AI Boom Drives Surge in Data Center Power Infrastructure Demand

A global increase in data center construction driven by the AI boom has created significant demand for power and cooling infrastructure suppliers across Asia. HD Hyundai Electric and Hainan Jinpan Smart Technology report surging orders for transformers, with demand particularly strong in North America, Europe, and the Middle East. HD Hyundai Electric reported a 23% increase in its order backlog to $8.5 billion as of June 2026, while Hainan Jinpan Smart Technology saw new data center orders more than quadruple in the first half of the year.

To manage rising energy consumption and environmental scrutiny, firms are developing liquid cooling systems and solid-state transformers. Bank of America forecasts that liquid cooling will account for 70% of new AI data center installations by 2030. Delta Electronics is currently deploying solid-state transformers, though leadership notes that adoption will take time because the technology requires a different overall design and power architecture.

Despite strong backlogs, stock price gains for these suppliers have moderated. This slowdown is attributed to high valuations, intensifying competition, and supply chain constraints, including component shortages and delays in grid connections.