LiquidStack Company Profile

Background

LiquidStack, originally founded as Allied Control Limited in 2012, is a leading provider of advanced liquid cooling solutions for data centers, high-performance computing, and edge applications. The company specializes in two-phase immersion cooling technology, aiming to enhance computing performance while significantly reducing energy consumption and environmental impact. In 2021, the company rebranded to LiquidStack and relocated its global headquarters to Carrollton, Texas, in 2024 to better serve its expanding customer base and manufacturing needs.

Key Strategic Focus

LiquidStack's strategic objectives include:

Product Diversification: Expanding its portfolio to include both two-phase and single-phase immersion cooling solutions, as well as direct-to-chip Coolant Distribution Units (CDUs).

Market Expansion: Targeting hyperscale data centers, edge computing, and high-performance computing sectors, with a particular emphasis on supporting the growing demands of generative AI applications.

Sustainability: Developing environmentally sustainable cooling technologies that reduce energy consumption and water usage in data centers.

Financials and Funding

LiquidStack has successfully secured funding to support its growth and innovation initiatives:

Series A Funding: Raised $10 million in 2021, led by IT hardware manufacturer and integrator Wiwynn.

Series B Funding: Secured $20 million in September 2024 from Tiger Global Management, aimed at expanding manufacturing capabilities, scaling product development, and broadening commercial and R&D operations.

Pipeline Development

LiquidStack's product development pipeline includes:

Single-Phase Immersion Cooling Systems: Launched in late 2023 to meet the increasing demand for liquid cooling solutions driven by AI workloads.

Direct-to-Chip CDUs: Developing universal cooling distribution units to enhance direct-to-chip cooling capabilities.

Modular Data Centers: Expanding offerings of prefabricated MacroModular™ and MicroModular™ data centers to provide scalable and efficient cooling solutions.

Technological Platform and Innovation

LiquidStack's proprietary technologies and methodologies include:

Two-Phase Immersion Cooling: A system where IT hardware is submerged in a dielectric fluid with a low boiling point, allowing heat to be dissipated through fluid vaporization and condensation, eliminating the need for mechanical air conditioning and reducing energy consumption by up to 41%.

Single-Phase Immersion Cooling: Introduced to provide an alternative cooling method, catering to diverse customer requirements and expanding the company's market reach.

Direct-to-Chip Cooling: Developing CDUs that deliver coolant directly to the surface of computer chips, enhancing cooling efficiency and supporting higher thermal design power (TDP) components.

Leadership Team

Joe Capes, Chief Executive Officer: With a background in electrical engineering and extensive experience in data center cooling solutions, Capes has led LiquidStack since 2019, overseeing its rebranding and strategic growth initiatives.

Kar Lau, Chief Technical Officer: Co-founder and CTO, Lau has been instrumental in developing LiquidStack's proprietary cooling technologies and driving innovation within the company.

Leadership Changes

There have been no recent significant changes or appointments within LiquidStack's leadership team.

Competitor Profile

Market Insights and Dynamics

The data center cooling market is experiencing rapid growth, driven by increasing computing demands from AI, big data, and edge computing applications. Liquid cooling solutions are gaining traction due to their efficiency and sustainability benefits.

Competitor Analysis

Key competitors in the liquid cooling market include:

Asperitas: Specializes in single-phase immersion cooling solutions, focusing on energy efficiency and sustainability.

Submer: Offers immersion cooling systems designed for high-density computing environments, emphasizing modularity and scalability.

GRC (Green Revolution Cooling): Provides single-phase immersion cooling solutions with a focus on reducing operational costs and environmental impact.

Iceotope: Develops precision immersion cooling technologies suitable for various computing applications, including edge and high-performance computing.

Strategic Collaborations and Partnerships

Standard Power: Partnered to build the first large-scale colocation data center in the U.S. utilizing two-phase immersion cooling, enhancing LiquidStack's presence in the colocation market.

University of Texas at Arlington: Collaborated with Ph.D. and graduate student programs to spur innovation in liquid cooling technologies.

Operational Insights

LiquidStack's strategic considerations include:

Manufacturing Expansion: Opened a 20,000-square-foot manufacturing facility in Carrollton, Texas, to meet increasing demand and improve supply chain efficiency.

Talent Acquisition: Actively recruiting skilled engineers and production staff to support growth, with plans to triple the manufacturing team size by the end of 2024.

Strategic Opportunities and Future Directions

LiquidStack's future objectives encompass:

Product Innovation: Continuing to develop and refine cooling solutions to support emerging technologies and higher TDP components.

Market Penetration: Expanding into new geographic regions and industry sectors to increase market share.

Sustainability Initiatives: Enhancing the environmental benefits of its products by further reducing energy consumption and exploring waste heat reuse applications.