Why are power and cooling equipment suppliers benefiting from the AI boom, according to the news?

Power and cooling equipment suppliers are benefiting because energy-hungry data centres—driven by AI demand—are triggering a surge in demand for transformers, generators, and advanced cooling systems, with hyperscalers racing to build facilities fast enough to avoid infrastructure bottlenecks, especially amid grid connection delays that can stretch up to eight years in major developed markets.

What evidence does the article provide that solid-state transformers (SSTs) are gaining traction in the data centre industry?

The article states that UBS estimates SSTs will increase power efficiency by ~4% and reduce costs; expects their penetration to reach 40% by 2030; notes Chinese companies are poised to gain market share due to technological expertise and cost advantages; and confirms HD Hyundai Electric, Jinpan, and Delta Electronics are deepening SST development—with Delta already deploying SSTs in a small data centre.

Power and Cooling Firms Ride Trillion-Dollar Data Centre Boom Beyond Nvidia

Sep 1, 2026

AI-driven data centre expansion is surging demand for power transformers and liquid cooling systems, straining global energy grids and boosting orders for equipment makers like HD Hyundai Electric and Delta Electronics.

reuters

2026-09-01

Power and Cooling Firms Ride Trillion-Dollar Data Centre Boom Beyond Nvidia

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