Mitsubishi Heavy Industries Data Center Cooling Strategy 2025: From Liquid Cooling to AI Dominance
Mitsubishi Heavy Industries Data Center Cooling Projects: From Pilot to Commercial Scale
Mitsubishi Heavy Industries has aggressively shifted its data center cooling strategy from technology acquisition to full-scale commercial deployment, targeting the high-performance computing needs of the AI market.
- During the 2021-2024 period, MHI’s focus was on forming foundational technology alliances, such as the September 2023 strategic investment and white-label agreement with ZutaCore for direct-to-chip liquid cooling. This phase centered on securing access to critical next-generation cooling technologies to address the growing heat density of servers.
- The year 2025 marked a decisive pivot to market execution, highlighted by the December 2025 partnership with EXEO Group to begin commercial use of Japan’s first GPU servers with two-phase direct-to-chip liquid cooling. This initiative validated the technology’s effectiveness with a reported 94% reduction in power consumed for server cooling.
- MHI broadened its solution stack in July 2025 by integrating Modius’s OpenData® Data Center Infrastructure Management (DCIM) software, moving beyond hardware to offer a comprehensive optimization platform. This expansion demonstrates a strategic move to provide end-to-end energy management solutions for data center operators worldwide.
Strategic Investments: MHI’s Funding for Data Center Efficiency and Energy Tech
Mitsubishi Heavy Industries is using targeted investments to bolster its data center infrastructure strategy. In September 2025, the company participated in an $18 million Series C funding round for Sapphire Technologies, a company specializing in converting wasted energy from pressure reduction processes into clean electricity. This investment aligns with MHI’s goal of enhancing energy efficiency for its power-hungry data center clients. This follows a previous strategic investment in liquid cooling specialist ZutaCore in September 2023, which secured key technology and a white-label agreement for MHI’s portfolio.
Table: MHI Data Center Efficiency Investments (2023-2025)
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| Sapphire Technologies | Sep 09, 2025 | Participated in an $18 million Series C funding round to support energy recovery technology. This investment targets improved energy efficiency for industrial applications, including the data center sector. | Sapphire Technologies Secures $18 Million Series C |
| ZutaCore | Sep 26, 2023 | Made a direct strategic investment (amount undisclosed) as part of an alliance to develop and sell direct-to-chip liquid cooling solutions for data centers. | MHI and ZutaCore Join Forces |
Partnership Ecosystem: How MHI is Building its Data Center Cooling Network
Mitsubishi Heavy Industries is constructing a global partnership network to deliver integrated data center power and cooling solutions. Recent collaborations in 2025 with EXEO Group on two-phase liquid cooling and Modius on DCIM software exemplify a focus on commercial deployment in Japan and worldwide. This strategy builds on foundational alliances from 2021-2024, such as with ZutaCore for core cooling technology and Keppel Data Centres to address the fundamental power supply needs of floating data center parks.
Table: MHI Data Center Infrastructure Partnerships
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| EXEO Group | Dec 23, 2025 | Initiated commercial use of Japan’s first GPU servers with two-phase direct-to-chip liquid cooling. This partnership aims to boost AI performance and improve energy efficiency in data centers. | Japan’s First GPU Servers with Two-Phase DLC by MHI |
| Qianhai Energy | Sep 02, 2025 | Established a strategic partnership to advance low-carbon technologies and regional cooling systems in Asia’s Greater Bay Area, targeting demand driven by data center proliferation. | Mitsubishi Heavy Industries, Qianhai Energy launch low … |
| Modius | Jul 29, 2025 | Signed an agreement to integrate Modius’s OpenData® DCIM technology with MHI’s power and cooling solutions, creating a comprehensive offering for data centers worldwide. | Mitsubishi Heavy Industries Concludes Agreement with … |
| Keppel Data Centres | Jul 09, 2024 | Collaborating on a hydrogen-ready power plant to supply energy to the Keppel Floating Data Centre Park in Singapore, addressing the increasing power demands from AI. | Data Center Cooling: The Unexpected Challenge to AI |
| ZutaCore | Sep 26, 2023 | Formed a strategic alliance, including a direct investment and white-label agreement, to accelerate development of direct-to-chip liquid cooling solutions for high-density data centers. | MHI Enters White-label Agreement and Invests in ZutaCore |
Global Expansion: Mitsubishi Heavy Industries Targets Key Data Center Markets
Mitsubishi Heavy Industries is executing a targeted geographic expansion, building a strong presence in Japan while aggressively moving into the critical North American and Asian data center markets.
- Between 2021 and 2024, MHI’s activities had a notable Asian focus, evidenced by the July 2024 collaboration with Singapore-based Keppel Data Centres to power a new floating data center park. This project established an early foothold in the region’s high-growth digital infrastructure sector.
- In 2025, MHI accelerated its global push by establishing a strategic business base in Dallas, Texas, in May 2025, specifically to serve the U.S. data center market and foster collaboration with American technology firms. This move represents a direct entry into the world’s largest data center hub.
- Simultaneously, the company deepened its footprint in Asia through a September 2025 partnership with Qianhai Energy to develop regional cooling systems in China’s Greater Bay Area. In its home market, the December 2025 commercial rollout with EXEO Group solidifies its leadership position in Japan.
Technology Status: MHI’s Data Center Cooling Solutions Reach Commercial Scale
Mitsubishi Heavy Industries has successfully advanced its data center cooling technology from the R&D and alliance-building phase to proven commercial application, validated by real-world deployments and significant performance metrics.
- The period from 2021 to 2024 was characterized by technology acquisition and pilot programs, exemplified by the September 2023 alliance with ZutaCore to gain access to its direct-to-chip liquid cooling solutions. MHI’s earlier tests had already demonstrated the potential of immersion cooling with a 94% power saving, setting the stage for commercialization.
- The year 2025 marks the transition to commercial maturity. The December 2025 project with EXEO Group moved beyond pilots to the commercial use of two-phase direct-to-chip liquid cooling in GPU servers in Japan.
- This maturity is further confirmed by the July 2025 agreement with Modius to integrate established DCIM software. This signals a shift from developing discrete hardware components to offering a market-ready, integrated system for complete data center management.
SWOT Analysis: MHI’s Position in Data Center Cooling for 2025
Table: MHI Data Center Cooling SWOT Analysis (2021-2025)
| SWOT Category | 2021 – 2023 | 2024 – 2025 | What Changed / Resolved / Validated |
|---|---|---|---|
| Strengths | Deep industrial engineering expertise and established reputation in power generation systems. | An integrated portfolio combining power generation (gas turbines) with advanced cooling solutions and DCIM software (Modius partnership). | The company evolved from a hardware supplier to an integrated solutions provider, validated by the Modius partnership in July 2025. |
| Weaknesses | Reliance on external partners like ZutaCore for cutting-edge liquid cooling technology. | Execution risk in new geographic markets, particularly the highly competitive U.S. data center market targeted by the new Dallas hub. | The technology gap was addressed via the ZutaCore white-label agreement, but the challenge shifted to market penetration and scaling operations in new regions. |
| Opportunities | Growing energy demand from data centers as a broad industrial trend. | Explosive, specific demand from AI for high-density power and cooling. MHI plans to expand gas turbine supply by 30% to meet this demand. | The general market trend was validated and amplified by the urgent needs of the AI boom, creating a much larger and more immediate revenue opportunity. |
| Threats | General competition from other industrial giants in the energy sector. | Direct competition from Siemens Energy and GE Vernova Inc., who with MHI form a bloc controlling over 70% of the gas turbine market. | The competitive landscape solidified around a few key players in the lucrative gas turbine market, raising the stakes for securing long-term contracts for AI data centers. |
Forward-Looking Outlook: MHI’s Next Move in the AI Infrastructure Market
Mitsubishi Heavy Industries is poised to scale its integrated power and cooling solutions globally, focusing on converting its recent technological and geographic beachheads into sustained market share.
- The establishment of the Dallas data center hub in May 2025 and the partnership with Modius in July 2025 for worldwide solutions signal that North America will be a primary battleground for MHI’s growth in the coming year.
- With commercial validation of its two-phase liquid cooling technology in Japan in December 2025, the next logical step is to replicate this success in the U.S. and European markets, leveraging the new Dallas hub.
- MHI’s public commitment to expanding gas turbine production by 30% or more is a direct indicator of its confidence in the sustained, long-term demand from AI data centers, suggesting a continued focus on large-scale infrastructure projects.
Frequently Asked Questions
What is the core of MHI’s data center strategy for 2025?
MHI’s strategy has shifted from acquiring technology to full-scale commercial deployment. The core of the strategy is to provide an integrated, end-to-end solution for AI data centers by combining its strength in power generation with advanced direct-to-chip liquid cooling (via ZutaCore), energy recovery systems (via Sapphire Technologies), and Data Center Infrastructure Management (DCIM) software (via Modius).
What specific liquid cooling technology is MHI using and what results has it achieved?
MHI is using two-phase direct-to-chip liquid cooling technology, secured through its strategic partnership with ZutaCore. A commercial project with EXEO Group in Japan, launched in December 2025, validated the technology’s effectiveness by achieving a 94% reduction in the power consumed for server cooling.
How is MHI expanding beyond just cooling hardware?
MHI is expanding into a full-service solutions provider. In July 2025, it integrated Modius’s OpenData® DCIM software to offer a complete optimization and management platform. Additionally, its September 2025 investment in Sapphire Technologies પાણીngs energy recovery technology into its portfolio, addressing overall data center energy efficiency, not just cooling.
What is MHI’s plan for global expansion?
MHI is targeting key data center markets in North America and Asia. In May 2025, it established a strategic business base in Dallas, Texas, to directly serve the U.S. market. This builds on its Asian presence, which includes a 2024 partnership with Keppel Data Centres in Singapore and a 2025 partnership with Qianhai Energy in China’s Greater Bay Area.
Who are MHI’s main competitors and what is its key advantage?
The article identifies Siemens Energy and GE Vernova Inc. as MHI’s primary competitors, particularly in the gas turbine market for data centers. MHI’s key advantage is its ability to offer an integrated portfolio that combines its deep expertise in power generation with a complete suite of next-generation cooling and management solutions, positioning it as a comprehensive infrastructure partner for the AI industry.
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