Modine acquires TMG Core to pursue data center liquid cooling opportunities

Jan. 4, 2024
The investment adds single- and two-phase immersion cooling technologies to Modine's portfolio, further cementing the company's position as a complete cooling solutions provider as data center heat loads rise.

Modine, a thermal management solutions provider, has purchased the intellectual property and other specific assets of TMG Core, a specialist in single- and two-phase liquid immersion cooling technology for data centers with high-density computing requirements to get a broader foothold in the data center market.

 

The company’s timing for this deal could not be better as the data center liquid cooling market is expanding. A rise in the use of modern technologies such as cryptocurrency, the Internet of Things (IoT), artificial intelligence (AI), and machine learning (ML) is expected to create profitable prospects for the market, further accelerating the growth rate of the data center liquid cooling market.

According to a Markets and Markets report, the market is set to reach $7.8 billion by 2028 at a 24.4 CAGR.  

Taking it a step further, InsightAce Analytic reported that the global data center liquid cooling market size was valued at $3.56 billion in 2022, and it is expected to reach $31 billion in 2031, recording a promising CAGR of 27.2% during the forecast period of 2023-2031. The research firm said that solutions in the IT and telecom industries will be substantial during the forecast period, assisting market expansion.

Liquid immersion cooling involves submerging IT servers in tanks filled with non-conductive fluid that dissipates the heat generated by the IT load. This process enables increased computing density in a sealed environment, supports reduced energy and water consumption, and the potential for heat reclaim. Liquid immersion cooling also serves edge data center applications where data processing must be closer to the source to reduce latency, such as in autonomous vehicles.

"Modine's investment in liquid immersion cooling technology advances our strategy to expand our global data center product offering and capture market opportunities that help us achieve our long-term growth targets," said Neil Brinker, President and CEO of Modine. "This investment strengthens Modine's position in the rapidly growing data center market, providing our customers with advanced solutions to support high-density, accelerated computing applications, such as generative artificial intelligence, 5G and machine learning."

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About the Author

Sean Buckley

Sean is responsible for establishing and executing the editorial strategies of Lightwave and Broadband Technology Report across their websites, email newsletters, events, and other information products.

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