{
  "id": 4994332,
  "title": "Not just Nvidia: these power and cooling firms are riding the trillion-dollar data centre boom",
  "url": "https://urgent.news/2026/09/02/not-just-nvidia-these-power-and-cooling-firms-are-riding-the-trillion",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-02T02:12:31.000Z",
  "source": {
    "name": "Economic Times Tech",
    "slug": "economic-times-tech",
    "url": "https://economictimes.indiatimes.com/tech/artificial-intelligence/not-just-nvidia-these-power-and-cooling-firms-are-riding-the-trillion-dollar-data-centre-boom/articleshow/133695423.cms"
  },
  "original_language": "en",
  "account": "Power and cooling firms are capitalizing on the massive expansion of data centers worldwide, as the infrastructure to support them undergoes rapid development. While Nvidia dominates the AI boom, a diverse group of equipment suppliers in the power and cooling sector are experiencing significant demand from data center developers, who must quickly build and deploy facilities to meet growing demand.\n\nData center construction is being accelerated by hyperscalers, who seek to deploy new facilities within six months, a timeframe that can stretch to 24 months in emerging markets and over eight years in developed markets due to grid connection delays, as noted by Pivotale AI consultancy. This has created challenges for equipment manufacturers, as lead times for generators and transformers are becoming a critical concern.\n\nTransformer and cooling system suppliers are witnessing a surge in demand, with leading companies like South Korea's HD Hyundai Electric and China's Hainan Jinpan Smart Technology reporting heightened orders tied to AI infrastructure projects, particularly in North America. HD Hyundai Electric's order backlog has risen 23% to $8.5 billion in June from the previous six months, with data centers accounting for 16% of its new orders by the end of the quarter.\n\nTechnologies like solid-state transformers (SSTs) are gaining traction, as they promise improved efficiency and reduced environmental impact. UBS estimates that SSTs will increase power efficiency by around 4% and reduce costs. Chinese companies are expected to gain market share due to their technological expertise and cost advantages, though commercial adoption remains early-stage.\n\nCooling systems are emerging as another growth area, with liquid cooling projected to account for 70% of new AI data center installations by 2030, compared to the current 30%. This transition promises energy savings of over 27%, according to McKinsey. Developers are exploring unconventional approaches like floating facilities and underwater data centers, which create opportunities for marine medium-speed engine suppliers.\n\nDespite strong demand and surging orders, stock price gains for these suppliers have moderated as investors question elevated valuations amid intensifying competition. Delta Electronics, a major supplier of power infrastructure, has seen its shares increase by more than 90% this year, while HD Hyundai Electric has remained relatively flat. Analysts caution that investors should be cautious of potential risks, as many variables could impact the industry's leaders and their ability to secure customers.",
  "summary": "McKinsey forecasts nearly $7 trillion in data-centre investment globally by 2030; Nvidia last week said it expects AI spending to remain robust for years.",
  "key_points": [
    "Power and cooling firms see surge in demand from data center developers",
    "Transformer and cooling system suppliers report heightened orders tied to AI infrastructure projects",
    "Liquid cooling projected to account for 70% of new AI data center installations by 2030"
  ],
  "editors_take": "The rapid expansion of data centers is creating new opportunities for power and cooling equipment suppliers, with companies like HD Hyundai Electric and Delta Electronics poised to benefit from surging demand.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}