[Exclusive] 'The Technology Nvidia Was Looking For'... Naver-HD Hyundai Oil Join Hands for 'Immersion Cooling' Demonstration

Demonstration Project Underway for Non-Conductive Immersion Cooling Fluid
Growing Interest in 'Data Center Thermal Management' as AI Demand Rises
"About Five Years Until Market Matures"... Race to Secure Early Advantage

Naver Cloud, which operates two domestic data centers, has partnered with HD Hyundai Oilbank to verify 'immersion cooling technology.' Immersion cooling is a next-generation thermal management method that prevents data center servers from overheating by submerging them in a cold cooling fluid that does not conduct electricity. This is the technology that U.S. semiconductor company Nvidia is reportedly seeking related companies for in Korea to solve the heat generation issues of its latest artificial intelligence (AI) chips.

According to industry sources on the 4th, HD Hyundai Oilbank is conducting a demonstration project for immersion cooling fluid for data centers in collaboration with Naver Cloud. The main goal is to verify whether HD Hyundai Oilbank's immersion cooling fluid, 'Xteer E-Cooling Fluid,' can actually be applied to data centers. This cooling fluid was certified last December by the U.S. immersion cooling system company GRC. If the demonstration succeeds, the company may consider applying the technology to Naver Cloud's data center 'Gak.' A Naver Cloud official explained that "there are no results ready for public disclosure yet," but that it is currently in the internal testing phase.

HD Hyundai Oilbank employees are testing the coolant and servers immersed in the immersion cooling equipment. HD Hyundai Oilbank announced on December 22, 2023, that its immersion cooling dedicated lubricant, "Xteer E-Cooling Fluid," received the ElectroSafe Program certification from GRC, a company specializing in immersion cooling systems. 2024.12.22 Photo by HD Hyundai Oilbank

Cooling technology is a rapidly growing market expected to expand sharply due to the increasing demand for high-performance AI chips with significant heat generation, such as Blackwell. Current cooling technologies combine 'air cooling,' which lowers air temperature using air conditioners to dissipate heat, and 'water cooling,' which installs pipes that directly contact components to circulate cold water. Immersion cooling is a more advanced technology beyond these. It develops a fluid made from lubricating base oil that does not conduct electricity and maintains a certain temperature, enabling revolutionary suppression of heat generation.

Experts believe that immersion cooling will gain attention alongside AI development. However, due to safety and cost issues, it is expected that it will take about five more years for the related market to fully open. As of 2023, there are 153 data centers in Korea, but none have applied immersion cooling technology. A representative from NHN Cloud, which operates the Gwangju National AI Data Center, said, "Air cooling is still sufficient," and "there are no plans to introduce Blackwell for the time being." Kim Jin-seop, a senior researcher at the Korea Institute of Machinery and Materials, said, "Safety is important for data centers, and immersion cooling still lacks a track record," but added, "As specifications increase and heat generation rises, the related market will grow."

All four domestic oil refining companies have entered the development of immersion cooling fluids for data centers. Based on this, they plan to develop cooling technologies for electric vehicles and energy storage systems (ESS) to gain an advantage in the upcoming thermal management market. SK Enmove, which succeeded in commercializing the product first, completed demonstration evaluations in 2023 in cooperation with SK Telecom and is preparing to apply the technology. S-Oil released an immersion cooling fluid last year that can withstand a flash point of up to 250 degrees Celsius. GS Caltex segmented its immersion cooling fluid 'Kix Immersion Fluid S' into four product lines.