As AI chips consume more electricity, equipment makers are also betting on technologies aimed at improving efficiency and reducing environmental impacts, amid growing public scrutiny over data centres' consumption of water and electricity.
Bank of America estimates power consumption per AI rack could climb to more than 1.5 megawatts by the end of 2030, nearly 100 times that of a conventional rack, citing Nvidia's roadmap.
One technology attracting greater attention is the solid-state transformer (SST), a device that replaces bulky magnetic coils and copper windings with semiconductors to transform and route electricity.
UBS estimates SSTs will increase power efficiency by around 4% and reduce costs. While commercial adoption remains in its early stages, the bank expects their penetration to climb to 40% in 2030 and forecasts that Chinese companies will gain share thanks to technological expertise and cost advantages.
HD Hyundai Electric and Jinpan said they are deepening SST development, while Taiwan's Delta Electronics, a major supplier of power infrastructure, said a small data centre is using its SSTs.
Delta told Reuters that demand for AI power, cooling and data centre infrastructure solutions remains a growth engine and it is expanding its production footprint across Thailand, the U.S. and China to meet increased demand.
Cooling systems are emerging as another growth area as operators struggle to manage the heat generated by powerful AI chips.
"Power and cooling basically go hand in hand; so basically the more power you use, the more cooling you need to use because you generate heat," said Matty Zhao, Bank of America's Asia-Pacific head of research for basic materials, oil and gas.
The bank forecasts liquid cooling will account for 70% of new AI data-centre installations versus air cooling by 2030, up from about 30% today. Liquid cooling can reduce energy consumption by over 27%, McKinsey says.
Developers are also exploring unconventional approaches, including floating facilities, underwater data centres and servers in caves or tunnels.
That is creating opportunities for a broader range of suppliers.
"With the expansion of data center self-generation and the floating data center market, opportunities are also opening up to enter new markets for marine medium-speed engines," HD Hyundai Electric said.
Strong demand for thermal-management products is lifting Delta and local peers Asia Vital Components and Auras Technology, as well as China's Shenzhen Envicool Technology. All are suppliers in Nvidia's ecosystem.
XLI•
