Liquid Cooling: Sabey Data Centers Scales Solutions for AI and HPC Workloads

When you’re looking at the future of data centers, one thing’s clear: processing power is skyrocketing, and so is the heat. On January 21, 2026, Sabey Data Centers announced it’s scaling up a 2023 pilot with JetCool Technologies to roll out direct-to-chip liquid cooling across its US portfolio. This program leverages patented microconvective modules and modular architectures developed in partnership with Dell Technologies, aiming to slash server power use by around 13.5% versus traditional air-cooled setups.

Background and Industry Trends

Recognized as one of the largest privately-owned multi-tenant operators in the US, Sabey Data Centers manages over four million square feet of mission-critical space. The company specializes in scalable, custom-built solutions for financial, technology and healthcare clients that demand both uptime and cost predictability. However, as AI and high-performance computing workloads grow more intense, traditional air cooling is nearing its practical limits.

Industry analyses suggest AI-driven power demands could triple data center electricity needs in the coming years. Grid constraints, rising energy prices and sustainability goals are squeezing margins. In response, operators are exploring liquid cooling to handle higher densities, reduce energy consumption and curb carbon footprints. Back in September 2023, Sabey and JetCool kicked off a pilot in Quincy, Washington, to validate microconvective direct-to-chip cooling under real-world loads.

That initial work dovetailed with a broader shift: multi-tenant colocation providers are no longer passive landlords. They’re curating thermal and power strategies to attract next-gen compute clients. As a result, partnerships—rather than in-house R&D—are becoming a faster route to market for advanced cooling technologies.

Partnership Expansion and Program Details

After delivering on its 2023 pilots, Sabey has decided to integrate JetCool’s modules into a formal Technology Cooling Partner Program. Announced alongside its new Umatilla, Oregon campus, the program makes liquid cooling a standard offering across Sabey’s national footprint. While the company hasn’t disclosed total rack counts, this move signals that customers can now choose liquid-cooled pods for AI and HPC deployments as easily as traditional air-cooled space.

JetCool’s solution uses self-contained microjets that target chip hot spots directly. These modules clip onto the CPU or GPU, circulating coolant in closed loops. Dell’s PowerEdge GPU servers have been outfitted with a modular chassis that seamlessly integrates the liquid modules. Crucially, Dell provides end-to-end warranty coverage on these configurations—addressing a key hesitation among buyers who worry about warranty gaps or multi-vendor finger-pointing.

Sabey’s CTO, John Sasser, highlights the program’s role in efficient, sustainable facilities designed for energy-intensive workloads. There’s no need for major facility overhauls or building additions; the cooling stacks fit into existing data hall footprints. In other words, deployment complexity and capex hurdles are minimized.

Performance Metrics and Cost Impacts

The flagship result from those Quincy pilots was a consistent 13.5% reduction in server power draw compared with equivalent air-cooled racks. That’s a meaningful dent in operational costs. If you take a $1 million annual power budget, for example, a 13.5% saving translates to $135,000 reclaimed—money that can be reinvested in capacity, client incentives or margin protection.

Besides direct power savings, liquid cooling enables higher rack densities. By increasing thermal transfer rates, data centers can host more GPUs in the same floor space without breaching temperature limits. That drives up revenue per square foot—a critical KPI for colocation businesses. Early adopters report they can push rack densities far beyond air-cooled norms.

Operational benefits don’t stop there. Because JetCool’s modules are self-contained, leak risk is minimized and maintenance routines align closely with existing server service windows. Combined with Dell’s warranty, this addresses two of the biggest operational gating factors for liquid cooling deployments.

Implications for Investors

If you’re tracking Sabey as an investment thesis—whether directly or indirectly through data center REITs and private equity funds—this development warrants attention. Uninterrupted uptime and cost predictability are watchwords for colocation tenants. By offering a proven cooling alternative, Sabey is enhancing its competitive edge. Look for potential uplift in average revenue per user (ARPU), lease durations and fill rates in upcoming reportings.

We’ll also want to see how Sabey structures its pricing. The extra capex for liquid modules and modular racks could be passed to customers via premium rates or absorbed to secure long-term leases. Either way, it will show up in margin dynamics. Monitoring changes in gross margins and operating expenses over the next few quarters will be key.

Risks and Considerations

It’s not all smooth sailing. While performance gains are clear, liquid cooling carries its own set of risks. Integration across hardware, coolant distribution and facility management introduces complexity. Even with self-contained loops, customers may hesitate over perceived leak risks or headcount needed for specialized maintenance.

Regulatory headwinds could also emerge. Local jurisdictions may impose restrictions on water usage or glycol discharge limits, which can affect operational costs. Additionally, any significant improvements in air-cooling technologies or shifts in energy prices could alter the ROI timeline for liquid systems. Investors should stress-test their models against varying energy price scenarios and technology adoption rates.

Outlook and Key Takeaways

Right now, scaling from pilot to portfolio-wide standard is the acid test for liquid cooling’s mainstream potential. Sabey’s approach—partnering with JetCool, Dell and other thermal vendors—reflects a broader industry strategy: assemble best-in-class solutions, rather than reinventing the wheel in-house.

For retail investors or data center operators, the metric to watch is adoption pace. If more clients opt for liquid-cooled pods, it will drive occupancy and justify further investments in cooling infrastructure. Conversely, slow uptake might signal that concerns around cost or complexity still outweigh performance benefits.

In the end, it’s a numbers game. A 13.5% power saving is significant, but only if it scales without hiccups. I’ll be listening for updates on fill rates, pricing strategies and any reported issues with deployment timelines or maintenance. We’ll see soon whether Sabey’s liquid cooling bet pays off in both operational savings and bottom-line results.

Scaling the Partner Network

Beyond the core Sabey-JetCool-Dell trio, Sabey’s Technology Cooling Partner Program will bring additional vendors on board. This curated approach broadens customer choice and mitigates reliance on a single cooling technology. It also lets Sabey benchmark performance across multiple solutions, reinforcing its value proposition to tenants who demand the latest in thermal efficiency. JetCool—a Flex company—leverages Flex’s manufacturing ecosystem to produce modules at volume, reducing lead times and ensuring supply consistency.

That network effect could accelerate adoption. When data center operators see peers successfully deploying liquid cooling under standardized contracts and warranties, the hesitation barrier drops. From an investor standpoint, network-driven momentum can turn a competitive advantage into an industry norm—potentially boosting valuation multiples for early movers like Sabey.

All told, Sabey’s move illustrates why cooling strategy has become a profit center, not just an operational detail. The interplay of engineering gains, partner ecosystems and pricing power creates a new battleground for colocation players.