Data Center Boom Fuels Growth for Power and Cooling Suppliers Beyond Nvidia
The trillion-dollar data center boom is fueling growth for power and cooling equipment suppliers beyond Nvidia, according to Reuters. Companies like HD Hyundai Electric and Hainan Jinpan Smart Technology are seeing surging demand for transformers, generators, and other equipment tied to AI infrastructure projects.
McKinsey forecasts nearly $7 trillion in data center investment globally by 2030, with hyperscalers racing to avoid grid connection delays. 'Outside the industry circle, people talk about graphics processing units, but within the circle, they question lead times for generators and transformers,' said Wing Kin Cheung, CEO of BodaData.
The market is shifting towards more efficient technologies, such as solid-state transformers (SSTs), which replace magnetic coils with semiconductors. UBS estimates SSTs will increase power efficiency by around 4% and reduce costs. HD Hyundai Electric and Jinpan are deepening SST development.