Nvidia Turns to a Japanese Giant to Solve the Power Botteneck. What That Means for NVDA Stock.

Nvidia (NVDA) is reportedly in early talks with Mitsubishi Heavy Industries (MHVIY) to supply cooling systems and energy management equipment for artificial intelligence (AI) data centers. This might sound like a minor supply agreement, but it could lead to a major positive shift for Nvidia.

Currently, Nvidia chips run so hot and draw so much power that data centers are struggling to cool them off. The company's latest Rubin chips are designed to run entirely on liquid cooling, needing large, dedicated cooling systems around them to work. Without that setup, the chips cannot perform. If the Nvidia-Mitsubishi collaboration takes place, the Japanese group would provide a system that ties high-efficiency cooling, air conditioning, and emergency power together to cool down both the chips and accompanying infrastructure.