Data center operators are encountering exceptional thermal management challenges. NVIDIA’s B200 GPU demonstrates 1200W TDP [1], while Intel’s next-generation Jaguar Shores processor is expected to match or exceed similar power levels in 2025-2026[2]. Traditional air-cooling systems are insufficient for these power densities. The liquid cooling market is experiencing a 40.3% CAGR, projected to reach $89.77 billion by 2037 [3], with 22% of data centers already implementing liquid cooling systems [4].
Multi-physics simulation platforms coupled with real-time digital twins provide a viable solution path. Organizations implementing these technologies within the next 12 months can avoid performance throttling, reduce total cost of ownership, and meet sustainability requirements.
Global data center energy demand is projected to double within five years [5], driven by AI workloads requiring up to 300% more power than their predecessors [5]. Rack power densities are escalating from the current global average of 12kW to 50kW, 100kW, and beyond 300kW per rack for AI-dedicated facilities [5]. Single-phase direct-to-chip cooling has emerged as the leading approach [6], with cold plate cooling expected to experience significant growth due to cost effectiveness and compatibility with existing air-cooled data centers [1]. Immersion cooling becomes necessary for GPU configurations exceeding 150kW per rack, though broad implementation remains concentrated in AI facilities [5].
Digital twin implementations are expanding rapidly across data center operations. Schneider Electric has partnered with ETAP to develop electrical digital twin platforms based on NVIDIA Omniverse [7]. NVIDIA provides pre-designed 3D assets for DGX A100 SuperPOD hardware, enabling direct digital twin construction [8]. The global digital twin market is projected to reach $110 billion by 2028 [9].
Established platforms, including COMSOL Multiphysics [10], ANSYS [11], and Siemens Simcenter [12], offer mature, production-ready solutions with extensive deployment across industries. ANSYS provides specialized CFD solvers for electronics thermal management, predicting airflow, temperature, and heat transfer in IC packages, PCBs, and power electronics [11]. These platforms integrate five critical physics domains:
Digital twins enable continuous identification of improvement opportunities when connected to environmental monitoring systems [13]. Cadence Reality DC Digital Twin (formerly Future Facilities, acquired by Cadence in 2022) provides physics-based 3D simulation, encompassing virtual representations of power, cooling, and IT systems. The platform now integrates with NVIDIA Omniverse APIs for enhanced visualization and simulation capabilities [14]:
Modern DCIM systems require seamless integration. Raritan’s SmartSensors integrate with existing DCIM suites, serving as the foundation for real-time digital twins [9]. Implementation requires:
Phase 1: Immediate assessment
Conduct thermal capacity assessment using established simulation platforms. Current market data indicates that 22% of data centers have liquid cooling systems in place [4]. Organizations should identify both retrofit opportunities and greenfield requirements. Key deliverables include:
Phase 2: Digital twin foundation
Deploy sensor networks and establish digital twin capabilities. Digital twin virtualization provides a structured framework for addressing data center thermal challenges [15]. Implementation priorities:
Phase 3: Advanced optimization
Implement sensor-based temperature monitoring and analytics with AI technology to process data and identify optimization opportunities [4]. Advanced capabilities:
Establish baseline measurements before implementation:
Target improvements:
Schneider Electric’s partnership with ETAP demonstrates the maturity of vendor ecosystems [7]. Organizations should evaluate the following:
Reactive approaches to thermal management are no longer sufficient for current power densities. Intelligent cooling management systems with IoT sensors and AI optimization can drive energy savings and improve operational efficiency [18].
Choose mature platforms (COMSOL, ANSYS, Siemens) with proven track records. Avoid custom development for core simulation functionality.
Digital twins provide strategic insights for informed decision-making, proactive risk mitigation, and resource optimization to reduce operational costs [19]. Start with critical facility components and scale systematically.
In new construction, liquid cooling infrastructure has become the default installation [5]. Evaluate direct-to-chip cooling for immediate deployment and immersion cooling for future AI workloads.
Recruit thermal engineers, CFD specialists, and data scientists. Traditional data center operations teams require additional multi-disciplinary expertise for advanced thermal management.
Link thermal management improvements directly to PUE reduction and carbon footprint goals. Data centers currently consume approximately 2% of global electricity [16].
Organizations requiring rapid deployment of multi-physics thermal management solutions should consider partnerships with established engineering services providers. Companies like Quest Global, with over 28 years of engineering expertise across mechanical product engineering, digital solutions, and thermal management systems, offer the multi-disciplinary capabilities needed for successful implementation. Their experience spanning semiconductors, hi-tech, and energy sectors provides the cross-industry perspective essential for advanced thermal management deployments.
Such partnerships can accelerate implementation timelines, provide access to specialized expertise, and reduce the risk associated with building internal capabilities from scratch.
[1] IDTechEx. (2024). “Thermal Management for Data Centers 2025-2035: Technologies, Markets, and Opportunities.” https://www.idtechex.com/en/research-report/thermal-management-for-data-centers/1036
[2] Tom’s Hardware. (2025). “Intel cancels Falcon Shores GPU for AI workloads; Jaguar Shores to be successor.” https://www.tomshardware.com/tech-industry/artificial-intelligence/intel-cancels-falcon-shores-gpu-for-ai-workloads-jaguar-shores-to-be-successor
Note: Intel’s Falcon Shores (originally planned with 1500W TDP) has been cancelled and will only be used internally. Jaguar Shores is now Intel’s next‑generation AI processor, utilizing 18A process technology with HBM4 memory.
[3] Research Nester. (2025). “Data Center Liquid Cooling Market size to hit $89.77 billion by 2037 | 40.3% CAGR Forecast.” https://www.researchnester.com/reports/data-center-liquid-cooling-market/4747
[4] Data Center Knowledge. (2025). “Data Center Cooling: Trends and Strategies to Watch in 2025.” https://www.datacenterknowledge.com/cooling/data-center-cooling-trends-and-strategies-to-watch-in-2025
[5] JLL. (2025). “2025 Global Data Center Outlook.” https://www.us.jll.com/en/trends-and-insights/research/data-center-outlook
[6] Data Center Dynamics. (2025). “Four key trends disrupting data centers in 2025.” https://www.datacenterdynamics.com/en/opinions/four-key-trends-disrupting-data-centers-in-2025/
[7] The Register. (2025). “Schneider plugs into digital twins for AI datacenter design.” https://www.theregister.com/2025/03/19/schneider_electric_nvidia_digital_twin/
[8] NVIDIA. (2025). “Data Center Digital Twins — Omniverse Digital Twins.” https://docs.omniverse.nvidia.com/digital-twins/latest/data-center.html
[9] Raritan. (2025). “Solving the Problem of the Data Center Digital Twin.” https://www.raritan.com/blog/detail/solving-the-problem-of-the-data-center-digital-twin
[10] COMSOL. (2025). “COMSOL – Software for Multiphysics Simulation.” https://www.comsol.com/
[11] ANSYS. (2025). “Thermal Analysis and Simulation Software.” https://www.ansys.com/applications/thermal-analysis-simulation-software
[12] Siemens. (2025). “Thermal simulation | Siemens Software.” https://plm.sw.siemens.com/en-US/simcenter/simulation-test/thermal-simulation/
[13] Data Center Frontier. (2025). “Exploring Liquid Cooling and Digital Twin Technology in Today’s Data Centers.” https://www.datacenterfrontier.com/sponsored/article/55132549/exploring-liquid-cooling-and-digital-twin-technology-in-todays-data-centers
[14] Cadence Design Systems. (2024). “Cadence Reality Digital Twin Platform: Data Center Design, Modeling, Simulation & Optimization.” https://www.cadence.com/en_US/home/tools/reality-digital-twin.html
[15] Cadence Community. (2025). “Digital Twins: Six Steps to Address Data Center Thermal Challenges.” https://community.cadence.com/cadence_blogs_8/b/corporate/posts/digital-twins-six-steps-to-address-data-center-thermal-challenges
[16] Data Center Frontier. (2025). “8 Trends That Will Shape the Data Center Industry In 2025.” https://www.datacenterfrontier.com/cloud/article/55253151/8-trends-that-will-shape-the-data-center-industry-in-2025
[17] Data Center Knowledge. (2024). “Digital Twins in the Data Center: Yes, It’s Really Happening!” https://www.datacenterknowledge.com/data-center-infrastructure-management/digital-twins-in-the-data-center-yes-it-s-really-happening-
[18] MarketsandMarkets. (2025). “Data Center Cooling Market, Industry Size Forecast.” https://www.marketsandmarkets.com/Market-Reports/data-center-cooling-solutions-market-1038.html
[19] Data Center Dynamics. (2025). “Why you need a Digital Twin of your Data Centers.” https://www.datacenterdynamics.com/en/whitepapers/why-you-need-a-digital-twin/