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Power and Liquid Cooling Model Update: Assessing PSU, Liquid Cooling, and Electric Grid Impacts

We are updating our proprietary power consumption model (link) and forecast 242GW of datacenter power installed base by 2028 (vs. previously at 172GW; implying a 27% CAGR from 2025-28). We have seen meaningful upside in power consumption over the last 12 months, mainly from a stronger AI spending outlook, higher-than-expected Thermal Design Power (TDP) in AI silicon, and slower-than-expected improvement in Power Usage Effectiveness (PUE). The key downside risk is potential electricity supply contraints, as our forecast is based on chip module build. We believe the datacenter power supply and liquid cooling market could outgrow power consumption growth due to spec upgrades, increased component integration, and favorable market pricing dynamics. The migration to the next-gen HVDC datacenter power architecture could also stimulate demand for power equipment and energy storage systems. Key beneficiaries of this theme include Delta, Jentech, Fositek, Vertiv, Hyundai Electric, and LS Electric.