Taiwan's Delta Electronics warns costs rising as AI data centre demand surges 

By Wen-Yee Lee

TAIPEI, ‌April 30 (Reuters) - ​Delta ​Electronics, a major provider of power supply and cooling solutions for AI datacentres, warned ‌that it expects costs to rise in ⁠the coming quarters, with oil prices rising and ongoing material ‌shortages.

• It added that ‌there were also signs of inflation driven by AI demand.

• The company said its capacity remained ​tight and it was expanding in China, Thailand, the United States and Taiwan.

• It said ⁠in February its capital expenditure totalled T$46.1 billion ($1.46 billion) in 2025 ​and it reiterated on Thursday it would be higher this year.

• Delta Electronics' customers ​include Nvidia and major cloud ‌service providers such as Google and Meta Platforms.

• Delta Electronics is the second ⁠most valuable company on the Taiwan stock exchange, with a market capitalisation of $178.46 billion, after Taiwan Semiconductor Manufacturing ⁠Co Ltd.

• It reported first-quarter revenue of T$159.35 billion ($5.02 billion), ​up 34% from a year earlier, driven by AI data centre build-out. Its gross profit was up 56% year-over-year at T$59 ‌billion ($1.86 billion).

• Delta Electronics shares have risen 124.82% so far this year, far ‌outperforming a 34.4% rise in the broader market. ⁠The company's shares closed ‌flat on Thursday ​ahead of its earnings release.

($1 = 31.7170 Taiwan dollars)

(Reporting by Wen-Yee Lee. Editing by Mark ‌Potter)

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