The hidden cost of scaling AI: infrastructure, energy, and the push for liquid cooling.
Updated
January 8, 2026 6:31 PM
The inside of a data centre, with rows of server racks. PHOTO: FREEPIK
As artificial intelligence models grow larger and more demanding, the quiet pressure point isn’t the algorithms themselves—it’s the AI infrastructure that has to run them. Training and deploying modern AI models now requires enormous amounts of computing power, which creates a different kind of challenge: heat, energy use and space inside data centers. This is the context in which Supermicro and NVIDIA’s collaboration on AI infrastructure begins to matter.
Supermicro designs and builds large-scale computing systems for data centers. It has now expanded its support for NVIDIA’s Blackwell generation of AI chips with new liquid-cooled server platforms built around the NVIDIA HGX B300. The announcement isn’t just about faster hardware. It reflects a broader effort to rethink how AI data center infrastructure is built as facilities strain under rising power and cooling demands.
At a basic level, the systems are designed to pack more AI chips into less space while using less energy to keep them running. Instead of relying mainly on air cooling—fans, chillers and large amounts of electricity, these liquid-cooled AI servers circulate liquid directly across critical components. That approach removes heat more efficiently, allowing servers to run denser AI workloads without overheating or wasting energy.
Why does that matter outside a data center? Because AI doesn’t scale in isolation. As models become more complex, the cost of running them rises quickly, not just in hardware budgets, but in electricity use, water consumption and physical footprint. Traditional air-cooling methods are increasingly becoming a bottleneck, limiting how far AI systems can grow before energy and infrastructure costs spiral.
This is where the Supermicro–NVIDIA partnership fits in. NVIDIA supplies the computing engines—the Blackwell-based GPUs designed to handle massive AI workloads. Supermicro focuses on how those chips are deployed in the real world: how many GPUs can fit in a rack, how they are cooled, how quickly systems can be assembled and how reliably they can operate at scale in modern data centers. Together, the goal is to make high-density AI computing more practical, not just more powerful.
The new liquid-cooled designs are aimed at hyperscale data centers and so-called AI factories—facilities built specifically to train and run large AI models continuously. By increasing GPU density per rack and removing most of the heat through liquid cooling, these systems aim to ease a growing tension in the AI boom: the need for more computers without an equally dramatic rise in energy waste.
Just as important is speed. Large organizations don’t want to spend months stitching together custom AI infrastructure. Supermicro’s approach packages compute, networking and cooling into pre-validated data center building blocks that can be deployed faster. In a world where AI capabilities are advancing rapidly, time to deployment can matter as much as raw performance.
Stepping back, this development says less about one product launch and more about a shift in priorities across the AI industry. The next phase of AI growth isn’t only about smarter models—it’s about whether the physical infrastructure powering AI can scale responsibly. Efficiency, power use and sustainability are becoming as critical as speed.
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What Overstory’s vegetation intelligence reveals about wildfire and outage risk.
Updated
January 15, 2026 8:03 PM
Aerial photograph of a green field. PHOTO: UNSPLASH
Managing vegetation around power lines has long been one of the biggest operational challenges for utilities. A single tree growing too close to electrical infrastructure can trigger outages or, in the worst cases, spark fires. With vast service territories, shifting weather patterns and limited visibility into changing landscape conditions, utilities often rely on inspections and broad wildfire-risk maps that provide only partial insight into where the most serious threats actually are.
Overstory, a company specializing in AI-powered vegetation intelligence, addresses this visibility gap with a platform that uses high-resolution satellite imagery and machine-learning models to interpret vegetation conditions in detail.Instead of assessing risk by region, terrain type or outdated maps, the system evaluates conditions tree by tree. This helps utilities identify precisely where hazards exist and which areas demand immediate intervention—critical in regions where small variations in vegetation density, fuel type or moisture levels can influence how quickly a spark might spread.
At the core of this technology is Overstory’s proprietary Fuel Detection Model, designed to identify vegetation most likely to ignite or accelerate wildfire spread. Unlike broad, publicly available fire-risk maps, the model analyzes the specific fuel conditions surrounding electrical infrastructure. By pinpointing exact locations where certain fuel types or densities create elevated risk, utilities can plan targeted wildfire-mitigation work rather than relying on sweeping, resource-heavy maintenance cycles.
This data-driven approach is reshaping how utilities structure vegetation-management programs. Having visibility into where risks are concentrated—and which trees or areas pose the highest threat—allows teams to prioritize work based on measurable evidence. For many utilities, this shift supports more efficient crew deployment, reduces unnecessary trims and builds clearer justification for preventive action. It also offers a path to strengthening grid reliability without expanding operational budgets.
Overstory’s recent US$43 million Series B funding round, led by Blume Equity with support from Energy Impact Partners and existing investors, reflects growing interest in AI tools that translate environmental data into actionable wildfire-prevention intelligence. The investment will support further development of Overstory’s risk models and help expand access to its vegetation-intelligence platform.
Yet the company’s focus remains consistent: giving utilities sharper, real-time visibility into the landscapes they manage. By converting satellite observations into clear and actionable insights, Overstory’s AI system provides a more informed foundation for decisions that impact grid safety and community resilience. In an environment where a single missed hazard can have far-reaching consequences, early and precise detection has become an essential tool for preventing wildfires before they start.