Introduction to the Growing Data Center Market and Energy Challenges
The global data center services market is experiencing steady growth, driven by the demand from hyperscale companies and cloud/network providers. As per IDC Marketscape’s Third Report, operators are investing in more efficient facilities that incorporate new cooling technologies and renewable energy sources to meet this growing demand.
Transitioning from Air Cooling to Liquid Cooling
Traditional air cooling methods are being replaced by liquid cooling systems due to the high energy consumption of AI applications. Enrique Trello, General Manager of Trane Mexico, explained to El Economista that this shift aims to optimize space usage and manage the heat generated by high-capacity processing racks.
- Advanced Cooling Solutions: These include direct immersion cooling, where servers are submerged in dielectric liquid eliminating the need for air cooling, and direct liquid cooling to chips using water or specialized fluids circulating through tubes in contact with processors to extract heat, potentially removing 70-75% of the generated heat.
- Phased Transition: The initial phase involves liquid cooling all processors within racks, crucial as AI consumes more kilowatts and aims to reduce space while managing the thermal load produced by data racks (vertical metal structures housing and protecting servers and technology infrastructure) due to increased data processing.
Trane has launched a high-capacity water cooling unit exceeding 800 tonnes, offering greater efficiency in space and cooling power compared to smaller units.
Energy Challenges in Data Centers
Greater processing generates more heat and requires more energy. According to Trello, Monterrey ranks third among the largest data center markets, with key players being the Bajío (Querétaro and Guanajuato) and Monterrey, which is rapidly growing in this sector.
Trane can assist businesses in reducing energy consumption below the electricity grid levels using more efficient equipment that decreases carbon footprints.
With a sales and service office in Monterrey, Trane has expanded its operations to Tamaulipas, Chihuahua, and Coahuila. The company has two plants in Nuevo León: one in Monterrey producing HVAC systems, located in the Stiva Aeropuerto Industrial Park, manufacturing compressors and air conditioning systems.
Growth in Nuevo León’s HVAC Sector
During the announcement of AHR Expo México, Emmanuel Loo, Undersecretary for Investment and Innovation of the State Secretariat of Economy, highlighted a significant investment opportunity in one of Nuevo León’s most dynamic sectors.
- Key Sector: The Electrodomestics Cluster is crucial, with Trane holding the majority of chillers used by data centers.
- AI Demand: As AI requires not just chips but also data centers demanding cooling systems, Nuevo León has all these resources.
Key Questions and Answers
- What is driving the growth in the data center market? The demand from hyperscale companies and cloud/network providers is fueling the steady growth of the global data center services market.
- Why are liquid cooling systems gaining popularity? Liquid cooling systems, such as direct immersion and direct liquid cooling to chips, are more efficient in managing the high energy consumption of AI applications.
- What role does Trane play in addressing energy challenges for data centers? Trane offers efficient cooling solutions and equipment to help businesses reduce energy consumption below electricity grid levels, decreasing carbon footprints.
- Why is Nuevo León’s HVAC sector an attractive investment opportunity? The region has a thriving Electrodomestics Cluster, with Trane holding the majority of chillers used by data centers. Moreover, AI’s growing demand for chips and data centers necessitates cooling systems, which Nuevo León can provide.
