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LiquidStack has secured $20 million in funding from Tiger Global to expand its manufacturing and R&D efforts, focusing on advanced liquid cooling solutions for AI and high-performance computing data centers. The investment supports the development of new technologies, including direct-to-chip and immersion cooling, aimed at increasing efficiency and sustainability in data centers. This move positions LiquidStack to lead in the growing market for liquid cooling, which is expected to reach $15 billion within the next five years.
The Power Behind LiquidStack’s Expansion
LiquidStack, a leader in liquid cooling technology, has secured a $20 million Series B extension investment from Tiger Global, a move that pushes the company’s total Series B funding to $35 million. This investment is significant for LiquidStack as it aims to expand its manufacturing capabilities and enhance its portfolio of cooling products tailored for AI and high-performance computing (HPC) data centers.
LiquidStack’s technology is particularly relevant in today’s data-driven world where the demand for efficient and sustainable cooling solutions is increasing. The funds will be used to scale operations and strengthen both the commercial and research divisions of thex company, ensuring that it remains at the forefront of the liquid cooling industry.
What Sets LiquidStack Apart in the AI Data Center Race
LiquidStack is distinguished by its comprehensive portfolio of liquid cooling solutions, which includes several advanced technologies that address the needs of AI and HPC environments.
- Direct-to-Chip Cooling: LiquidStack’s coolant distribution unit (CDU) line is designed for advanced computing applications. The CDW-1MW, a flagship product in this category, offers 1,350 kW of cooling capacity and meets stringent certifications including ETL, CSA, and CE.
- Single-Phase Immersion Cooling: This solution uses advanced flow technology to optimize heat transfer, making it suitable for retrofitting existing data centers as well as modular containers.
- Two-Phase Immersion Cooling: Known for its efficiency, this technology is designed for high-density server environments, offering superior thermal management with minimal energy consumption.
Additionally, LiquidStack’s MicroModular™ and MacroModular™ data centers are equipped to handle 250 kW and 1.5 MW of liquid cooling, respectively. These modular systems are ideal for edge computing and 5G use cases, where space and efficiency are crucial.
Expanding Horizons: Manufacturing and R&D Advancements
To support its growing product lineup, LiquidStack is expanding its manufacturing footprint. The company’s U.S.-based facility in Carrollton, Texas, which opened in March 2024, plays a crucial role in this expansion. This facility is not only involved in manufacturing but also serves as a hub for R&D activities aimed at advancing LiquidStack’s direct-to-chip and immersion cooling technologies.
The company plans to further develop its direct-to-chip CDU roadmap, aligning with the increasing thermal demands of GPU and CPU chips. Continued investment in single-phase and two-phase immersion cooling solutions is also a priority, especially for use cases where a holistic approach to liquid cooling is more suitable than hybrid methods.
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Industry Impact: Why Liquid Cooling is Gaining Momentum
The data center thermal management market is experiencing rapid growth, driven by the increasing need for power and cooling solutions capable of supporting AI and high-performance computing. Liquid cooling technologies, once a niche solution, are now entering the mainstream.
According to research from Dell’Oro Group, the market for data center liquid cooling is expected to reach a value of $15 billion within the next five years. This growth underscores the shift towards more efficient cooling methods, as traditional air cooling systems struggle to meet the demands of modern data centers.
Liquid cooling is not just about efficiency; it’s also about sustainability. As data centers continue to scale, the environmental impact of cooling technologies becomes a significant consideration. LiquidStack’s solutions are designed with this in mind, offering both high efficiency and a reduced environmental footprint.
LiquidStack’s Strategic Vision for the Future
With the new $20 million investment, LiquidStack is positioned to continue its growth trajectory. The company’s strategy includes expanding its cooling product family and reinforcing its leadership in the liquid cooling market.
LiquidStack’s leadership has emphasized their commitment to delivering high-quality and reliable products that meet the evolving needs of their customers. This investment provides a clear pathway for LiquidStack to further its mission as a full-service liquid cooling provider.
The Road Ahead for LiquidStack and the Industry
LiquidStack’s journey reflects the broader trends in the data center industry, where the demand for more efficient, scalable, and sustainable solutions continues to grow. The company’s innovations in liquid cooling are not just meeting current needs but are also shaping the future of data center infrastructure.
The implications of these advancements extend beyond just the data center industry. As AI and edge computing become more prevalent, the need for advanced cooling solutions will only increase. LiquidStack’s continued focus on innovation and sustainability positions it well to meet these challenges, driving the industry towards a future where efficiency and environmental responsibility go hand in hand.
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