Taiwanese electronics maker Liteon Technology (2301.TW) will acquire about a 25% stake in Warsaw-based DCX Liquid Cooling Systems for approximately $176mn, as it seeks to strengthen its position in infrastructure supporting the rapidly expanding artificial intelligence data centre market.

AI adoption is driving sharply higher power densities in data centre racks, increasing demand for liquid cooling technologies that can manage heat generated by high-performance computing equipment. The investment gives Liteon a stronger foothold in a market expected to expand as operators upgrade infrastructure to accommodate increasingly power-intensive AI computing.

Liteon said in a press release the investment would combine DCX's expertise in liquid cooling with its own capabilities in AI server power management, rack-level power delivery and 800VDC power systems. The transaction is expected to close subject to customary conditions.

The companies plan to cooperate on product development, engineering, manufacturing and global sales, with the aim of developing integrated power and cooling platforms for hyperscale data centres.

Founded in 2019, DCX produces direct-to-chip and immersion cooling systems, including coolant distribution units, facility coolant distribution units, cold plates and rack manifolds. Its portfolio includes enterprise CDUs with capacity of 600kW to 2.6MW and facility systems supporting up to 16MW, the company said.

“AI has become a key force reshaping industries, and data center infrastructure is a critical foundation for unlocking AI’s full potential,” said Liteon chairman Tom Soong, as quoted in the press release.

“This strategic investment further strengthens Liteon’s position across the AI data centre value chain,” he added.

DCX chief technology officer Maciek Szadkowski said Liteon's capabilities would help accelerate the Polish company's international expansion.

“Liteon's deep expertise in power electronics, global manufacturing scale, and long-standing hyperscaler relationships make it a highly strategic partner for DCX,” he said.

DCX said its cooling products have been deployed by three of the world's 10 largest AI data centre operators and shipped to 75 countries.