Super Micro Computer, Inc. (NASDAQ:SMCI) tapped Datasection, Apple Inc (NASDAQ:AAPL) supplier Foxconn, Japanese electronics firm KDDI, and telecom partner Sharp to create a large-scale Asian artificial intelligence data center.

Sharp and KDDI proposed transforming a factory site in Japan into a datacenter powered by Nvidia Corp’s (NASDAQ:NVDA) advanced chips, Nikkei Asia reports.

Super Micro Computer’s stock price gained after the update. Also, the broader semiconductor index recovered from a selloff Friday as the Biden administration slapped AI technology restrictions on the Middle East.

Working with system integrator Datasection, Supermicro will develop Total IT rack-scale liquid-cooled solutions for the new datacenter, leveraging advanced Nvidia GPUs.

In addition, Supermicro looks to construct a liquid-cooled system with piping, water towers, and monitoring equipment.

Built on the former Sharp Sakai plant, the new facility will support advanced systems optimized for the Nvidia AI Enterprise platform and deliver powerful performance for leading-edge LLM, ML, and generative AI applications.

Supermicro CEO Charles Liang said, “Our new industry-leading Direct Liquid Cooling (DLC) solutions are exactly the best for hyper-dense AI rack deployments that can lower energy costs and have a smaller environmental impact.”

Analysts had flagged continued sales momentum for Supermicro, hailing it as the pure-play AI server vendor, helped by robust demand from Tier-2 CSPs and enterprises.

Super Micro Computer stock gained 251% in the last 12 months. Investors can gain exposure to the stock via ERShares Entrepreneurs ETF (NASDAQ:ENTR) and Global X Data Center & Digital Infrastructure ETF (NASDAQ:DTCR).

Price Action: SMCI shares were up 2.04% at $800.50 premarket at the last check on Monday.

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This article What’s Going On With Super Micro Computer Stock On Monday? originally appeared on Benzinga.com

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