Telehouse Canada adds direct liquid cooling in Toronto
Thu, 14th May 2026 (Today)
Telehouse Canada has completed an infrastructure upgrade at its Toronto data centre campus, including what it describes as the first deployment of direct liquid cooling in a Canadian interconnection hub.
The project targets organisations running AI workloads that require greater power density and tighter cooling control than conventional data centre systems typically provide. The new setup supports cabinet densities of up to 120 kW per rack across the downtown Toronto metro campus.
Demand for data centre space suited to AI inference and other intensive computing tasks has risen as businesses adopt more machine learning tools. That shift is pushing operators beyond traditional air-based cooling, particularly in urban facilities where customers also want proximity to network exchanges and end users.
Telehouse said its direct liquid-to-chip system removes heat from high-power server components, reducing dependence on computer room air conditioners and server fans. According to the company, the system can remove up to 80 per cent of heat directly from those components, cutting overall energy consumption.
The cooling process uses a dedicated coolant loop linked to a cooling distribution unit. Heat collected from servers is transferred to Enwave's closed-loop district energy system, where it is repurposed to help heat Toronto's municipal drinking water rather than being released into the atmosphere.
The design also eliminates reliance on chillers during normal operations, the company said. That reduces the need for evaporative cooling and lowers water use, which Telehouse linked to improvements in both power usage effectiveness and water usage effectiveness.
AI density
The project reflects a broader shift in the data centre market as AI systems raise power demands per rack. Operators are under pressure to support higher-density installations while maintaining reliable network access, especially in city-centre locations serving customers that need low-latency connections.
Telehouse said the Toronto upgrade was designed to let customers colocate AI infrastructure within facilities already known for dense interconnection. That is significant for companies that need both computing capacity and direct access to carriers, cloud providers and enterprise networks in one location.
Canada has been trying to expand the digital infrastructure needed to support AI development and deployment, with data centre capacity becoming a more prominent issue. Projects that add cooling and power headroom in existing urban facilities can help meet part of that need without relying solely on new greenfield developments.
Telehouse also said the work had an economic impact during construction and installation, engaging about 80 skilled professionals across construction and engineering disciplines over the life of the project.
Atsushi Kubo, President and Chief Executive Officer of Telehouse Canada, linked the investment to customer demand for more intensive computing environments. "As demand for AI continues to grow, organizations need data centre infrastructure that can support increasingly complex workloads at scale," he said.
He said the upgrade would help the company meet those requirements within its existing footprint. "This upgrade strengthens our ability to meet those needs while continuing to deliver the performance and reliability our customers expect," Kubo said.
Cooling shift
Liquid cooling has gained traction in parts of the data centre sector because processors used for AI training and inference generate more heat than many legacy enterprise applications. Air cooling remains common for standard workloads, but operators serving denser hardware are increasingly assessing liquid-based methods to manage heat more directly.
For Telehouse, the introduction of direct liquid cooling also marks a shift in how an interconnection-focused site can support newer types of computing demand. Such facilities have historically prioritised connectivity, but the rise of AI is pushing them to adapt to more demanding hardware profiles.
Telehouse, part of KDDI Group, provides data centre services to carriers, cloud providers, enterprises and financial services firms. The Toronto investment adds to a growing list of infrastructure changes by operators seeking to position existing facilities for AI-related demand in dense urban markets.
The company said the heat recovery arrangement sends energy into Enwave's system through a fully isolated process to help heat Toronto's municipal drinking water.