U.S. data centers use an estimated 17 billion to 19 billion gallons of water each year to cool high-temperature chips, according to the Water Foundation. That figure is expected to triple over the next five years, increasing pressure on operators and investors to reduce water consumption as AI infrastructure expands.
Omen AI, founded in 2024, is developing real-time sensors designed to identify problems in data center cooling systems, including failing valves and bacterial growth that could restrict water flow. The company has now agreed to acquire competitor Aquatic Labs for $16 million in cash and stock, following Omen’s $31 million Series A funding round in June.
The two startups developed complementary technologies. Omen’s sensors detect elements in water, while Aquatic Labs’ technology measures alkalinity. Combining the systems is intended to provide a more detailed view of cooling fluids and replace a testing process that currently requires samples to be sent to laboratories, often taking several days.
Aquatic Labs CEO Allan Adams will become Omen’s chief science officer. The combined teams are working to integrate both technologies into a single sensor, which they expect to bring to market by early next year.
Omen says its initial sensors will monitor chips using between 250 and 300 megawatts of power by the end of the year. Laberge told TechCrunch that this equipment represents an estimated $5 billion to $7 billion in value, while the company hopes to reach the equivalent of 1 gigawatt of chips by the end of 2027.
The companies say real-time monitoring could help operators keep using cooling fluids for longer. When fluid quality deteriorates, data centers commonly discard the water to avoid damaging expensive equipment, potentially forcing operations to stop until the system is restored. Monitoring is intended to reduce those interruptions and limit cleanup costs.
Adams also sees potential applications beyond data centers, including the management of water before it enters a facility and after it is discharged into municipal systems. He said measuring the fluid throughout that process is necessary to make it safer and more responsible.
Omen’s founder Zach Laberge said the company is focused on data centers that are already operating or being built, rather than projects that may be affected by changing investor sentiment toward AI infrastructure. In his view, demand for the market remains significant even if projected spending on AI infrastructure is reduced.
Sources: TechCrunch.