As artificial intelligence continues to push data center power densities to new levels, operators face a growing challenge: how to increase computing capacity without dramatically increasing energy consumption. Cooling has become one of the most critical factors in achieving this balance. To address these challenges, Daikin Applied Europe and CTS Group have developed a patented cooling concept designed to maximize energy efficiency, reduce operational costs, and support the next generation of AI-driven data centers.

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A New Approach to Data Center Efficiency

Power Usage Effectiveness (PUE) remains one of the most important metrics for measuring data center efficiency. The lower the PUE, the greater the proportion of energy directed to IT equipment rather than supporting infrastructure such as cooling systems.

The jointly developed Daikin and CTS Group solution is designed to achieve projected PUE values as low as 1.09 in Nordic climates and below 1.20 even in demanding Middle Eastern environments. This performance is made possible through the extensive use of free cooling, optimized water management, and an innovative system architecture designed specifically for modern high-density computing environments.

The result is a cooling infrastructure that consumes less energy while enabling a greater share of available electrical capacity to be dedicated to revenue-generating IT equipment.

Built for Next-Generation AI Workloads

Artificial intelligence, particularly Large Language Model (LLM) training, creates highly dynamic thermal loads. Servers can experience rapid fluctuations in heat output, requiring cooling systems capable of responding instantly while maintaining stable operating conditions.

To overcome this challenge, Daikin and CTS Group have developed a patented concept that combines enhanced facility water systems, advanced controls, maximized free cooling, and dedicated buffer pipe technology. This approach helps maintain highly stable water temperatures supplied to liquid-cooled servers, even during sudden load changes or electrical short-break events. Full-scale factory testing has validated the concept's ability to handle the demanding conditions associated with modern AI applications.

Delivering Both Operational and Financial Benefits

Cooling efficiency is about much more than sustainability. It also has a direct impact on the economics of a data center. By reducing the energy required for cooling, operators can significantly lower electricity costs throughout the lifecycle of their facilities. In addition, more efficient cooling systems reduce the overall electrical infrastructure required to support a given IT load, helping to optimize capital expenditure.

Perhaps even more importantly, greater cooling efficiency allows more of a site's available power to be allocated to computing resources rather than support systems. This means more IT capacity from the same grid connection, maximizing both infrastructure utilization and return on investment.

Supporting the Entire Data Center Cooling Chain

Beyond this patented cooling concept, Daikin offers a complete portfolio of solutions covering every stage of the cooling process. For cooling generation, technologies such as the EWFH-TZ-D free-cooling chiller are designed to maximize free cooling operation and maintain performance in extreme climatic conditions. For cooling distribution, solutions including Pro-W fan wall units and Pro-C CRAH systems provide flexibility, scalability, and precise environmental control.

As liquid cooling becomes increasingly important for high-density AI applications, Daikin's Coolant Distribution Units (CDUs) enable reliable and energy-efficient thermal management for modern liquid-cooled server environments. This comprehensive approach allows data center operators to design cooling architectures tailored to current requirements while remaining ready for future increases in computing density and energy demand.

Learn How to Select the Right Air-Cooled Chiller for Your Data Center

Why Technology Partnerships Matter More Than Ever

As data centers continue to grow in complexity, operators are looking for partners that can provide more than individual products. Success increasingly depends on the ability to combine technologies, engineering expertise, testing capabilities, and lifecycle support into a single, integrated approach. A compelling example of Daikin’s expertise is the OSL-Hamar data center, Norway’s largest facility, owned by Green Mountain. This project exemplifies the combination of innovation, energy efficiency, and sustainability required by today’s data center industry. Achieving an average PUE of 1.2, the facility has established a new benchmark for operational performance. Daikin supported this achievement by supplying 71 free-cooling chillers, 330 fan array units, and eight advanced control systems, helping to maximize energy efficiency while supporting the customer’s long-term sustainability goals.

To further ensure reliability and performance, Daikin operates dedicated testing facilities in Italy where Factory Acceptance Tests (FAT) can be carried out on systems up to 10 MW. These large-scale testing capabilities enable customers to validate system performance before deployment, reducing project risk, improving predictability, and ensuring a smoother commissioning process once equipment is installed on site.

Looking Ahead

The rapid rise of artificial intelligence is transforming data center design. Operators need solutions capable of supporting higher power densities, controlling operating costs, and reducing environmental impact without compromising reliability.

Through their patented cooling concept, Daikin Applied Europe and CTS Group have demonstrated how innovative cooling strategies can help meet these objectives, delivering projected PUE levels below 1.2 even in some of the world's most challenging climates and setting a new benchmark for efficient AI-ready data centers.

Learn more about Daikin's complete portfolio of data center cooling solutions and discover how advanced cooling technologies can support your next infrastructure project.