SK Enmove partners with Dell, GRC for data center coolant business

South Korea’s lube oil maker SK Enmove Co. has partnered with US computer maker Dell Technologies Inc. and data center cooling system provider Green Revolution Cooling Inc. (GRC) to expand its presence in the growing liquid coolant market.

SK Enmove, a unit of Korea’s top oil refiner SK Innovation Co., said on Wednesday it has signed an initial agreement with the two US partners to jointly develop lubricant-based liquid coolants for data centers and build a supply chain in key growth regions around the world.

Under the memorandum of understanding, the three companies will also seek to develop new data center cooling technology and create an after-sales service market.

GRC specializes in evaluating and verifying heat management fluids used in immersion cooling systems for data centers.

Liquid immersion cooling is a more efficient heat management technology that cools data servers by directly immersing them in a cooling liquid, compared to air cooling.

CUTS POWER USE, CARBON EMISSIONS

Liquid cooling also significantly lowers data center power usage by eliminating most of the energy use for cooling, and reduces carbon emissions.

“Demand for heat management solutions in areas including data centers and electricity usage is rapidly increasing. This partnership with Dell and GRC will give us an opportunity to enhance our presence in the fast-growing market,” said SK Enmove Chief Executive Park Sang-kyu.

According to market researcher Future Market Insights, the global immersion coolant market is forecast to grow at an average annual rate of 21.5% to $2.1 billion by 2032 from $330 million in 2022.

In March last year, SK Enmove, formerly SK Lubricants Co., invested $25 million in GRC as part of its push to make the immersion cooling system business one of its new growth drivers.

Write to Mi-Sun Kang at misunny@hankyung.com

In-Soo Nam edited this article.