WASHINGTON, D.C. — With U.S. data centers on track to triple their electricity consumption within three years, a bipartisan coalition of senators has introduced legislation they say will help the nation keep pace in the global AI race while preventing an unprecedented strain on the power grid.
The Liquid Cooling for AI Act of 2025, unveiled Thursday by Sens. Dave McCormick (R-PA) and Chris Coons (D-DE), seeks to accelerate the adoption of liquid-cooling technology — an increasingly essential tool for handling the heat generated by advanced AI chips and high-density computing systems. Sens. Ted Budd (R-NC) and Adam Schiff (D-CA) signed on as co-sponsors.
“As our nation pushes to win the global AI race, we must ensure we use the most advanced technologies available,” McCormick said, calling liquid cooling a practical step toward easing pressure on utilities and lowering energy costs for consumers.
Coons said the bill represents a chance to foster innovation without sacrificing environmental responsibility. “Leading the world in AI innovation shouldn’t have to mean skyrocketing energy bills or giving up ground in the fight against climate change,” he said.
A Growing Energy Emergency
The bill arrives as data centers across the U.S. rapidly expand to meet AI’s explosive growth. A recent study from Lawrence Berkeley National Laboratory projects that by 2028, AI-driven data centers could consume 580 terawatt hours of electricity annually — more than triple current use. That demand would roughly match the total electricity used by all U.S. residential lighting and household appliances combined.
Budd warned that maintaining AI leadership over China will require abundant and affordable energy. “Liquid cooling of IT equipment and other advancements can ease electrical grid strain and help lower costs,” he said.
Schiff added that the technology is critical to protecting consumers from utility price spikes as AI power demands climb.
What the Legislation Would Do
The Liquid Cooling for AI Act takes a foundational approach, directing federal agencies to develop research priorities and best practices rather than offering subsidies or mandates. The bill would:
• Order the Government Accountability Office to assess national R&D needs related to liquid cooling in data centers.
• Require the Department of Energy to evaluate GAO findings and submit recommendations to Congress, including options for heat reuse and infrastructure improvements.
• Create a national advisory group of industry experts to guide federal agencies and establish government-wide best practices for liquid cooling systems.
Support for the legislation spans the technology, chemical, thermal-engineering, and semiconductor sectors, with endorsements from Chemours, SEMI Americas, UNICOM Engineering, Schneider Electric, the AI Supply Chain Alliance, Accelsius, Modine, 2CRSi, and the University of Delaware.
Industry Leaders Sound the Alarm
“With next-gen chips generating more heat, data centers need cooling solutions that can keep pace,” said Chemours CEO Denise Dignam, noting liquid cooling’s dramatic reductions in energy and water use compared with traditional air systems.
SEMI Americas President Joe Stockunas called the need “urgent,” while AI Supply Chain Alliance leaders said the bill takes a “smart, no-cost approach” to scaling efficient AI infrastructure nationwide.
Experts warn that the U.S. has only a narrow window to prepare for the AI-driven surge in power and cooling demand — and that liquid cooling may soon be indispensable.
“The acceleration of AI workloads presents an unprecedented opportunity for the United States,” said 2CRSi CEO Alain Wilmouth. “Advanced liquid cooling technologies are essential to meeting rising power density and sustainability demands.”
If passed, the bill would lay the groundwork for federal agencies to help U.S. data centers modernize cooling systems, reduce environmental strain, and sustain the nation’s competitive edge in artificial intelligence.
The legislation is now awaiting consideration in the Senate.
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