| 1.1 |  The Cooling Challenge

Data centers consume 1-2% of global electricity, and cooling infrastructure accounts for up to 40% of that total. As artificial intelligence and high-performance computing drive rack power densities beyond 30 kW, conventional air-cooled systems are reaching their physical limits. The result: rising energy costs, expanding facility footprints, and Power Usage Effectiveness (PUE) ratios that undermine sustainability commitments.

| 2.1 |  Why Conventional Cooling Falls Short

Air has inherently low thermal conductivity and specific heat capacity. At rack densities above 15 kW, air-based cooling requires increasingly large volumes of airflow, more fans, and wider hot/cold aisle separation. This consumes floor space, adds mechanical complexity, and drives up operating costs. For next-generation AI clusters operating at 40-70 kW per rack, air cooling alone is no longer viable.

| 2.2 |  The Liquid Cooling Transition

Liquid cooling -- whether through coolant distribution units (CDUs), active rear-door heat exchangers (RDHx), or direct-to-chip systems -- delivers dramatically higher heat rejection per unit volume. At the core of every liquid cooling system is a heat exchanger. Its performance determines the cooling capacity, energy efficiency, and physical footprint of the entire system.

| 3.1 |  Purpose-Built Heat Exchangers

Off-the-shelf plate heat exchangers are designed for general industrial use. They are not optimized for the specific fluid combinations, flow rates, temperature ranges, and space constraints found in data center cooling. Purpose-built heat exchangers -- designed for specific operating conditions -- deliver measurably higher heat transfer performance at lower pressure drop, reducing both cooling energy and pumping costs.

| 3.2 |  Phasic's Approach

Phasic Energy designs liquid-to-liquid, air-to-liquid, and two-phase heat exchangers specifically for data center thermal management. Each unit is engineered for its operating environment, delivering superior performance in compact form factors that fit within existing rack and row infrastructure. The result: higher cooling capacity, lower energy consumption, and improved PUE -- without expanding the data center footprint.