According to DCD, LG Electronics, SK Enmove, and Green Revolution Cooling have signed a memorandum of understanding to collaborate on immersion cooling solutions for AI data centers. The partnership will involve joint marketing and proof-of-concept demonstrations, with LG leading system integration using components like coolant distribution units and chillers, SK Enmove supplying specialized thermal fluids, and GRC providing immersion tank expertise. SK Enmove, which first produced immersion cooling fluid in 2022 and is an investor in Texas-based GRC, will leverage GRC’s pioneering experience dating back to 2009. LG plans to expand its liquid cooling testing at the Pyeongtaek facility in Korea while developing an integrated management platform for real-time monitoring. This strategic alliance represents a significant move to address the cooling challenges of modern AI infrastructure.
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The Urgent Need for Advanced Cooling Solutions
The timing of this partnership couldn’t be more critical as AI workloads continue to push data center power densities to unprecedented levels. Traditional air cooling becomes increasingly inefficient and impractical when dealing with AI server racks consuming 40-80kW, far beyond what conventional systems can handle effectively. Immersion cooling offers a fundamentally different approach by submerging entire servers in dielectric fluid, which provides superior heat transfer efficiency and enables much higher power densities. What makes this particular collaboration noteworthy is how it brings together complementary strengths across the entire cooling ecosystem rather than focusing on individual components.
Strategic Positioning in a Crowded Market
This three-way partnership represents a calculated response to the fragmented nature of the liquid cooling market. While numerous companies offer piecemeal solutions, few can deliver the complete integrated system that large-scale AI data center operators require. LG’s established manufacturing capabilities for cooling components combined with SK Enmove’s chemical expertise and GRC’s decade-plus of immersion system experience creates a formidable offering. The collaboration essentially creates a one-stop shop for enterprises looking to implement immersion cooling at scale, potentially giving them an edge over competitors who specialize in only one aspect of the technology stack.
The Roadblocks to Widespread Adoption
Despite the promising technology, immersion cooling faces significant adoption hurdles that this partnership must overcome. The initial capital expenditure for retrofitting existing data centers with immersion systems can be substantial, requiring not just the tanks and coolant but also facility modifications and staff retraining. Maintenance procedures differ dramatically from air-cooled systems, and many IT managers remain skeptical about submerging expensive hardware in liquid. There’s also the question of fluid longevity and disposal – while dielectric fluids are non-conductive, they still represent an environmental consideration that must be managed responsibly throughout their lifecycle.
Broader Industry Impact and Future Outlook
The involvement of major players like LG signals that immersion cooling is moving from niche experimentation to mainstream consideration. As AI chip power consumption continues its upward trajectory – with some projections showing next-generation AI accelerators exceeding 1000W per chip – the efficiency gains from liquid cooling become increasingly compelling. This partnership could accelerate industry standards and best practices, potentially lowering costs through economies of scale. If successful, we may see similar consortiums forming among other industrial giants, fundamentally reshaping how we approach thermal management in the AI era. The real test will be whether these integrated solutions can deliver on their promised reliability while maintaining cost competitiveness against improving air cooling and competing direct-to-chip liquid cooling technologies.
