Company: INV
Filing Date: 2025-04-15
Form Type: S-1
Source: 0001628280-25-017890
Chunk: 89

Company: Innventure, Inc.
Filing Date: 2025-04-15
Form: S-1
Chunk 89
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elsius has developed NeuCool, a direct-to-chip liquid cooling solution using a scalable closed loop two-

phase system with a dielectric coolant. Liquid coolant enters an evaporator plate that is installed directly on a CPU

or GPU. Heat generated by the operation of the CPU or GPU causes the liquid coolant to boil, extracting energy and

generating vapor that flows away from the evaporator plate through tubing to a separate condenser, where energy is

extracted and coolant vapor returns to a liquid state. The liquid coolant is pumped back through common tubing,

returning to the evaporator plate and starting the process again.

Market Opportunity

Approximately 3% of the world’s power is consumed by data centers, of which 40% is used for cooling. The

global data center cooling market was $15.7 billion in 2022 and is expected to grow at a 17.1% compound annual

rate growth (“CAGR”) to over $56 billion in 2030. Of this, the data center liquid cooling market is projected to grow

at a 24.4% CAGR from $2.6 billion in 2023 to $7.8 billion in 2028. However, it is not just data center servers that

would benefit from new cooling technologies. Other markets include edge computing and power electronics across a

number of industry verticals, such as construction, healthcare and hospitals, manufacturing, media and

entertainment, retail and wholesale and transportation and logistics. Edge computing is 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