Revolutionary High-Density Servers Cut Data Centre Costs and Space Needs
A new high-density server system has been unveiled to tackle the growing challenges of space and power in data centres. The design packs extreme processing power into a compact form while cutting energy use and cabling needs by nearly all previous levels.
The system fits up to 10 blades in a single 6U chassis, delivering as many as 25,600 cores per standard rack. Direct liquid cooling keeps temperatures in check, allowing for far greater density than traditional air-cooled setups. CEO Charles Liang described the innovation as a major leap in 'performance per watt' for the industry.
Cabling requirements drop by 93% compared to older systems, making retrofits and upgrades far simpler. The design runs on Intel Xeon processors, with investors closely watching order volumes as a sign of market adoption. Management has also reaffirmed a revenue target of at least $36 billion for fiscal year 2026. Despite the technical promise, the company’s stock remains under pressure. Shares currently trade near $29, almost 52% below their 52-week peak. Analysts hold a mixed view, with eight 'buy', eight 'hold', and three 'sell' ratings, reflecting caution about near-term profitability.
The new system aims to ease two critical constraints for data centres: limited space and rising power costs. Investors are now waiting to see whether customer orders will meet expectations in the coming quarter. Profitability, rather than revenue alone, remains the key focus for shareholders.
