The rapid expansion of AI and cloud computing is increasing heat generation in data centers, creating challenges for maintaining reliable operations. A recent outage at CyrusOne’s Chicago facility disrupted CME Group trading, highlighting the risks of overheating in high-powered server environments. Traditional air cooling often struggles to dissipate the intense heat generated by stacked, energy-intensive servers.
Operators are turning to liquid cooling and specialized coolants, which can be thousands of times more efficient than air systems. However, liquid solutions present risks such as leaks, corrosion, and higher maintenance needs. Microsoft has introduced a closed-loop waterless cooling design, reducing water use while managing heat.
Although data center outages are rare due to contractual uptime requirements, cooling-specific failures are even less common. The growing demand for AI-ready facilities is driving a wave of industry consolidation. Eaton plans to acquire Boyd Corporation’s thermal unit for $9.5 billion, and Vertiv is pursuing a $1 billion deal for PurgeRite Intermediate to expand liquid cooling services. Cooling now represents up to 40% of total energy consumption in data centers, making it a critical focus for operators.
Altogether, the combination of high energy use, cooling challenges, and long‑term sustainability concerns points to a growing risk zone for data‑center operators and their clients. The AI infrastructure boom may depend not just on computational power — but on whether operators can build sustainable, robust cooling and energy systems before outages or environmental backlash escalate.
