VIEWPOINT

2024

UNLOCKING CROSSI N D U S T R Y VA L U E :S T R AT E G I C W AY S T O
E N H A N C E D ATA C E N T E R
POWER NEEDSThe potential of liquified natural gas
to support data center cooling

AUTHORS
Jorge Abril-Martorell
Luis del Barrio

AI has revolutionized industries worldwide,
driving unprecedented growth in data center
infrastructure. As organizations increasingly

Manuel Sampedro
Iago Larrondo

leverage AI to enhance decision-making, automate

Christoph Uferer

processes, and drive innovation, the demand for

Javier Alonsohigh-performance computing resources has surged,
leading to significant challenges in managing
power consumption and cooling needs within data
centers. In this Viewpoint, we discuss how liquified
natural gas (LNG) presents a sustainable option for
optimizing consumption, maximizing data center
value, and reducing cooling efforts.

ARTHUR D. LITTLE

VIEWPOINTDATA CENTER P OWER
NEEDS RISING

workloads, characterized by complex algorithms,

Powering AI

and scalable resources to deliver optimal

deep learning models, and real-time dataprocessing, require new hardware configurations
performance. The escalating power needs driven

Data centers have become critical to modern

by AI applications have profound implications forbusiness operations, providing computational

data center operators, necessitating investments

power and storage capacity to support a widein innovative cooling technologies to mitigate

range of applications and services. However,

the environmental impact of increased energy

the growing demand for high-performance

consumption. Upgraded infrastructure withcomputing resources has led to significant

the capacity to process an increasing energy

challenges in managing power consumption

consumption density per square meter is also

and cooling needs within data centers. Cooling

important.

systems are essential components of data center
infrastructure, responsible for maintaining

As such, the adoption of AI in data center

optimal operating temperatures and ensuring

infrastructure has contributed to a rise in

the reliability of IT equipment. Data centers

energy needs. AI applications require substantial

have used traditional methods, such as air-based

computational power, which in turn demands

cooling systems, as the primary approach tomore energy. Training a single AI model candissipating heat generated by servers, storage

consume as much energy as a car over its entire

arrays, and networking devices. However, as

lifetime. Moreover, AI-driven data centers often

data center densities increase and AI workloads

require specialized hardware, such as graphics

drive higher computational demands, the energy

processing units (GPUs) and tensor processing

consumption of cooling systems has become aunits, which are more energy-intensive thannotable contributor to overall data center power

traditional central processing units.

usage.

Data center power forecast

The integration of AI technologies into various
business processes has substantially increased

Energy consumption by data centers is forecasted

both computational requirements and storage

to rise exponentially, reaching approximately

Figure 1. Estimatedevolutionof datacenterpower (TWh) by 2030 (see Figure 1).
19,222 terawatt-hours
demands on data
center infrastructure.
AIconsumption
Figure 1. Estimated evolution of data center power consumption
TWh (thousands)

19.2

20

15

10
8.2
5
0.5
0

2022

2023

2024F

2025F

2026F

Maximum energy consumption

2027F

2028F

2029F

2030F

Minimum energy consumption

Source: Arthur D. Little, Specialized Press

UNLOCKING CROSS-INDUSTRY VALUE: STRATEGIC WAYS TO ENHANCE DATA CENTER POWER NEEDS

2

ARTHUR D. LITTLE

VIEWPOINTCOMPUTING POWER AND
COOLING ARE THE T WOM O S T E N E R GY- I N T E N S I V E
PROCESSES WITHINDATA C E N T E R S

S TR ATEGIC RELE VANCEOF ENERGY SOURCING& P OWER USE
Optimized operations are not enoughThe role of AI in energy use is also considerable.
While AI workloads have generated increases

According to the International Energy Agency(IEA), data center electricity usage is set to
double by 2026, due to the rise of power-intensive
workloads, including AI and cryptocurrency
mining. The annual electricity report from IEA
reported that data centers consumed 460 TWh
in 2022; in a worst-case scenario, that figure
could rise to more than 1,000 TWh by 2026. (The460 TWh consumed by data centers in 2022
represented about 2% of all global electricity
usage and about 1% of energy-related greenhousegas emissions.) Computing power and cooling are
the two most energy-intensive processes within
data centers, and the rapid growth of AI-related
services means providers have been investing in
power-hungry GPUs.
The rate at which electricity usage will escalate
depends on AI and other computing-intensive
trends, the data centers’ pace of deployment,
and the range of efficiency improvements.
To mitigate this escalation, operators areexperimenting with innovative cooling methods
and heat-reuse technologies, with providers
launching high-density, water-cooled racks for
power-intensive AI workloads. Experts agree thatthe expansion of renewable energy productionin the data center industry will accelerate, as
current global renewable capacity is on course
to increase by two-and-a-half times by 2030.

in data center power needs, AI technologies
can play a critical role in improving energy use
and lowering operational costs. AI algorithms
can analyze data center operations in realtime, identifying areas of inefficiency andrecommending optimizations to reduce energy
needs. For example, AI can optimize coolingsystems by adjusting temperature settings basedon real-time data, which decreases consumption
while maintaining optimal operating
temperatures. Additionally, AI can predict
equipment failures and recommend maintenanceschedules to minimize downtime and improve
operational performance.
The use of edge computing has also gained
traction in the data center industry as a meansof achieving higher network efficiencies throughreduced latency and improved performance.
By processing data closer to the source, edge
computing can reduce the amount of datatransmitted to centralized data centers andover long distances, easing network congestion
and improving response times. As a result, edge
computing optimizes energy use while improving
performance and reliability.
These actions, while helpful in making data center
operations more efficient, still miss the focal
point of the issue, which is power sourcing andconsumption itself. Hence, additional measures,such as the use of renewable energy sources or
the reduction of cooling needs, can drive down
power consumption and are key to containing
the exponential growth of data center power
requirements.

UNLOCKING CROSS-INDUSTRY VALUE: STRATEGIC WAYS TO ENHANCE DATA CENTER POWER NEEDS

3

ARTHUR D. LITTLE

VIEWPOINT

Green data centers & renewable energy

The adoption of renewable energy sources
by data centers supports environmental

The use of renewable energy has become asustainability and enhances operational

relevant trend in the data center industry. As

resilience and cost-effectiveness.

described in the Arthur D. Little (ADL) Viewpoint“Green Data Centers: Opportunities for

Data center cooling mechanisms

Decarbonization,” renewable energy sources likesolar, wind, and hydroelectric power have gained

Cooling methods have also been evolving as

traction in the data center industry as a meansa strategic approach for managing AC powerof lowering costs, decreasing carbon emissions,

expenditure. A range of innovative technologies

and promoting sustainability. Since data centers

has emerged to optimize thermal management

require a significant amount of energy to power

and reduce energy consumption in data

their operations, the adoption of renewablecenters. Liquid cooling technologies, including

energy sources can help reduce their reliancerear-door heat exchangers, direct-to-chip

on fossil fuels and lower their carbon footprint.

liquid cooling, and immersion cooling, havegained traction in the industry for their ability

Several data center operators have invested into efficiently dissipate heat in high-density

renewable energy, with some companies aiming

computing environments (see Figure 2). These

to power their entire operations with renewable

solutions offer enhanced thermal performance,energy sources:

optimized energy use, and scalability to meet

- Google has committed to sourcing 100% of

the cooling requirements of AI workloads andits energy needs from renewable sources.

high-performance computing applications. By- Microsoft has pledged to become carbon-

adopting advanced cooling technologies, data
center operators can align themselves withnegative by 2030.

- Infosys and Shell have partnered to build

sustainability goals and industry best practices
to achieve higher cooling capacities and lower

new green data centers.

-

energy costs and lessen their environmental

Amazon Web Services (AWS) currently meets

impact.

85% of its energy requirements from renewableenergy across its facilities on average; it seeks tomeet 100%of its needs fromoptions
renewable energy.
Figure 2. Coolingmechanismfor data centers
Figure 2. Cooling mechanism options for data centers
Rear-door heat exchangers

Direct-to-chip liquid cooling

Immersion cooling

Passive or active heat exchangers replacerear door of IT equipment rack with liquidheat exchanger & circulate liquid coolant
at back of server

Direct-to-chip cold plates sit atop
board’s heat-generating components
to draw off heat; 70%-75% of heatgenerated is removed

The systems submerge servers & othercomponents in the rack in a thermallyconductive dielectric liquid or fluid(the most efficient form of liquid cooling)

Chilledwater

CDU

Rear doors
from racks

Chilledwater

CAPEX: +$0.75 Mn/MW

CDU

Servers
from racks

Chilledwater

CAPEX: +$1-2 Mn/MW

CDU

Submerged
servers

CAPEX: +$1-2 Mn/MW

Efficiency
Direct liquid

Immersion

CDU = coolant distribution unit
Source: Arthur D. Little, Vertiv, Bank of America, Credit Suisse, Schneider Electric

UNLOCKING
CDU= coolant CROSS-INDUSTRY
distribution unit VALUE: STRATEGIC WAYS TO ENHANCE DATA CENTER POWER NEEDS
Source: Arthur D. Little, Vertiv, Bank of America, Credit Suisse, Schneider Electric

4ARTHUR D. LITTLE

VIEWPOINTLNG cooling: A new alternative

while promoting better environmental practices(see Figure 4). Introducing LNG technologies

The use of LNG technologies in data centerin data center cooling systems represents acooling processes presents a promising

significant step toward cooling optimization,

opportunity to reduce operational costs andcost savings, and environmental sustainability

promote environmental sustainability (seein the data center industry.

Figure 3). Adopting LNG technologies in data
center cooling systems can create significant

Several industry initiatives and projects

synergies for the industry. By utilizing LNG’s

demonstrate the practical application of LNG

cryogenic cold energy, data centers can reduce

technologies in data center cooling processes

their reliance on traditional cooling systems

and showcase the potential benefits of leveraging

powered by electricity, resulting in substantial

LNG for sustainable cooling solutions (see Figure

energy savings and operational efficiencies.

5). Collaborations between energy providers, data
center operators, and technology partners have

The cost-effectiveness of LNG as a cooling

led to innovative approaches to utilizing LNG

source can help data centers lower theircold energy to cool data centers.

operational expenses while contributing toenvironmental sustainability goals. Furthermore,

Projects in Asia and Europe have explored the

LNG technologies offer a renewable alternative

integration of LNG technologies in data centerto conventional cooling methods, aligning withcooling systems, demonstrating the feasibility

the industry’s increasing focus on transitioning toand advantages of leveraging LNG for energy-

greener, more environmentally friendly practices.

efficient cooling solutions. These initiatives
highlight the transformative impact of LNG on

Locating data centers close to LNG plants candata center operations, offering a sustainablefacilitate data center cooling by redirecting

and cost-effective approach to addressing theresidual cold to the servers. This approach canindustry’s energy challenges and promoting

help cut down energy consumption and costs

environmental stewardship.

Figure 3. An illustration of LNG residual cold reuse

Figure 3. An illustration of LNG residual cold reuse
LNG tanks
LNG ships

Trucks loading

Data centercooling system•

LNG terminal infrastructure
stores LNG in a liquid phase(temperature below -160ºC)•

These plants possess sea
vaporizers (devices that
increase LNG temperature
while lowering watertemperature in heat exchange
process) to re-gasify LNG &inject it through gas pipeline

Vaporizers
Data center
facilities

Injection togas pipeline

Source: Arthur D. Little

Source: Arthur D. Little

UNLOCKING CROSS-INDUSTRY VALUE: STRATEGIC WAYS TO ENHANCE DATA CENTER POWER NEEDS

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ARTHUR D. LITTLE

VIEWPOINT

Figure 4. Estimation of data center cooling potential from an
LNG tank
Figure 4. Estimation of data center cooling potential from an LNG tank
Cooling power assessment
from LNG tank••

Cooling energy from stored LNG
in a tank (120-150k m3 of capacity)
could contribute a total coolingenergy of 22.7 MWh in an hour(considering vaporizer capacity
between 100-200 tons/h)
An LNG tank can provide coolingpower close to ~23 MW to be
employed in a data center’scooling process

Average cooling needs per data center size1

Greenfield new development area

Current Spanish
footprint2

30%

30%

14%

18%

5%

2%

23 MW assuming
100% efficiency
Assuming 80%
efficiency3
PUE 1.1

0.5
0.4
<1 MW

12.7

PUE 1.4

1.3
1.0

3.8
3.0

6.4
5.0

8.9
7.0

10.0

Figure 5. Projects using LNG cooling for data centers
1-5 MW

5-10 MW 10-15 MW 15-20 MW +20 MW

Notes: (1) Cooling necessities calculated with medium point of each capacity interval; (2) considering only Spanish data centers, January 2024;(3) submerged combustion vaporizers vaporize up to 200 ton/hour of LNG at nearly 100% thermal efficiency
Source: Arthur D. Little, Credit Suisse, El Español

LNG = liquified natural gas; PUE = power usage effectivenessNotes: (1) Cooling necessities calculated with medium point of each capacity interval; (2) considering only Spanish data centers, January2024; (3) submerged combustion vaporizers vaporize up to 200 ton/hour of LNG at nearly 100% thermal efficiency
Source:Arthur
Little, Credit
Suisse,LNG
El Español
Figure5.D.Projects
usingcooling for data centers

KOGAS & KT data centerat LNG terminal

New Bangkok data center
may use LNG-fueled cooling

Korea Telecom (KT)/Korea Gas(KOGAS) announced plans to build
data center cooled by LNG plan.

New 2 MW data center in the heartof Bangkok’s business district could
be powered by re-gasified LNG tocreate district cooling energy in its
version of a lower-carbon microgrid.

According to the companies, using
LNG cold energy could save around
12 MW of power at a data center,such as the one KT runs in Yongsan,
Seoul.

In November 2022, PTT/STT GDC
signed memorandum on jointly
studying, designing & undertaking
ways of harnessing cold energy
released from re-gasification of
LNG to produce electricity & chilledwater for cooling in the data center
environment.

Singapore’s LNG terminal
could be used to cool data
centers
National University of Singapore(NUS), Keppel Data Centres, andSingapore LNG (SLNG) will
collaborate to develop new coolingtechnology that can potentially help
Singaporean data centers improve
PUE by as much as 20%.
Research team will explore use ofwater-based phase-change fluid asthermal energy carriers to replacechilled water as a cooling medium.

Source: Arthur D. Little, Microgrid Knowledge, Data Center Dynamics

Source: Arthur D. Little, Microgrid Knowledge, Data Center Dynamics

UNLOCKING CROSS-INDUSTRY VALUE: STRATEGIC WAYS TO ENHANCE DATA CENTER POWER NEEDS

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ARTHUR D. LITTLE

VIEWPOINT

CONCLUSIONS T R AT E G I C C O N V E R G E N C E
I S K E Y T O U N L O C K I N G VA L U E

T H E I N T E G R AT I O N O F A D VA N C E D C O O L I N G
T E C H N O L O G I E S O F F E R S A PAT H W AY T O
OP TIMIZE ENERGY USE

The convergence of AI technologies, escalating power
needs, and the imperative for energy-efficient coolingsolutions has reshaped the landscape of data center
operations, underscoring the importance of sustainability,
innovation, and responsible resource management. As data
centers evolve to meet the demands of AI workloads andhigh-performance computing applications, the integrationof advanced cooling technologies such as liquid coolingand LNG solutions offers a pathway to optimize energyuse, reduce operational costs, and promote environmental
sustainability. By embracing alternative cooling practices,
data center operators can optimize their operations andmaximize value while paring down their environmental
impact and contributing to a greener and more sustainable
future for the industry.

UNLOCKING CROSS-INDUSTRY VALUE: STRATEGIC WAYS TO ENHANCE DATA CENTER POWER NEEDS

7

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