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Liquid cooling becomes essential for AI data centers

Published

2 November 2026

Topic

technology

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AI InfrastructureCloud Infrastructure

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Read at marketscale.com →

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Fusion42 · 2 November 2026 · Fusion42 review

Rising power density of AI chips is driving data centers to adopt liquid cooling technology, with industry projections indicating a transition from air cooling to liquid cooling as AI chips approach 4,000 watts by 2029. This shift is essential for handling the concentrated heat output, with liquid cooling market projected to reach $7 billion by 2029 and two-phase direct liquid cooling gaining traction for future high-power hardware.

This Wire brief sits within Fusion42's coverage of AI Infrastructure and Cloud Infrastructure.

◆ ◆ The Wire takeaway

AI chip power now demands liquid cooling at scale. You must adopt two-phase cooling technology soon or risk costly retrofits and losing efficiency as rack power hits megawatts.

◆ Coverage

1 source · 2 Nov 2026

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AI InfrastructureCloud Infrastructureliquid-coolingai-chipsdata-centerpower-densitythermal-management