Super Micro Computer gains after adding 3 new manufacturing facilities

Published 18/06/2024, 14:02
© Reuters.

Super Micro Computer (NASDAQ:SMCI) shares have gained around 1.5% premarket Tuesday after the company said it is adding three new manufacturing facilities in Silicon Valley and globally.

The company is adding factories to support the growth of artificial intelligence and enterprise rack-scale liquid-cooled solutions, noting a demand increase.

"The new facilities will be part of the new liquid-cooled ecosystem, reducing the time needed to deliver to customers worldwide," said SMCI.

The new facilities will focus on delivering entire plug-and-play liquid-cooled solutions, from systems to racks to water towers, with the company stating that AI factories are becoming more prevalent as liquid-cooled data centers are "critical to meet these increasing customer demands for AI-focused workloads."

Liquid-cooled data centers increase the amount of AI compute performance per watt, resulting in more performance per data center.

"Many data center owners are looking for electricity-saving Direct Liquid-Cooled solutions. Supermicro is developing building block liquid-cooled solutions for AI factories and the HPC market," said Charles Liang, president and CEO of Supermicro.

He adds: "We anticipate that liquid-cooled data centers will grow from historically less than 1% to an expected 15% and up to 30% of all data center installations in the next two years."

The company believes the expansion will position it to capture the majority share of that growth.

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