Japan's Nidec scales up AI server cooling equipment as Nvidia chips get hotter

Plants in Thailand, China and Philippines to make components for data centers

20250321N nidec cooling machine

Nidec is boosting production of liquid-cooling equipment in Thailand. (Photo by Eisaku Nitta)

EISAKU NITTA

KYOTO, Japan -- Nidec is spending about 5 billion yen ($33.6 million) to boost production of cooling equipment for artificial intelligence data centers, a segment where it has carved out a leading market share.

The Japanese company aims to produce 500,000 units per month of piping parts for coolant distribution units at a plant in central Thailand and will also produce pipes in China and the Philippines. Robots will automate processes.

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