Super Micro Computer Joins Forces to Build AI Data Center in Asia

Super Micro Computer, Inc. (SMCI) has joined hands with key industry players to establish a state-of-the-art artificial intelligence data center in Asia. These collaborators include Datasection, Foxconn—an Apple Inc (AAPL) supplier, Japanese electronics giant KDDI, and telecom company Sharp. This partnership aims to leverage the regional strengths and technological expertise of each entity to construct a facility that will advance AI research and implementation in Asia.

Conversion of a Japanese Factory

The project includes transforming an old factory site in Japan, previously managed by Sharp, into a data center equipped with high-performance Nvidia Corp’s (NVDA) chips, as reported by Nikkei Asia. This move is seen as a strategic endeavor to optimize the use of existing industrial spaces for technological innovation.

Stock Movement Following the Announcement

The announcement of this joint venture has been favorable for Super Micro Computer’s stock, which saw an increase. Additionally, the positive stock movement coincided with a wider recovery in the semiconductor index following a decline due to the imposition of new AI technology restrictions in the Middle East by the Biden administration.

Advanced Cooling Techniques

Super Micro Computer plans to develop Total IT rack-scale liquid-cooled solutions at the new datacenter, which will be equipped with advanced Nvidia GPUs. Their liquid-cooled system will feature sophisticated cooling infrastructure including piping, water towers, and monitoring technology to enhance efficiency.

Future of AI Applications

The newly proposed data center will be constructed at the site of the former Sharp Sakai plant. Optimized for the Nvidia AI Enterprise platform, it is poised to deliver strong performance capabilities necessary for cutting-edge AI applications such as large language models, machine learning, and generative AI.

Charles Liang, the CEO of Supermicro, expressed his enthusiasm for the project and stated, "Our new industry-leading Direct Liquid Cooling (DLC) solutions are exactly the best for hyper-dense AI rack deployments that can lower energy costs and have a smaller environmental impact."

Super Micro Computer's Growth Trajectory

With analysts highlighting Super Micro Computer's sustained sales momentum, the company is recognized as a significant player in the AI server market. Its performance has been buoyed by strong demands from smaller cloud service providers and various enterprises.

Reflecting the company's growth, Super Micro Computer stock has soared by 251% over the past year. For investors looking to tap into this growth, they may consider vehicles such as the ERShares Entrepreneurs ETF (ENTR) and the Global X Data Center & Digital Infrastructure ETF (DTCR).

Current Market Position

Following these developments, SMCI shares experienced an increase of 2.04% at $800.50 in the premarket session on Monday.

SuperMicro, AI, DataCenter