As hyperscale data centers surge globally, a group of Asian power and cooling equipment makers, including China’s Hainan Jinpan Smart Technology, are profiting from booming orders linked to AI infrastructure. With investments projected to hit $7 trillion by 2030 worldwide, these firms are tackling bottlenecks and pushing new technologies to help data centers meet massive power and cooling needs.
- Global data center investments expected to approach $7 trillion by 2030.
- Chinese and Korean suppliers report surging data center equipment orders.
- Liquid cooling and solid-state transformers poised for rapid growth.
What happened
The worldwide construction boom in data centers is driving increased demand for key infrastructural components like transformers and advanced cooling systems. In particular, Asian suppliers, including China’s Hainan Jinpan Smart Technology and South Korea’s HD Hyundai Electric, have experienced sharp rises in orders and order backlogs in the first half of 2026, fueled mainly by hyperscale data center expansions in North America and Europe. These companies are benefiting from the race to build AI infrastructure despite significant grid connection delays in many markets.
This surge comes as data centers evolve to support energy-intensive AI chips, requiring more sophisticated power conversion and cooling solutions. Industry leaders are investing heavily in new device technologies such as solid-state transformers, which use semiconductor components to improve efficiency and reduce costs compared to traditional equipment. While still early in commercial adoption, these innovations are expected to gain significant market share by 2030, with Chinese firms well positioned to lead due to technological expertise and pricing advantages.
Why it matters
The rapid growth of AI workloads is driving unprecedented power consumption in data centers, posing challenges around energy efficiency and environmental impact. Bank of America highlights that power draw per AI rack could surge nearly 100-fold by 2030 compared to conventional servers, catapulting demand for efficient electrical infrastructure. Firms anticipating this trend are racing to deliver solutions that increase power efficiency and reduce water and electric consumption, which are under increasing public and regulatory scrutiny.
Cooling is becoming a critical component of data center design as more power translates to greater heat generation. The industry is shifting toward liquid cooling solutions, which McKinsey estimates can cut energy consumption by over a quarter relative to traditional air cooling. This shift opens opportunities for companies specialized in next-generation cooling technologies to capture substantial market share as the AI-driven data center buildout progresses throughout Asia and beyond.
What to watch next
Monitoring developments in solid-state transformer adoption will be key, as the technology could transform how power is managed inside data centers. UBS forecasts SST penetration reaching 40% by 2030, led in part by Chinese manufacturers. The success of SSTs will depend on overcoming design challenges and achieving broader commercial uptake beyond pilot projects.
The expansion of liquid cooling and exploration of unconventional cooling approaches—such as floating and underwater data centers—may also reshape industry dynamics. Companies that innovate effectively in cooling technologies will strengthen their positioning amid escalating power demands from AI workloads. Investors and market watchers should track order backlogs and new contracts from hyperscalers as indicators of where power and cooling infrastructure capacity is expanding fastest globally.