Data Centers Fuel Opportunities for Lubricant Manufacturers and Marketers
By Thomas Glenn, JobbersWorld
While lubricant demand has declined in recent years in sectors such as consumer automotive and some traditional manufacturing due to improved efficiencies and electrification, the rapid growth of energy-intensive industries is opening new opportunities for lubricant manufacturers and marketers.
The global expansion of data centers—fueled by the explosive growth of artificial intelligence, cloud computing, and ultra-fast connectivity—is not only reshaping the digital landscape, but also creating a surge in global energy consumption. This accelerating demand is opening new and high-value opportunities for lubricant manufacturers and marketers prepared to meet the technical and operational challenges of this evolving sector.
According to industry projections, data centers could account for as much as 8% of global electricity consumption by 2030, fueled by hyperscale projects and the ever-growing appetite for digital services. This spike in energy needs is spurring rapid development of gas-fired power plants, wind farms, and backup diesel generators, all of which depend on high-performance lubricants to keep critical equipment running smoothly. From turbines and compressors to transformers and engines, specialized oils and greases are essential to ensure reliability under intense, round-the-clock conditions.
A key opportunity lies in turbine oils, which must not only withstand high-temperature oxidation but also address varnish mitigation—a critical challenge in modern turbine systems. Varnish, a sticky residue formed from oil degradation, can impair equipment performance and lead to costly downtime. Advanced turbine oil formulations with enhanced thermal stability and anti-varnish additives are increasingly in demand to prevent varnish buildup and maintain efficiency. Chevron, a leader in this space, offers its GST Advantage™ with VARTECH™ Technology turbine oils, formulated with Group II base oils and advanced additives to reduce oil degradation and inhibit varnish precursors, ensuring long-term equipment reliability. Additionally, for systems already affected, specialized varnish removal products and services—such as Chevron’s VARTECH™ Industrial System Cleaner (ISC), which dissolves existing varnish into sub-micron particles for removal during oil changes, and complementary filtration systems—are gaining traction.
Lubricant distributors are also stepping up, offering varnish mitigation solutions to enhance equipment longevity. For example, RelaDyne’s patented Varnish Mitigation solutions provide varnish removal services using advanced filtration technologies and chemical cleaners, alongside condition monitoring programs, to address existing varnish deposits and prevent future buildup in critical systems. These solutions help restore equipment performance and extend maintenance intervals in data center power generation. Similarly, engine oils engineered for longer drain intervals are becoming vital as power demands escalate.
Another cutting-edge innovation—oil-based immersion cooling—is gaining ground as a game-changer for data center efficiency. By submerging servers in dielectric fluids, typically synthetic or mineral oil-based, this method slashes cooling energy costs and extends hardware lifespans. Unlike traditional air cooling, which requires energy-intensive fans and complex HVAC systems, or water-based cooling, which carries risks of leaks and corrosion, oil immersion cooling offers superior thermal conductivity and uniform heat dissipation. Its non-conductive nature ensures safety for sensitive electronics, while its simplicity reduces maintenance needs and environmental impact, making it a preferred choice for next-generation data centers. For lubricant and base oil producers, immersion cooling is a high-tech, high-margin market ripe for growth. Major oil companies already supplying oils for immersion cooling include ExxonMobil, Shell, BP Castrol, Gulf Oil, ENEOS, Petronas, and SK Enmove, with products like ExxonMobil’s dielectric liquids, Shell’s GTL-based fluids, and Castrol’s ON DC 15 and DC 20 formulations leading the charge.
To capitalize on these opportunities, lubricant suppliers must go beyond off-the-shelf products. Those offering advanced formulations, including varnish-resistant turbine oils like Chevron’s GST Advantage, varnish removal solutions like VARTECH ISC, and immersion cooling fluids, paired with services like condition monitoring, fluid analytics, and predictive maintenance, will stand out. Distributors have an opportunity to grow in this market by forging strong partnerships with major oil companies already connected to tech giants and infrastructure firms. These collaborations can unlock access to key accounts, allowing distributors to deliver customized solutions, such as varnish mitigation services, and hands-on technical support backed by the expertise of their branded suppliers.
As the worlds of energy and digital infrastructure converge, the lubricant industry is poised for a pivotal role in powering the data-driven future. Success will hinge on speed, innovation, and strategic alliances in this rapidly evolving landscape.