As the AI industry grows rapidly, cooling technology is evolving beyond its role of simply cooling equipment

to become a core technology that determines the competitiveness of the data center and semiconductor

industries. Whereas in the past, the ability to achieve low temperatures was key, the new standard is now

the ability to provide efficient cooling using minimal energy and with no environmental impact.

As the performance of AI semiconductors improves rapidly, the heat generated by GPUs and HBM is also

increasing. Cooling has now evolved beyond simply dissipating heat to become a core technology that

determines equipment performance, space efficiency, and maintainability. 

Recently, the heating, ventilation, and air conditioning (HVAC) market has been rapidly evolving to take

into account eco-friendly refrigerants, energy efficiency, and ease of installation. In particular, the market

is set to undergo a major restructuring in the first half of 2026, driven primarily by the European Union’s

(EU) strengthened F-Gas regulations, and cooling technology is also facing new standards.

As AI technology advances rapidly, the number of data centers is also growing rapidly. However, as the

AI industry expands, new challenges are emerging.

Specifically, the enormous amounts of water and energy consumed for cooling. A recent international

study revealed that water usage in AI data centers is far higher than previously thought, bringing renewed

attention to the importance of efficient cooling technologies.

Recently, NVIDIA has been actively adopting warm water cooling technology for its latest AI servers. 

Why are global tech giants focusing so much on cooling technology?

With the government’s recent announcement of a strategy to secure core competitiveness in physical AI,

the AI transformation of South Korea’s manufacturing and automation industries is gaining momentum.

 As physical AI continues to spread, one technology is becoming increasingly important: cooling technology.

With recent tightening of regulations on HFC refrigerants, the global refrigeration and air conditioning 

market is rapidly shifting toward natural refrigerants. Among these, CO₂ refrigerant is gaining attention 

for its environmental friendliness—with a GWP of 1 and an ODP of 0—and its high cooling performance.

As AI technology advances rapidly, the importance of high-performance semiconductors is greater than ever.

However, there is something just as important as improving the performance of AI semiconductors:

 how efficiently heat is managed

Today, it’s time for the Chago Monthly News, where you can catch up on all the latest updates from 

ChagoEngineering over the past month of June. Shall we take a look together to see what’s in store?

The government recently announced that it is launching a new initiative titled the “Project for the

Development of Fluorinated Greenhouse Gas Reduction Technologies in Response to International

Agreements.” The core objective of this project is to go beyond simply managing refrigerants to reduce

the use of high-GWP (global warming potential) refrigerants and secure next-generation eco-friendly

refrigerant technologies.

This signals that, moving forward, cooling technologies that take both performance and

the environment into account will become a key competitive advantage.

Europe has recently suffered significant damage from a record-breaking heat wave. Meteorologists have

identified the “Omega Block” phenomenon as the cause of this heat wave. Global warming has weakened

the jet stream, allowing a hot high-pressure system from North Africa to linger over Europe for an extended

period, forming a massive heat dome. Climate change is no longer a distant future concern but is becoming

a reality we are experiencing firsthand.

Recently, CO₂ (carbon dioxide) as a natural refrigerant has emerged as the hottest topic in the domestic

refrigeration and air conditioning industry. At a recent seminar, cold chain industry representatives gathered

to discuss the transition to natural refrigerants and the future of CO₂ refrigeration systems, offering a

glimpse into the direction in which the refrigerant market is headed.

Data centers are now evolving into massive cooling facilities. Whereas in the past, competitiveness was

measured by how many GPUs a company could secure, the ability to cool those GPUs reliably has now

become the new competitive edge. Recent news articles have reported that the importance of cooling

technology is increasing significantly, to the point where AI data centers are being described as

“massive cooling facilities.”

Recently, the government has begun full-scale discussions aimed at enhancing the reliability of national

greenhouse gas statistics and establishing a new climate statistics system aligned with international standards.

Policies are expanding beyond the mere management of carbon emissions to include the management

of various substances that contribute to climate change, as well as carbon removal technologies.

This also signals the government’s intention to manage greenhouse gases more systematically in the future.

With the data center industry experiencing explosive growth driven by the proliferation of generative AI,

the competitive landscape is shifting. Whereas the ability to secure more GPUs used to be the key to

competitiveness, the ability to cool systems efficiently is now emerging as a new competitive factor.

And at the heart of this lies an unexpected resource: water.

Today, two new videos were uploaded to Chago Engineering’s official YouTube channel, introducing 

Cryo Engine’s cryogenic testing of semiconductor sockets and the commercialization of its 

semiconductor cooling devices.

Cryo Engine Semiconductor Socket Cryogenic Testing

The Cryo Engine is an eco-friendly cooling solution designed for semiconductor back-end testing. In the video, you can see how it creates an ultra-low-temperature cooling environment of -60°C or lower in semiconductor socket test equipment, enabling efficient and stable semiconductor reliability testing.

Commercialization of the Cryo Engine Semiconductor Cooling System

This is a cooling system equipped with an eco-friendly engine developed by Chago Engineering. It achieves cryogenic cooling using eco-friendly helium without Freon gas or coolant, and since it incorporates all essential components, it can be immediately integrated into semiconductor testing equipment without the need for any external devices.

The semiconductor industry demands increasingly precise and stable cryogenic cooling technology. Based on its eco-friendly Cryo Engine technology, Chago Engineering develops cooling solutions optimized for semiconductor back-end testing and provides customized systems tailored to various testing environments.

If you have any questions about semiconductor cooling systems, cryogenic cooling, or the Cryo Engine, or if you need a customized cooling solution, please feel free to contact Chago Engineering at any time. We will provide you with the optimal solution using our cutting-edge technology.

With the rapid growth of AI data centers and the semiconductor industry, the importance of cooling

technology is greater than ever; however, the use of refrigerants—which contribute to environmental

pollution—is also on the rise. To address international environmental regulations, the government has

announced that it will begin in earnest to transition to eco-friendly refrigerants and develop refrigerant

recovery and recycling technologies.

As the AI industry grows rapidly, power consumption in data centers is also on the rise. In particular, 

as the density of high-performance GPUs and AI servers increases, cooling technology has become 

a key factor in determining a data center’s competitiveness. The “Data Center and B-ESS Materials 

Technology Seminar,” scheduled to be held this coming July, is another prime example of these industry changes.

Chago Engineering holds occasional in-house events each month. For this June’s in-house event, 

the company hosted the “2026 Chago Awards” to foster a culture of praise and gratitude among 

employees and build a positive organizational culture.

As the artificial intelligence (AI) industry grows rapidly, the importance of data centers is also increasing. 

However, as the AI industry advances, another challenge is becoming increasingly significant: heat management.