LiquidStack Data Center Cooling Technology - Bitfury Spin-off
The Rising Energy Demands of Data Centers and Bitcoin Mining
Data centers and bitcoin mining are increasingly consuming vast amounts of energy. The rapid expansion of both sectors presents a significant risk, potentially reversing advancements made in reducing global greenhouse gas emissions. This constitutes a major point of contention regarding cryptocurrency operations, and is an issue many within the industry are actively working to resolve.
Introducing LiquidStack
LiquidStack is emerging as a key player, spinning out from the cryptocurrency hardware technology developer Bitfury Group with a substantial $10 million investment.
Company Restructuring and History
Formerly known as Allied Control Limited, the company has been restructured as a fully operational commercial entity. Its headquarters are located in the Netherlands, with commercial activities centered in the U.S. and research and development efforts based in Hong Kong.
LiquidStack was initially acquired by Bitfury in 2015. This followed the construction of a 500kW data center in Hong Kong utilizing two-phase immersion cooling, which reportedly reduced energy consumption by 95% when compared to conventional air cooling systems. Subsequently, the two companies collaborated on the deployment of 160 megawatts of data centers cooled using two-phase immersion technology.
Bitfury’s Perspective
Valery Vavilov, CEO of Bitfury, stated that the company has consistently pursued innovation across various industries. He highlighted significant growth potential with LiquidStack’s innovative cooling solutions for demanding computational applications and infrastructure.
“We believe LiquidStack’s leadership, alongside our customers and the strategic backing of Wiwynn, will significantly accelerate the widespread adoption and implementation of two-phase immersion cooling,” Vavilov added.
Wiwynn’s Investment
The $10 million funding round was led by Wiwynn, a Taiwanese conglomerate specializing in data center and infrastructure development. Last year, Wiwynn reported revenues of $6.3 billion.
Emily Hong, chief executive of Wiwynn, explained that the company continues to invest in advanced cooling solutions to address the challenges posed by the increasing power consumption and density requirements of cloud computing, artificial intelligence (AI), and high-performance computing (HPC).
LiquidStack’s Technology and Benefits
LiquidStack asserts that its technology can facilitate at least 21 times greater heat rejection per IT rack compared to air cooling, all without requiring water. The company claims its cooling method leads to a 41% decrease in energy used for cooling and a 60% reduction in data center space requirements.
Future Outlook
Joe Capes, co-founder and chief executive of LiquidStack, emphasized Bitfury’s commitment to leading through technological innovation. He stated that launching LiquidStack with new funding allows the company to concentrate on its core strengths and capabilities.
“This will accelerate the development of liquid cooling technology, products, and services to address the genuine thermal and sustainability challenges driven by the increasing adoption of cloud services, AI, edge computing, and high-performance computing,” Capes concluded.