Mitsubishi Electric is preparing a full-scale expansion into the liquid-cooled data center market in collaboration with Hon Hai. Its IR materials set out a detailed co-creation initiative centered on next-generation cooling technologies, including DLC, with the aim of achieving a PUE of 1.1.
Mitsubishi Electric signed a memorandum of understanding with Taiwan's Hon Hai Precision Industry last November to collaborate on solutions for AI data centers. Its 2026 IR materials specify plans to strengthen its liquid-cooling business and introduce next-generation cooling systems centered on DLC, as well as two-phase liquid cooling, free cooling and next-generation high-efficiency dry coolers. The materials state that the company aims to achieve a PUE of 1.1 through co-creation with Hon Hai.
Mitsubishi Electric has outlined a policy of pursuing a “total data center cooling solution” that combines power, cooling and control, centered on the power systems and IT Cooling used to operate data centers as a whole. It has also disclosed a growth plan for IT Cooling revenue in fiscal 2025.
Hon Hai specializes in the large-scale production and integration of AI servers, racks and IT modules, and is strengthening its ability to design AI infrastructure as a whole through collaborations including one with Schneider Electric. The collaboration between the Japanese and Taiwanese companies is expected to advance both testing on actual equipment adapted to changes in GPU generations and mass-production capabilities.
One proposed option for Japanese companies entering the liquid-cooling market is a model involving joint development, testing and market launches with Taiwanese thermal-management companies. Taiwan's industrial cluster, including Hon Hai, is positioned as a foundation that can support not only the supply of components for liquid-cooling equipment, but also the design, testing and mass production of AI servers.