The rapid advancement of artificial intelligence (AI) is reshaping our world, bringing with it a surge in energy consumption that’s hard to ignore. A recent report by the Royal Academy of Engineering highlights concerns that the growth of resource-intensive AI could lead to increased competition for water and energy resources in the future.
Data centres, the backbone of our digital age, are at the heart of this issue. Traditionally, these facilities rely on air cooling systems, which can consume up to 40% of their total energy just to keep servers from overheating. However, as AI applications become more prevalent, this method is proving less efficient and more taxing on our power infrastructure.
Enter liquid cooling—a more efficient alternative that’s gaining traction. By directly cooling components with liquid, this method can significantly reduce energy consumption and improve performance. In fact, companies like Nvidia are innovating in this space, introducing server racks that utilise liquid cooling to manage the increasing power demands of AI workloads.
The environmental implications are significant. It’s estimated that by 2030, data centres could account for up to 21% of global energy demand when the cost of delivering AI to customers is factored in. Adopting liquid cooling not only addresses the energy efficiency challenge but also aligns with sustainability goals by reducing the carbon footprint of these essential facilities.
As AI continues to evolve, particularly with the rise of agentic AI systems that operate autonomously, the demand for efficient data processing will only grow. Embracing innovative cooling solutions like liquid cooling is not just a technological upgrade; it’s a necessary step towards a more sustainable and efficient future in our increasingly digital world.
This commitment to sustainable AI infrastructure was prominently showcased at LEAP 2025 in Riyadh. The event witnessed a record-breaking announcement of over $14.9 billion in investments dedicated to artificial intelligence.
Notably, DataVolt revealed plans to invest $5 billion in Oxagon, NEOM’s industrial city, to establish one of the world’s largest AI data centres. This facility, boasting a capacity of 1.5 gigawatts, will be powered entirely by renewable energy, underscoring the Kingdom’s dedication to sustainable technological advancement.
Furthermore, companies like Vertiv showcased cutting-edge digital infrastructure solutions at LEAP 2025, highlighting the industry’s move towards more efficient and sustainable data centre technologies.
These developments not only position Saudi Arabia at the forefront of AI innovation but also emphasise the global shift towards more energy-efficient and environmentally friendly data centre solutions.
