This article highlights the advantages of on-chip microchannel cooling technology, based on first-and second-law analysis and experimental tests on two types of cooling cycles, the first driven by an oil-free liquid pump and the second by an oil-free vapor compressor. The analysis showed that the drivers of the fluid were the main culprits for major losses. It was further found that when energy recovery is of importance, making use of a vapor compression cycle increases the quality of the recovered energy, hence increasing its value. This was demonstrated by analyzing the synergy that can exist between the waste heat of a data center and heat reuse by a coal-fired power plant. It was found that power-plant efficiencies can be increased by up to 6.5% by making use of a vapor compression cycle, which results not only in significant monetary savings, but also in the reduced overall carbon footprints of both the data center and the power plant.