With immersion cooling demand in data centres and AI infrastructure forecast to more than triple by 2030, ReGen III has formed a Special Committee to explore strategic options to bring its re-refined products into this market.
The company, which upcycles used motor oil (UMO) into high-purity Group III base oils, believes its circular Group III base oils could play a key role as hyperscalers look to cut both energy use and emissions.
Immersion cooling, where servers are submerged in a non-conductive fluid rather than cooled by air, is increasingly being deployed to manage the heat output of high-performance processors. The approach promises improved thermal management, higher energy efficiency and reduced water use compared to traditional air-based systems.
Industry forecasts suggest the liquid immersion cooling market could grow from around $2.1 billion in 2024 to $7.2 billion by 2030, with demand driven by leading chipmakers and AI platforms seeking to run denser, more power-hungry racks within tight efficiency and sustainability constraints.
Within this market, hydrocarbon-based fluids are expected to capture a little over half of demand, according to Regen III, with estimates suggesting a share of around 52%. Synthetic base oils, including Group III, are increasingly being specified as dielectric fluids in single-phase immersion systems due to their high purity, chemical stability and thermodynamic performance.
ReGen III argues that its process, which produces Group III base oils from UMO rather than from virgin crude, offers an additional sustainability angle at a time when many data centre operators and hyperscalers are tightening environmental requirements on everything from power usage effectiveness to embodied carbon.
According to the company, its patented process can transform used motor oil into premium base oils while delivering up to 82% lower CO2e emissions than conventional crude-derived alternatives. That could align with criteria set by organisations such as the Open Compute Project (OCP), which is promoting sustainable immersion fluids designed for long operational lifetimes, low global warming potential, low carbon footprints and defined end-of-life treatment routes.
“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,” 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.”
Special Committee to review options
To move from technical fit to commercial deployment, ReGen III has set up a Special Committee to conduct what it describes as a disciplined review of pathways into immersion cooling, broader dielectric fluid applications and electric vehicle thermal management systems.
The Special Committee will conduct a ‘disciplined review’ of opportunities to integrate ReGen III’s base oils into immersion cooling, dielectric fluids, and EV thermal management systems. Strategic options under evaluation include: joint ventures and technical collaborations, long-term supply partnerships, and product qualification and commercialisation programs.
