Transforming India’s Data Infrastructure with Indigenous Cooling

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Refroid Technologies, a Hyderabad-based cooling solutions provider, has launched what it claims is India’s first indigenously developed coolant distribution units (CDUs) designed for direct-to-chip liquid cooling (DCLC) applications in data centers.

Industry analysts view the development as a critical milestone for India’s data center ecosystem. “India generates 20% of global data, yet contributes only 3% to global data center capacity. This imbalance is not merely spatial — it’s systemic,” said Sanchit Vir Gogia, chief analyst and CEO at Greyhound Research. “The emergence of indigenously developed CDUs signals a strategic pivot. Domestic CDU innovation is a defining moment in India’s transition from data centre host to technology co-creator.”

Gogia emphasized that data center cooling must move from being a post-design function to a co-equal design partner in AI-ready architectures. “Home-grown CDU systems help operators move faster, reduce capex variability, and meet ESG goals tied to energy intensity,” he said.

As quoted in NetworkWorld.com, in an article authored by Gyana Swain published on May 28, 2025.

Beyond the Media Quote: Our View, In Full

Pressed for time? You can focus solely on the Greyhound Flashpoints that follow. Each one distills the full analysis into a sharp, executive-ready takeaway — combining our official Standpoint, validated through Pulse data from ongoing CXO trackers, and grounded in Fieldnotes from real-world advisory engagements.

Indigenous CDUs Signal India’s Strategic Shift in Data Centre Supply Chain Sovereignty

Greyhound Flashpoint – India generates 20% of global data yet contributes only 3% to global data centre capacity. This imbalance is not merely spatial—it’s systemic. The emergence of indigenously developed Coolant Distribution Units (CDUs) for Direct-to-Chip Liquid Cooling signals a strategic pivot. According to the Greyhound CIO Pulse 2025, 68% of Indian CIOs now list “supply chain sovereignty” as a top-three infrastructure priority. With thermal management becoming critical to high-density AI compute, domestic CDU innovation could reposition India from a market of scale to a source of core capability in the global data centre ecosystem.

Greyhound Standpoint – According to Greyhound Research, domestic CDU innovation is a defining moment in India’s transition from data centre host to technology co-creator. Until now, cooling subsystems—especially those enabling liquid-cooled AI and HPC—were predominantly imported and misaligned with India’s unique climate, compliance, and cost constraints. Local development changes that equation. This is not about isolationism, but intelligent interdependence. By controlling thermal design and integration, Indian data centre operators gain leverage in both uptime assurance and architectural customisation. Such sovereignty adds weight to India’s participation in the global supply chain—not just as capacity, but as capability.

Greyhound Pulse – Per Greyhound CIO Pulse 2025, 74% of Indian infrastructure leaders cited thermal management as a top-three constraint in scaling AI workloads. Over 60% expressed discomfort with being tied to foreign cooling providers for mission-critical infrastructure. This discomfort stems from supply variability, delayed component servicing, and lack of local support. Indigenous CDU offerings have the potential to address these pain points by reducing import friction, improving deployment timelines, and ensuring alignment with India’s regulatory and operational contexts.

Greyhound Fieldnote – Per a recent Greyhound Fieldnote from an advisory engagement with a major real estate-led data centre consortium in India, the CIOs involved voiced recurring concerns about delays in procuring cooling hardware from international vendors. In one instance, a delivery misalignment created cascading effects across power planning, BMS integration, and workload migration schedules. The group has since commissioned an audit to explore domestically engineered alternatives—not only to cut delays but to reduce total lifecycle cost and increase thermal resilience in tropical zones. Across similar discussions with BFSI and manufacturing clients, we are observing a growing preference for components that are locally serviceable and adaptable to sector-specific cooling profiles.

Local Cooling Innovation Is Central to Closing India’s Data Capacity Deficit

Greyhound Flashpoint – India is now the world’s largest generator of data but remains drastically under-provisioned when it comes to physical data infrastructure. The 20% share of global data generation against a mere 3% of global capacity is a critical mismatch. Localised cooling innovation—especially for AI-grade infrastructure—is essential. According to Greyhound Infrastructure Pulse 2025, nearly 60% of new data centre investments in India are in high-temperature zones where traditional imported cooling solutions struggle with efficiency and integration. Indigenous CDUs could unlock deployment at pace and scale, especially in Tier-2 and Tier-3 cities.

Greyhound Standpoint – According to Greyhound Research, India’s data centre build-out is no longer constrained by land or power alone—thermal readiness is emerging as a decisive factor. Cooling must move from being a post-design function to a co-equal design partner in AI-ready architectures. Home-grown CDU systems help operators move faster, reduce capex variability, and meet ESG goals tied to energy intensity. More importantly, they enable local operators to design for contextual realities—unreliable grids, urban heat zones, and varied uptime requirements. Local thermal innovation could become the bedrock of India’s next wave of data capacity growth.

Greyhound Pulse – According to Greyhound Infrastructure Pulse 2025, 67% of surveyed Indian data centre leaders cited cooling inefficiencies as a critical factor limiting their ability to support AI and high-density GPU workloads. Operators in high-humidity and heat-prone zones such as Telangana, Gujarat, and Tamil Nadu are facing frequent load adjustments due to thermal overreach. 54% of respondents said they are now actively exploring modular, locally-engineered thermal subsystems to better align with energy usage constraints and sustainability mandates.

Greyhound Fieldnote – Per a Greyhound Fieldnote from a government infrastructure advisory in India’s eastern corridor, multiple projects faced pushback due to cooling system failures during pilot AI load testing. Imported CDU systems, while technically sound, failed to deliver consistent efficiency due to mismatches in fluid standards and site conditions. This triggered unplanned retrofitting and substantial project delays. In other engagements with telecom and pharma clients in semi-urban belts, we’ve seen increased willingness to pilot domestic thermal solutions that promise reduced downtime, easier maintenance cycles, and better compatibility with local energy infrastructure. These efforts reflect a pragmatic turn toward regionalised innovation.

Domestic CDU Manufacturing to Disrupt Pricing and Liquid Cooling Supply Chains in India

Greyhound Flashpoint – Cooling hardware, particularly for liquid-based systems, has traditionally been the costliest and least responsive part of India’s data centre buildout. Domestic CDU manufacturing could alter this equation significantly. Per Greyhound CIO Pulse 2025, 64% of Indian CIOs expect to re-evaluate cooling vendor contracts in 2025, citing both price and supply risk. With domestic CDUs poised to offer lower TCO and reduced import delays, India could see a reshaping of thermal procurement strategies and a democratisation of liquid cooling beyond top-tier hyperscale operators.

Greyhound Standpoint – According to Greyhound Research, a local CDU ecosystem offers more than cost arbitrage—it provides strategic optionality. The legacy cooling supply chain has long been marked by high costs, limited competition, and dependency on international shipping and servicing cycles. Indian enterprises have historically lacked the leverage to negotiate pricing or design customisation. Domestic manufacturing resets the terms. It encourages modularity, local support, and accelerated deployment—all of which are critical for smaller operators who were previously priced out of advanced thermal solutions. Over time, this could enable greater localisation of AI infrastructure, especially in sectors like logistics, agritech, and government services.

Greyhound Pulse – Greyhound CIO Pulse 2025 reports that 58% of Indian data centre operators experienced project delays of 8–12 weeks due to cooling component procurement bottlenecks, with associated costs often exceeding 15% of planned infrastructure budgets. Among mid-sized operators, 44% said they would switch to a domestic vendor if they received SLA assurance and comparable component interoperability. There is strong demand for pricing flexibility, field-servicing capabilities, and transparent spares availability—areas where local providers can differentiate.

Greyhound Fieldnote – In multiple Greyhound Fieldnotes from recent data infrastructure workshops with CIOs in southern and western India, operators shared recurring frustrations around bundled servicing contracts with overseas liquid cooling vendors. These contracts often tied hardware procurement to premium support plans that were expensive and inflexible. In one discussion with a co-location player serving mid-market financial clients, it was revealed that lack of local spare part availability resulted in three SLA breaches within a single quarter—damaging customer trust. These cumulative pressures are now motivating buyers to seek local alternatives that offer decoupled pricing, faster turnaround, and adaptive design for mixed-load environments.

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