Nvidia’s new server racks will circulate cool liquid in tubes to manage heat|EdTech Stanford University|CC BY-NC-ND 2.0

Nvidia’s new GB200 server racks will circulate cool liquid in tubes to manage heat from its advanced Blackwell chip, reducing data center power consumption compared to traditional air cooling.

The chip maker is also exploring dunking entire servers into a nonconductive liquid to help them cool down.

The innovation targets the rising energy demands of data centers, which are expected to consume 8% of the US power supply by 2030, up from 3% today. 

Nvidia’s liquid cooling system is designed to reduce energy used for cooling from 40% to under 10%.

Despite its benefits, the system has higher upfront costs and risks, such as potential leaks.

According to Morgan Stanley, Nvidia’s GB200 rack costs over $80,000, which is 15 to 20 times the price of air-cooling systems used with Nvidia’s H100 chips.

Meanwhile, the market for data center cooling systems is projected to surpass $4.8 billion by 2027.