Tecogen Launches Hybrid Chiller to Boost Data Center AI Capacity

Tecogen has launched its TECOCHILL Hybrid-Drive Chiller into the data center market, positioning the system as a potential breakthrough for facilities struggling with soaring AI power demands. The system, capable of running on electricity, natural gas, or both, promises to free up valuable grid capacity by shifting cooling loads away from electricity during peak demand – a move that could give operators back as much as 30% of their available power for IT workloads.

The announcement comes at a critical time for the industry. Cooling has long been one of the largest drains on resources, often consuming nearly a third of a data center’s total power. With new AI chips such as NVIDIA’s Blackwell doubling electricity requirements per processor, operators are searching for ways to scale computing capacity without overburdening already stressed grids. Tecogen’s hybrid approach aims to turn cooling from a fixed cost into a performance advantage.

By dynamically switching between natural gas and electricity, the chiller helps optimize for both efficiency and resiliency. During off-peak times, it runs as a high-efficiency electric chiller, while at peak load it transfers demand to natural gas, cutting grid dependency and operational costs. In the event of a utility outage, the dual-fuel design ensures uninterrupted cooling, reducing the need for oversized backup generators and additional chilled-water storage.

Scalable Configurations

“We designed our solution with operators’ realities in mind,” said Tecogen CEO Abinand Rangesh. “With the Blackwell chip doubling power needs per chip, the last thing operators need is for their electric chillers to eat 30% of their available power.”

The potential benefits extend beyond resilience. Natural gas is often significantly cheaper per energy unit than electricity, offering data center operators a clear path to reducing long-term costs. Tecogen is offering scalable configurations, including 1MW air-cooled units that eliminate cooling towers and water-cooled systems up to 1.5MW, giving operators flexibility to add capacity without major grid upgrades.

As AI workloads intensify and sustainability pressures mount, the balance between efficiency and resiliency is becoming a decisive factor for operators. Tecogen’s bet is that hybrid-powered cooling can deliver both – unlocking capacity, lowering expenses, and easing reliance on increasingly constrained power infrastructure.