[Edaily Reporter Shin Ha-yeon] #Gangwon Energy is teaming up with Japan’s NIDEC to enter the AI data center liquid cooling system market.

Gangwon Energy announced on the 18th that it has signed a memorandum of understanding (MOU) with NIDEC to collaborate on the Coolant Distribution Unit (CDU) business for data centers.

The two companies have been discussing cooperation strategies to address the data center liquid cooling market since early this year. Through this agreement, they plan to formalize cooperation across all on-site operations for AI data centers, including the installation, commissioning, and maintenance of CDUs.

However, no specific customers or projects have been finalized under this MOU. Future individual projects will proceed based on the signing of formal contracts with customers and Nidec.

Nidec is a leading global manufacturer of automotive electronics and precision motors based in Japan. It is recognized as a comprehensive motor manufacturer with a wide range of products, from small precision motors to large industrial motors. Recently, in response to the growing demand for server cooling driven by the expansion of AI data centers, the company has been expanding its business foundation by developing products and technologies related to liquid cooling solutions, such as CDUs.

Gangwon Energy has been preparing to establish a system for the installation and maintenance of CDUs, as well as 24-hour service and technical support, related to Nidec’s liquid cooling business by leveraging its existing EPC (Engineering, Procurement, and Construction) capabilities.

A CDU is a key piece of equipment that controls the heat generated by high-performance servers using liquid cooling. As the importance of server heat management grows with the proliferation of artificial intelligence (AI), high-performance computing (HPC), and cloud data centers, demand for liquid cooling systems—which can supplement or replace existing air-cooling systems—is expanding.

Under this partnership, Gangwon Energy plans to review collaboration strategies in on-site support areas—such as the installation, commissioning, and maintenance of data center CDUs—following agreements with Nidec on specific projects. The company also intends to explore business opportunities in the data center cooling infrastructure sector, leveraging the design, construction, and operational capabilities it has accumulated through its industrial plant and secondary battery facility businesses.

To strengthen its competitiveness in the CDU business, Gangwon Energy also plans to discuss with Nidek the possibility of establishing a domestic CDU demonstration center. If the demonstration center is established, it could serve as a hub for simulating real-world operating environments for CDU products, supporting customer validation, and enhancing installation and maintenance capabilities. Details regarding the use of Nidek products, technical validation for customers, the scope of operations, and methods of external utilization will be finalized through separate discussions between the two companies in the future.

Shin Jin-yong, CEO of Gangwon Energy, stated, “It is significant that we are discussing cooperation with Nidec in the field of liquid cooling at a time when the domestic AI data center market is expanding rapidly.” He added, “We will gradually secure our installation, commissioning, and maintenance capabilities and create tangible business opportunities for each individual project in the future.”