Supermicro Expands US Manufacturing Capacity and Development of Industry-Leading Total IT Solutions with Third Campus in Silicon Valley

Rhea-AI Summary

Supermicro (NASDAQ: SMCI) has announced plans for a third campus in Silicon Valley, marking a significant expansion of its manufacturing capacity. The first building will span over 300,000 square feet, with the completed campus expected to reach nearly 3 million square feet.

The expansion aims to accelerate the company's liquid-cooled and Data Center Building Block Solutions®. Currently, Supermicro can deliver 5,000 air-cooled or 2,000 liquid-cooled racks monthly. The company anticipates that up to 30% of new data centers will adopt liquid cooling solutions.

The development, set to begin construction in 2025, will create hundreds of new jobs across engineering, production, and corporate roles. With nearly 3,000 local employees already in San Jose, this expansion reinforces Supermicro's position as the leading IT manufacturer headquartered in the USA.

Positive

• Major capacity expansion with new 3M sq ft campus
• Current production capacity: 5,000 air-cooled/2,000 liquid-cooled racks monthly
• Hundreds of new jobs to be created
• Strategic positioning for growing liquid cooling market (30% adoption forecast)

Negative

• None.

News Market Reaction – SMCI

-13.00%

1 alert

-13.00% News Effect

On the day this news was published, SMCI declined 13.00%, reflecting a significant negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Supermicro Drives Innovation, Job Creation, and Economic Growth in San Jose's Thriving Tech Market

SAN JOSE, Calif., Feb. 28, 2025 /PRNewswire/ -- Supermicro, Inc. (NASDAQ: SMCI), a Total IT Solution Provider for AI, Cloud, Storage, and 5G/Edge, is pushing forward with a major expansion, announcing plans for a third campus in Silicon Valley. The first building will be over 300,000 square feet, yet the third campus is expected to be nearly 3 million square feet when completed.  With the mayor's support, this expansion strengthens Supermicro's position as an industry leader, accelerating liquid-cooled and Data Center Building Block Solutions^® for data centers and customers while creating new jobs and opportunities for local talent. Supermicro is the leading IT manufacturer headquartered in the USA.

"We are thrilled to grow our footprint in Silicon Valley," said Charles Liang, president and CEO of Supermicro. "As AI factories become more prevalent, liquid-cooled data centers are critical to meet these increasing customer demands. We anticipate that up to 30% of new data centers will adopt liquid cooling solutions. Today, Supermicro can deliver 5,000 air-cooled or 2,000 liquid-cooled racks per month to support substantial orders. This expansion is a major step forward in our vision for innovation, investment in workforce, quality, Time-to-Deployment (TTD), Time-to-Online (TTO) service, and technological advancement."

Learn more about Supermicro's Building Block liquid cooling solutions here.

"We're proud to be home to Supermicro, one of the fastest growing and most innovative companies powering the AI revolution with nearly 3,000 local employees and growing," said San Jose Mayor Matt Mahan. "With this planned expansion, Supermicro is helping San Jose redefine what 'Made in America' looks like and creating high paying new jobs to fuel our economy."

The new development is expected to generate hundreds of new jobs across multiple sectors, including engineering, production, and corporate roles. Supermicro is developing building block liquid-cooled solutions for AI factories and the HPC market, that will help data centers run more efficiently by reducing carbon footprint and saving on operational cost through lower electricity usage over time.  

"PG&E is excited to support Supermicro's continued expansion in Silicon Valley," said Teresa Alvarado, vice president for PG&E's South Bay and Central Coast Region. "Through our ongoing investments in infrastructure and clean energy, PG&E is poised to provide reliable and sustainable power to meet the growing needs of the tech sector."

Supermicro continues to work closely with data center operators to match the right server technology to the demanding workloads. With its strong commitment to advancing technology, empowering talent, and driving long-term economic growth, construction at the new site is set to begin in 2025.

About Super Micro Computer, Inc.

Supermicro (NASDAQ: SMCI) is a global leader in Application-Optimized Total IT Solutions. Founded and operating in San Jose, California, Supermicro is committed to delivering first-to-market innovation for Enterprise, Cloud, AI, and 5G Telco/Edge IT Infrastructure. We are a Total IT Solutions manufacturer with server, AI, storage, IoT, switch systems, software, and support services. Supermicro's motherboard, power, and chassis design expertise further enables our development and production, enabling next-generation innovation from cloud to edge for our global customers. Our products are designed and manufactured in-house (in the US, Taiwan, and the Netherlands), leveraging global operations for scale and efficiency and optimized to improve TCO and reduce environmental impact (Green Computing). The award-winning portfolio of Server Building Block Solutions® allows customers to optimize for their exact workload and application by selecting from a broad family of systems built from our flexible and reusable building blocks that support a comprehensive set of form factors, processors, memory, GPUs, storage, networking, power, and cooling solutions (air-conditioned, free air cooling or liquid cooling).

Supermicro, Server Building Block Solutions, and We Keep IT Green are trademarks and/or registered trademarks of Super Micro Computer, Inc.

All other brands, names, and trademarks are the property of their respective owners.

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SOURCE Super Micro Computer, Inc.

FAQ

What is the size of Supermicro's new Silicon Valley campus expansion?

The third campus will be nearly 3 million square feet when completed, with the first building spanning over 300,000 square feet.

How many racks can Supermicro (SMCI) currently produce per month?

Supermicro can currently deliver 5,000 air-cooled or 2,000 liquid-cooled racks per month.

When will construction begin on Supermicro's new Silicon Valley campus?

Construction at the new site is set to begin in 2025.

How many local employees does Supermicro have in San Jose?

Supermicro currently has nearly 3,000 local employees in San Jose.

What percentage of new data centers does SMCI expect to adopt liquid cooling?

Supermicro anticipates that up to 30% of new data centers will adopt liquid cooling solutions.