As global investment in data centers approaches $7 trillion by 2030, China’s specialized suppliers in power and cooling equipment are becoming pivotal players. These companies address critical bottlenecks caused by energy demands and infrastructure delays in rapid AI expansion.
- Chinese transformer supplier orders quadrupled in H1 2026
- Solid-state transformers to reach 40% market share by 2030
- Liquid cooling to comprise 70% of new AI data center installs
What happened
A global boom in constructing data centers driven by AI infrastructure needs has led to soaring demand for power and cooling equipment. Chinese and Asian suppliers, such as Hainan Jinpan Smart Technology and South Korea’s HD Hyundai Electric, report rapidly increasing order backlogs, particularly linked to investments by major hyperscalers in markets like North America and Europe.
The surge in AI workloads has pushed companies to urgently address infrastructure bottlenecks. Transformers, which adjust high-voltage grid electricity for server and cooling use, and advanced cooling technologies have become critical. These suppliers are benefiting as they ramp up production and innovate to meet tight delivery timelines, countering delays in grid connections that can last months or even years.
Why it matters
With data center investments forecast to reach nearly $7 trillion by 2030, the infrastructure supporting AI is as vital as the chips powering computations. The rising energy consumption from AI racks, estimated to be nearly 100 times that of conventional setups by decade’s end, presents significant operational challenges.
Technological advances such as solid-state transformers (SSTs)—which improve power efficiency and reduce size and cost—and a shift toward liquid cooling systems are set to transform data center energy management. Chinese companies’ early involvement in SST technology could give them a competitive advantage as this market expands, helping to address environmental and power supply concerns.
What to watch next
Monitor the adoption rates of SSTs and liquid cooling technologies across global data center projects, particularly those involving Chinese suppliers like Jinpan and international players such as HD Hyundai and Taiwan’s Delta Electronics. Their success in scaling these innovations will impact cost structures and environmental footprints of future AI infrastructure.
Grid connection delays remain a key industry hurdle. How markets and policymakers address these infrastructure bottlenecks could influence the pace of data center deliveries. Furthermore, unconventional cooling approaches—including underwater and underground data facilities—may emerge as viable solutions for handling escalating heat generated by AI workloads.