Super Micro Computer, Inc. (NASDAQ:SMCI) tapped Datasection, Apple Inc (NASDAQ:AAPL) supplier Foxconn, Japanese electronics company KDDI and telecom partner Sharp will create a large-scale Asian data center for artificial intelligence.
Sharp and KDDI proposed to transform a factory site in Japan into a data center powered by Nvidia Corp (NASDAQ:NVDA) advanced chips, Nikkei Asia reports.
Super Micro Computer’s stock price rose after the update. The broader semiconductor index also recovered from a sell-off Friday as the Biden administration imposed restrictions on AI technology in the Middle East.
In collaboration with systems integrator Datasection, Supermicro Total IT will develop rack-scale liquid-cooled solutions for the new data center, using advanced Nvidia GPUs.
In addition, Supermicro wants to build a liquid-cooled system with pipes, water towers and monitoring equipment.
The new facility, built on the former Sharp Sakai factory, will support advanced systems optimized for the Nvidia AI Enterprise platform and deliver powerful performance for leading LLM, ML and generative AI applications.
Supermicro CEO Charles Liang said: “Our new industry-leading Direct Liquid Cooling (DLC) solutions are precisely the best for hyper-dense AI rack deployments that can reduce energy costs and have a smaller environmental impact.”
Analysts had noted continued sales momentum for Supermicro, touting it as the pure AI server vendor, aided by robust demand from Tier-2 CSPs and enterprises.
Super Micro Computer stock is up 251% in the past twelve months. Investors can gain exposure to the stock through ERShares Entrepreneurs ETF (NASDAQ:ENTR) and Global X Datacenter & Digital Infrastructure ETF (NASDAQ:DTCR).
Price promotion: SMCI shares were up 2.04% at $800.50 premarket at last check on Monday.
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