With the rapid development of artificial intelligence, cloud computing and other technologies, data centers have become vital facilities. In the construction and operation of data centers, how to effectively solve the problem of cooling and energy saving is the key problem. In this review article, a critical review of recent research regarding the application of nanofluids in data center cooling are put forward. Many different aspects of nanofluids such as the classification of nanoparticles, base fluid components, and types and structures of heat exchangers were discussed. Furthermore, some advanced and up-to-date apparatus and theoretical models of utilizing nanofluids as coolants in data centers are reviewed and described in detail. Lastly, but not least, potential research directions in the future and the challenges faced by the researchers and industry in this field are proposed and discussed. In conclusion, nanofluids used as novel heat exchange medium, which has been widely proven in other areas, can also conspicuously improve data center cooling technology in the future.