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SoftBank Corp., ZutaCore and Foxconn collaborate on design and development of rack-integrated solution

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SoftBank Corp., ZutaCore and Hon Hai Technology Group (Foxconn) have announced that they implemented ZutaCore’s two-phase Direct Liquid Cooling (DLC) technology in an Artificial Intelligence (AI) server using NVIDIA accelerated computing, making it the world’s first implementation, according to ZutaCore research, of ZutaCore’s two-phase DLC (Direct Liquid Cooling) technology using NVIDIA H200 GPUs. In addition, SoftBank designed and developed a rack-integrated solution that integrates each component of the server, including cooling equipment with two-phase DLC technology, on a rack scale, and conducted an operational demonstration and performance evaluation at its data centre in February 2025. The demonstration results indicated the solution passed NVIDIA’s temperature test (NVQual), thereby confirming the compatibility, stability and reliability of this rack-integrated solution. The solution also achieved partial Power Usage Effectiveness (pPUE) of 1.03 (actual measured value) per rack for cooling efficiency.

With the spread and increased adoption of AI, demand for AI servers and other computing resources is expected to expand, further increasing power consumption at data centres. At the same time, reducing power consumption from the perspective of reducing carbon dioxide (CO2) emissions has become a pressing issue worldwide, requiring data centres to become more efficient, consume less power, and introduce heat removal solutions. Since May 2024, SoftBank has been collaborating with ZutaCore, a global contributor in the development and business deployment of two-phase DLC technology, to develop solutions optimised for low power consumption at AI data centres.

SoftBank, ZutaCore and Foxconn will continue their efforts to achieve higher efficiency and lower power consumption in AI data centres using NVIDIA accelerated computing, and collaborate on the development of rack-integrated solutions optimised with two-phase DLC technology for practical use and deployment in the global market.

Features of rack-integrated solution optimised with two-phase DLC technology

1. “Plug & Play” solution

By integrating server components such as cooling equipment equipped with 2-phase DLC technology, which conventionally had to be optimised individually, on a rack scale, it is possible to provide a “Plug & Play” solution that can be used immediately by simply connecting the equipment. This makes it easy and simple to install in AI data centres.

2. Innovative 2-phase DLC cooling system

ZutaCore’s two-phase DLC technology, which cools the chipsets (CPUs, GPUs, memory, etc.) that are the heat sources in the server by bringing them into contact with a cold plate, circulates a special insulating heat transfer (dielectric) fluid with a low boiling point in the cold plate and uses heat absorption during the phase change from liquid to gas caused by the heat source. Efficient cooling is achieved through repeated evaporation and condensation. In addition, the water temperature can be maintained at a higher temperature than in conventional water-cooled facilities, which improves the heat transport capacity of the water used for cooling and reduces the flow rate of water to achieve the required cooling effect. This makes it possible to reduce the pressure of the pump that delivers the water for cooling, contributing to lower power consumption. Furthermore, the use of insulating heat transfer fluid prevents serious damage to the server in the event of a spill of special fluid.

3. AI server with guaranteed compatibility, stability and reliability

Foxconn developed an AI server based on NVIDIA H200 GPUs, optimised with ZutaCore’s two-phase DLC technology. This AI server was able to exceed target performance figures in NVIDIA’s certification test (NVQual), which determines the compatibility, stability and reliability of server systems.

4. Versatile and scalable rack for high-density placement of AI servers

SoftBank developed a rack designed to maximise cooling efficiency and improve operational efficiency with its two-phase DLC technology. In addition to being designed to be versatile and scalable for high-density placement of the latest AI servers, the rack has airflow for improved cooling efficiency, and power supply. In addition, power supply and wiring are concentrated in the rear of the rack for operational safety and robot-friendly operation. The rack is also compatible with 21-inch servers and conventional 19-inch servers compliant with the ORV3 standard, which is a specification set by the Open Compute Project (OCP), a non-profit organisation that promotes open-source hardware specifications and designs. The specifications are designed to be deployed in accordance with global standards.

Comments from each company

Hironobu Tamba, the vice president and the head of the data platform strategy division at SoftBank Corp., said: “As we work to develop one of the largest AI infrastructures in Japan and homegrown large-scale language models (LLMs), improving the energy efficiency of data centres is essential to accelerate AI development and realise a sustainable society. The operational demonstration of this rack-integrated solution with optimised two-phase DLC technology has confirmed stable operation and improved energy efficiency of high-density GPU servers with liquid cooling. In the future, we will work on the practical application of this solution for use in AI data centres and AI factories to build a sustainable AI infrastructure and maximise computational efficiency.”

Erez Freibach, the co-founder and CEO at ZutaCore, said: “ZutaCore is honoured to partner with global industry leaders SoftBank and Foxconn to introduce the world’s first 2-phase DLC rack integration solution using NVIDIA accelerated computing for AI servers. This groundbreaking collaboration highlights the transformative potential of our waterless DLC cooling technology to deliver unmatched efficiency while addressing the growing need for sustainable energy solutions. Together, we are not just meeting today’s challenges but setting a new standard for energy-efficient innovation in next-generation AI data centres and factories, driving progress while safeguarding the planet.”

Foxconn indicated: “Foxconn, as the world’s largest AI server supplier, is delighted to join this collaboration and share our extensive in AI server development. We look forward to driving greater value for the global AI industry together.”

Future Developments

SoftBank, ZutaCore, and Foxconn will strengthen cooperation with AI server and rack design companies to improve the efficiency and low power consumption of AI data centres using NVIDIA accelerated computing, with a view to the commercialisation of this solution and its deployment in the global market.

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