Who are the key enablers behind data centers? A comprehensive look at the supporting infrastructure industry chain!
The AI boom has triggered a historic wave of consumer demand. Morgan Stanley forecasts that investments in chips, servers, and data centers could reach nearly $3 trillion by 2028.
Goldman Sachs is expanding its infrastructure financing operations,forming dedicated teams to capture a larger share of the AI infrastructure financing market.This Wall Street giant is betting on an AI-driven surge in data center construction.
According to media reports citing informed sources, the main driver behind this move is a new wave of multi-billion-dollar deals involving AI data center financing,including the substantial power facilities required for data center operations as well as financing for processor equipment essential to AI development.
In essence, the competition in artificial intelligence is a contest over physical infrastructure. In this unprecedented gold rush ignited by AI,supply chain giants that master core cooling and power supply technologies—capable of 'cooling' and 'powering' massive computing capabilities—will undoubtedly emerge as the true winners.
According to Bank of America estimates, global data center capital expenditure exceeded $400 billion in 2024 and is projected to reach $506 billion in 2025, with $418 billion allocated to IT equipment and $88 billion for infrastructure. Driven by AI demand, this market is expected to expand at an astonishing compound annual growth rate (CAGR) of 23% from 2024 to 2028, culminating in a massive market exceeding $900 billion by 2028.
Source: Bank of America
Examining this unprecedented wave of construction, what constitutes the core value map? Ultimately, who will become the dominant beneficiaries? These questions will be addressed in the following analysis.
Previously,"Trump Releases the 'American AI Initiative'! Four Major Investment Themes You Must Know"We have previously analyzed stocks related to the computing power hardware layer; interested fellow investors can click to view. This article will mainly introduce fellow investors to the basic supporting infrastructure of data centers.
This "density revolution," ignited by chips, is exerting a bottom-up impact on the foundational infrastructure of data centers. The core battlegrounds are concentrated in two areas:Cooling systems (water) and Power supply systems (electricity).
Breakdown of core supply chain segments: Who are the "tool sellers" in this gold rush?
I. Power System: Ensuring stable power supply and distribution
⚡ Power supply and distribution (Uninterruptible Power Supply/Switchgear/Busbar/Power Distribution Unit)
Positioning and Value:As the 'last mile' before electrical energy reaches IT loads, this stage is crucial for ensuring the continuity of data center power supply and the quality of electrical energy.
Relevant companies:
🔌 Backup power generation (diesel/fuel cell)
Positioning and Value:As the ultimate power defense line for data centers, it assumes the full load during complete mains power outages, ensuring zero business interruption. The technological trajectory is moving towards low-carbonization and diversified fuel solutions.
Relevant companies:
🔋Energy Storage and Microgrids
Positioning and Value:Going beyond traditional backup functions, reducing electricity costs through 'peak shaving and valley filling,' while supporting grid stability with rapid response, is central to building a green and efficient energy system for data center campuses.
Relevant companies:
II. Cooling Systems: Ensuring Equipment Heat Dissipation and Environmental Temperature
❄️ Thermal Management (Chillers/Precision Air Conditioning)
Positioning and Value:As the cornerstone of data center temperature control, this segment is directly responsible for ensuring the operational environment of IT equipment through air cooling technology and centralized control systems. Its efficiency is a key factor influencing the overall PUE (Power Usage Effectiveness) metric.
Relevant companies:
💧 Liquid cooling (cold plate/immersion/heat exchanger)
Positioning and Value:Rising with the explosive demand for AI computing power, this technology is the inevitable choice for addressing heat dissipation in high-density cabinets exceeding 20kW. Not only can it significantly reduce PUE (Power Usage Effectiveness), but it also supports the evolution of future computing infrastructure.
🌊 Water-side infrastructure (cooling towers/pumps/water systems)
Positioning and Value:As the "final outlet" of the cooling cycle, this segment is responsible for efficiently dissipating the internal heat of the data center into the external environment. Its reliability and efficiency form the foundation for the stable operation of the entire chilled water system and liquid cooling system.
III. Networking and IT equipment: Core of data processing and transmission
🔗Fiber Optics and Cabling (Fiber/Copper/Connectors)
Positioning and Value:As the "neural network" of data centers, this segment serves as the physical foundation for ensuring high-speed data transmission, connecting servers and network equipment, and enabling interconnection across campus and backbone networks. Its performance directly determines the overall bandwidth and latency of the data center.
Relevant companies: $Corning (GLW.US)$ , $Vistance Networks (VISN.US)$ , $Belden (BDC.US)$ , $WESCO International (WCC.US)$
🖥️IT Equipment and Servers
Positioning and Value:As the ultimate carrier for data centers to realize their computing power functions, this segment covers network switching and computing hardware. Network equipment serves as the "transportation hub" for data interaction, while servers act as the "work units" for executing computational tasks, collectively determining the core performance and efficiency of data centers.
Companies related to server manufacturers: $Dell Technologies (DELL.US)$ , $Hewlett Packard Enterprise (HPE.US)$ , $Super Micro Computer (SMCI.US)$
IV. Others
📦Racks / Enclosed pathways / Data center infrastructure
Positioning and Value:As the "physical carrier" and "spatial unit" of IT equipment, this segment utilizes cabinet integration and aisle containment technologies to construct independent hot and cold aisles, effectively improving cooling efficiency and supporting higher deployment density. It serves as the foundational infrastructure for achieving green, low-carbon data centers.
🏢 Building Automation / Fire Protection / Security
Positioning and Value:As the "nerve center" and "security guardian" of data centers, this segment achieves comprehensive monitoring and energy efficiency optimization through Building Management Systems (BMS) and Data Center Infrastructure Management (DCIM). It integrates fire protection and security systems, ensuring stable operations of the infrastructure and adherence to stringent safety standards, forming the core of unmanned and intelligent operation and maintenance.
Overall, in this unprecedented gold rush ignited by AI,supply chain giants that possess core cooling and power supply technologies, enabling them to 'cool down' and 'power' massive computing capabilities, will undoubtedly emerge as the silent but true winners of this era.
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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