WITH artificial intelligence driving a new wave of data centre investment, cooling technology is emerging as a critical factor in improving efficiency, scalability and sustainability. Against this backdrop, Daikin Applied Europe and CTS Group have unveiled a patented cooling concept designed to help operators manage increasingly demanding AI workloads while reducing both energy consumption and infrastructure costs.

The technology combines Daikin’s advanced cooling expertise, controls and application know-how with CTS Group’s strengths in modular engineering, system integration and prefabricated solutions. Developed through a collaboration that began in 2023, the concept addresses one of the most significant challenges facing modern data centres: delivering highly efficient cooling for rapidly increasing server densities.

Engineered for efficiency

At the heart of the new concept is a system architecture designed to maximise free cooling while optimising facility water systems to minimise cooling-related energy consumption. The solution is projected to deliver Power Usage Effectiveness (PUE) values as low as 1.09 in Nordic climates and below 1.20 in assessed Middle Eastern operating conditions, offering high performance across diverse geographies.

The efficiency gains extend beyond lower energy bills. By reducing the power required for cooling, operators can allocate a greater share of available electricity to revenue-generating IT equipment, improving infrastructure utilisation while lowering the overall environmental footprint of the facility.

AI environments

The rise of large language models and other AI applications has created new cooling challenges, with servers generating rapid and significant fluctuations in heat output. Traditional cooling systems can struggle to respond quickly enough while maintaining the stable water temperatures required for liquid-cooled environments. To address this, Daikin and CTS Group have developed a patented solution that combines an enhanced facility water system, maximised free cooling and dedicated buffer-pipe technology. The system is designed to react rapidly to sudden load changes while maintaining stable water temperatures supplied to Coolant Distribution Units (CDUs) serving liquid-cooled AI servers.

Modular approach

CTS Group manufactures complete, factory-tested cooling skids that integrate Daikin chillers and CDUs alongside other core cooling components. This modular, prefabricated approach is intended to simplify deployment and accelerate project delivery while providing a scalable path for future expansion.

As AI-driven data centre development gathers pace worldwide, the partnership positions cooling innovation as a strategic enabler of future-ready digital infrastructure. By combining advanced liquid-cooling technologies with energy-efficient system design and modular deployment, the new concept offers operators a practical pathway to lower operating costs, maximise IT capacity and improve returns on AI infrastructure investments.