Panoramic analysis of data center cooling and power costs: liquid cooling and 800VDC are definite trends, and Vertiv and nVent are the core beneficiaries (Bernstein)
The Bernstein report gives detailed cost estimates per megawatt of data center cooling and power equipment: air cooling is about 1.1-1.5M/MW, liquid cooling is about 1.3-1.8M/MW; traditional AC power is about 1.8-2.5M/MW, and native 800VDC is about 1.4-2.1M/MW
The Bernstein report gives detailed cost estimates per megawatt of data center cooling and power equipment: air cooling is about 1.1-1.5M/MW, liquid cooling is about 1.3-1.8M/MW; traditional AC power is about 1.8-2.5M/MW, and native 800VDC is about 1.4-2.1M/MW. As the density of AI computing power increases, liquid cooling and 800VDC DC power supply are certain technology trends. The report gives Vertiv (VRT.US) and nVent (NVT.US) an "outperform" rating. The market has a consensus on the strong demand for data centers, but this report quantifies and breaks down the specific costs under different technical paths, which is very helpful for investors to understand the value distribution of the industry chain. One sentence conclusion: Liquid cooling and 800VDC are the inevitable choices for AI data center cooling and power supply. Related equipment manufacturers will usher in opportunities to increase both volume and price. Vertiv and nVent are the core beneficiaries. Positive/negative: Positive for Vertiv (VRT.US), nVent (NVT.US), Schneider Electric (SBGSY), and Trane (TT.US). Market demand for data center power and cooling is anticipated, but the details of each company's cost structure and valuation may not yet be fully understood. Catalysts: 1) Hyperscaler (Microsoft, Google, Amazon) data center construction plans; 2) Penetration data of liquid cooling and 800VDC technology in new data centers.