Global Switch, a data centre operator controlled by China's state-backed Jiangsu Sha Steel Group, said demand from mainland artificial intelligence firms in Hong Kong is driving a need for new direct-to-chip cooling solutions it has started providing in the city.
"We've seen a huge increase in demand for higher and higher density racks," said Ben Ryder, solutions engineering director at Global Switch. "In the last two years, we've seen requirements for 20 kilowatts [per rack] initially, 40 to 50, and now beyond that, up to 100 kilowatts, as we can support liquid cooling."
Global Switch on Monday announced the availability of direct-to-chip liquid cooling in its 30-megawatt facility in Tseung Kwan O after last week inviting potential customers in to see what it called the first showcase of this solution in Hong Kong. Direct-to-chip cooling, which involves placing a cold plate with cool liquid running through it in direct contact with integrated circuits, is in increasing demand in data centres as power requirements for AI applications shoot up.
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Global Switch's Hong Kong data centre in Tseung Kwan O on November 15, 2017. Photo: Global Switch alt=Global Switch's Hong Kong data centre in Tseung Kwan O on November 15, 2017. Photo: Global Switch>
The company said it has seen an increasing number of inquiries related to deploying China-made graphics processing units (GPUs), the type of chips driving the AI boom. GPUs have become highly politicised as the US moved to block certain powerful chips from Nvidia from being exported to China. This has increased demand in China for AI chips from companies like Huawei Technologies and Shanghai-based unicorn Biren Technology.
Global Switch said it does not have visibility into the tech that customers use in their servers, but power and cooling demands provide some insights.
"In Hong Kong it's very clear that the main new demand comes from mainland China customers," said Eric Liu, the Hong Kong managing director for Global Switch. "I think compared with a couple of years before, they are more open to new markets, and they are bringing out from mainland China their own technology to Hong Kong."
In rolling out its new cooling solutions - which includes rear-door heat exchangers that combine liquid and air cooling - Global Switch has partnered with Supermicro, xFusion and Liquidstack. In its presentation ahead of a tour of the facility on September 10, Supermicro touted the capabilities of its servers running Nvidia's H100 and H200, two of the AI chips that Washington has banned from export to China.
Matthew Dent, Global Switch's chief commercial officer, said the company does not police server hardware in its facilities. No local laws prevent companies from purchasing Nvidia chips, and a black market for the products has sprung up where they sell well above retail price.
"As a data centre operator, we're agnostic," Dent said. "We're not in the business of servers and chips. We're in the business of creating a resilient environment for our customers' equipment."
Founded in the UK in 1998, Global Switch has grown to 13 data centres across eight markets, concentrated in major metropolitan areas.
The company works with major tech companies, including Alibaba Group Holding, the owner of the South China Morning Post. Alibaba Cloud lists the Tseung Kwan O facility as one of its six Hong Kong access points.
Global Switch's China ties have invited scrutiny in recent years. Australian federal government agencies started terminating agreements with the company in 2017 after a Chinese consortium led by Jiangsu Sha Steel Group bought a 49 per cent stake. Through later investments, Jiangsu Sha Steel became the controlling shareholder in 2019.
Global Switch has previously sought a buyer for the company, according to media reports, but no deals have yet to go through. It has separately been shopping around its Australian facility and has been weighing offers this year, according to reports.
The technical area of Global Switch's Hong Kong data centre, with power distribution cabinets along the walls. Photo: Global Switch alt=The technical area of Global Switch's Hong Kong data centre, with power distribution cabinets along the walls. Photo: Global Switch>
Regarding a potential sale, the company said it has a "duty to look at all options that will enable Global Switch to continue its growth plans", but that shareholders remain "highly supportive of our management team".
The company also said it would not "comment on speculation" regarding its Australia facility, and it downplayed the potential risks of the current geopolitical environment. When asked about the Huawei power distribution cabinets throughout the facility, Ryder said the company uses interchangeable hardware from multiple vendors.
Power distribution cabinets, which distribute power from generators to electrical equipment, are less likely to be politicised because they are a "dumb piece of equipment" without any "intelligence or control", Dent said.
Submarine cables have already become politicised, as Facebook discovered in 2021 when it nixed a plan to connect the US and Hong Kong with a new line. While Global Switch touts its Tseung Kwan O facility as being close to "major submarine cable landing stations", Dent said the company just goes wherever there is client demand.
"The politics of submarine codes is not something we involve ourselves in," he said.
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.
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