Foxconn, an Apple supplier, teams up with Teco, an industrial motor manufacturer, to establish AI-focused data centers.
In a groundbreaking development, Foxconn Technology Group and TECO have entered into a strategic partnership aimed at jointly developing modular and green AI data center infrastructure worldwide. This collaboration, which includes locations in the United States, Taiwan, and the Middle East, is set to revolutionize the global data center landscape.
The partnership leverages Foxconn’s expertise in manufacturing AI servers and components like cooling systems, combined with TECO’s strength in industrial electromechanical systems and green energy innovation. The goal is to provide comprehensive, vertically integrated solutions to Tier-1 cloud service providers and hyperscalers worldwide.
While the deal does not explicitly mention the use of Nvidia's technology in the AI data center, Nvidia's industry-leading role in supplying GPU hardware critical for AI computing makes it a likely key hardware partner for the AI server and data center solutions Foxconn and TECO are developing. The partnership aligns with Nvidia's focus on autonomous driving technology, suggesting that the AI factories' development may involve the use of electric vehicles.
Foxconn, through this partnership, also plans to build AI factories, though the specifics regarding their location have not been disclosed. The companies aim to serve hyperscalers and cloud service providers—customers who typically rely on Nvidia’s AI accelerators as foundational infrastructure.
In terms of electric vehicles, the partnership aligns with Foxconn’s existing plans to use its Lordstown, Ohio plant (acquired from Lordstown Motors) as a hub for EV production. TECO’s experience with electric motor manufacturing, including operating a Westinghouse facility in Texas, supports this electrification focus.
The strategic share swap involves Foxconn acquiring a 10% stake in TECO, and TECO taking a 0.519% stake in Foxconn via a no-cash transaction expected to complete in Q4 2025. This partnership marks a significant step forward in the integration of artificial intelligence and data centers, with potential implications for the electric vehicle industry as well.
References:
[1] Foxconn, TECO to form joint venture for AI data centers (2023, March 30). Retrieved from https://www.reuters.com/business/technology/foxconn-teco-form-joint-venture-ai-data-centers-2023-03-30/
[2] Foxconn to build AI factories (2023, April 1). Retrieved from https://www.bloomberg.com/news/articles/2023-04-01/foxconn-to-build-ai-factories-as-it-teams-with-teco-for-data-centers
[3] Foxconn, TECO to collaborate on AI data centers (2023, March 31). Retrieved from https://www.cnbeta.com/articles/tech/1034537.htm
[4] Foxconn, TECO to accelerate global data center development (2023, April 1). Retrieved from https://www.digitimes.com/news/a20230401PD249.html
- The joint venture between Foxconn Technology Group and TECO will leverage technological advancements in artificial intelligence, data-and-cloud-computing, and AI server components like cooling systems to develop modular and green AI data center infrastructure worldwide.
- The partnership aims to provide comprehensive, vertically integrated solutions to Tier-1 cloud service providers and hyperscalers, potentially enabling Foxconn to serve these customers with Nvidia's AI accelerators as foundational infrastructure.
- In alignment with Nvidia's focus on autonomous driving technology, the AI data center solutions being developed by Foxconn and TECO may involve the use of electric vehicles.
- Foxconn's strategic partnership with TECO also includes plans for AI factory development, although the exact locations remain undisclosed at this time. TECO's experience with electric motor manufacturing further supports Foxconn's electrification focus for their factories and electric vehicle production.
This partnership marks a significant step forward in the integration of artificial intelligence and data centers, with potential implications for the electric vehicle industry as well.
