The Future of Data Centre Cooling in Australia—Why Liquid Cooling is the Next Leap

According to IBISWorld, the industry is forecast to grow at an annualised 9.7% from 2025 to 2030, reaching $6.0 billion by 2030, outpacing many other sectors of the Australian economy.[1] This expansion is underpinned by surging demand for secure, scalable, and energy-efficient IT infrastructure, as both government and business accelerate their digital footprints.

This rapid growth presents a significant challenge: how to cool ever-more powerful and densely packed server environments efficiently and sustainably. Traditional air-cooling methods are reaching their limits, especially as rack power densities climb, sometimes exceeding 100 kW in next-generation AI deployments such as NVIDIA’s GB200 NVL72 systems. The industry, as identified by IBISWorld, is increasingly turning to advanced liquid cooling technologies, which can improve cooling energy efficiency by 20–50% compared to air-cooled systems, depending on the deployment type and rack density. This shift not only slashes operational costs but also helps data centres meet stringent ESG and NABERS sustainability targets (IBISWorld, 2025).

Why liquid cooling? Water and engineered fluids have a significantly higher thermal capacity than air, enabling precise and efficient heat removal directly at the source, whether it is the chip, rack, or coolant distribution unit. This translates to lower energy consumption, reduced water usage, and a smaller carbon footprint.

These benefits are directly aligned with the sector’s growing focus on sustainability, cost control, and regulatory compliance. For operators, this means a lower total cost of ownership, reduced downtime, and the flexibility to scale as digital workloads increase.

At Burkert, we are at the forefront of this transformation. Our precision-engineered fluid control systems, including proportional solenoid valves, flow transmitters, and analytical sensors, deliver ultra-stable temperature control (often within ±0.1°C when integrated with advanced CDU controls), robust water quality monitoring, and leak-free operation. These solutions are modular and scalable, integrating seamlessly into both new builds and existing facilities, and supporting a range of applications, from direct-to-chip to immersion cooling.

Burkert’s advanced flow and valve technologies enable smart pump integration, demand-based cooling, and heat recovery features that can deliver lower energy consumption, directly supporting operators’ ESG and sustainability goals. Our systems provide integrated leak detection, predictive maintenance, and remote monitoring, ensuring safe and 24/7 operation even in the most demanding Tier III/IV environments.

Additionally, our global support network, easy-to-replace modular components, and compatibility with both air and liquid-cooled environments make us a reliable partner for data centre operators and OEMs.

As digital transformation accelerates and the demand for high-performance, sustainable data centre cooling grows, Burkert is ready to support the Australian market with proven, future-ready solutions. By embracing liquid cooling, operators can ensure their facilities are prepared for the next wave of digital innovation, efficiently, reliably, and sustainably.

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[1] IBISWorld. (2025). Cloud hosting and data processing services in Australia (Report No. J5921). IBISWorld.  https://www.ibisworld.com