"Karman Industries: Cooling the AI Revolution with Rocket Science"
Karman Industries: Pioneering Sustainable Cooling Solutions for the AI Era
Signal Hill, CA — As the artificial intelligence (AI) industry accelerates, the demand for efficient data centers has surged, prompting Karman Industries to introduce a groundbreaking cooling system designed to mitigate the environmental impact of these facilities. Leveraging technology inspired by SpaceX rocket engines, Karman aims to revolutionize data center cooling by using less space, less power, and no water.
Innovative Technology and Funding
Recently, Karman Industries secured $20 million in funding, bringing its total capital raised to over $30 million. This financial boost will support the construction of its first compressors in Long Beach, California, slated to begin later this year. “Our high-level thesis is we could build the best compressor out there using the latest and greatest technology,” stated David Tearse, CEO of Karman. The company’s mission is to significantly reduce the electrical consumption associated with cooling, thereby enhancing the efficiency of high-performance chips that power AI applications.
The Cooling Challenge
High-end chips, essential for AI processing, can overheat, reaching temperatures exceeding 200 degrees Fahrenheit. To function optimally, they must be kept below 150 degrees. Traditional cooling methods, such as air conditioning and liquid cooling systems, often require extensive infrastructure and substantial water resources. For instance, a single data center can consume as much water as a city of 50,000 people, while cooling systems account for up to 40% of a data center’s total power consumption.
As AI technologies evolve, data centers are becoming increasingly dense, necessitating more robust cooling solutions. Tearse remarked, “It’s kind of a losing battle, especially when you keep densifying your chips.” The average midsized data center consumes over 35,000 gallons of water daily, leading to growing concerns about sustainability and resource management.
Karman’s Revolutionary Approach
Karman’s cooling system employs a method akin to household heat pumps but utilizes liquid carbon dioxide as a refrigerant. This innovative approach circulates the refrigerant using rocket engine technology instead of conventional fans, allowing for an 80% reduction in the space required for cooling equipment. The company’s rotating compressor operates at an impressive 30,000 revolutions per minute—nearly ten times faster than traditional compressors—facilitating efficient heat transfer.
Chiranjeev Kalra, co-founder and CTO, noted that advancements in automotive technology have made it possible to achieve these high speeds. “Three or four years ago, it was very challenging to do just because the motors didn’t exist,” he explained.
The system’s unique design allows it to transfer heat from data centers to the outside air using high-pressure carbon dioxide, achieving the same cooling effect with less than half the energy consumption compared to traditional methods. Notably, Karman’s system does not require water, making it particularly advantageous for data centers located in arid regions like Texas and Arizona, where conventional cooling systems often struggle.
Market Implications and Future Prospects
The data center cooling market is projected to grow from approximately $11 billion in 2025 to nearly $25 billion by 2032. As communities across the U.S. express concerns about the energy and water demands of data centers, Karman’s innovative solutions could play a crucial role in addressing these challenges. The International Energy Agency predicts that U.S. data centers will consume about 8% of the nation’s electricity by 2030, highlighting the urgent need for sustainable cooling technologies.
Major tech companies are also investing heavily in energy-efficient solutions. Microsoft, for example, has announced a new data center design that utilizes zero water for cooling, committing to ensure that its operations do not negatively impact local communities.
Karman’s latest funding round included participation from notable investors such as Riot Venture, Sunflower Capital, Space VC, and former Intel and VMware CEO Pat Gelsinger. The company plans to begin customer deliveries in the summer of 2026 from its Los Angeles manufacturing facility, with an initial production capacity of 100 units per year and plans to eventually quadruple that capacity.
If successful, Karman Industries could disrupt the market share of established players like Trane Technologies and Schneider Electric, positioning itself as a leader in the next generation of data center cooling solutions.
As the AI industry continues to expand, Karman’s innovative approach to cooling may not only enhance operational efficiency but also pave the way for a more sustainable future in data management.