Supermicro to Expand AI Server Production in Silicon Valley

Supermicro has announced plans to build a third manufacturing campus in Silicon Valley to help expand its liquid-cooled server production capacity. The site will be located in San Jose, California, where Supermicro is headquartered.

With the rapid development of AI, it is predicted that up to 30% of new data centers will use liquid cooling solutions. Today, Supermicro can ship up to 5,000 air-cooled or 2,000 liquid cooling racks per month. The new campus in Silicon Valley will allow for a significant increase in production volumes.

Image source: Supermicro

The project will be implemented in several stages. The area of ​​the first building will be approximately 27,870 m2, while the area of ​​the entire campus after completion of construction will reach 278.7 thousand m2. Work on the new site will begin this year.

The initiative is supported by the City of San Jose. The project is expected to create hundreds of additional jobs in various sectors, including engineering, manufacturing, and corporate management. Supermicro servers equipped with LSS will help data center operators and hyperscalers improve efficiency by reducing carbon emissions, saving on operating costs, and reducing energy consumption.

Supermicro is forecasting significant revenue growth, with revenue expected to reach $40 billion in fiscal 2026, which ends midway through next calendar year. Supermicro cites the increased adoption of direct liquid cooling (DLC) technology in data centers as the main driver.