Nvidia partner says it can cut data center energy use by 50% as AI boom strains power grid
The HyperCube utilizes advanced immersion cooling technology.
Sustainable Metal Cloud
The artificial intelligence boom is ramping up demand for more powerful processors as well as the energy needed to keep data centers cool.
That’s an opportunity for data center company Sustainable Metal Cloud, which operates “sustainable AI factories” made up of its HyperCubes in Singapore and Australia.
The HyperCubes contain servers fitted with Nvidia processors which are submerged in a synthetic oil called polyalphaolefin that draws heat away more efficiently than air. The company said its platform reduces energy consumption by up to 50%, as compared to traditional air cooling technology typically used in data centers.
“It enables high density hosting for GPUs. It enables the sort of hosting that we need to see for platforms like [Nvidia’s] Grace Blackwell,” said Tim Rosenfield, co-founder and co-CEO of Sustainable Metal Cloud, referring to the new generation of AI graphics processors Nvidia announced in March.
The Singapore-based firm also said its immersion cooling technology is 28% cheaper to install than other liquid-based solutions. The HyperCubes are designed to go into any data center and can be deployed in unused spaces within existing data centers.
Most data centers are not ready for liquid of any type, whether it is immersion or direct chip cooling. The market is figuring out the best way to employ this and I think there’ll be multiple ways.
Tim Rosenfield
Co-founder and co-CEO, Sustainable Metal Cloud
“Our solution being containerized means we can go anywhere very quickly. And we can open up new availability zones in response to demand from customers …,” said Rosenfield.
He said SMC is expanding into other markets like Thailand and India.
The firm already counts Nvidia and Deloitte among its major enterprise partners. SMC is a preferred cloud partner of Nvidia for compute and AI and offers GPU clusters designed by the chip giant. In July, SMC announced a partnership with Deloitte in which it will provide access to Nvidia’s GPU computing infrastructure for the consultancy’s clients to build AI applications.
Governments and businesses have rushed to capture the transformative impact of AI and data center demand has boomed as a result.
Countries like Singapore, where SMC is headquartered, are also looking to mitigate the hefty energy consumption by pushing for “green” data centers to support its AI ambitions where the country has committed more than 500 million Singapore dollars ($379.7 million).
Sustainable Metal Cloud has received funding from Singapore state investor Temasek-backed ST Telemedia Global Data Centres, one of Asia’s largest data center operators.
SMC is currently raising $400 million in equity and $550 million in debt, with the funds going toward its data center expansion beyond Singapore, Bloomberg reported, citing people familiar with the matter.
Liquid cooling picking up pace
Technology companies are increasingly looking into liquid cooling for its data centers as increasing performance needs also ramp up overheating risks.
Traditionally, data centers have large aisles to allow cooled air to circulate as overheating can lead to equipment failure and downtime. In theory, liquid cooling should enable these facilities to pack more servers into their existing footprint.
Giordano Albertazzi, CEO of digital infrastructure provider Vertiv, told CNBC in June that liquid-cooling adoption could accelerate in 2024. Vertiv’s thermal management offerings include hybrid air- and liquid-cooling, as well as fully liquid-cooled data centers.
During Computex Taipei in June, Nvidia CEO Jensen Huang championed the benefits of Supermicro’s direct liquid-cooling technology, which he said saves energy and lowers costs in AI data centers.
Servers are submerged in oil within container-like “hypercubes” to draw heat away efficiently.
Sustainable Metal Cloud
Supermicro CEO Charles Liang told CNBC in June that liquid cooling has greater power efficiency leading to better performance, less pollution and lower energy costs.
Despite the fanfare, challenges remain in deploying liquid cooling, according to SMC’s Rosenfield.
“Most data centers are not ready for liquid of any type, whether it is immersion or direct chip cooling. The market is figuring out the best way to employ this and I think there’ll be multiple ways,” said Rosenfield.
Vertiv’s Albertazzi said, “There is still a lot of air cooling that still happens in the data center and will continue to happen even in the full high-density AI data center.”
Charles Liang, CEO of Super Micro, speaks at the Computex conference in Taipei, Taiwan, on June 1, 2023.
Walid Berrazeg | Sopa Images | Lightrocket | Getty Images
Super Micro Computer shares slid 15% in extended trading on Tuesday after the server maker reported disappointing fiscal fourth-quarter results and issued weak quarterly earnings guidance.
Here’s how the company did in comparison with LSEG consensus:
- Earnings per share: 41 cents adjusted vs. 44 cents expected
- Revenue: $5.76 billion vs. $5.89 billion expected
Super Micro’s revenue increased 7.5% during the quarter, which ended on June 30, according to a statement.
For the current quarter, Super Micro called for 40 cents to 52 cents in adjusted earnings per share on $6 billion to $7 billion in revenue for the fiscal first quarter. Analysts surveyed by LSEG were looking for 59 cents per share and $6.6 billion in revenue.
For the 2026 fiscal year, Super Micro sees at least $33 billion in revenue, above the LSEG consensus of $29.94 billion.
Super Micro saw surging demand starting in 2023 for its data center servers packed with Nvidia for handling artificial intelligence models and workloads. Growth has since slowed.
The company avoided being delisted from the Nasdaq after falling behind on quarterly financial filings and seeing the departure of its auditor.
As of Tuesday’s close, Super Micro shares were up around 88% so far in 2025, while the S&P 500 index has gained 7%.
Executives will discuss the results on a conference call starting at 5 p.m. ET.
WATCH: We have a runaway bull market right now, says Jim Cramer
Hinge Health co-founders, Gabriel Mecklenburg and Daniel Perez celebrate its initial public offering at the New York Stock Exchange on May 22, 2025.
NYSE
Shares of Hinge Health popped 6% in extended trading on Tuesday after the digital physical therapy company reported quarterly results for the first time since its debut on the New York Stock Exchange in May.
Here’s how the company did based on average analysts’ estimates compiled by LSEG:
- Loss: Loss per share of $13.10. That may not compare with the 9 cents per share earnings expected
- Revenue: $139 million vs. $125 million expected
Revenue at Hinge increased 55% in the second quarter from $89.8 million during the same period last year, according to a release.
Hinge reported a net loss of $575.65 million, or $13.10 per share, compared to a loss of $12.93 million, a loss of 96 cents per share, during the same period a year earlier. The company said its GAAP loss from operations was $580.7 million, which included $591.0 million from stock-based compensation expenses.
“We’re still introducing ourselves to the world,” Hinge CEO Daniel Perez told CNBC in an interview on Tuesday. “The most important thing I’d hope for people to take away is the long-term potential of using software and connected hardware to automate care delivery itself.”
Hinge, founded in 2014, uses software to help patients treat acute musculoskeletal injuries, chronic pain and carry out post-surgery rehabilitation remotely.
It finished the second quarter with 2,359 clients, up 39% from 1,785 clients during the same period last year.
Hinge said it expects to report revenue between $141 million and $143 million during its third quarter. LSEG analysts were expecting $129 million. For the full year, the company said it expects revenue of $548 million to $552 million, which also beat the $511 million expected by LSEG analysts.
The stock opened at $39.25 in May, rising 23% from its $32 IPO price. Shares of Hinge closed at $48.22 on Tuesday.
“We believe we’re fundamentally reshaping how care can be delivered more effectively and efficiently,” Perez said during the company’s quarterly call with investors.
Hinge Health 3 month stock chart.
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