Introduction
In summer 2024, TDK Ventures discussed that 40% of energy consumption in data centers comes from cooling power-hungry advanced computing chips [1]. The trends we highlighted continue to persist. The energy consumption of US data centers alone is expected to increase as much as 10% in the next few years and more than double in the next decade. This increase is fueled by the acceleration of cloud and edge computing, and the meteoric rise of AI and AI-based tools [2]. As such, data centers will likely top 4% of total energy consumption.
Figure 1. (Left) Data center power consumption in gigawatts. (Right) Transistor count on CPUs and GPUS, Northeastern University.
The crux of the cooling issue is a limit in how effective standard practice can keep pace with growing progressive technologies. Current standards in data centers — operating at 8–10 kW/rack — utilize air cooling, which has an upper-limit effectiveness of 20 kW/rack. As the number of transistor count increases, the amount of heat it generates dramatically increases and is trending toward 100kW+/rack for the new generation of GPUs. These smaller transistors become more sensitive to high temperatures, and the junction temperature must be kept low with a thermal-management solution to ensure chip reliability. To keep pace, the transition to liquid cooling prevalence is inevitable.
In short, a transition to liquid cooling is not a question of “if”, but rather “how quickly” [3].
Thermal interface materials (TIMs) play an important role in enhancing the heat transfer from chip die to the heat sink. They conduct heat and fill any microscopic air gaps or surface roughness that would otherwise act as thermal insulators blocking the heat transfer. As shown in Figure 2, TIM I transfers heat from die to chip packaging or lid, while TIM II dissipates heat from chip packaging into external heat sink. Choices of TIM I and TIM II materials include thermal grease, paste, phase-change materials, solder, metallic TIMs, graphite sheets, etc.
Figure 2. Schematic outlining the heat-transfer process from a chip through thermal interface materials to the heat sink — air or liquid.
While not subject to the same ~20 kW limit as air cooling, a switch to liquid cooling does bring its own bottleneck: thermal interface material (TIM), i.e. the interface material facilitating transfer of heat from the chip to the heat sink (liquid or otherwise). For an air-cooled system, TIMs play a fairly minor role as most of the thermal resistance for the heat transfer is dominated by the thermal resistance from air itself. However, when switching to liquid-cooled systems, thermal resistance from TIMs will become a critical bottleneck to the total heat transfer performance [4, 5].
Therefore, our investment thesis is to identify a King of the Hill in the area of TIM development, based on the following key performance indicators (KPIs). Technical and product KPIs include high thermal conductivity (>50 W/m-K) and low thermal resistance (<1 mm²K/W), ensuring the material remains stable up to thousands of testing cycles. Additionally, the material must exhibit high surface conformability to fill microscopic gaps between heat-transfer surfaces and high workability, making it easy to dispense and handle, which is crucial for production and serviceability. Cost-effectiveness is also a key factor for the commercial competitiveness in the long run. To achieve cost-parity with incumbent materials, the new TIM solutions must be made of cheap raw materials using a highly scalable and high-throughput continuous manufacturing process.
NovoLINC: The “King of the Hill” in Thermal Interface Materials
After thorough research and analysis, TDK Ventures is proud to partner with NovoLINC, a company that we believe embodies the characteristics of a “King of the Hill” in the field of advanced thermal interface materials. Headquartered in Pittsburgh, PA, NovoLINC stands at the forefront of TIM innovation, driven by a team of experts in materials science and heat transfer, who understand the urgent need for efficient, scalable, and cost-effective cooling solutions in data centers and high-performance computing. NovoLINC’s technology meets the demanding KPIs for high thermal conductivity, low thermal resistance, high mechanical compliance, and product lifetime as shown in Table 1.
Table 1. Typical thermal resistance values of various Thermal Interface Materials
Traditional TIM solutions typically consist of greases, pressure granular compounds, tapes, or pads. These materials provide a spatial buffer to facilitate thermal gradients and scatter pathways, extending the distance over which heat must travel. While functional, the heterogeneous nature of these traditional solutions has limited control and regulation capability in how heat is distributed. NovoLINC’s thermal interface material technology is built on a foundation of vertically aligned copper nanostructures, a central heat spreader, and a thermal bridge material offering superior thermal conductivity that enables heat to transfer both vertically and horizontally across the TIM.
This structure significantly reduces thermal resistance, achieving values below 1 mm²K/W — an impressive improvement over conventional TIMs, which typically range from 10 to 200 mm²K/W. Such performance positions NovoLINC’s TIMs as ideal solutions for high-density applications, where the efficient management of heat is paramount.
Figure 3. Schematic and microscopic images of the NovoLINC’s thermal interface material.
In addition to developing an innovative TIM solution, what sets NovoLINC apart is its use of a proprietary continuous manufacturing process, allowing for scalable, high-quality production at a competitive cost. This innovative approach leverages commonly used metal-based manufacturing to create continuous sheets of TIM material that retain their high-thermal conductivity and mechanical compliance. The ability to scale production efficiently makes NovoLINC’s TIM not only technically superior, but also commercially viable, providing an economical solution for data centers and chip manufacturers facing rising cooling demands.
NovoLINC is led by a team with extensive experience in both the technical and commercial aspects of advanced materials development and deployment. Co-founder and CEO Dr. Ning Li brings nearly two decades of deep tech research, product development and commercialization from Seagate Technology, combined with her background as a serial entrepreneur. Meanwhile, co-founder and Chief Scientific Officer Dr. Sheng Shen, a professor at Carnegie Mellon University, is a world-class expert with over a decade of research in nanoscale energy transport and thermal-management materials. Co-founder Dr. Rui Cheng was a postdoctoral researcher at CMU with Prof. Shen and a CMU innovation fellow.
The team’s combined expertise, coupled with strategic partnerships through the ARPA-E COOLERCHIPS program with industry giants, provide NovoLINC with a robust foundation for rapid growth and adoption. Their deep understanding of market needs and technical challenges enables them to create a product that not only addresses current issues in TIM technology but also anticipates future requirements for data center cooling and high-performance computing.
Why We Invested in NovoLINC
At TDK Ventures, our mission is to support pioneering technologies that drive both digital and energy transformation, creating a positive impact on society and the environment. As global demand for computing power continues to rise, data centers have become an essential backbone of the digital economy. Yet, these data centers are also significant energy consumers with cooling alone accounting for up to 40% of their energy usage. With predictions that data center power consumption will more than double over the next decade, finding sustainable cooling solutions is imperative for both operational efficiency and environmental responsibility. Our investment in NovoLINC is driven by the company’s innovative approach to thermal interface solutions and its potential to revolutionize data center cooling.
In summary, NovoLINC’s thermal interface solutions stand out from the crowd on many levels:
- King-of-the-Hill performance: As data centers transition from air to liquid cooling to manage the increased heat generated by densely packed, high-performance chips, traditional TIM solutions have proven inadequate. NovoLINC’s TIM, with its unique design of vertically aligned copper nanostructures, a central heat spreader, and a thermal bridge, provides a groundbreaking alternative. By efficiently conducting heat both vertically and horizontally, NovoLINC’s TIM significantly reduces thermal resistance — achieving values below 1 mm²K/W compared to the 10–200 mm²K/W range typical of traditional TIMs.
- Scalable, cost-effective manufacturing: With its roll-to-roll manufacturing process utilizing abundant copper material, NovoLINC is positioned to be a cost-competitive and scalable manufacturer for thermal interface solutions. This enables rapid acceleration to market, meeting future demands as the AI industry continues its explosive growth while shifting towards liquid cooling.
- Strategic alignment: Investing in NovoLINC aligns perfectly with TDK Ventures’ commitment to both energy and digital transformation. As data centers are projected to reach 4% of global energy consumption, improving cooling efficiency directly contributes to reducing their environmental impact. NovoLINC’s TIM technology supports this goal by enabling liquid cooling systems to operate at peak efficiency, thereby lowering the overall energy footprint of data centers. In doing so, NovoLINC contributes to a more sustainable digital infrastructure, where technological advancements do not come at the cost of excessive energy consumption.
Furthermore, we believe that NovoLINC’s technology will have applications beyond data centers. As TIM is also critical for cooling high-value components such as semiconductor chips, telecom equipment, and batteries, NovoLINC is well-positioned to capture a broader market, supporting energy transformation across various industries. The growing demand for effective thermal management solutions will likely extend to electric vehicles, industrial electronics, and other high-power applications, creating additional opportunities for NovoLINC’s technology.
Through our partnership with NovoLINC, we aim to accelerate the adoption of sustainable TIM solutions in the data center industry and beyond. The NovoLINC team brings a unique blend of technical expertise, industry experience, and a vision aligned with our own to drive progress while fostering environmental stewardship. We are excited to support NovoLINC in its journey and look forward to the impact its innovative TIM technology will have on the future of digital and energy transformation.
References:
[1] https://spectrum.ieee.org/data-center-cooling
[3] https://www.datacenterdynamics.com/en/news/us-data-center-power-consumption/
[4] https://semiengineering.com/hot-trends-in-semiconductor-thermal-management/
[5] YoungDo Kweon, “High Performance TIM for Lidded FCBGA Products” presentation, Amkor Technology.
[6] Wei B, Luo W, Du J, et al. Thermal interface materials: From fundamental research to applications. SusMat. 2024; 4:e239. https://doi.org/10.1002/sus2.239
[7] Jing L, Cheng R, et al. High Thermal Conductivity of Sandwich-Structured Flexible Thermal Interface Materials. Small. 2023 Mar;19(11):e2207015. doi: 10.1002/smll.202207015. Epub 2023 Jan 15. PMID: 36642828.
