Microsoft is making strides in data center cooling with a novel microfluidics system designed to directly cool microchips. This innovative approach involves etching tiny channels onto the back of a chip and circulating liquid coolant through them. Early tests show this method can dissipate heat up to three times more effectively than conventional cold plate solutions. The system has been successfully tested on a server running simulated Microsoft Teams core services, suggesting significant potential for boosting the performance and efficiency of future AI chips and data centers.