The AI Revolution: Data Centers Sizzle, and Industrial Giants Cool Them Off
As artificial intelligence (AI) becomes increasingly prevalent, the demand for data centers has skyrocketed. To keep these centers operating smoothly, a flurry of industrial giants is stepping up to provide the cooling power needed to prevent overheating AI chips.
The Cooling Imperative
“The key for chipmakers with AI ambitions is keeping data centers cool,” emphasizes Jake Levinson, an analyst at Melius Research.
This cooling challenge has led to a surge in demand for HVAC systems from companies like Carrier Global, Trane Technologies, and Johnson Controls.
Infrastructure Builders
Beyond HVAC, a host of companies are providing the infrastructure to regulate temperature in data centers:
- Parker-Hannafin: Fluid connectors
- Dover: Industrial-style pumps for liquid cooling
- TE Connectivity: Industrial connectors transporting electric signals
Backup Power and Smart Grids
The rise of AI is also driving demand for backup power engines from giants like Caterpillar and Cummins. Caterpillar’s power generator sales witnessed a 9% increase in the first quarter.
In addition, GE Vernova’s electrification segment is benefiting from the growing need for smart grid software that manages power distribution. CEO Scott Strazik highlights transformers and switch gears as key areas of growth.
Investment in Growth
To meet this growing demand, companies are investing heavily in expanding their capacities:
- Caterpillar is investing in large engine manufacturing.
- GE Vernova is ramping up production of transformers and switch gears.
Conclusion
The AI revolution is not only sparking innovation in AI chips but also fueling the growth of various industries that support the infrastructure behind these advancements. From cooling systems and connectors to backup power and smart grids, industrial giants are playing a pivotal role in keeping AI humming smoothly.
