ReGen III targets data centres with low-emission base oil strategy

ReGen III has outlined its strategy to supply re-refined Group III base oils to the fast-growing data centre immersion cooling market, which is expected to more than triple in value by 2030. Demand for immersion cooling is being driven by increasing computing power requirements in areas such as artificial intelligence and hyperscale data centres.

Market growth

Estimates indicate that the data centre liquid immersion cooling market will grow from USD $2.1 billion in 2024 to USD $7.2 billion in 2030, representing a compound annual growth rate of over 22%. Immersion cooling, where servers are submerged in non-conductive dielectric fluids, is seen as an effective method for managing heat and improving energy efficiency compared to conventional air cooling approaches.

Group III base oils have emerged as a core component for operations using hydrocarbon-based and synthetic dielectric fluids. These oils offer high purity, stability, and thermal efficiency-key attributes required for cooling advanced computing systems.

Dielectric fluids

Hydrocarbon-based fluids, including those made from Group III base oils, are projected to account for over half of the market. The high-purity and chemical stability of Group III base oils has led to their selection for single-phase immersion cooling systems in data centre environments. This is particularly relevant as next-generation infrastructure continues to demand more advanced cooling methods.

Sustainability focus

ReGen III's process produces Group III base oils by upcycling used motor oil. The company states that this method achieves up to 82% lower carbon dioxide equivalent emissions than using virgin crude-derived oils. The resulting circular product can be used in cooling fluids and aligns with sustainability criteria now prioritised by large organisations. Environmental regulations and pressure to phase out certain dielectric fluids are increasing the focus on low-emission alternatives in the sector.

"We are excited about the opportunity to help solve a critical challenge shared by the largest and fastest growing hyperscale data centers: the need to cool ever hotter, faster chips that exceed the limits of traditional air cooling,4" stated Tony Weatherill, CEO and President of ReGen III. "As legacy dielectric fluids face growing environmental and regulatory scrutiny, including the phase-out of 'forever chemicals',5 our solution aligns with the circular economy and net zero priorities in a surging market."

Strategic review

ReGen III has established a Special Committee to examine pathways for incorporating its Group III base oils into the immersion cooling and dielectric fluids markets. The company is considering options such as forming joint ventures, building technical collaborations, securing long-term supply agreements, and developing product qualification and commercialisation initiatives.

The company's circular oils are being positioned for use not just in data centres but also in electric vehicle thermal management systems, reflecting broader shifts towards lower emission, sustainable technology solutions.