Itochu & Castrol team up on AI data centre cooling

Itochu has agreed a partnership with Castrol and Itochu Techno-Solutions to promote liquid cooling in data centres across Japan.

The three companies have signed a Memorandum of Understanding that sets out a framework for collaboration. The agreement focuses on liquid cooling for facilities that run artificial intelligence and other intensive computing workloads.

Under the arrangement, Castrol will supply cooling fluids and related technical services. Itochu will work on market development, commercial structures and supply from an energy-focused perspective. Itochu Techno-Solutions will act as the systems integrator and deliver design, implementation, and operations.

The companies plan to target data centres facing rising power use and heat output. Many of these sites support generative AI and high-performance computing systems.

Rising heat loads

Data centres around the world face higher electricity demand and greater heat density as operators deploy more AI and advanced computing. This trend is also visible in Japan. Local operators are starting to move beyond air-only cooling in order to handle higher rack densities.

Japan's policy focus includes improving end-use efficiency and stabilising power demand. Data centre operators are under increasing pressure to align with these goals.

Liquid cooling uses electrically insulating fluids that come into direct contact with heat sources or transfer heat away through sealed systems. The approach removes heat closer to chips and server components than conventional air-based methods. It can also reduce the share of total energy use that is dedicated to cooling.

Higher compute density within existing buildings is a further attraction for operators. Reduced reliance on central air-conditioning systems can also ease pressure on site infrastructure.

Division of roles

The agreement divides responsibilities across the three partners. Castrol will provide high-flash-point cooling fluids that are designed for use in data centres. The company will also offer lifecycle services, including fluid testing, preventive maintenance, and training.

Itochu Techno-Solutions will integrate these products into complete solutions. Its role covers consulting, design, engineering, deployment and ongoing operations. The company already works as a system integrator across AI, security, data analysis and cloud computing projects.

Itochu will use its experience in the energy sector and its customer relationships. It aims to identify commercial models and supply structures that support broader use of liquid cooling.

The partners plan to develop practical deployment models that address safety, energy efficiency and reliability. They also plan engagement with other ecosystem partners in Japan.

Pilots and hybrid sites

The collaboration includes pilot projects at selected customer locations. These sites will test different deployment options in production environments. The partners also plan awareness and education programmes for operators who are considering liquid cooling.

The group expects some operators to adopt hybrid environments. These will combine traditional air cooling with liquid systems within the same facility. This approach may allow staged transitions as operators refresh equipment or expand capacity.

The partners are also considering a possible regional expansion at a later stage. The agreement envisages a pathway for roll-out beyond Japan if initial projects succeed.

Itochu has identified energy-efficient solutions, including liquid cooling, as a focus area in recent years. The company positions these activities within a broader sustainability agenda.

Itochu Techno-Solutions has sought to grow its digital transformation projects for the Japanese industry and government. The company sees data centre infrastructure as part of that work.

Castrol's thermal management unit develops fluids for data centres and energy storage systems. The business serves markets in the US, Europe, the Middle East, China, Australia and Southeast Asia.

Castrol has created its Castrol ON data centre cooling fluids for AI, machine learning and cloud computing workloads. The company states that these products support thermal management across the lifecycle of a data centre.

The three companies will now work with customers on concrete projects that apply the framework set out in the memorandum.