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Furukawa Electric to invest 55 billion yen in Asia to expand production of AI data center cooling systems
Monday, March 30, 2026 at 09:15 AM
Furukawa Electric plans to invest 55 billion yen across its Asian manufacturing sites to significantly increase production of cooling systems designed for AI data centers. This investment targets the growing demand for advanced thermal management solutions as power density in AI infrastructure rises.
Context
Japanese industrial firm Furukawa Electric has announced plans to invest 55 billion yen ($345 million) in Asia to scale the production of cooling systems for AI data centers. A primary focus of this expansion is a new water-cooling module factory in Thailand, operated through its subsidiary Furukawa FITEL (Thailand) Co., as the company seeks to capture the surging demand for advanced thermal management driven by high-performance GPUs and CPUs.
This strategic move aligns with the company's 2025 Medium-term Plan, which prioritizes the high-growth data center market where server revenue is expected to contribute over 55 billion yen. By shifting toward liquid cooling solutions, Furukawa Electric aims to address the intense heat generation typical of hyperscale facilities. This investment represents a significant ramp-up in their Functional Products segment to support major global end-customers such as Microsoft.
Sources (8)
Financial Results for the First Half of FY2025 New ...Business Briefing Functional Products businessNokia and Furukawa Electric LatAm expand partnership in Brazil to reach data center marketfurukawa electric group - integrated report - 2025基本面風險、獲利品質與結構性挑戰解析 - Readmo.ai - 投資網誌Japan's Furukawa Electric to invest $345M in data center ...Automotive Edge Computing Group expands with Furukawa ElectricDecarbonizing the Entire Supply Chain: Common Challenge to Support a Sustainable Future—Furukawa Electric and Fujitsu’s Efforts : FUJITSU BLOG - Global
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