Helium cooling aims to eliminate AI data centers’ massive water waste

Here’s an idea they’d like to float by you: helium, not water.

Data centers powering artificial intelligence are generating unprecedented amounts of heat, forcing the industry to rethink how it keeps these digital powerhouses from overheating. A new partnership between Tidal NRG and Innov8 Gases aims to solve this mounting challenge with an unexpected solution: helium-based cooling systems that could eliminate the massive water consumption plaguing traditional data center operations.

The collaboration addresses a critical bottleneck in AI infrastructure. As companies race to deploy increasingly powerful AI models, the computing hardware required for training and running these systems generates enormous amounts of heat. Traditional cooling methods—primarily water-based systems and chilled air—are struggling to keep pace with these thermal demands while facing growing environmental scrutiny.

The helium advantage

Helium offers several compelling advantages over conventional cooling methods. The noble gas conducts heat more efficiently than air while remaining chemically inert, meaning it won’t corrode sensitive electronic components. Its low viscosity allows it to flow easily through cooling systems, potentially reducing the energy required to circulate coolant throughout large facilities.

Unlike water-based cooling systems, helium cooling eliminates liquid entirely from the thermal management equation. This matters because water-intensive cooling has become a significant liability for data center operators. A typical 100-megawatt facility—roughly equivalent to a large hyperscale data center—can consume over 2 million liters of water daily for cooling purposes. Google alone reported using more than 8 billion gallons of water in 2024, primarily for data center cooling.

Partnership structure and strategy

Under their agreement, Tidal NRG and Innov8 Gases will jointly develop intellectual property for next-generation helium cooling technologies. Tidal NRG brings expertise in AI infrastructure development, while Innov8 Gases contributes helium supply capabilities and gas handling expertise.

The partnership includes several strategic components beyond technology development. Tidal NRG will establish a long-term helium purchase arrangement with Innov8 Gases, securing supply for future deployments. Additionally, Tidal NRG will acquire a minority equity stake in Innov8 Gases, aligning both companies’ interests in the technology’s commercial success.

Both companies will share equal ownership of any intellectual property developed through their collaboration. This structure suggests they view the helium cooling market as large enough to support joint commercialization rather than competing for exclusive control.

Market pressures driving innovation

The timing reflects mounting pressure on the data center industry from multiple directions. The global data center cooling market is projected to exceed $30 billion by 2028, driven largely by AI adoption and the resulting increase in high-density computing workloads.

However, traditional cooling approaches face increasing regulatory and public opposition. Water-intensive cooling systems have attracted criticism in drought-prone regions, where communities compete with data centers for limited water resources. This scrutiny has real business consequences—industry sources indicate that over $60 billion in planned U.S. data center projects have been suspended or canceled due to water consumption concerns and local opposition.

Meanwhile, the computational demands of AI continue escalating. Training large language models and running AI inference at scale generates heat loads that challenge existing cooling infrastructure. These “high-density, hyperscale workloads” pack enormous processing power into relatively small physical spaces, concentrating heat in ways that traditional cooling systems struggle to manage efficiently.

Environmental and operational implications

The environmental benefits extend beyond water conservation. Helium cooling systems could potentially reduce overall power consumption by improving thermal management efficiency. Since cooling typically accounts for 30-40% of a data center’s total energy usage, even modest improvements in cooling efficiency translate to significant operational cost savings and reduced carbon emissions.

The technology also promises to extend the lifespan of computing equipment by maintaining more stable operating temperatures. Heat is one of the primary factors limiting the operational life of servers and networking equipment, so more effective cooling could reduce hardware replacement costs while improving system reliability.

Industry context and challenges

While helium cooling offers compelling advantages, the approach faces practical hurdles. Helium is a finite resource with limited global supply, raising questions about scalability if the technology gains widespread adoption. The gas is also more expensive than water or air, though proponents argue that operational efficiencies and regulatory advantages could offset higher coolant costs.

The partnership will need to demonstrate that helium cooling can work reliably at the massive scale required for modern data centers. Laboratory demonstrations of cooling efficiency matter less than proving the technology can maintain stable operations across thousands of servers running continuously for years.

Looking ahead

Success in data center cooling technology increasingly depends on solving multiple challenges simultaneously—thermal efficiency, environmental impact, regulatory compliance, and operational cost. The Tidal NRG and Innov8 Gases partnership represents a bet that helium cooling can address these interconnected pressures better than incremental improvements to existing water-based systems.

The collaboration also signals broader industry recognition that AI’s continued growth requires fundamental infrastructure innovations rather than simply scaling existing approaches. As AI workloads become more computationally intensive and environmentally conscious regulations tighten, alternative cooling technologies like helium systems may transition from experimental curiosities to operational necessities.

Whether helium cooling proves commercially viable will depend on demonstrating reliability, cost-effectiveness, and scalability in real-world deployments. The partnership’s joint IP development approach suggests both companies believe the technology’s potential justifies significant investment, even as they acknowledge the challenges ahead.