Nidec spurs pivot to AI cooling with China, Philippines production

Japanese motor maker to expand from Thai base in bid to grow profits

20240719N Nidec

Nidec's water-cooling modules regulate AI server temperatures better than fans. (Photo by Kosaku Mimura)

KOSUKE TSUNODA, Nikkei staff writer

KYOTO, Japan -- Japanese motor maker Nidec will expand production of cooling modules for generative AI servers to China and the Philippines as early as this fall, aiming to develop the sector into a new profit driver.

Servers that host generative artificial intelligence services can generate incredible heat from the amount of data processing they perform, with the temperature of the core graphics processing unit sometimes approaching 100 degrees Celsius.

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