Fuji Electric adapts cooling technology for AI data centers

Tokyo | Financial Times Fuji Electric, Japan's largest convenience machine maker, has adapted its refrigeration technology to cool servers in artificial intelligence data centers. The company claims the system can reduce energy consumption by up to 85%.

The technology derives from a project developed after the Fukushima nuclear accident in 2011, when vending machines became the target of criticism for wasting energy. In 2015, engineers created an ejector with CO₂ refrigerant that eliminated the need for a compressor and reduced energy expenditure by 20%.

While conventional systems use high-powered electrically powered compressors, Fuji Electric's ejector harnesses waste heat to propel fluid through a precision nozzle.

"Simply extending conventional technology would not have been enough," said Hideto Shirai, who leads Fuji Electric's efforts to sell the technology to data centers.

Although unfeasible for vending machines due to cost, the solution found space in the IT infrastructure market.

The Japanese manufacturer aims to sell more than 10 billion yen ($61 million) worth of ejector systems for data centers by 2030.

The company's role in the AI supply chain has helped its shares rise nearly 47% over the past year.

Experts point to challenges for large-scale adoption. Analysts indicate that large data center operators have already closed architectures for the coming years, making it difficult for new suppliers to enter, in addition to competition with absorption coolers from rival brands such as Kawasaki and Ebara.

Alex Cordovil, research director at the Dell’Oro group, specializing in data center infrastructure, classified the technology as "promising", but highlighted that it is still in a "genuinely embryonic" phase.

The data center cooling market is moving from traditional systems with water, glycol or hydrofluoroolefins to direct liquid cooling, which circulates refrigerant directly into heat-generating components such as CPUs and GPUs.

Fuji Electric's system can be used in liquid cooling structures. Ejector technology performs better in regions with high temperatures, opening up potential space in areas of Japan where summer heat exceeds 35°C, as well as Southeast Asia.

However, Cordovil pointed out that a rival technology powered by waste heat — absorption chillers manufactured by Japanese companies Kawasaki, Ebara and Yazaki — has an advantage in adoption by data centers.

Goldman Sachs analyst Ryo Harada expressed skepticism about Fuji Electric's ability to access the North American data center market.

"The technology may be attractive, but commercialization is equally important," he said. "Tech giants have already defined their next-generation data center architectures for the next two to three years, so it should take at least that long for new entrants to gain relevance."