This paper studies the fluid flow and heat transfer characteristics of nanofluids as advance coolants for the cooling system of electric motors. Investigations are carried out using numerical analysis for a cooling system with spiral channels. To solve the governing equations, computational fluid dynamics and 3D fluid motion analysis are used. The base fluid is water with a laminar flow. The fluid Reynolds number and turn-number of spiral channels are evaluation parameters. The effect of nanoparticles volume fraction in the base fluid on the heat transfer performance of the cooling system is studied. Increasing the volume fraction of nanoparticles leads to improving the heat transfer performance of the cooling system. On the other hand, a high-volume fraction of the nanofluid increases the pressure drop of the coolant fluid and increases the required pumping power. This paper aims at finding a trade-off between effective parameters by studying both fluid flow and heat transfer characteristics of the nanofluid.