Cooling, Water and Data-Centre Construction Supply Chain — 2026-10-18
Vertiv has solidified its dominance in liquid cooling patents, capturing 42% of first filings, while Schneider Electric raised its 2026 financial targets due to surging data centre demand. Meanwhile, water scarcity concerns are intensifying, with new reports highlighting AI's indirect water footprint through electricity generation and prompting regulatory scrutiny in drought-stricken US states.
Cooling, Water and Data-Centre Construction Supply Chain — 2026-10-18
Top developments
Vertiv captures 42% of liquid cooling patent filings
According to GlobalData analysis published on October 16, Vertiv accounted for 42% of first patent filings in data centre liquid cooling, a significant rise from just 3% three years ago. This dominance underscores Vertiv’s strategic positioning in the high-density cooling market, which is critical for Nvidia’s latest GPU architectures. For buyers, this suggests Vertiv’s integrated solutions may become the de facto standard, potentially increasing switching costs for competitors like CoolIT and Motivair.
Schneider Electric raises 2026 targets on data centre boom
Schneider Electric raised its 2026 financial targets again on October 15, citing booming demand for data centre infrastructure. This move reflects the sustained momentum in AI facility buildouts, benefiting suppliers of power distribution and cooling systems. The revision signals that despite macroeconomic uncertainties, hyperscaler capital expenditure remains robust, supporting order inflows for Schneider’s data centre portfolio.
AI water consumption extends beyond cooling to power generation
New reporting highlights that AI’s water footprint is significantly larger than previously estimated, as it includes the water used by power plants to generate the electricity consumed by data centres. A Los Angeles Times report on October 14 and Bloomberg on October 12 detail how this "indirect" water use is straining resources in drought-hit regions. This expands the scope of community opposition and regulatory scrutiny beyond just on-site cooling towers to the entire energy supply chain.
Texas officials promise tougher enforcement on water use
On October 14, Texas state officials announced plans for stricter enforcement of water reporting laws for data centres, though legal experts note existing statutes offer limited leverage. This follows growing pressure after investigations revealed many operators have failed to report water usage accurately. The move could delay project approvals and increase compliance costs for operators in the state’s major data centre hubs.
Local view
Chinese media highlight liquid cooling order backlogs
Chinese tech outlet Seetao reported on October 15 that Bank of America predicts liquid cooling penetration in new AI data centres will reach 70% by 2030. The report notes that Chinese vendors are increasingly exporting liquid cooling equipment, driven by domestic capacity constraints and global demand. This aligns with earlier reports from Huxiu (October 11) stating that liquid cooling orders in China are booked through 2027, indicating a severe supply crunch for high-density cooling components.
Context & numbers
Constructor backlog rises to 8.7 months
The Associated Builders and Contractors (ABC) Construction Backlog Indicator climbed to 8.7 months in September, up 0.2 months from August and year-over-year. Data centre activity was cited as a key driver of this increase, reflecting sustained construction demand despite broader economic headwinds. This backlog indicates continued pressure on contractor capacity for AI hall builds.
Skilled labor remains a critical bottleneck
Bloomberg reported on October 13 that power and talent are the biggest bottlenecks for AI data centre expansion, according to industry executives. The shortage of skilled electricians and technicians is driving up wages and delaying construction timelines, with some estimates suggesting a shortfall of tens of thousands of workers in key trades.
On the radar
- Montana Water Review: A proposed data centre in eastern Montana is facing calls for a closer water use review due to drought conditions, as reported by YPR on October 15. This could set a precedent for stricter local permitting in rural areas.
- Drought Contract Analysis: Sherafy published an analysis on October 16 examining whether data centres have contractual priority over residential water during droughts, revealing opaque clauses and varying state regulations.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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