Sustainable metal cloud has developed a technology that can reduce energy consumption in data centers by up to 50% using artificial intelligence.

What happened: The Singapore-based company uses HyperCubes, which are servers with NVIDIA Corp. NVDA Processors immersed in polyalphaolefin oil. This method is more efficient than traditional air cooling, CNBC reported.

Co-founder and co-CEO of SMC, Tim Rosenfieldstated that their platform supports high-density GPU hosting, which is required for Nvidia’s new AI processors. The technology is also 28% cheaper to install compared to other liquid-based solutions.

“Most data centers are not ready for liquids of any kind, whether immersion or direct chip cooling. The market is looking for the best way to leverage this, and I think there will be several opportunities,” Rosenfield said.

Rosenfield mentioned that the container solution enables rapid deployment across multiple locations, including unused space in existing data centers. SMC is expanding into markets such as Thailand and India.

SMC has partnerships with Nvidia and Deloittewhich provides GPU clusters for AI applications. The company is raising $400 million in equity and $550 million in debt to fund its expansion beyond Singapore.

Governments and businesses are increasingly adopting AI, driving demand for energy-efficient data centers. Singapore has allocated over 500 million Singapore dollars to support green data centers.

See also: Jim Cramer predicts market slowdown, says ‘We got our hopes up too much’ and now reality has set in: ‘The big gains may be a while away.’

Why it is important: The development of SMC comes at a crucial time when the energy consumption of AI systems is being intensively studied. Recently, major technology companies, including Amazon.com Inc. Amazonhave explored the use of nuclear power to meet the increasing energy needs of AI data centers. Concerns have been raised about the environmental impact and stability of such a transition.

In mid-August, the former president Donald Trump And Elon Musk The significant energy requirements of AI were also discussed. Trump expressed his surprise at the high energy requirements of this technology, noting that AI consumes twice as much energy as the country currently produces.

On the other hand, Bill Gates has defended AI’s increased energy consumption, suggesting that the technology will eventually offset high power consumption. Gates stressed that investments by major technology companies in AI systems are expected to lead to a 2-6% increase in global electricity consumption.

The race to develop artificial intelligence has also highlighted the depletion of energy and water resources, which brings new threats to the environment. Alphabet Inc. GOOG GOOGLE Google introduced AI Overviews, a feature that consumes significantly more power than traditional Google searches.

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This story was created with Benzinga Neuro and edited by Kaustubh Bagalkote