- Taiwan’s power-management giant expands its China footprint to serve AI data centers
- The new Hangzhou unit will focus on engineering and control-system services for AI infrastructure
Delta Electronics (台达电子), a global leader in switching power supplies and thermal management, has established a new subsidiary in Hangzhou with a 150 million yuan ($22 million) investment.
This entity, incorporated on August 7, expands its presence in China’s mainland as AI-driven demand for data-center power and cooling infrastructure accelerates.
According to a company announcement cited by Chinese media on August 17, Delta invested through its wholly owned Hong Kong subsidiary to establish Delta Electronics (Hangzhou) Co., Ltd.
The new company will focus on engineering information and control-system technology services.
A well-established footprint
The move comes nearly two decades after Delta established a power-electronics design center in Hangzhou in 2007.
Its Hangzhou design center has since doubled its office space to accommodate up to 500 employees and has applied for more than 400 domestic and international invention patents.
The new legal entity marks a shift from a primarily R&D presence to a standalone operating platform.
In recent years, Delta has been increasing investment in mainland China. Its capital expenditure this year is expected to rise to nearly NT$70 billion ($2.2 billion), from more than NT$46 billion last year, with China remaining a key investment market.
Surging demand driven by AI boom
The timing reflects a broader shift in the power-management industry. As AI computing expands, data centers are demanding increasingly sophisticated systems for power delivery, cooling and energy management.
Delta Chairman Ping Cheng (郑平) said AI is accelerating electrification and pushing the company toward “system-level energy management.”
The company has developed solutions including AI liquid-cooling validation centers and containerized AI data centers, with the latter achieving a power usage effectiveness (PUE) as low as 1.19.
China’s current national target requires large data centers to achieve a PUE of 1.25 or lower by 2025, with projects in national computing hubs facing a stricter 1.2 threshold.
Why it matters globally
For Hangzhou, Delta brings more than 150 million yuan in registered capital. Its presence adds the energy-management expertise of a major global power supplier to a city already home to major computing and digital-economy companies including Alibaba Cloud and Hikvision.
For international observers, the move highlights a less visible front in the global AI infrastructure race: power efficiency.
As data-center electricity demand surges, the ability to deliver, cool and manage every unit of computing power is becoming as important as the chips themselves.
