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The artificial intelligence (AI) revolution and the recovery of cloud computing are driving the growth of data centers around the world. Existing data centers are furiously upgrading their systems to handle AI workloads, while new data centers are being built with AI deployment in mind. These AI data centers come online, prepared for AI workloads that can require 2 to 4 times more power than conventional computing tasks. Hyperscalers in the computer and technology sector such as Microsoft Company NASDAQ: MSFT, Amazon.com Inc. NASDAQ:AMZNAnd Alphabet Inc. NASDAQ: GOOGLE Google is exploring the possibility of using clean nuclear energy to power its data centers. Here are two major solution providers for data centers experiencing the AI ​​boom.

Flex: Racks, Power and Cooling for Data Centers

Flexible today

$38.82 -1.10 (-2.76%)

(As of 5:45 p.m. ET)

52 week range

$21.84

▼

$42.47

P/E ratio

17.18

Target price

$40.83

Electronic Manufacturing Services (EMS) giant Flex Inc. NASDAQ: FLEX provides complete power and cooling solutions for data centers. It is the only supplier to offer custom, fully integrated data center racks and power infrastructure solutions. Flex offers custom integrated server racks for servers, networking and storage components. Its power portfolio covers everything from plant power to power components on server boards. Flex’s manufacturing services and food portfolio span over 80% of the data center.

Flex offers grid-to-chip power solutions

Flex has partnered with Musashi Energy Solutions to enhance its Flex Capacitive Energy Storage (CES) solution, a leading solution for mitigating severe power surges. This typically disrupts data centers by adding new AI clusters. They also presented a next-generation computer reference design for artificial intelligence and high-performance computing applications. Flex covers all critical power components, from power distribution units and power distribution units to power modules, with digital, high-density power solutions built specifically for the AI ​​data center.

Data centers require advanced cooling solutions

Flex offers liquid cooling solutions at the rack and board level. Their liquid-cooled Flex rack solution prevents server and component overheating with a power shelf, power supply, and buses designed for more demanding workloads. It is a vertically integrated solution for cloud customers that they can customize and manufacture to specifications. Flex acquired Jet Cool to expand its cooling offerings, such as on-chip liquid cooling that can handle even the latest AI servers.

Data center power business grew 40% year-on-year

Flex’s cloud and data center power business grew 40% year over year in the second quarter of fiscal 2025, even beating its long-term compound annual growth rate (CAGR) forecast of 20%. The company reported second-quarter fiscal 2025 earnings per share of 64 cents, beating consensus estimates by 8 cents. Revenue fell 5.6% YoY to $6.54 billion, beating the consensus estimate of $6.51 billion. They raised their full-year 2025 earnings per share forecast to $2.29 to $2.51, from $2.30 to $2.50, and revenue forecast from $24.90 billion to $25.50 billion. Flex was added to the S&P MidCap index 400 November 25, 2024.

Jacobs Solutions: Data Center Construction and Design

Jacobs Solutions Today

J

Jacobs Solutions

$141.12 +0.43 (+0.31%)

(As of 11/27/2024 ET)

52 week range

US$101.64

▼

US$150.54

Dividend yield

0.82%

P/E ratio

22.29

Target price

US$156.50

The data center boom would not have been possible without the construction of huge data centers. Jacobs Solutions Inc. New York Stock Exchange: J. provides design and engineering services for data centers. They oversee the architectural and structural design and construction of data centers. This also includes the design of critical infrastructure such as electrical systems, cooling systems and backup generators. They also focus on sustainable design and energy efficiency, working to integrate green building practices to minimize the environmental impact of their data centers.

Leading Data Center Design Company

For the past five years, Engineering News-Record has ranked Jacobs Solutions #1 in Data Center, Electronic Assembly, Manufacturing and Semiconductor and #1 in Building Design’s Top Data Center Engineering Companies of 2023 + Construction. Jacobs Solutions clients include Microsoft, Amazon AWS, OCP and the US Army Corps of Engineers. The company has built more than 11 million square feet of data centers with more than 2,000 megawatts of power consumption and a construction cost of more than $17 billion.

More than data centers in the technology sector

Jacobs Solutions’ integrated project delivery model covers all areas of the technology sector. Some of their notable projects include a new 335,000 square foot research center in Singapore, semiconductor manufacturing facilities for Intel Company NASDAQ: INTKand the new 10-acre Saudia Technology Center. They offer cloud condominiums that combine hyperscale and colocation data centers to build and connect 40% faster. The company has completed the spin-off of its government services business Critical Mission Solutions and Cyber ​​& Intelligence into a public company called Amentum Holding Inc. New York Stock Exchange: AMTM. Jacobs Solutions still retains the data center business and a 7.5% stake in Amentum.

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