Company: INV
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001628280-25-017614
Chunk: 13

Company: Innventure, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1
Chunk 13
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 being driven by data gravity, i.e., the need to do processing as close as possible to where the data is generated. As datasets become exponentially larger, cost and latency issues drive a need for computing power in edge locations (e.g., in cell phone towers). The market intelligence firm 451 Group predicts that over 556,000 organizations globally will use Edge IaaS by 2027. Based on their prediction, we estimate that two million servers will be installed in edge locations annually by 2027. Because edge installations are often poorly suited for traditional refrigerated-air cooling, we believe two-phase, direct-to-chip cooling may be the most cost-effective and sustainable option.

In addition to energy costs, traditional cooling systems use a considerable amount of water. As an example, ChatGPT can use upwards of 0.5L of water for as little as 50 prompts. The newest cell phones require faster networks, smart technology is connecting all aspects of our lives, and artificial intelligence (“AI”) is being used at unprecedented levels. Current cooling technologies struggle with the rising heat densities associated with the processors to support these applications. For example:

•Components: Increased software stack (including AI) require higher performance processors which increase heat dissipation.

•Equipment: More powerful servers, routers, switches, cell tower base stations, and other computing equipment require improved system level cooling.

•Systems: Denser racks of equipment are dissipating more heat per unit area.

•Facilities: Heat management capacity of data center and telecom facilities are pushing the limits of current air cooling technologies.

•Growth: There are currently 4.1 GW of new data centers planned.

Sustainability Benefits

We believe Accelsius will allow its clients to meet their sustainability needs while providing a more affordable option. We also believe that, by adopting Accelsius cooling solutions, clients can more efficiently use their resources, capital, space, energy, and water. Direct-to-chip cooling offers large savings compared to air cooling in full scale deployments, specifically including:

•Total Cost of Ownership Savings: Cooling accounts for approximately 40% of a data center’s energy consumption.

•Space Savings: Accelsius allows data centers to densify, increasing the number of servers per rack, increasing the number of racks per unit area of data center, and increasing revenue for a given data center footprint and reducing costs as less space is used.

•Energy Savings: Eliminates air conditioning needs and costs associated with legacy air-cooling systems.

•Water Savings: Potential to eliminate water use in cooling system