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.”
Intel snapped a losing streak of six straight quarterly losses and returned to profitability in the third quarter.
In its first earnings report since the Trump administration acquired a 10% stake in the company, the U.S. chipmaker posted strong revenue, noting robust demand for chips that it expects to continue into 2026.
Client computing revenue, which includes chips for PCs and laptops, grew 5% year over year, benefiting from PC market stabilization and artificial intelligence PC prospects.
CEO Lip-Bu Tan said in a call with analysts Thursday that artificial intelligence “is a strong foundation for sustainable long-term growth as we execute.”
The chip strength and demand were bright spots, but there were areas of concern as well, with the company’s foundry business still needing a big break.
Here are three takeaways from the chipmaker’s Q3 report:
Cash flow
“We significantly improved our cash position and liquidity in Q3, a key focus for me since becoming CEO in March,” Tan said on a call with analysts Thursday.
Intel landed an $8.9 billion investment from the U.S. government in August, along with $2 billion from Softbank, but has not yet received the $5 billion tied to a deal with Nvidia. The company expects that deal to close by the end of Q4.
With all of those transactions completed, plus the Altera sale, Intel will have $35 billion in cash on hand, CFO David Zinser told CNBC.
The U.S. government is the company’s biggest shareholder, and Intel stock is up more than 50% since Aug. 22, when Commerce Secretary Howard Lutnick announced the deal.
“Like any shareholder, we have to keep in touch with them,” Zinser said of the U.S. stake. “We don’t tell them how the numbers are going before the quarter. We generally talk to them like Fidelity,” another Intel shareholder.
Intel 3-month stock chart.
Foundry
The firm’s foundry remains a work in progress.
Revenue fell 2% over the year before, and it has yet to land a major customer.
Intel now has two fabs running 18A nodes, which are designed for AI and high-performance computing applications.
“We are making steady progress on Intel 18A,” Tan said of its latest chip technology. “We are on track to bring Panther Lake to market this year.”
Zinser said the more advanced 14A nodes won’t be put in supply until the company has “real firm demand.”
Old stuff still selling
Zinser said the company’s older chipmaking processes, or nodes, have continued to do well, “and that was probably the part that was more unexpected.”
Zinser said the chipmaker met some of the central processing unit (CPU) demand with inventory on hand, but they will be behind in Q1, “probably Q2 and maybe in Q3.”
The supply crunch has been with older Intel 10 and 7 manufacturing technologies.
Many customers are opting for less advanced hardware to refresh their operating systems, demonstrating enterprises aren’t waiting for cutting-edge chips when proven technology gets the job done.
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