Furukawa Electric is set to invest at least JPY55 billion ($345 million) in expanding data center cooling production in the Philippines, Thailand, and China, the Japanese firm said in a release on Monday.

The move aims to serve the rising demand driven by the growth of generative artificial intelligence (AI). Demand for these products has increased as data centers face higher heat density due to more advanced computing workloads, the firm elaborated.

In the Philippines, the company will expand its water-cooling module factory at its entity Furukawa Electronic Thermal Management Solutions & Products Laguna (FTL), targeting mass production from January 2027. The investment reached JPY74 billion since fiscal year 2024 (ending March 2025).

Furukawa Electric will invest JPY51 billion in a new water-cooling module factory in Thailand, with its entity Furukawa FITEL (Thailand) Co., Ltd. The mass production is slated for January 2028.

The firm will invest JPY4 billion in boosting its manufacturing facilities for air-cooling heat sinks at Furukawa AVC Electronics (Suzhou) Co., Ltd. in China and its FTL in the Philippines. Mass production is set for July 2026 at both sites.

Air-cooling systems, which use fans to dissipate heat through heat sinks, remain the dominant method and continue to see growing demand. However, water-cooling systems—where liquid coolant circulates through cold plates attached to processors—offer higher cooling performance and are expected to see significant growth in adoption.

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