Source URL: https://www.theregister.com/2024/10/17/schneider_850m_stake_motivair/
Source: The Register
Title: Infrastructure giant Schneider Electric powers up with $850M liquid cooling deal
Feedly Summary: Snags controlling stake in Motivair Corporation, rest to come by 2028
Schneider Electric is taking a controlling interest in Motivair Corporation, a specialist in liquid cooling and thermal management tech for high-performance computing (HPC) systems.…
AI Summary and Description: Yes
Summary: Schneider Electric’s acquisition of a controlling interest in Motivair Corporation is a strategic move to enhance its capabilities in liquid cooling technology for high-performance computing (HPC) systems. This acquisition is increasingly relevant as the demand for efficient cooling solutions rises due to the escalating power needs driven by generative AI and large language models.
Detailed Description:
– Schneider Electric is acquiring a 75 percent controlling interest in Motivair Corporation for $850 million.
– Motivair specializes in liquid cooling and thermal management technologies specifically for high-performance computing systems, which are utilized in data centers.
– This acquisition will be integrated into Schneider Electric’s Energy Management division, focusing on direct-to-chip liquid cooling and thermal technologies.
– The market for liquid cooling in data centers is identified as a “nascent market,” which is projected to grow, especially due to increasing power demands associated with generative AI and the introduction of large language models (LLMs).
– Schneider Electric emphasizes that traditional air cooling methods are insufficient for managing the higher heat production from accelerated computing, hence the need for more efficient liquid cooling solutions.
– Current estimates indicate cooling accounts for approximately 40 percent of the energy consumption in data centers, a figure expected to rise significantly as AI technology develops. Goldman Sachs predicts a 160 percent increase in power demand for data centers by 2030 due to AI.
– Liquid cooling systems are noted to be more effective for high-density server environments compared to air cooling; however, they come with challenges such as higher water consumption and setup costs.
– Motivair has prior experience outfitting supercomputers with liquid cooling technology, and its leadership anticipates that the acquisition will facilitate scaling operations and innovation in new cooling technologies.
– The transaction is pending customary closing conditions, including regulatory approval, and Schneider Electric plans to acquire the remaining 25 percent of Motivair by 2028.
This development highlights significant trends in data center technology, indicating a shift towards more sustainable and technologically advanced cooling solutions driven by the needs of modern computing workloads, particularly those associated with AI advancements.