Carrier Ventures is investing in Strategic Thermal Labs (STL) to develop a liquid cooling solution.

The venture arm of Carrier Global Corporation, a company focusing on climate and energy solutions, is working on a direct-to-chip cooling solution with STL, a heat research and development company based in Austin, Texas.

The terms of the deal were not shared, but the financial investment will also see Carrier receiving a board seat in STL as well as exclusivity for the solution - specific details about which have not been made public.

"Direct-to-chip liquid cooling is significantly more efficient than traditional cooling methods and critical to data centers of the future as AI and other technologies continue to fuel the global demand for high-density computing," said Ajay Agrawal, SVP of global services, business development & chief strategy officer, Carrier.

Austin Shelnutt, president of STL added: "Data center power consumption is surging at unprecedented rates with a significant portion of that power increase belonging to inefficient cooling technology. The world needs highly innovative cooling solutions that can enable the next generation of computer infrastructure while using far less energy in the process."

The investment in STL is part of Carriers 2030 Environmental, Social, and Governance (ESG) goal to help customers avoid more than 1 gigaton of greenhouse gas emissions. In order to achieve that, the company said it would invest more than $2bn in that time frame into intelligence climate and energy solutions.

Carrier previously acquired Nlyte, a data center infrastructure management (DCIM) software provider, in 2021.