Refroid Technologies, a Hyderabad-based cooling solutions provider, has launched what it claims is India’s first indigenously developed coolant distribution units (CDUs) designed for direct-to-chip liquid cooling (DCLC) applications in data centers.
The move directly challenges the current market dynamic where “every single CDU being installed in India is imported,” Refroid CEO Satya Bhavaraju said.
The company said its SentraFlo Series features scalable CDU capacities ranging from 200 kW to 2 MW and is designed to address cooling challenges in high-density AI and high-performance computing workloads where traditional air cooling is inadequate.
“We could see from at least 2020 onwards from the processor roadmaps from Intel, AMD and Nvidia that the heat generated by processors will be outside the envelope that air cooling can handle,” Bhavaraju said. “Once the processor chip generates more than 500 W of heat, air is incapable of cooling it. The latest 6th generation Xeons, Epyc from AMD and Blackwell from Nvidia have already crossed this threshold.”
The announcement comes as India’s data center industry experiences rapid growth driven by AI adoption, with capacity “projected to surge from 1.3 GW currently to 17 GW by 2031,” Bhavaraju said citing a report from analyst firm Jefferies.
What are CDUs?
Coolant Distribution Units function as the control system for liquid cooling infrastructure in data centers. CDUs control the temperature, chemistry, and flow of liquid to servers being cooled, performing a function similar to transformers regulating voltage.
They use heat exchangers and pumps to regulate the flow and temperature of fluid delivered to equipment for cooling, while isolating the technology cooling system loop from facility systems.
The technology addresses limitations of traditional air cooling, which industry experts say cannot adequately handle the heat generated by modern AI processors and high-density computing applications.
Strategic significance for India
Industry analysts view the development as a critical milestone for India’s data center ecosystem. “India generates 20% of global data, yet contributes only 3% to global data center capacity. This imbalance is not merely spatial — it’s systemic,” said Sanchit Vir Gogia, chief analyst and CEO at Greyhound Research. “The emergence of indigenously developed CDUs signals a strategic pivot. Domestic CDU innovation is a defining moment in India’s transition from data centre host to technology co-creator.”
Neil Shah, VP for research and partner at Counterpoint Research, noted that major international players like Schneider, Vertiv, Asetek, Liquidstack, and Zutacore have been driving most CDU deployments in Indian enterprises and data centers. “Having a local indigenous CDU tech and supplier designed with Indian weather, infrastructure and costs in mind expands options for domestic data center demand,” he said.
AI driving data center cooling revolution
India’s data center capacity reached approximately 1,255 MW between January and September 2024 and was projected to expand to around 1,600 MW by the end of 2024, according to CBRE India’s 2024 Data Center Market Update. Multiple market research firms have projected the India data center market to grow from about $5.7 billion in 2024 to $12 billion by 2030.
Bhavaraju cited aggressive projections for the sector’s expansion, with AI workloads expected to account for 30% of total workloads by 2030. “All of them need liquid cooling,” he said, noting that “today’s latest GPU servers – GB200 from Nvidia are by default, liquid cooled.”
The push toward liquid cooling has been accelerated by AI workloads that generate significantly more heat than traditional computing.
A recent AFCOM survey found that just 46% of data center facilities had adequate cooling systems, with average rack density jumping from 8.5 kW per rack in 2023 to 12 kW per rack in 2024. Despite liquid cooling’s advantages — it can conduct more than 3,000 times as much heat as air — only 17% of operators currently use such systems, though 40% are considering them.
Competitive advantages and implementation support
Refroid’s local manufacturing approach offers several advantages over imported solutions. “SentraFlo and the associated secondary fluid network are very labor-intensive products. India has a natural cost advantage over suppliers from North America and Europe,” Bhavaraju said.
The company has adopted a customization strategy, building CDUs to exact customer specifications rather than offering only standard capacities. “If a customer needs a 450 KW CDU, we will build exactly that, instead of selling them a 800-KW CDU,” Bhavaraju explained.
Recognizing implementation challenges, Refroid has been conducting workshops for data center operators and developing specialized testing equipment. In March 2025, the company launched hybrid load banks capable of simulating 135 kW racks for commissioning liquid-cooled facilities.
Strategic implications for India’s tech ecosystem
Gogia emphasized that data center cooling must move from being a post-design function to a co-equal design partner in AI-ready architectures. “Home-grown CDU systems help operators move faster, reduce capex variability, and meet ESG goals tied to energy intensity,” he said.
According to Shah, domestic data center companies will benefit from more localized and macro resilient supply chain as well as cost competitiveness from both capex and opex perspectives.
Both analysts see potential for expansion beyond India. “The next step would be to scale from ‘build in India for India” to ‘build in India for the world,’” Shah noted, while cautioning that Refroid will need to invest in newer technologies to compete with established players.
Refroid is working with government initiatives including MeitY and IndiaAI to promote liquid cooling adoption. Bhavaraju cited environmental advantages: “Liquid Cooling brings down the carbon emissions by over 40%, brings down the data center opex by up to 40%.”
The company said it has been focused on colocation providers and developed SentraFlo with anchor data center operators, while beginning engagement with hyperscale cloud providers.
The SentraFlo Series is set to begin shipping by the end of June. With nearly 475 MW of data center capacity currently under construction across India and AI workloads driving unprecedented cooling demands, the timing appears strategic for indigenous cooling solutions.
Source:: Network World