Latest news with #DCDConnect
Khaleej Times
23-04-2025
- Business
- Khaleej Times
Data centre cooling market expanding in the Middle East
The Middle East and North Africa data centre cooling market is projected to grow from USD 0.19 billion in 2025 to USD 0.86 billion by 2031, at a CAGR of 28.43 per cent, according to a report by Mordor Intelligence. With the data centre market is being one of the fastest growing industries in this region. With the surge, thermal management is getting crucial, and that market is growing at a CGAR of 23 per cent, research shows. Sensing this demand, Johnson Controls, one of the oldest players in the industry with a legacy spanning 140 years (they invented the thermostat), is actively expanding its presence in the region. The company recently took part in DCDConnect in Dubai, that brought together major participants in the data centre space. 'It's a great event for Johnson Controls to demonstrate our presence in the Middle East marketplace. We're launching new products and new technologies. One of them is our new magnetic bearing air-cooled screw chiller with a base tonnage of about 1.5 megawatts, YVAM. We're showcasing that product here along with our full range of technologies in automation, security, and fire. Basically, we're showing everything Johnson Controls can offer to data centre customers at this very well-organized event,' said Todd Grabowski, President of Global Data Centre Solutions at Johnson Controls. Excerpts from an interview: Data centres have been closely tied to AI advancements but also raise sustainability concerns. How are you addressing that? The product we're showcasing here is built around that concern. It's about making data centres more efficient. How do you use less energy for mechanical cooling and redirect that energy to where it really matters — the compute power chain. Our new YVAM product uses about 40 per cent less energy than a conventional air-cooled chiller. It's a sustainable system that doesn't use water, so it avoids water waste. It's also the quietest machine in the industry, which is helpful when you're building data centres near other infrastructure. Noise won't be a concern for surrounding areas. How do you see the Middle East and Africa market developing? We see it as a great opportunity. There are already some strong projects announced in places like Dubai and Saudi Arabia. We believe this region holds great potential, especially with the rise of AI-based applications that are shaping the next generation of data centre builds. How do you think the growth of AI will affect the market? Every time a new technology enters, there's a shift in affordability. When new players introduce more cost-effective AI models, the market becomes more accessible. That leads to growth because more companies, industries, and individuals can use the technology. As AI becomes more affordable, the demand for compute power and data centres increases. So we see AI as a big driver of scalability and demand. What's your view on the future growth of the data centre industry? As usage increases, demand will also grow. Not every data centre is built for the same purpose. Some focus on AI or cloud computing, while others are built for edge applications where latency matters. As a partner, we need to support all of these needs. Our solutions are made to be flexible and scalable for different use cases and environments — whether it's the Middle East or South Africa, the climate and requirements vary, so our technology must adapt accordingly. What are your expansion plans in the Middle East? Our presence here speaks to our commitment to the region. We have a strong local team in Dubai and now we're manufacturing in the region too. That's a big differentiator for us. These investments are a sign of our long-term plans in this market and our belief in the potential here.
Globe and Mail
02-04-2025
- Business
- Globe and Mail
As Microsoft Cancels Its Data Center Leases, These 2 AI Stocks Could Be Winners
Stock market sentiment regarding artificial intelligence (AI) has soured significantly in the past few months. The DeepSeek spook damaged the argument that AI GPU and compute demand was going to not only stick around, but continue to grow exponentially. Then, analysts reported that Microsoft (MSFT) was canceling some of its data enter leases, sending AI stocks further into a downturn. The biggest losers were data center pure-plays and energy companies that were thought to benefit significantly from increased electricity demand. That said, it's not a good idea to be entirely bearish on all AI stocks since there is still demand for AI hardware, and cloud businesses are still growing. Amazon (AMZN) and Google's (GOOGL) cloud businesses are still growing, even if the pace has slowed. Microsoft's retreat from some leases could simply mean it's optimizing its footprint or redirecting resources to more efficient setups. In the meantime, others could take advantage of the void left by Microsoft. Here are two AI stocks that could be winners: AI Stock #1: Alphabet Alphabet (GOOGL) has seen its own share of volatility due to there being chatter about the company's cloud business slowing down and the search segment losing ground to AI competitors. The perception hit hard after DeepSeek's low-cost AI model spooked the market in January and the market still seems unsure whether or not Google's heavy investments in AI infrastructure will pay off against leaner rivals. TD Cowen analyst Michael Elias offers a compelling counterpoint. He notes that Microsoft's retreat from over 2 gigawatts of data center capacity in the U.S. and Europe over the past six months has opened doors for Alphabet. Elias's channel checks at Nvidia's (NVDA) GTC event and DCD Connect show that Google is stepping in to backfill capacity internationally. There is a 'global capacity shortfall' after an August 2024 pullback, the analyst says. Back then, Google shifted focus to squeezing more out of its existing data centers. Now, demand is surging again. Elias ties this ramp to Google's internal AI push, and I believe he's likely to be right since Google's search revenue is still growing and its own AI efforts are picking up steam. The company rolled out Gemini 2.5 Pro in March 2025 and its own AI search model. It still trades at less than 20 times earnings as of writing. The mean price target of $217.39 implies 38% upside potential from here. AI Stock #2: Meta Platforms Meta Platforms (META) has been among the strongest performers over the past two years, and the recent pullback has barely made a dent in its earlier gains. That's also why I am less bullish here than on GOOG due to its high valuation. Elias sees a silver lining amid Microsoft's lease pullback. He notes that Meta is backfilling capacity in the U.S. that Microsoft abandoned and has snapped up over 1 gigawatt of data center space in the past month alone. Elias ties this to a 'material year-over-year ramp' in Meta's data center demand due to Meta's Llama AI model. Regardless, I'm not as bullish on META right now. Part of that is due to valuations, but a big part of that is due to Meta's Llama AI model itself, which trails most other flagship AI models in performance. The company is still heavily reliant on its 'Family of Apps' for cash flow, which it is pouring into AI and VR investments. The current valuation, with sharse trading at nearly 23 times forward earnings, is too rosy due to the AI growth bump, so I believe you should be more careful. The mean price target of $746 implies 27% upside.
Yahoo
27-03-2025
- Business
- Yahoo
TD Cowen sees slower data center equipment purchasing as negative for Vertiv
TD Cowen analysts led by Michael Elias tell investors that the firm's channel checks at Nvidia's (NVDA) GTC event and DCD Connect indicate aggregate data center demand has increased year-over-year, despite more pervasive lease cancellations and deferrals by Microsoft (MSFT) than initially thought. The pullback from Microsoft has created an opportunity for both Google (GOOGL) and Meta (META) to backfill capacity, the firm says. Hyperscale redesigns for higher densities are driving slower DC equipment purchasing, which the firm views negatively for first half orders for Vertiv (VRT), TD added. Easily identify stocks' risks and opportunities. Discover stocks' market position with detailed competitor analyses. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on VRT: Disclaimer & DisclosureReport an Issue Vertiv falls -7.8% Vertiv price target lowered to $100 from $111 at Barclays Synchrony added to 'US 1 List' at BofA, three stocks removed Vertiv initiated with an Outperform at RBC Capital Vertiv Holdings call volume above normal and directionally bullish
