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These power and cooling companies are also riding the data centre boom, which is worth trillions of dollars.
Nvidia may be synonymous with AI, but a group of lesser-known power and cooling equipment providers is cashing in as developers rush to avoid infrastructure bottlenecks. The energy-hungry data centers have created a surge of demand for equipment from transformers to advanced cooling systems. This has created winners throughout Asia's supply chains, though earlier stock price gains have moderated. McKinsey predicts that data centres will be worth $7 trillion by 2030. Nvidia said 'last week' it expected AI spending to continue for many years. It is getting harder to build data centres quickly enough to meet the demand. According to Pivotale AI, hyperscalers want their facilities in six months. However, grid connection delays in emerging markets can be as long as eight years and as much as 24 months. Wing Kin Cheung is the CEO of digital service provider BodaData. He said, "Outside industry circles, people talk about (graphics processor units), but inside the circle people will most likely ask you about the lead times for generators and transformators." Transformers are used to convert grid electricity into a level suitable for cooling systems, power distribution units and servers. AI SCRUTINY DEPENDS The demand for transformers from leading suppliers, including South Korea's Hainan Jinpan Smart Technology and China's HD Han?Electric, is expected to increase in the first half 2026 due to AI infrastructure projects in North America. HD Hyundai Electric said recently that demand in Europe is increasing as U.S. Hyperscalers expand investments in markets such as Finland, Germany and Britain. Middle Eastern demand remains strong. The company's order backlog increased 23% from the previous six months to $8.5 billion by June 30, and said that it expected data centre demand to continue to be robust. The company said that it has a backlog of orders covering more than 3 years. "A substantial portion of the production capacity for major equipment is secured for the next three years," they added. We are also in discussions with key customers about orders for volumes scheduled to be delivered as far as 2030. Jinpan's new data centre orders have quadrupled in the first six months compared to a year ago, and its backlog has nearly tripled. Equipment makers also bet on technologies that improve efficiency and reduce environmental impacts as AI chips consume greater amounts of electricity. This is in response to the growing scrutiny from the public over data centres' water and electricity consumption. Bank of America estimated that?power consumption for each AI rack may reach more than 1.5 Megawatts at the end of 2030. This is nearly 100 times higher than a conventional rack. Solid-state transformers (SST) are a technology that is gaining more attention. They replace bulky copper and magnetic coils with semiconductors for the purpose of transforming and routing electricity. UBS believes SSTs can increase energy efficiency by 4%, and lower costs. The bank estimates that commercial adoption is still in its infancy, but they expect their penetration to reach 40% by 2030. They also predict that Chinese companies are likely to gain market share due to their technological expertise and lower costs. HD Hyundai Electric, Jinpan and Taiwan's Delta Electronics are all working to develop SSTs. Delta said that the demand for AI infrastructure solutions, such as cooling, power and data centres, remains strong. To meet this demand, it has expanded its production footprint in Thailand, China, and the U.S. COOLING RACE As operators struggle to control the heat generated by powerful AI chip, cooling systems are becoming a growing area. Matty Zhao is the Asia-Pacific Head of Research for Basic Materials, Oil and Gas at Bank of America. By 2030, liquid cooling is expected to account for 70% of new AI data centres compared to air cooling. This is up from 30% today. McKinsey claims that liquid cooling can reduce energy use by more than 27%. Developers also explore unconventional approaches such as floating facilities, undersea data centres, and servers in tunnels or caves. This opens up opportunities for a wider range of suppliers. HD Hyundai Electric stated that new opportunities for marine medium-speed engine sales are opening up with the growth of the data center self generation market and the floating data centers. Delta, local competitors Asia Vital Components, Auras Technology and Shenzhen Envicool Technology as well as China’s Shenzhen Envicool Technology are all benefiting from the strong demand for thermal management products. All of these companies are part of Nvidia’s ecosystem. Supply Chain Constraints Investors are questioning the high valuations of stocks amid increased competition, despite a surge in orders. Delta's shares have risen by more than 90% in the past year. HD Hyundai Electric has remained largely flat after a gain of over 100% last year. China's Jinpan has fallen by nearly 30%, while Envicool is down 20%. Both companies had soared 118% and 244% in 2025. Delta Chairman Ping Cheng stated in July that "even if revenues increase, I believe gross margins will likely remain at this level." There are many factors in the market including new product platforms and deployment delays, as well as component shortages. These issues could become more serious by the second half this year. Zhao, a Bank of America spokesperson, said that investors need to be aware of possible risks. She said, "Not everyone wins." You have to cherry-pick the leaders that get the actual customers.
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These power and cooling companies are also riding the data centre boom, which is worth trillions of dollars.
Nvidia may be synonymous with AI, but a group of lesser-known power and cooling equipment providers is taking advantage of a global construction frenzy as developers rush to avoid infrastructure bottlenecks. The energy-hungry data centers have created a?surge in demand for equipment from transformers and advanced cooling systems. This has resulted in?winners throughout Asia's supply chains, although earlier stock price gains have moderated. McKinsey predicts that nearly $7 trillion will be invested in data centres worldwide by 2030. Nvidia said last week it expects AI expenditures to continue for many years. It is getting harder to build data centres quickly enough to meet the demand. According to Pivotale AI, hyperscalers want their facilities in six months. However, grid connection delays in emerging markets can be as long as eight years and as much as 24 months. Wing Kin Cheung is the CEO of digital service provider BodaData. He said, "Outside industry circles, people talk about (graphics processor units) but inside the circle people will most likely ask you about the lead times for generators and transformators." Transformers are used to convert grid electricity into a level suitable for cooling systems, power distribution units and servers. AI SCRUTINY DEPENDS The demand for transformers from leading suppliers, including South Korea's HD Hyundai Electric as well as China's Hainan Jinpan Smart Technology, is expected to increase in the first half 2026 due to AI infrastructure projects in North America. HD Hyundai Electric said recently that demand in Europe is increasing as U.S. Hyperscalers expand?investments into markets such as Finland, Germany, and Britain. Middle Eastern demand remains strong. The company's order backlog increased 23% from the previous six months to $8.5 billion by June 30, and said that it expected data centre demand to continue to be robust. The company said that it had a backlog of orders spanning more than three year, and that a large portion of its production capacity for power equipment was secured for the next three years. We are also in discussions with key customers about orders for volumes scheduled to be delivered as far as 2030. Jinpan's new orders for data centres in the first half of this year quadrupled compared to a year ago, and its backlog has nearly tripled. Equipment makers also bet on technologies that improve efficiency and reduce environmental impacts. This is in response to the growing public scrutiny of data centres' water and electricity consumption. According to the roadmap of Nvidia, Bank of America estimates that power consumption for AI racks could reach more than 1.5 Megawatts at the end of 2030. This is nearly 100 times higher than a conventional rack. Solid-state transformers (SST) are a technology that is gaining more attention. They replace bulky copper and magnetic coils with semiconductors for the purpose of transforming and routing electricity. UBS believes SSTs can increase energy efficiency by 4%, and lower costs. The bank estimates that commercial adoption is still in its infancy, but they expect their penetration to reach 40% by 2030. They also predict that Chinese companies are likely to gain market share due to their technological expertise and lower costs. HD Hyundai Electric, Jinpan and Taiwan's Delta Electronics are all working to develop SSTs. Delta said that the demand for AI power and cooling solutions, as well as data centre infrastructure, remains a major growth engine. To meet this demand, it has expanded its production footprint in Thailand, China, and the U.S. COOLING RACE As operators struggle to control the heat generated by powerful AI chip, cooling systems are becoming a growing area. Matty Zhao is the Asia-Pacific Head of Research for Basic Materials, Oil and Gas at Bank of America. By 2030, liquid cooling is expected to account for 70% of all new AI data centres, compared with air cooling. This represents an increase from 30% today. McKinsey claims that liquid cooling can reduce energy use by more than 27%. Developers also explore unconventional approaches such as floating facilities, undersea data centres, and servers in tunnels or caves. This opens up opportunities for a wider range of suppliers. HD Hyundai Electric stated that new opportunities for marine medium-speed engine sales are opening up with the growth of the data center self generation market and the floating data centers. Delta, local competitors Asia Vital Components, Auras Technology and Shenzhen Envicool Technology as well as China’s Shenzhen Envicool Technology are all benefiting from the strong demand for thermal management products. All of these companies are part of Nvidia’s ecosystem. Supply Chain Constraints Investors are questioning the high valuations of stocks amid increased competition, despite surging orders. Delta's shares have risen by more than 90% in the past year. HD Hyundai Electric has been largely flat this year after a year of gains that exceeded 100%. China's Jinpan has fallen by nearly 30%, and Envicool by 20% after a surge of 118% and 244% respectively in 2025. Delta Chairman Ping Cheng stated in July that "even if revenues increase, I believe gross margins will likely remain at this level." There are many factors in the market including new product platforms and deployment delays, as well as component shortages. These issues could become more serious by the second half this year. Zhao, a Bank of America spokesperson, said that investors need to be aware of possible risks. She said, "Not everyone wins." You have to cherry-pick the leaders that get the actual customers.
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New York Times Business News - September 2,
These are the most popular stories on the New York Times' business pages. These stories have not been?verified' and we cannot vouch for their accuracy. ?At a G20 finance summit in North Carolina last week, U.S. Treasury secretary Scott Bessent praised Trump's economic policies and urged others to follow suit. This drew criticism from Europe, Canada, and other allies, who claimed that U.S..policies had harmed their own economies. The United Nations announced on Wednesday that it will miss the climate goal of limiting global temperature rises to 1.5 degrees Celsius. It also proposed a "new" goal of limiting the "overshoot". -U.S. defense secretary Pete Hegseth fired or blocked promotions for more than 80 generals, admirals and other top military officers. This purge has affected about 10% of the military's highest ranking officers and is showing no signs of slowing down. U.S. president Donald 'Trump' said Tuesday that he will nominate Hung Cao, acting Navy Secretary, to fill the position permanently, amid a reorganization of the leadership in the Pentagon. New York City Department of Education will?announce new policies that will?place strict limits on digital devices and A.I. The city's education system will be introducing new tools, especially for elementary and middle school students.
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Asian markets fall as US-Iran conflict lifts oil and bonds yields
After renewed U.S. Airstrikes on Iran, oil prices rose to a five week high. The U.S. Treasury yield also reached its highest level in nearly three years. This extended a global bond market selloff. MSCI's broadest Asia-Pacific share index outside Japan fell 2%, as South Korea's KOSPI plunged almost 4% and the Nikkei was down 2.9%. S&P 500 futures fell 0.1%. Brent crude futures continued to rise as trading resumed on the Asian continent, gaining 0.9%, to $95.45 per barrel, after U.S. airstrikes against Iran on Tuesday pushed prices up to a 5-week high. Westpac analysts reported that "the threat of further disruptions in the Strait of Hormuz brought renewed anxiety about inflation. This drove a sell-off across major markets, and a rout?in global bonds markets." The yield of the U.S. Treasury 10-year bond reached an intraday peak of 4.8122%. This is its highest level for almost three years. Meanwhile, the yield on the 10-year Japanese Government Bond rose by 2 basis points, to 3.015%. It has continued its upward climb, after hitting a three-decades high earlier this week. DBS analysts noted that "September started on a shaky footing as government bonds from developed markets continued to fall." They said: "Prepare for a volatile next month as high yields cause anxiety across asset classes." If the bond crisis is not stopped, policymakers will probably need to take more aggressive measures in order to limit yields. The kiwi was down 1% to $0.5834, after the Reserve Bank of New Zealand raised interest rates 25 basis points, or 2.75%. This was expected by the markets. However, the dovish language used by the central bank in its statement also weighed on it. Capital Economics analysts noted that "the RBNZ raised rates as expected but moderated expectations of further tightening." The messaging was a little less hawkish. The U.S. Dollar?Index, which measures the strength of the greenback against a basket six currencies, rose 0.1% to 99.79. This was its highest level since August 17. Overnight, on Wall Street the S&P 500 fell 0.7% while the Nasdaq Composite dropped 1% due to a rise in government bond yields. Data from the Institute for Supply Management, released on Tuesday, showed that U.S. Manufacturing activity moderated during August due to a slowdown in new orders but still remained in an expansionary zone. The Federal Reserve will likely raise interest rates in its next meeting, which is scheduled for two weeks from now. However, a rate hike is not certain. Fed funds futures have a?implied probability of 67% that benchmark borrowing costs will increase by 25 basis points at the U.S. Central Bank's two-day conference ending on September 16 compared to 39.6% a week earlier, according to CME Group’s FedWatch tool. Gold fell 0.6% to $4,304.64 per ounce. Bitcoin dropped 0.1% to $77340.50, and ether declined 0.5% to $2,407.01.
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Wall Street Journal, September 2,
These are the most popular stories from the Wall Street Journal. The Wall Street Journal has not?verified these stories and cannot?vouch for?accuracy. After a failed takeover attempt of the German fashion house for EUR2 billion ($2.32billion) in June, British retail group Frasers announced it would increase its stake in Hugo Boss by more than 50%. - ?Google's artificial-intelligence research unit is set to release a new ?model with significantly upgraded coding capabilities, according to employees, potentially ?shoring up an area where the company has lagged behind competitors OpenAI and Anthropic. Nestle?will be selling its mainstream vitamin brands for $1 billion to Yellow?Wood?Partners, the company announced on Tuesday. CEO Philipp Navratil is focusing the strategic focus of the company. OpenAI has added layers of security to its AI agents after they hacked an entire company this summer. Geothermal company, 'Fervo Energy' has signed a deal with Alphabet to supply power from a Utah project it intends to turn into the largest geothermal facility in the world. A group of'musicians, including the renowned singer and songwriter Jason Isbell, has filed a class-action lawsuit in Massachusetts federal courts for allegedly violating publicity rights.
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Who will police the bond vigilantes in MORNING BID EUROPE?
Gregor Stuart Hunter gives us a look at what the future holds for European and global markets. Bond yields are hitting new milestones, as the U.S. resumes its fight with?Iran. Oil prices have also surged. Brent crude is now above $95 a barrel and the yield on the 10-year Treasury bond in the U.S. has reached a three-year peak. After?the?U.S. The United States and Iran renewed their attacks on each another on Tuesday. The Pentagon said it had completed a series of strikes on targets in the Islamic Revolutionary Guard Corps, while Tehran claimed it had struck U.S. assets located in Jordan and Iraq. This was the first serious firefight since July. The return of the Middle East conflict has pushed the yield of the U.S. Treasury 10-year bond to its highest intraday level in nearly three years. Meanwhile, the 10-year Japanese Government Bond yield continued a rise that had already taken it to levels last seen in the past three decades. Bond investors are faced with yet another problem on top of their already growing fiscal concerns. Bond vigilantes are demanding higher compensations to fund governments with large deficits. A renewed oil shock will only add fuel to the fire of inflation, and undermine the appeal fixed income assets. Another wrinkle is also present. The rising yields in Japan may keep more Japanese dollars at home. This would reduce a strong source of overseas demand for bonds that has helped to anchor global markets. Bank of Japan officials made comments ahead of the September 17-18 meeting. Governor Kazuo ueda pledged to keep raising interest rates. Hajime Takata - another board member with hawkish views - also called for an accelerated?pace for interest rate increases. Other central banks also took action to reduce?cost of living pressures on Wednesday. The 'New Zealand dollar' fell 1% to $0.58375 following a 25-basis point rate hike by the Reserve Bank of New Zealand, which was accompanied by a more dovish announcement. The financial climate is tightening, and stocks are suffering. MSCI's broadest index of Asia-Pacific stocks outside Japan fell 1.7% while South Korea's KOSPI dropped more than 3.5%. The Nikkei was down by?2.7%, while S&P500 e-minis futures were?0.1% higher. Early European trades saw pan-regional futures?down 0.4%. German DAX Futures were down 0.5% and FTSE Futures were down 0.5%. The following are key developments that may influence the markets on Wednesday. Earnings of the company CD Projekt Red, Broadcom, Snowflake, Hewlett Packard Enterprise Economic Events France Budget Balance for July
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The chances of finding survivors are fading a week following the devastating Nepal flood
Authorities said that the chances of finding survivors among the thousands who are still missing in Nepal have dwindled. This is a week after flash floods in the Himalayas caused the destruction in the mountainous nation. Nearly 4,000 people are still unaccounted for. Officials fear that many of them may be buried beneath the debris from the floods which ravaged towns and valleys close to the Chinese border. China's official death toll in Tibet has remained at 16 since Sunday, with 546 still missing. Phanindra paudel, a senior government official from the National Emergency Operation Center(NEOC), stated that "the hope of finding survivors has decreased." "We pray, and are hopeful." "Hope is the only way to go!" Army spokesperson Raja Ram Basnet stated that rescuers were searching for survivors who may be hidden in the tunnels and powerhouses of hydroelectric plants. These powerhouses contain spaces?and rooms where people can stay. Authorities reported that 279 people were rescued from the wreckage of hydropower plants, but 639 others are still missing. Some of them may be trapped in underground tunnels. FOCUS SHIFTING TO REHABILITATION Binoj Basnet said that the chances of human survival are decreasing as the days pass. He was a senior?army officer who led the search and rescue operation after the 2015 earthquake, which killed about 9,000 people. Balendra Shah, the Prime Minister of India, said that search and rescue operations would be replaced by rehabilitation and reconstruction. Shah, in a post late on Tuesday night on social media, said that the government was now focusing its efforts on rehabilitation and protecting the lives of the people in the affected area. It also provided medical treatment and counselling. According to an initial estimate by the United Nations Development Programme, there were at least 2.2 millions tons of debris. This included parts of buildings, stones, and sediment. It is the equivalent of 6 Empire State Buildings. The amount of debris is a testament to the extent of destruction, and the challenges that communities will face in clearing?homes and roads and public space and beginning to rebuild," the report said. PUBLIC SHEALTH RISK U.N. spokesperson Stephane Dujarric stated that aid agencies were "very concerned" with the?growing risk to public health from overcrowded housing, contaminated drinking water, and damaged health facilities. This is especially true for women and young children during monsoon seasons. Dujarric said that nearly 3,500 people?live in 27 displacement sites throughout the hardest-hit districts Nuwakot & Rasuwa. Shah said that his government has intensified surveillance and response to prevent any outbreaks of diseases in the flood-affected regions. CLIMATE CATALYST A senior U.N. official said that the Himalayan region is at risk of severe glacial flooding in the future. This sentiment was echoed by Shah's post. Shah stated that the international community must answer questions about the collapse of the ice, rock and water and how this large volume was created. China has also linked the floods to climate change.
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Strong dollar weighing on industrial metals as copper and zinc drop
Copper and zinc prices fell on Wednesday as the industrial metals complex was weighed down by a'strong dollar' and concerns that interest rates would remain?higher? for longer. Benchmark 'three-month copper' on the London Metal Exchange fell?0.99%?to $14,133.5 per metric ton at 0300 GMT. The Shanghai Futures Exchange's most traded copper contract fell 1.65%, to 107 710 yuan (16 022.55) per ton. Dollar held steady after overnight gains as renewed hostilities erupted in the Middle East, pushing oil prices up and reviving inflation fears. The stronger the dollar, the more expensive commodities are for buyers who use other currencies. The data showing that U.S. manufacturing activity declined in August due to high input prices also affected demand expectations. Concerns about tightening supply have supported copper and zinc prices in recent months. Both metals recorded their best month ever since January, in 'August. Copper stocks available in warehouses registered with the LME Zinc prices rose on Tuesday as zinc warrants were cancelled, indicating that material marked for withdrawal from LME storage was withdrawn. The highest level in over a year was 30,875 tonnes. LME zinc dropped 1.43%, while SHFE Zinc fell 1.8% on Wednesday. The LME zinc cash-to-3-month spread remained in "backwardation" on Tuesday, indicating tight supply. However, at $139.35 per ton, the spread has shrunk significantly since last Thursday when it was $231.75. Base metals were also affected by rising expectations of rate hikes. The rate traders have priced in a 68% probability that the U.S. According to the CME's Fedwatch, there is a 68% chance that the Federal Reserve will increase interest rates at its September meeting. This is up from 40% just a week ago. Kevin Warsh's hawkish remarks last Friday have also heightened expectations for rate hikes. The impact of higher interest rates on metal demand can be felt by economic activity. Nickel dipped by 0.27%, and tin fell by 0.81%. Aluminium, nickel, and lead all dropped in price. Tin fell by 2.39%.
US Energy Secretary says Venezuelan oil production will more than double within the next few years
Energy Secretary Chris Wright of the United States said that after arriving in Venezuela on Tuesday, the oil companies in the U.S. as well as?other countries will sign deals in Caracas tomorrow that will result in a more-than-doubling in crude production over the next few year.
Wright is in Venezuela for a day-long visit, his second trip since U.S. troops seized Venezuelan leader Nicolas Maduro's office in January.
Venezuelan oil production peaked at over 3 million barrels a day in the late 90s, but then plummeted due to a lack investment, poor management and U.S. sanction. In recent months, it was around 1.1 to 1.2 millions bpd. This is a slight increase since Maduro's capture.
Wright stated that U.S. gas prices will fall in the coming weeks as a result of steps taken by the Trump administration to relax regulations on refiners.
Wright, who traveled with U.S. officials, said: "These 'deals' will increase oil production massively, putting downward pressure on prices. But the biggest problem right now is the refining capacity." After landing, the Departments of Treasury & State told reporters.
Chevron is the biggest American oil company in Venezuela. Along with Eni of Italy, ONGC from India, GeoPark of Colombia, and GE Vernova, U.S., they are all on track to sign energy agreements in the country.
Wright's meetings with Venezuelan officials come just days after Donald Trump announced a separate deal for the U.S. gaining long-term access to a fifth Venezuela's oil reserves. These are some of the largest proven reserves in the world.
Under the agreement, private U.S. oil company North American Blue Energy Partners (NABEP) would be granted a lease of 100 years for 17 oilfields located in Venezuela. These oilfields contain 65 billion barrels worth of oil.
Washington and Caracas arranged the deal with NABEP (controlled by Venezuelan Alejandro Betancourt), without any competitive process.
Some oil companies, who are weighing up?investments' in Venezuela, were alarmed by this and the fact Betancourt was investigated by U.S. authorities and European authorities but never charged. He previously denied the allegations. NABEP stated that Betancourt had been working in Venezuela's oil industry for over 15 years and has a successful track record.
OILFIELDS ORIGINALLY LED BY RUSSIA AND CHINA
On the flight to Caracas, a U.S. official said that Betancourt "is not a bad actor." They spoke under the condition of anonymity because they weren't authorized to speak publicly.
Officials added that China and Russia controlled many oilfields involved in the NABEP deal until very recently. The official added that Betancourt had brought oil rigs from Texas to Venezuela, which would?provide jobs in both the U.S.A. and Venezuela.
The U.S. official played down the idea that China might be upset about Washington's move to take over Venezuela's natural resources.
The U.S. official stated, "Clearly we maintain a very strong bilateral relationship with China. I don't believe that... they were not expecting this."
At a regular press conference on Tuesday, the spokesperson for the Chinese Foreign Ministry was asked about the U.S. backed?company that took over the fields. He said the cooperation between China and Venezuela 'was protected by international laws' and their interests in Venezuela must be ensured.
Wright reported that 17 million barrels of crude oil passed through the Strait of Hormuz Monday. He added that this was the highest amount of crude oil since the U.S. and Israeli war against Iran reduced the flow.
(source: Reuters)