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The best alternative to a thermal battery is usually a combination of free cooling, higher-temperature operation and better controls. For high-density AI or HPC racks, direct liquid, immersion or two-phase cooling can reduce the heat that mechanical refrigeration must move. Thermal storage still has a role when you need peak-load shifting or short-duration resilience, but it does not reduce the server heat load itself.
Choose the technology after measuring climate, humidity, water availability, rack density, supply-temperature requirements and the existing cooling plant. The lowest-cost path is often an economizer and controls upgrade; the largest savings at very high rack densities generally require liquid heat removal.
Why look beyond thermal batteries?
A thermal battery—such as chilled-water, ice or phase-change-material (PCM) storage—stores cooling capacity for later use. It can reduce chiller operation during expensive or constrained hours, but the data center still produces the same IT heat. Storage therefore shifts when cooling is produced; it does not eliminate the underlying cooling work.
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Cooling is large enough to justify targeting the heat-removal system directly. The U.S. Department of Energy said in 2023 that cooling can account for up to 40% of total data-center energy use. The California Energy Commission reported that cooling represented about 40% of California data-center electricity in the context of its 2024 report. Your site’s share will vary with server utilization, climate, mechanical efficiency and operating temperature.
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Alternatives can reduce compressor hours, move heat with less fan power, lower water consumption, or recover heat for another use. They also introduce different constraints: economizers depend on weather, liquid systems require leak-control procedures, and heat recovery needs a customer for the heat.
At-a-glance comparison
| Approach | Primary mechanism | Most suitable for | Potential benefit established in the cited material | Main constraints |
|---|---|---|---|---|
| Air- or water-side free cooling | Uses cool ambient air or water instead of mechanical refrigeration | New builds and retrofits in climates with many cool hours | Natural Resources Canada says it can reduce operating and capital costs; no universal percentage is stated | Climate, humidity, contamination, filtration and possible evaporative-water use |
| Controls and set-point optimization | Raises chilled-water temperature, trims airflow and optimizes fans, pumps and compressors | Almost any existing chilled-water or air-cooled facility | DOE/FEMP guidance indicates up to 20% less chiller energy from higher chilled-water temperatures and reduced airflow | Must preserve IT inlet-temperature and humidity limits; poor tuning can create hotspots |
| Direct liquid cooling | Cold plates, rear-door exchangers or a coolant distribution unit (CDU) remove heat at the rack | High-density CPU and GPU racks | CEC RackCDU demonstration reports potential 60%–80% cooling-energy reduction and 5%–10% server-energy savings; the system is pre-commercial, so these are demonstration potentials, not field averages | Integration, leak prevention, service procedures and supply-chain maturity |
| Immersion or two-phase cooling | Submerges hardware in dielectric fluid or boils fluid at the component | Very high heat flux and specialized AI/HPC deployments | 2024 review literature identifies liquid and two-phase cooling as major energy-saving families; no universal percentage is established | Fluid compatibility, tank serviceability, fire and environmental review, and vendor support |
| Radiative free cooling | Rejects infrared heat to the sky, reducing compressor or evaporative operation | Sites with suitable roof exposure and compatible temperatures | A 2024 Singapore model found about 20.0% average annual energy savings for direct return-air integration and about 84.0% average annual water savings for refrigerant-side integration | Weather, sky view, roof area and integration; modeled results are not a guarantee for another site |
| PCM buffers | Absorbs short peaks or shifts a limited cooling load using latent heat | Edge rooms, telecom shelters, compact buffers and free-cooling systems | IEA SHC describes high storage density and support for free-cooling and hydronic systems; project targets are not industry averages | Finite capacity, recharge time, heat-exchanger design and lifecycle management |
| Waste-heat recovery | Exports warm-water heat to a building or district system | Facilities with a nearby, year-round heat customer | Value is site-specific; no universal cost or energy ranking is stated | Heat-temperature mismatch, piping, pumping energy and customer availability |
1. Free cooling and economizers
How it works
Air-side economizers bring suitably cool outdoor air into the data hall through filters, dampers and humidity controls. Water-side economizers use a cooling tower, dry cooler or fluid cooler to reject heat without running the chiller compressor. In both cases, mechanical refrigeration is bypassed or reduced when ambient conditions are favorable.
Natural Resources Canada defines free cooling as using ambient air or water to cool IT equipment without mechanical refrigeration. It recommends considering the approach in new construction, retrofits and upgrades, with cooler and drier climates offering more opportunity.
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Where it pays
- Air-side: best where outdoor air is clean enough to filter and humidity stays within the server manufacturer’s range.
- Water-side: useful where the building envelope should remain closed or outdoor-air contamination is a concern.
- Evaporative assistance: can extend economizer hours but consumes water and requires water-treatment and plume management.
What to check before approving it
- Obtain an hourly weather file for the actual site, not a generic regional average.
- Count hours that meet both temperature and humidity limits for the IT equipment.
- Check particulate, salt, wildfire-smoke and industrial-contaminant exposure.
- Size filtration, dampers, coils and controls for the required airflow and redundancy.
- Calculate water use if evaporative stages are included; lower electricity use does not automatically mean lower water use.
Economizers are often the first screen because they can be retrofitted and reduce both operating and, in some designs, capital costs. They cannot provide the same benefit during hot or humid weather, so retain a mechanical-refrigeration path for those hours.
2. Controls, containment and operating changes
Raise usable temperatures before adding equipment
Every degree of additional chilled-water temperature can improve chiller efficiency, provided the supply temperature still supports the coils, pumps, terminal units and IT inlet limits. DOE guidance cited through FEMP indicates that higher chilled-water temperatures combined with reduced airflow can produce 20% less chiller energy. That figure is guidance, not a guarantee for every plant.
Control the distribution system
- Use variable-speed drives on fans and pumps, with differential-pressure reset rather than a permanently high set point.
- Reset compressor capacity and condenser-water temperature to current load and outdoor conditions.
- Use hot-aisle or cold-aisle containment to prevent bypass air and recirculation.
- Coordinate server inlet-temperature set points with the equipment manufacturer and the facility’s ASHRAE operating envelope.
- Trend rack inlet temperatures, valve positions, fan speed, chiller lift, power usage effectiveness (PUE) and water usage effectiveness (WUE).
Controls upgrades are comparatively low-disruption, but they can expose balancing problems. Commission each mode, test sensor calibration and verify that a failed sensor or communications link leaves the plant in a safe state.
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3. Direct liquid cooling for dense racks
What is different from air cooling?
Cold plates attach to CPUs, GPUs or other high-wattage components and carry heat through a liquid loop. A rear-door heat exchanger captures heat as air exits the rack. A CDU separates the facility water loop from the technology loop, controls pressure and temperature, and sends heat to the condenser-water or heat-rejection system. Warm-water designs can operate at temperatures high enough to improve heat-rejection efficiency or enable reuse.
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1Repair Windows errors before they cause bigger problems2Scan for outdated or missing drivers - takes under a minute3Clear out junk files and repair common Windows errorsThe California Energy Commission’s RackCDU report describes a pre-commercial system that brings liquid cooling directly to the hottest server elements. Its demonstration reports potential cooling-energy reductions of 60%–80% and additional server-energy savings of 5%–10%. Treat those figures as potential demonstration results, not a universal field average.
What the facility must add
- CDUs, manifolds, dripless quick disconnects and monitored hoses or hard piping.
- Leak detection, isolation valves, catchment and a documented response procedure.
- Water-quality control or approved coolant management for the technology loop.
- Rack service procedures that let technicians remove servers without draining an entire row.
- Electrical, structural and controls coordination for the new rack equipment.
DOE describes a closed loop from the racks to a CDU and then to the condenser-water system. A 2024 review identifies complex integration as a principal limitation. Retrofit downtime, warranty terms and technician training can matter more than the nominal heat-transfer efficiency.
4. Immersion and two-phase cooling
Single-phase immersion
Servers are submerged in a dielectric fluid that absorbs heat and circulates to a heat exchanger. There is no conventional rack airflow path for the submerged components, so fan power and some air-handling equipment can be reduced. Tanks must still provide access for service, fluid containment and a controlled path to the heat-rejection system.
Two-phase immersion
A low-boiling dielectric fluid changes phase at the component surface, and the vapor condenses on a cooled surface inside the tank. This approach can handle high heat flux, but fluid selection, sealing, vapor management, environmental review and service practices are critical.
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- Confirm dielectric-fluid compatibility with boards, connectors, seals and optical components.
- Require documented fluid handling, spill response and end-of-life disposal procedures.
- Review fire classification, ventilation and local environmental requirements.
- Check tank access, lifting, draining and replacement workflows.
- Validate the supplier’s long-term support for servers, firmware, warranties and replacement fluid.
Liquid and two-phase systems are major energy-saving families in 2024 review literature, but the literature does not establish one percentage that applies to all deployments. Compare a complete installed system—not only the tank or cold plate—with the air-cooled baseline.
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5. Radiative free cooling
Radiative systems use a surface that emits infrared energy through the atmospheric window to the sky. In the modeled concept, heat can be rejected without compressor electricity or evaporative water. Performance depends on roof exposure, sky conditions, surface temperature, pipework and how the radiator is integrated with the return-air or refrigerant side.
An Applied Energy study by Aili, Long, Cao and Wen (2024) modeled Singapore conditions. Direct return-air integration produced approximately 20.0% average annual energy savings, while refrigerant-side integration produced approximately 84.0% average annual water savings. These are modeled annual averages for the studied configurations, not guaranteed results for another climate or roof.
Evaluate radiative cooling with an hourly model that includes cloudy nights, roof shading, maintenance access, condensation risk and the required supply-temperature range. It is more likely to complement an economizer or liquid loop than to replace every mechanical stage.
6. PCM buffers and compact thermal storage
PCM is not a universal substitute for a thermal battery; it is one type of thermal-storage material and can be deployed as a compact buffer. During a heat spike, the material melts or changes phase and absorbs latent heat. It later solidifies when the system has spare cooling capacity.
The IEA Solar Heating and Cooling Programme’s 2023 position paper describes PCM’s high storage density and its use in free-cooling and hydronic systems. EU project materials describe PCM heat recovery combined with immersion cooling and thermal storage. That project’s figure of more than 30% efficiency is a target, not a measured industry average. ICEF materials list PCM panels for telecom shelters and edge data centers.
Good PCM use cases
- Short GPU or network bursts where a full chiller would otherwise start.
- Edge and telecom sites with limited electrical or mechanical capacity.
- Buffers that extend economizer operation through a brief warm period.
- Heat-recovery systems that need to bridge supply and demand timing.
Size PCM from the duration and magnitude of the peak, then verify recharge time. A small module can be exhausted before a long outage or heat event ends; a large module adds weight, volume, heat exchangers and maintenance.
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7. Higher-temperature loops and warm-water operation
Raising the liquid supply temperature reduces the temperature lift that chillers or heat-rejection equipment must provide. Warm-water liquid cooling can also make useful heat recovery practical. The allowable temperature is determined by the server cold plates, CDU, facility loop, outdoor conditions and the downstream heat sink.
Do not raise temperatures by changing one controller value alone. Recheck coil selection, approach temperatures, pump flow, control-valve authority, condensation margins and every connected rack. A warm loop that reaches a building or district heat customer can be more valuable than one that simply rejects heat outdoors, but only if the customer needs the heat at the same time and temperature.
8. Waste-heat recovery
Waste-heat recovery connects the warm side of a liquid-cooling system to a building, industrial process or district network. Potential uses include domestic hot water, low-temperature space heating, greenhouse heating or another process with a steady demand.
When it makes financial sense
- A heat customer is nearby, contracted or operationally reliable.
- The customer accepts the available temperature without a large heat pump.
- Piping, heat exchangers and pumps do not erase the recovered-energy value.
- The data center can continue operating safely when the customer is unavailable.
Without a credible, year-round heat sink, recovery equipment adds capital cost, controls and pumping load while the facility still needs a normal heat-rejection path. Treat recovery as a revenue or avoided-fuel project, not as an automatic cooling-efficiency measure.
How to choose an alternative: a practical sequence
- Baseline the site. Record hourly IT load, rack density, chiller and fan power, supply and return temperatures, PUE, WUE, water prices, electricity tariffs and outage requirements.
- Map environmental limits. Characterize outdoor temperature, humidity, contamination, smoke and water availability. Identify economizer hours and any periods when evaporative cooling is unacceptable.
- Fix low-risk inefficiencies. Commission containment, sensors, airflow balance, variable-speed drives, chilled-water reset and compressor staging before sizing new storage or heat-rejection equipment.
- Screen free cooling. Compare air-side and water-side economizers, including filtration, humidity control, water treatment and mechanical backup.
- Segment by rack density. Keep conventional air cooling where heat density is moderate; compare rear-door exchangers, cold plates, CDUs and immersion for AI/HPC zones.
- Model supply temperatures. Test higher-temperature water loops and condensation margins. Include the effect on chiller lift, pumps, cooling towers and server reliability.
- Add storage only for a defined job. Use chilled water, ice or PCM when peak tariffs, limited mechanical capacity, resilience or a short transient justifies load shifting.
- Evaluate radiative cooling locally. Use an hourly weather and roof model rather than transferring the Singapore percentages directly to another site.
- Validate heat recovery. Document the heat customer, temperature, annual demand, backup mode and commercial value before purchasing recovery equipment.
- Compare total cost of ownership. Include capital, maintenance, water, electricity, refrigerant or dielectric-fluid handling, controls licensing, downtime, replacement parts and financing. No cited source establishes a universal cost ranking among these options.
Common failure modes and how to avoid them
Assuming a cool climate guarantees free cooling
Humidity, smoke, salt and contamination can reduce usable economizer hours even when dry-bulb temperatures look favorable. Use hourly psychrometric screening and specify filtration and changeover logic.
Applying liquid cooling to every rack
Mixed-density rooms may not justify a full liquid retrofit. Start with the highest-density rows, provide a compatible secondary cooling path and standardize service connectors.
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Counting modeled savings as field performance
The RackCDU percentages, Singapore radiative results and the PCM project’s more-than-30% target each have specific conditions. Use them as inputs to a site model, not as guarantees.
Ignoring water while cutting electricity
Evaporative economizers can reduce compressor energy while increasing water use. Track WUE, makeup water, treatment chemicals and drought restrictions alongside kWh.
Designing heat recovery without a customer
A heat exchanger and pipe network cannot create demand. Secure an operating heat sink and retain independent heat rejection for periods when that sink is unavailable.
What to measure after deployment
- Cooling energy by subsystem: chillers, pumps, fans, towers, CDUs and heat-recovery equipment.
- IT inlet temperature distribution, hotspot alarms and liquid-loop pressure or leak alarms.
- Economizer hours, changeover events and rejected hours with the reason recorded.
- Water consumption, WUE and treatment activity for evaporative equipment.
- Maintenance labor, filter changes, fluid sampling, unplanned outages and recovery time.
- Recovered heat delivered, customer uptime and avoided fuel or electricity at the receiving site.
Use the measurements to retune controls and update the business case. A design that saves energy but increases service interruptions, water risk or maintenance burden may not lower the facility’s total cost.
Frequently Asked Questions
Is liquid cooling cheaper than thermal storage?
There is no universal answer. Liquid cooling can reduce the heat-removal work at dense racks, while storage mainly shifts cooling production to another time. Compare installed equipment, retrofit downtime, tariffs, maintenance, water and resilience requirements for the specific site.
How much can free cooling save?
The cited material does not establish one universal percentage. Savings depend on economizer hours, humidity limits, contamination controls, fan power, water use and the mechanical system being displaced.
Can PCM replace a chilled-water thermal battery?
PCM is itself a thermal-storage approach. It is best treated as a compact buffer for short peaks, edge sites or free-cooling support rather than a universal replacement for the cooling plant.
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Direct liquid cooling, dry free-cooling designs, controls optimization and some radiative configurations can reduce both, but the result depends on the site. Evaporative economizers may cut electricity while increasing water use.
What is the first project to fund?
Establish a measured baseline, then commission airflow, containment, sensors, temperature reset and variable-speed controls. Screen economizers next; reserve liquid or immersion projects for racks whose density makes air cooling inadequate.
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