Singapore-based AI cloud provider Sustainable Metal Cloud (SMC) is preparing for a global expansion, driven by increasing demand for its energy-efficient technology. This move was confirmed by the company’s CEO, Tim Rosenfield, on Thursday.
Tim Rosenfield, the CEO and co-founder, announced plans to expand into the EMEA (Europe, Middle East, and Africa) region and North America due to high client demand. SMC, a partner of AI chip leader Nvidia, currently operates “sustainable AI factories” in Australia and Singapore, with upcoming launches in India and Thailand.
In Singapore, SMC serves major clients, including Facebook owner Meta, which uses SMC’s cloud infrastructure to run its Llama 2 AI model. The company operates over 1,200 of Nvidia’s high-end H100 AI chips in the region.
SMC’s unique approach to data center cooling involves immersion technology. Instead of traditional air cooling, the company submerges servers from Dell equipped with Nvidia GPUs in a synthetic oil called polyalphaolefin. This method draws heat away more efficiently, cutting energy consumption by up to 50%, according to Rosenfield.
| Year | Projected Electricity Consumption (TWh) | Equivalent to |
|---|---|---|
| 2026 | Over 1,000 | Japan’s total annual consumption |
The International Energy Agency (IEA) projects a tenfold increase in demand for AI compared to 2023. The IEA also estimates that global electricity consumption by data centers will exceed 1,000 terawatt-hours by 2026, roughly equal to Japan’s total annual usage.
SMC is currently in the process of raising $400 million in equity and $550 million in debt, according to a source familiar with the situation. The company has not commented on the fundraising efforts, which were initially reported by Bloomberg.
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