Nvidia Corp (NASDAQ:NVDA) is rewriting the rules of AI infrastructure with its Blackwell GPUs, driving a major shift toward liquid cooling in data centers.
With cooling challenges resolved, Nvidia is set to ramp up production of liquid-cooled GB200 server racks in Q1 2025, marking a pivotal moment for the AI server ecosystem.
Liquid Cooling Challenges Resolved, Winners Emerge
Liquid cooling, critical for managing heat in high-density AI servers, faced early setbacks with leakage issues.
However, advancements in cold plate designs, manifold technology, and rigorous testing have cleared the path for mass production.
Key players like Cooler Master, AVC, and newcomers Auras and Delta are emerging as major suppliers for Nvidia's cooling components.
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Vertiv, Delta Lead Power Supply Innovation
Vertiv, already a dominant force with its advanced cooling portfolio, continues to solidify its position. Its partnerships, including a recent multi-billion-dollar supply agreement, underscore its leadership in rack-level cooling.
Meanwhile, competitors like Hon Hai Precision and Quanta are gaining traction, leveraging cost advantages and design flexibility to cater to hyperscalers like Microsoft Corp (NASDAQ:MSFT) and Meta Platforms Inc (NASDAQ:META).
The transition to liquid-cooled systems also accelerates power consumption growth, with data centers projected to see a 17% CAGR through 2028. Nvidia's GB200 racks double GPU density compared to previous systems, increasing power requirements and driving demand for high-efficiency power supplies.
Companies like Delta stand to benefit significantly from this shift, with higher margins and growing ASPs for their cutting-edge power solutions.
Nvidia's Blackwell GPUs are not just a step forward in AI performance—they're reshaping the data center landscape. Liquid cooling and power supply players stand to ride this wave, redefining the infrastructure powering the AI revolution.
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