Data centers are no longer simply spaces where servers are housed. As AI, cloud services, streaming, and data platforms continue to expand, data centers are becoming critical infrastructure that must manage massive amounts of electricity and heat at the same time.
According to the International Energy Agency (IEA), global data center electricity consumption was estimated at around 1.3% of global final electricity demand in 2022. As data center electricity use increases, a significant portion of that energy is ultimately converted into heat. If this heat is not managed effectively, it can lead to lower server performance, system failures, and operational risk.[1]
For this reason, data center cooling should no longer be understood as simple air-conditioning equipment. It has become a core technology that affects performance, reliability, energy efficiency, operating costs, and sustainability.
· As AI adoption expands, data centers must manage more electricity and heat at the same time.
· Cooling architecture is evolving from air-cooling-centered systems toward hybrid structures that combine chilled water, free cooling, and liquid cooling.
· Even as liquid cooling expands, not every data center will fully transition to liquid cooling.
· Compressors are not disappearing. Their role is changing depending on the cooling architecture.
· The future of data center cooling is not compressor-less. It is compressor-smart.
Data center cooling has evolved from room-level air cooling to hybrid thermal management that combines air cooling, chilled water, free cooling, liquid cooling, and compressor-based systems.
1) The Past: Air Cooling for the Entire Server Room
Early data center cooling was typically based on air-cooling systems centered on CRAC (Computer Room Air Conditioning) and CRAH (Computer Room Air Handler) equipment. Hot aisle / cold aisle design and raised floors were commonly used to separate cold air and hot air flows. DOE/NREL (U.S. Department of Energy / National Renewable Energy Laboratory) explains that aisle containment, airflow optimization, and cable management are key elements of data center air management.[2]
However, as server performance and power density increased, simple air-cooling systems began to show limitations. Common challenges include increased airflow requirements, higher fan power, higher noise levels, rising hot aisle temperatures, and difficulty supporting high-density servers. ASHRAE TC 9.9 explains that the spread of high-power IT equipment can create these types of cooling challenges.[3]
Challenges include:
· Higher airflow requirements
· Increased fan power
· Higher noise levels
· Rising hot aisle temperatures
· Difficulty supporting high-density servers
2) The Transition: From Colder Cooling to Higher Efficiency
As data centers began to focus more on energy efficiency, the goal of cooling also changed. The objective was no longer simply to lower temperatures, but to control heat more efficiently and only as much as needed.
During this transition, chilled water systems, high-efficiency chillers, free cooling / economizers, variable-speed fans and pumps, variable speed compressor operation in applicable chiller and DX (Direct Expansion) systems, and airflow optimization expanded. DOE/NREL presents reducing compressor-based cooling where possible and increasing the use of free cooling as key energy-efficiency strategies.[2]
At this point, data center cooling began to evolve from simple cooling equipment into an energy optimization system.
3) The Present: Cooling Closer to the Heat Source
The spread of AI and high-performance computing (HPC) is creating a major shift in cooling architecture. High-performance chips such as CPUs and GPUs generate more power and heat, making it increasingly important to cool closer to the point where heat is generated rather than cooling only the entire room. ASHRAE TC 9.9 identifies the rise in power levels of high-performance chips and stricter thermal requirements as key drivers behind the expansion of liquid cooling.[3]
Major technologies currently expanding include:
· Direct-to-chip cold plate
· Rear-door heat exchanger
· Cooling Distribution Unit (CDU)
· Immersion cooling
· Warm-water liquid cooling
LBNL explains that the closer heat is removed to the point of generation, the more likely it becomes to use higher-temperature cooling water while still providing sufficient cooling. This can contribute to improved chiller efficiency and expanded opportunities for free cooling.[4]
In other words, data center cooling is becoming more segmented, moving from room-level cooling to rack-level cooling and, increasingly, to cooling closer to the chip.
Liquid cooling is receiving growing attention, but not every data center will fully transition to liquid cooling. Server density, operating conditions, existing infrastructure, and investment requirements differ significantly across data center environments.
According to Uptime Institute, perimeter air cooling remains widely used, while direct liquid cooling is expanding mainly in high-density and high-power environments.[5]
LBNL also explains that most liquid cooling can operate as part of a hybrid structure combined with air cooling.[4]
Therefore, the future direction of cooling is closer to a hybrid model than a complete replacement. Air cooling will continue to be used, liquid cooling will expand around high-density racks and high-power servers, and hybrid cooling architectures that combine both approaches are likely to become increasingly important.
The short answer is no. Compressors are not disappearing. However, their role is changing.
In conventional data centers, compressors have served as core components in DX systems or chilled water systems, directly supporting cooling. Going forward, depending on the cooling architecture, compressors may continue to function as core cooling components or expand into roles such as peak-load support, backup cooling, auxiliary cooling, and central system efficiency optimization.
DOE/NREL emphasizes reducing compressor-based cooling and expanding free cooling in data center cooling design. However, this should not be interpreted to mean that compressors will disappear from all data centers. A more appropriate interpretation is that compressor use may be reduced or optimized depending on system conditions.[2]
There are also cases, such as NREL HPC facilities, where liquid cooling-based designs minimize or avoid mechanical cooling. However, these are specific cases and should not be generalized to all data centers.[6]
| Cooling Architecture | Compressor Role |
|---|---|
| DX / CRAC systems | Core component of the refrigeration cycle |
| Chilled water systems | Core component of the chiller |
| Liquid cooling systems | Peak-load support, backup cooling, or auxiliary cooling |
| Hybrid cooling systems | Used conditionally together with air cooling, liquid cooling, and free cooling |
Data centers require a higher level of reliability and efficiency than general HVAC environments. Servers operate 24 hours a day, 365 days a year, and any interruption in the cooling system can directly lead to service disruption and cost loss.
| Requirement | Why it matters |
|---|---|
| Part-load efficiency | Respond efficiently to changing data center loads. This also supports compressor efficiency when thermal loads fluctuate. |
| 24/7 reliability | Secure stability in continuous operation environments |
| Wide operating range | Respond to changing ambient and load conditions |
| Low noise and low vibration | Protect IT equipment and the operating environment. It can also support compressor noise reduction in sensitive IT environments. |
| Low-GWP (Global Warming Potential) refrigerant readiness | Respond to environmental regulations and sustainability requirements |
| Maintainability | Support operational continuity and service stability |
| Redundancy support | Support data center architectures such as N+1 and 2N |
Uptime Institute explains that operational considerations such as reliability, maintenance, and the lack of standards are important factors when adopting liquid cooling.[5]
This indicates that compressors also need to be evaluated not only by cooling capacity, but also by operational stability and system integration. They should also be assessed for compressor efficiency under real operating conditions.
Compressor-smart cooling means using compressors only where they create the most value: supporting peak loads, improving chiller efficiency, securing backup cooling, and stabilizing hybrid cooling architectures.
The future of data center cooling is likely to evolve toward compressor-smart rather than compressor-less. Future cooling systems will not rely on a single technology. Air cooling, chilled water systems, free cooling, liquid cooling, and compressor-based cooling will be combined depending on data center conditions. DOE/NREL explains that data center design should consider not only PUE (Power Usage Effectiveness), but also WUE (Water Usage Effectiveness), CUE (Carbon Usage Effectiveness), and waste heat recovery.[2]
The key is neither to maximize compressor use nor to eliminate compressors entirely. The key is to use compressors more efficiently and reliably according to load conditions, ambient conditions, server density, and operational risk.
These requirements align with the direction of LG Compressor & Motor Solutions: part-load efficiency for variable thermal loads, reliability for 24/7 operation, low-noise and low-vibration performance for stable IT environments, and refrigerant readiness for evolving sustainability regulations. In applicable systems, high efficiency compressor technology can also help align cooling performance with variable thermal demand.
In the AI era, data center cooling should be understood as part of the overall thermal management architecture, rather than as a standalone cooling facility. In this environment, compressor technology must address not only cooling capacity, but also part-load efficiency, reliability, low-noise and low-vibration operation, refrigerant readiness, and system integration.
LG Compressor & Motor Solutions can support AI-era thermal management with component technologies designed for high-efficiency operation, part-load responsiveness, low-noise and low-vibration performance, refrigerant readiness, and system-level integration across HVAC and cooling applications.
AI-era data center cooling is not simply a competition to make systems colder. The real challenge is where, how efficiently, and how reliably heat can be controlled.
Data center cooling is evolving from air cooling to hybrid cooling, from room-level cooling to rack- and chip-level cooling, and from low-temperature cooling toward higher-temperature cooling water and free cooling.
Throughout this transition, compressors are not disappearing. They will continue to evolve as core technology elements that help determine efficiency and reliability.
One-line summary: In the AI era, data center competitiveness is not about making systems colder. It is about controlling heat closer to the source, more efficiently, and more reliably.
References and Source Links
[1] International Energy Agency (IEA), Data Centres and Data Transmission Networks: https://www.iea.org/energy-system/buildings/data-centres-and-data-transmission-networks
[2] U.S. Department of Energy / NREL, Best Practices Guide for Energy-Efficient Data Center Design: https://www.energy.gov/sites/default/files/2024-07/best-practice-guide-data-center-design.pdf
[3] ASHRAE TC 9.9, Thermal Guidelines & Liquid Cooling Trends in Data Centers: https://www.ashrae.org
[4] Lawrence Berkeley National Laboratory (LBNL), Center of Expertise for Data Center Efficiency - Liquid Cooling Overview: https://datacenters.lbl.gov/liquid-cooling
[5] Uptime Institute, Cooling Systems Survey 2025: https://uptimeinstitute.com
[6] National Renewable Energy Laboratory (NREL), HPC Data Center Liquid Cooling Case Study: https://www.nrel.gov
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If Liquid Cooling Expands, Will Data Centers Still Need Compressors?
Compressors are not disappearing. Their role is changing. In DX/CRAC and chilled water systems, compressors remain core components. Even in environments where liquid cooling is applied, compressors may support peak loads, backup cooling, auxiliary cooling, or central cooling system efficiency optimization. Some HPC cases minimize or avoid mechanical cooling, but the applicability of that approach depends on data center conditions. [2] [6]
What Does Compressor-smart Mean in Data Center Cooling?
Compressor-smart means using compressors in the most efficient way according to load conditions, ambient conditions, server density, and operational risk, rather than using them as much as possible or eliminating them entirely. It is an approach that combines free cooling, chilled water, liquid cooling, and compressor-based cooling while considering energy use, water use, carbon emissions, and operational stability together. [2] [4]
What Are the Key Performance Requirements for Data Center Compressors?
Because data centers require continuous 24/7 operation, cooling capacity alone is not enough. Part-load efficiency, 24/7 reliability, a wide operating range, low-noise and low-vibration, maintainability, and redundancy support are all important. Maintenance, standardization, redundancy, and system reliability are also important considerations when adopting liquid cooling. [5] In applicable systems, variable speed compressor control can also help align cooling output with changing thermal loads.
Will Refrigerants Disappear from Data Center Cooling Systems?
Refrigerants are not disappearing either. Their application areas are changing. Refrigerants can continue to be used in systems where a refrigeration cycle exists, such as DX/CRAC systems, chillers, and some refrigerant-based cooling equipment. In contrast, some liquid cooling structures, including direct-to-chip, warm-water cooling, and immersion cooling, may use water, water-glycol, secondary coolants, or dielectric fluids. [4] For systems that continue to use a refrigeration cycle, the relevant compressor refrigerant type should be considered together with efficiency, safety, and sustainability requirements.
What Is the Future Direction of Data Center Cooling?
The key direction is not simply to make systems colder. It is to control heat closer to the source, more efficiently, and more reliably. AI-era data centers are likely to evolve toward integrated thermal management structures that combine air cooling, chilled water systems, free cooling, liquid cooling, and compressor-based cooling depending on operating conditions. [2] [4]
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