Data center equipment and infrastructure: Data-center infrastructure demand remains strong as 800VDC, liquid cooling and modular construction reshape the supply chain.

Overview

This multi-industry conference takeaway summarizes Goldman Sachs' meetings with data-center infrastructure suppliers in Singapore. Its central conclusion is that AI-driven demand remains robust across cooling, electrical equipment, engines and services, while the industry is moving toward 800VDC power systems, liquid cooling and modular deployment to support faster construction and higher rack densities.

Core views

Goldman Sachs found demand for data-center equipment to be strong across suppliers, despite political and environmental scrutiny that has not yet materially affected activity on the ground. Capacity remains tight, but suppliers generally reported that supply chains are holding up through capacity expansion, early procurement of critical components and localized manufacturing. Alfa Laval and Schneider Electric reported triple-digit order growth across training and inference workloads. Eaton said customers are signing three-year capacity agreements, versus less than one year previously, while INNIO reported slot reservations extending to 2031. Lead times range from 3-4 months for cooling solutions to 9-13 months for low-voltage data-hall products, 20-24 months or more for engines, and 2.5-3 years for high-voltage transformers. The report identifies 800VDC as the next important power-architecture transition. Eaton, Schneider Electric and Vertiv are building broader 800VDC portfolios including solid-state transformers and sidecars. Eaton targets a first deployment of its 2.5MW medium-voltage solid-state transformer in Singapore in 2Q27 and expects wider adoption in late 2027. Vertiv expects sidecars to launch in 1H27, while Schneider expects a sidecar next year but low-voltage rectifiers only in 2028-29 and solid-state transformers by the end of the decade. The architecture still has open design questions around storage location, whether diesel generation should be replaced by medium-voltage UPS or battery energy storage, load smoothing and future microgrids. Liquid cooling is presented as a necessary complement to the 800VDC shift because it can support MW-scale rack loads. Alfa Laval, Envicool and Schneider Electric all highlighted its importance. Alfa Laval is described as the leader in copper-brazed heat exchangers used in coolant distribution units and directly supplies eight of the top ten CDU OEMs. Envicool and Vertiv offer cold plates, piping and CDUs, while Schneider's acquisition of Motivair supports prefabricated high-density liquid-cooled AI clusters that combine chillers, CDUs and medium-voltage switchgear. Alfa Laval also expects opportunities from higher-MW retrofits, two-phase cooling, cryogenic cooling for quantum computing, rainwater reuse and district-heating waste-heat recovery. Power-generation suppliers reported exceptional demand and long order horizons, although their products serve different installation needs. Wartsila supplies 9-24MW heavy-duty engines, INNIO's Jenbacher offers smaller 1.8-4.5MW gas engines for easier containerization and installation, Cummins supplies 1-3.25MW diesel engines, and Caterpillar turbines span 1-38MW. INNIO reported a 15GW, $7bn backlog, with 64% behind the meter, and plans to triple annual Jenbacher production from 1,500 engines in 2025 to 4,500 by 2030. Caterpillar is fully booked through 2027, Cummins' lead times are 20-24 months, and Wartsila's exceed 24 months. The report notes that these constraints are driving broad capacity additions rather than causing companies to report immediate supply-chain breakdowns. Modularization is another major theme because it lowers complexity and speeds time to market. Eaton said modular systems now account for 60-70% of demand, compared with 10-20% in prior years, helping reduce data-center construction time to one year from 2-3 years historically. Vertiv has standardized offsite-prefabricated 50MW modular blocks with a roughly 12-month time to market. Schneider and Envicool also offer modular solutions, while INNIO's smaller engines can be containerized. Honeywell participates through automation and controls but does not offer modular systems itself and believes customers may resist dependence on a single supplier. The meetings also point to a growing service opportunity as AI workloads raise the operational importance of uptime. Hyperscalers are increasingly contracting directly with OEMs rather than relying solely on facility managers. Vertiv cited 15-20 year service agreements, and INNIO has 20-year agreements across 100% of its installed base; it said recurring service revenue exceeds initial equipment capital expenditure. Wartsila offers lifecycle services but generally limits contracts to five years to manage long-term inflation risk. Company discussions reinforce the broad industry picture. Eaton sees sustained demand, has pre-bought long-lead components and is passing component inflation through to customers. Schneider's data-center business is close to 30% of sales, with triple-digit order growth and more than 60% of data-center revenue from North America; it estimates 65% of new builds are dedicated to AI workloads. Envicool cites 3-4 month lead times and says it is gaining Asian market share versus Vertiv through pricing, customization and Chinese supply chains. Vertiv is engaging customers earlier in the design process, pre-purchasing components 2-3 years ahead and expanding localized capacity. Honeywell is positioning its automation portfolio around data halls and power islands, while INNIO emphasizes direct customer sales, EPC capability and long-term recurring service revenue. Political and environmental concerns have produced localized actions, including a two-week pause on data centers in Thailand and a community-driven project cancellation in Australia, but participants did not report broad operational impact. Instead, the report sees sustainability considerations promoting renewable-power purchase agreements, reduced water use and advanced generator technologies.

Analysis framework

The report synthesizes management discussions and booth visits at Data Center World, comparing order growth, lead times, capacity plans, product roadmaps, installation models and service contracts across cooling, electrical-equipment, automation and power-generation suppliers. It uses these company observations to assess supply-demand conditions and the timing and infrastructure implications of the 800VDC transition.

Methodology notes

• Industry AnalysisSupply-demand framework

  Supplier-by-supplier assessment of demand, capacity, order commitments, lead times and production expansion.

  The report uses order growth, reservation durations, backlog and delivery lead times to judge whether data-center infrastructure demand is outpacing available supply and how suppliers are responding.

• Industry AnalysisUpstream-Midstream-Downstream Transmission

  Data-center architecture transition across power conversion, cooling, engines, modular construction and long-term service.

  The report traces how higher AI rack densities and 800VDC designs increase requirements for liquid cooling, electrical equipment, backup or base-load power, prefabrication and OEM service.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• Alfa Laval

  Covered cooling supplier benefiting from data-center demand and direct-to-chip liquid-cooling adoption.

  Strengths

  Data centers represent 5-6% of group sales; triple-digit order growth; supplies eight of the top ten CDU OEMs with copper-brazed heat exchangers.

  Weaknesses

  No aftermarket opportunity for liquid cooling relative to gasketed heat exchangers.

  Comparison

  Differentiated as a heat-exchanger supplier rather than a cold-plate manufacturer.

  Risks

  Capacity is tight and lead times span several months.

• Eaton Corp.

  Covered electrical-infrastructure supplier developing an 800VDC portfolio and benefiting from modular demand.

  Strengths

  2.5MW MV SST targeted for first deployment in 2Q27; modular systems represent 60-70% of demand; long-term customer capacity agreements and pre-purchased components support visibility.

  Weaknesses

  Its refurbishment sidecar had not yet been sold.

  Comparison

  Eaton believes MV UPS may not be required in a full 800VDC architecture.

  Risks

  Component inflation is being passed through to customers.

• Honeywell International Inc.

  Covered automation and controls provider focused on data halls and power islands.

  Strengths

  Vendor-agnostic building-management systems, power management, security and fire protection; benefits from data centers becoming power-generating assets.

  Weaknesses

  Does not offer modular systems directly and is not involved in white-space mechanical cooling.

  Comparison

  Competes with Schneider Electric, Siemens, JCI, Rockwell and Emerson in relevant automation markets.

  Risks

  High-voltage transformer lead times can reach 2.5-3 years.

• INNIO

  Covered gas-engine provider serving base-load and backup-power demand for data centers.

  Strengths

  15GW/$7bn backlog, reservations through 2031, direct-sales and EPC capability, and 20-year service agreements across 100% of installed base.

  Weaknesses

  Pricing per MW varies materially with project scope and region.

  Comparison

  Smaller engines are easier to containerize and install than Wartsila's larger heavy-duty units.

  Risks

  Capacity expansion requires doubling Austrian manufacturing capacity and expanding US production.

• Schneider Electric

  Covered full-suite data-center infrastructure provider spanning power, cooling, modular systems and software.

  Strengths

  Data-center business near 30% of sales; triple-digit order growth; liquid-cooled AI clusters and an 800VDC roadmap.

  Weaknesses

  Low-voltage rectifiers are not expected until 2028-29 and SSTs only by the end of the decade.

  Comparison

  More than 60% of data-center revenue comes from North America, with the remainder split across Europe, South Asia and China.

  Risks

  Political scrutiny and sustainability requirements are increasing, though the company reported no material impact.

• Shenzhen Envicool Technology

  Covered cooling and modular-solution provider positioned for liquid cooling and 800VDC architecture.

  Strengths

  NVIDIA-certified air and liquid cooling products; global modular offerings; 3-4 month lead times; gaining share in Asia.

  Comparison

  Differentiates from Vertiv through pricing, customization and lead times enabled by Chinese supply chains.

• Vertiv

  Covered power, thermal and service provider benefiting from early design engagement, modular construction and long-term service contracts.

  Strengths

  Broad portfolio, standardized 50MW modular blocks, pre-purchasing of components, localized manufacturing and 5,300 service engineers.

  Comparison

  Described as part of a bifurcating group of full-suite suppliers with deep expertise.

  Risks

  Supply-chain constraints require components to be purchased 2-3 years in advance.

Key data

• 800VDC adoption timingProduct launches generally targeted for 1H27; broader pickup expected in late 2027/early 2028Industry transition timing cited across Eaton, Schneider Electric and Vertiv.
• Cooling lead times3-4 monthsReported for Alfa Laval and Envicool cooling solutions.
• Low-voltage data-hall product lead times9-13 monthsReported by Honeywell.
• Engine lead times20-24+ monthsReported for Cummins, INNIO and Wartsila products.
• High-voltage transformer lead times2.5-3 yearsIndustry constraint cited in the report.
• Eaton modular-system share of demand60-70%Up from 10-20% in prior years; cited as reducing construction time to one year from 2-3 years historically.
• INNIO order backlog15GW / $7bn64% behind the meter; slot reservations extend to 2031.
• Schneider Electric data-center businessClose to 30% of salesThe company reported triple-digit order growth and double-digit sales growth.

Impact & implications

Goldman Sachs argues that AI data-center buildouts are supporting a broad infrastructure cycle rather than a narrow equipment theme. The transition toward 800VDC and higher-density racks increases the importance of liquid cooling, power conversion, long-lead electrical equipment, modular construction and lifecycle services, while early procurement and local production help suppliers manage current bottlenecks.

Risks

• Political and environmental scrutiny has caused localized interruptions, including a two-week data-center pause in Thailand and a community-driven cancellation in Australia.
• Long delivery times for engines and high-voltage transformers remain a constraint for project execution.
• The 800VDC architecture retains unresolved choices around storage, backup power, load smoothing and microgrid design.