Regional data centres turn to liquid cooling amid rising AI thermal demands

Across the Middle East, South Asia, and parts of South-east Asia, data centre operators are now being pushed towards a pretty new kind of cooling playbook. As AI workloads push racks to much higher densities, traditional air cooling is really starting to struggle , I mean, it’s fighting a losing battle with the heat, water pressure, and the reliability demands of hotter climates.

This change is especially obvious in places like the Gulf, where outside temperatures can easily soar past 45°C, and where dust, solar gain, and humidity all make thermal management a real headache. Industry insiders, especially telecoms and building-services specialists, suggest that in such tough conditions, standard air-based systems tend to give poor efficiency and lead to rising operational costs. In some desert-based setups, reports indicate that power usage effectiveness (PUE) can go above 1.8, which, if you ask me, is pretty unfavourable compared to the global average.

That’s actually speeding up the adoption of liquid cooling, direct-to-chip systems, immersion cooling, and hybrid setups that combine air and liquid methods. These approaches are much better suited for AI inference and training clusters, which can load individual cabinets with some serious thermal demands. They also give data halls the ability to support higher power densities without needing a complete redesign of the entire building right away.

At Gulf Data Hub, their chief information officer, Himmath Mohammad, talks about cooling as part of a broader facility strategy rather than just a standalone engineering problem. His team believes that planning should start with predicting how rack density might evolve, then carefully choosing between air, hybrid, and liquid architectures. Modular expansion and long-term resilience are also key considerations. The aim, he says, is to optimise energy performance without compromising uptime or ending up with costly retrofits down the track.

The same kind of thinking is shaping investment decisions elsewhere in the region too. Take Saudi Arabia, for example: DataVolt plans to use seawater for all its heat rejection at its new AI factory in NEOM. They say that about 70% of the liquid-cooled load will be rejected directly to seawater through plate heat exchangers, while the other part, cooled by air, will rely on water-cooled chillers whose condenser heat is also sent off to seawater. This approach clearly reflects a broader search for cooling solutions that fit the local landscape, rather than just copying what’s worked elsewhere.

But moving to liquid cooling isn’t just a simple swap of one tech for another. Industry watchers like TelecomReview point out that desert data centres need equipment specifically designed to handle sand, hot sun, and big temperature swings. Precise plumbing, leak prevention, and durable materials become even more important when operating in such harsh environments. Resilience of the structure itself matters too , because thermal expansion and dust ingress can slowly chip away at performance over time, which, you see, is quite a concern.

The coastal Gulf markets face similar challenges, but with humidity thrown into the mix, making life even more complicated. A recent panel discussion at DCD>Connect Live MENA focused on whether standard cooling strategies are enough for regional conditions. The general consensus? No, they aren’t. Operators need tailored solutions that match the local climate, power availability, and water constraints, each site being different.

Over in India, Nxtra by Airtel is taking a flexible approach. They design hyperscale facilities that can handle air cooling, liquid cooling, direct-to-chip systems, and immersion tech. Their CEO, Ashish Arora, argues that data centre design in India shouldn’t be just about keeping servers cool , it’s also about sustainability, dealing with extreme weather, network access, and power issues. Nxtra even conducts water-stress assessments and aims for zero liquid discharge, showing how cooling strategies are increasingly linked to resource management.

South-east Asia, on the other hand, faces a different , but still demanding , environment. In Singapore and Indonesia, the high humidity really limits how effective free cooling can be, since outside conditions aren’t always favourable. Ng See Kian, senior director of mechanical engineering at ST Telemedia GDC, explains that this pushes operators towards internal mechanical chilling and more sophisticated heat rejection cycles. STT GDC is now using air-cooled chillers and closed-loop systems for their newer builds, aiming for high efficiency without putting too much strain on freshwater supplies.

They’re also taking a modular approach to design, leaving future cooling options open. According to their engineering team, new halls are designed to support both air and liquid cooling, with water available around the edges of each hall for flexibility. That actually matters quite a lot in markets where customer needs change quickly , and where AI readiness influences just about every major decision.

For operators operating across all these regions, the trade-offs are becoming clearer. Water efficiency often comes at the cost of energy efficiency, especially when evaporative systems are involved. Building for future high-density loads right from the start can bump up upfront capital costs sharply. More advanced cooling systems might also lead to more operational complexity, even if they improve thermal performance. And, of course, speeding up deployment can clash with commitments to environmental sustainability.

These tensions? Well, they are likely only to intensify as demand for AI grows. Market research in Asia-Pacific points to a strong upward trend in adopting liquid cooling , especially in China, India, and Singapore, where space constraints and dense workloads make traditional air cooling less practical. That regional push is, in turn, influencing developments in the Middle East and South Asia, with investors looking for designs capable of handling racks that require 30kW to 50kW or more, without guzzling too much energy or water.

For the UAE and the broader Gulf, the message is clear: cooling has moved from being just a backend utility to a vital strategic element. It now influences sustainability, resilience, operational costs , and, ultimately, the feasibility of AI infrastructure in some of the hottest, most water-stressed markets in the world.