods into sharp focus. Air cooling systems, which have long been the backbone of data centre operations, are increasingly unable to handle the immense heat generated by high-performance computing environments.

Recent advancements in liquid cooling technology, led by innovators like Iceotope, are paving the way for more sustainable and efficient solutions. In rigorous tests on next-generation chips with power ratings of up to 1500W, Iceotope’s Precision Liquid Cooling system demonstrated the ability to maintain stable operating temperatures under intense thermal demands. By leveraging forced convection for heat transfer, these systems deliver superior cooling performance, achieving thermal resistances comparable to advanced water-cooled systems without the dependency on water.

These results highlight the scalability and reliability of liquid cooling as a forward-looking solution for the industry’s growing demands. As operators grapple with the increasing thermal output of AI and compute-intensive applications, liquid cooling is emerging as a compelling option to ensure operational efficiency while reducing environmental impact.

Southeast Asia’s Role in the Global Data Centre Landscape

Southeast Asia is fast becoming a global hub for data centre growth, driven by surging investments in digital infrastructure and the growing demand for localised storage. Countries like Singapore, Malaysia, Indonesia, and Thailand are attracting billions in investments, each addressing unique challenges in achieving sustainable expansion.

Singapore leads the region with strong infrastructure and rigorous sustainability mandates. Data centres account for 7% of the country’s electricity consumption and 82% of ICT sector emissions, prompting the government to prioritise advanced cooling technologies. Initiatives like the updated Green Mark certification and energy-efficiency benchmarks reflect Singapore’s commitment to balancing growth with environmental goals.

Malaysia, too, has expanded its data centre footprint, doubling capacity since 2022 and securing major investments from global tech companies. However, rapid growth has exposed resource constraints. Electricity demand from Malaysian data centres is projected to exceed 5,000 MW by 2035, with traditional cooling systems consuming up to 1.1 million gallons of water daily for a single 100 MW facility. Liquid cooling, with its water-free operation, offers a sustainable alternative to support the country’s ambitions.

Indonesia and Thailand are also making strides. Indonesia’s abundant land and growing digital economy position it for significant data centre growth, though reliance on non-renewable energy remains a challenge. Thailand, with over US$9 billion in investments from global tech giants, is similarly poised for expansion. Across these markets, liquid cooling provides a scalable solution to meet rising demands while addressing resource constraints.

Mainstreaming Liquid Cooling as the Standard

To establish liquid cooling as the industry standard, several key factors must be addressed.

Regulatory frameworks are critical to driving adoption. Governments must set clear benchmarks and incentivise data centres to adopt sustainable technologies. For instance, Singapore’s updated Green Mark certification, which will include liquid cooling standards by 2025, highlights how policy can encourage innovation.

Innovation will play a pivotal role in advancing adoption. Developments in areas like dielectric fluids and modular cooling systems are making liquid cooling more accessible and cost-effective. Collaboration between technology providers, operators, and regulators will be essential to scale the technology across diverse environments.

Industry-wide recognition of liquid cooling’s strategic value is equally important. Beyond compliance, liquid cooling enables higher compute densities, reduces operational costs, and aligns with environmental goals—key factors as clients and investors increasingly prioritise sustainability in vendor selection.

2025: A Turning Point for Data Centres

The data centre industry is entering a period of significant transformation. Rising energy demands, tightening climate regulations, and the growing complexity of digital infrastructure require innovative approaches to sustainability. Liquid cooling offers a practical pathway to meet these challenges, balancing high-performance demands with environmental responsibility.

Southeast Asia’s rapid growth and unique challenges place the region at the forefront of this transition. By addressing resource constraints while embracing advanced cooling technologies, the region is setting a benchmark for global innovation in data centre operations.

Liquid cooling, once viewed as a niche solution, is emerging as a foundational technology for sustainable infrastructure. For operators looking to stay ahead, embracing this technology represents an opportunity to align with the industry’s evolving demands while contributing to a more sustainable digital future.