Shafaqna English– While Nvidia dominates the AI hardware spotlight, a quieter but equally significant beneficiary of the artificial intelligence boom has emerged: the suppliers of power and cooling equipment for the rapidly expanding global data center market.
As developers race to construct new facilities and overcome infrastructure hurdles, demand for essential components—ranging from transformers to advanced cooling systems—has surged, creating opportunities across Asia’s supply chain.
McKinsey projects nearly $7 trillion in global data center investment by 2030, and Nvidia itself has reaffirmed expectations of sustained AI spending for years to come.
However, building infrastructure fast enough to match demand has become increasingly challenging; hyperscalers typically require facilities to be operational within six months, yet grid connection delays can range from 24 months in some developing markets to over eight years in advanced economies, according to consultancy Pivotale AI.
As BodaData CEO Wing Kin Cheung noted, while outsiders focus on GPUs, industry insiders are far more concerned about the lead times for generators and transformers—critical equipment that converts high-voltage grid power into usable electricity for servers, cooling, and distribution units, highlighting a growing bottleneck in the AI supply chain.
Source: Reuters