Supermicro has unveiled plans to build a 3M square foot manufacturing and tech office complex in San Jose that will expand its capacity to produce advanced cooling systems to meet surging demand from AI data centers.

The San Jose-based tech giant announced that it will begin construction this year on the first building for the new campus, a 300K square foot industrial facility, on the former site of a Fry’s Electronics store at 550 East Brokaw Road.

AI data centers increasingly are adopting liquid cooling systems to maintain optimal performance and improve the energy efficiency of powerful AI processors, which traditional air cooling methods struggle to manage effectively.