15 hrs ago
Beyond Nvidia, power and cooling firms benefit from data-centre boom
Artificial-intelligence data centres need huge amounts of electricity and special equipment.
Nvidia makes the chips used in many AI systems, but other companies supply transformers, cooling systems and power equipment.
Demand for these products is rising as companies build more data centres around the world.
Transformers help change electricity into forms that servers and cooling systems can use.
Liquid cooling is becoming more popular because powerful AI chips create a lot of heat.
Companies are also developing solid-state transformers that could save energy.
However, connecting new centres to electricity grids can take much longer than building the facilities.
Investors are also worried about competition, expensive shares, construction delays and shortages of components.
This means many suppliers may benefit, but not all of them will become winners.
Global data-centre investment could approach $7 trillion by 2030, according to McKinsey.
Transformer suppliers HD Hyundai Electric and Hainan Jinpan reported sharply higher AI-infrastructure demand.
Solid-state transformers and liquid cooling are emerging technologies aimed at improving efficiency.
Liquid cooling could represent 70% of new AI data-centre installations by 2030.
Supplier stock gains have moderated amid valuation concerns, competition, delays and component shortages.
- Who
- Power and cooling equipment suppliers, including HD Hyundai Electric, Hainan Jinpan Smart Technology, Delta Electronics and other Nvidia ecosystem companies.
- What
- These suppliers are benefiting from rising demand created by the global data-centre and AI construction boom.
- Where
- Demand is reported across Asia, North America, Europe and the Middle East, with data-centre construction occurring globally.
- When
- The analysis was published September 2; it discusses results and orders from the first half of 2026 and forecasts through 2030.
- Why
- AI data centres require substantially more electricity, transformers and cooling capacity, while developers seek to overcome infrastructure bottlenecks.
Growth Opportunities
Risks And Constraints
Supplier demand
Growth Opportunities
AI infrastructure expansion is increasing orders for transformers, cooling systems and other power equipment across global supply chains.
Risks And Constraints
Rising revenue will not benefit every supplier, as competition is intensifying and customers may select only a small group of leaders.
New technologies
Growth Opportunities
Solid-state transformers and liquid cooling could improve efficiency and reduce energy use as AI racks become more powerful.
Risks And Constraints
Solid-state transformer adoption remains early and requires new power architectures, while equipment deployment can face delays and component shortages.
Investment outlook
Growth Opportunities
McKinsey projects nearly $7 trillion in data-centre investment by 2030, and Nvidia expects AI spending to remain strong for years.
Risks And Constraints
Earlier share-price gains have moderated, and investors are questioning high valuations, margins and the possibility that infrastructure bottlenecks will slow projects.
Key facts
- Projected investment
- McKinsey forecasts nearly $7 trillion in global data-centre investment by 2030.
- Grid connection delays
- Connections can take up to 24 months in some emerging markets and more than eight years in major developed markets, according to Pivotale AI.
- HD Hyundai backlog
- HD Hyundai Electric's order backlog rose 23% to $8.5 billion at the end of June.
- Transformer demand
- Hainan Jinpan Smart Technology's new data-centre orders more than quadrupled year over year in the first half.
- Liquid cooling forecast
- Bank of America expects liquid cooling to account for 70% of new AI data-centre installations by 2030, compared with about 30% today.
- AI rack power
- Bank of America estimates power consumption per AI rack could exceed 1.5 megawatts by the end of 2030.
- Market risks
- Suppliers face competition, deployment delays, component shortages and investor concerns about elevated valuations.
Quotes
Wing Kin Cheung
CEO of digital infrastructure service provider BodaData
“Outside the industry circle, people are talking about (graphics processing units), but within the circle, people most certainly question you about the lead time for generators and transformers.”
livemint.com
“It is fundamentally an energy gateway, which requires a different overall design and power architecture. Adoption will therefore take time.”
livemint.com
Sources
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