Why Data Centers Are Becoming America's New Industrial Backbone w/ Tom Sullivan of Air2O - AZ TRT S07 EP09 (291) 6-14-2026

Why Data Centers Are Becoming America's New Industrial Backbone w/ Tom Sullivan of Air2O

- AZ TRT S07 EP09 (291) 6-14-2026

What We Learned This Week

1. AI Is Creating One of the Largest Infrastructure Booms in History

The AI revolution isn't just software. It requires:

• physical buildings
• massive electrical systems
• cooling infrastructure
• energy innovation

The data center buildout may become one of the biggest infrastructure projects ever undertaken.

2. Cooling Technology Is Becoming Just as Important as Computing Power

The future winners in AI may not only be software companies. Engineering and thermal management firms could become critical infrastructure players.

Cooling is no longer an afterthought:

it's now central to AI scalability.

3. Arizona Is Quietly Becoming a Strategic Technology Hub

Arizona's:

• land
• climate
• business environment
• power infrastructure are making it increasingly attractive for:
• semiconductors
• data centers
• advanced manufacturing

Phoenix continues evolving into a major technology corridor.

4. Many Public Narratives Around Data Centers Are Outdated

The perception that modern data centers waste massive amounts of water may no longer reflect reality.

Modern facilities:

• increasingly use closed-loop systems
• focus on efficiency
• consume more electricity than water

The real long-term challenge may actually be:

grid power generation.

5. Nuclear Energy May Return Through AI Demand

AI could accelerate adoption of:

• SMRs
• localized nuclear power
• next-generation energy systems

Technology growth may revive public discussions around nuclear power in ways not seen in decades.

Guest: Tom Sullivan, CEO & Co-Founder of Air2o

LinkedIn: https://www.linkedin.com/in/tom-sullivan-491706b4/

Bio:

Tom is a seasoned leader with a diverse background, rooted in military service and later refined in the civilian sector. Commencing his professional journey in 2007 with enlistment in the British Army. Graduating from the Military College of Leadership & Development in Harrogate, he went on to pursue advanced studies in Electrical Engineering at the Military College of Electronic & Aeronautical Engineering.

His operational deployments, spanning both peace and wartime roles, equipped him with invaluable experience. Tom served as a pivotal military liaison to civilian weapons development contractors, specializing in diverse missile platforms, including ground-to-air and ground-to-ground systems.

Recognition for his exceptional service came as he was awarded a Commander's Commendation for his work on a mission-critical system and process development project he led in Afghanistan. Beyond the battlefield, Tom further underlined his pursuit of excellence and commitment to professional development by achieving accreditation by the Institute of Leadership and Management (ILM).

In 2014, Tom brought his wealth of experience to the fledgling startup Air2O, joining the three-person company as the Operations and Project Management Lead. His role evolved, culminating in his appointment as Chief Operating Officer in 2020. In this capacity, Tom led a management team responsible for the development and implementation of foundational processes and routines, encompassing HR, recruitment, retention, IT management, Health and Safety, and Vendor management.

Under Tom's operational guidance, Air2O witnessed substantial growth, expanding from a modest three-person team in 2014 to a multinational workforce of over 100 employees across four countries today. His initiatives included implementing modern Quality Management Systems (QMS) and Project Management (PM) techniques, culminating in the recent ISO 9001 company accreditation with zero non-conformances reported during external assessment.

Website: https://air2o.com/

Air2O is a global leader in advanced thermal management solutions to the mission critical environments of Data Centers, Indoor Agriculture/Cultivation and large Industrial Facilities such as Lithium Battery and Semi-Conductor production globally. With custom build capabilities, a culture of creative engineers and an infrastructure to support the manufacture of the most innovative of solutions, Air2O aims to deliver the most efficient and optimal solutions for our clients globally.

Air2O is an Eren Groupe company, a multi billion organization based in Luxembourg whose mission is to support innovative technological solutions in the fields of renewable energy production, energy conservation and energy storage. Together, we deliver a unique solution for highly efficient, ecologically sound thermal management systems that can be deployed cost-effectively in the most demanding environments.

Our reach spans North America, EMEA, and Asia Pacific, emphasizing custom-engineered solutions prioritizing efficiency and sustainability. We stand proud as Arizona's exclusive low dew point HVACD system manufacturer.

About Air20

Company Focus

"Thermal Management Without Compromise"

Industries served:

• data centers
• semiconductors
• pharmaceuticals
• healthcare
• lithium industry

Growth Story

• 3 employees in 2017
• 150+ employees today
• rapid scaling after COVID
• fueled by VC and private equity investment

Episode Theme

The future of data centers, cooling technology, AI infrastructure, and why Arizona has become a major hub for next-generation digital infrastructure.

Segment 1 — What Data Centers Really Are

Core Concepts

• Data centers have existed for more than 30 years, but the explosion of:
• the Internet
• cloud computing
• smartphones
• AI has dramatically increased demand.
• Society now depends on massive amounts of digital infrastructure to support:
• computers
• cell phones
• cloud applications
• AI processing
• streaming
• business systems
• Tom Sullivan predicts that within a few years:

40–50% of the population may live within 5 miles of a data center.

What a Data Center Looks Like

• Usually located in industrial areas
• Large buildings with few or no windows
• Inside are:
• server racks
• data halls
• GPUs
• backup batteries
• power systems
• cooling infrastructure

The Biggest Challenge: Heat

• Servers consume enormous electricity and generate significant heat.
• Cooling systems can account for:

roughly 30% of a data center's electricity usage.

Evolution of Cooling

Traditional Cooling

• Similar to a computer fan system
• Cool air pushed in, hot air pulled out
• Older facilities maintained temperatures around 72°F

Modern Efficiency

• Newer facilities can safely operate in the 90°F range.

Immersion Cooling

• Servers submerged in special cooling fluid (not water)
• Highly efficient but:
• expensive
• difficult to maintain
• operationally complex

Direct-to-Chip Cooling

• Emerging next-generation solution
• Liquid cooling piped directly to processor chips
• More efficient and scalable for AI workloads

Segment 2 — The AI Infrastructure Boom

Why Cooling Matters More Now

AI workloads require:

• far more computing power
• denser server environments
• advanced thermal management

Cooling Technology Timeline

• Immersion cooling gained momentum around 2020
• Direct-to-chip cooling accelerated around 2023

Historic Infrastructure Buildout

Tom discussed the scale of current infrastructure spending:

• Estimated global data center infrastructure investment:

$7 trillion

Comparisons:

• 12x the U.S. roadway network cost
• 23x the Apollo moon mission cost

Who Is Investing?

Major technology companies are driving this expansion:

• Microsoft
• Amazon
• NVIDIA

Investment areas include:

• data centers
• utilities
• energy
• construction
• AI infrastructure

Air20 Company Background

Origins

• Started in 2012 as a part-time engineering company
• Specialized in:
• thermal management
• data centers
• semiconductor facilities
• pharmaceuticals
• healthcare engineering

Founder Background

• Tom Sullivan:
• former military electrical engineer
• 10 years military experience
• entrepreneur with deep engineering expertise

Company Growth

• In 2017:
• connected with venture capital in Scottsdale
• moved operations to Arizona
• expanded manufacturing and engineering

Current Capabilities

Air20 now handles:

• engineering
• software
• programming
• manufacturing
• construction coordination

Cooling systems can range from:

• $50,000 units
• to $1 million+ systems

Private Equity

• Company was eventually acquired by private equity
• Significant scaling followed VC and PE investment

Segment 3 — Why Arizona Became a Data Center Hub

Arizona Advantages

Tom explained why Arizona attracts major data center investment:

Business Climate

• business-friendly environment
• attractive economics
• supportive infrastructure

Geography

• flat land
• affordable real estate
• low natural disaster risk

Climate

• predictable weather conditions
• strong operational reliability

Debunking the "Water Usage" Myth

A major discussion centered around misconceptions about data centers and water consumption.

Historical Cooling

Older evaporative cooling systems:

• used more water
• used less electricity

Modern Systems

Current systems:

• use more power
• use significantly less water

Closed Loop Cooling

Modern cooling systems circulate water through:

• sealed piping systems
• closed-loop infrastructure

This minimizes water loss.

Bigger Water Users

Tom pointed out:

• electric generation plants
• steam turbines
• nuclear facilities often use far more water than data centers themselves.

Massive Power Consumption

Data centers now operate at unprecedented scale.

Power progression:

• homes → kilowatts
• industrial → megawatts
• hyperscale data centers → gigawatt-level demand

One comparison:

A large data center can equal the energy usage of 833,000 homes.

Future Energy Solutions

Potential future solution:

Small Modular Reactors (SMRs)

• compact nuclear reactors
• already proven in:
• submarines
• aircraft carriers

Potential advantages:

• localized power generation
• reduced grid strain
• scalable infrastructure support

Segment 4 — Nuclear Energy & The Future

Nuclear Energy Perception

Tom discussed how technology industries often face negative PR cycles.

Modern Nuclear Technology

According to Tom:

• nuclear technology has evolved significantly
• safety standards are dramatically improved
• waste is greatly reduced
• efficiency is far higher

Small Modular Reactors (SMRs)

SMRs are now:

• being tested
• deployed experimentally
• explored for powering data centers directly

Benefits:

• smaller footprint
• scalable deployment
• less pressure on public grids
• reliable energy generation

Key Point

"The water usage myth is dead."

Larger Theme

Modern society increasingly depends on:

• digital infrastructure
• electricity
• AI computing
• cloud services

The challenge is no longer whether we need data centers. The challenge is:

how to power and cool them efficiently.

Tech Topic:

https://brt-show.libsyn.com/category/Tech-Startup-VC-Cybersecurity-Energy-Science

Best of Tech: https://brt-show.libsyn.com/size/5/?search=best+of+tech

'Best Of' Topic: https://brt-show.libsyn.com/category/Best+of+BRT

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