The present invention relates to a cooling system and method for regulating environmental conditions of a racked server unit having a plurality of server modules. The system comprises of an inlet line connected to a plurality of circulation conduits, wherein the plurality of circulation conduits receive a cooling medium from the inlet line, and the circulation conduits circulates the cooling medium through the racked server unit. A plurality of cold plates are positioned within the racked server unit, wherein one or more of the plurality of cold plates are thermally coupled to each of the plurality of server modules, and the plurality of cold plates are connected to one or more of the plurality of circulation conduits. An outlet line is connected to the plurality of circulation conduits, wherein the outlet line receives the cooling medium circulated through the racked server unit from the plurality of circulation conduits. A heat exchanger comprising a hot plate element, a cold plate element, and a thereto-osmotic membrane positioned between the hot plate element and the cold plate element, wherein the outlet line transfers the cooling medium circulated through the racked server unit to the hot plate element and the temperature of the cooling medium facing the hot plate element is regulated by transfer of heat from the cooling medium facing the hot plate element through the thereto-osmotic membrane to the hot plate element.