$IREN: Misconceptions on Design vs Vertical Integration
Posts like this one from
@CernunnosCap are false FUD from people who understand nothing about engineering. All Hyperscalers, Neoclouds "design" their own cooling at the facility and rack level but none of them have vertical integration down to the components themselves. The components themselves are sourced from Vertiv, Schneider/Motivair, CoolIT, Boyd, nVent, Delta, Asetek, LiquidStack, ZutaCore, Accelsius. Among HS/Neoclouds that disclose their solution let's take a look at what's actually happening.
Amazon
In 2025, Amazon revealed their "in-house-engineered IRHX, a rack-level-cooling platform" (1). However, if you read the article beyond the headline, you'll see "Second, while AWS is an engineering powerhouse, it rarely develops these solutions in isolation. It typically partners with established vendors to co-design its proprietary systems, which are also manufactured by third parties. IRHX may carry the AWS name, but it is likely being built in the facilities of well-known cooling equipment suppliers" (1).
(1)
delloro.com/awss-new-liquid-…
What's actually happening is that Amazon is "designing" through driving the specifications and mixing and matching components that are made by vendors. They do not design any of the components themselves.
Google
Project Deschutes is the most verticle integrated datacenter cooling among all Hyperscalers and Neoclouds but at the end of the day Google driving the specifications and mixing and matching components. "Project Deschutes is a collaborative effort, with prototypes already demonstrated at OCP and SC2025 by vendors including Boyd, Coolermaster, Delta, Envicool, Nidec, nVent, Stulz, and Vertiv" (2).
arpa-e.energy.gov/sites/defa…
IREN
$IREN also designs their cooling at the facility and rack level and uses components and IP blocks from both Motivair, Vertiv for Frontend cooling, and other components for backend cooling. Motivair parts you can see from Dan's Post. The other components can be found in
@FransBakker9812 subgroup.
NBIS
Likewise
$NBIS their cooling at the facility and rack level but I guarantee you they use components and IP blocks from vendors. How do I know this? I know how "cooling design" engineering works at SMCI - design is a fancy way of driving specifications and mix-matching components and IP from vendors. You can see public evidence of that Amazon and Google doing exactly that.
Summary
Don't get confused by heavy buzzwords like vertical integration. Most people throw that term around without knowing what it really means.
There are people who falsely think that by integrating Nvidia chips that NBIS is vertically integrated down to the hardware. Integration is not vertical integration. Even Google TPU's rely on many
$AVGO IP blocks for networking, advanced packaging and even some IP Cores for the ASIC design itself. There are very few companies that have substantial true vertical integration down to the components:
$TSLA and
$NVDA are two.
$IREN Congratulations on figuring out Liquid Cooling 👏
Well, now we know where they are buying their liquid cooling equipment from - Motivair by Schneider Electric.
So they are buying:
Server racks from
$DELL $SMCI
Liquid cooling from Schneider
Can someone explain how this is Vertically Integrated? And won’t hurt their margins.
Compared to companies like
$NBIS, which designs its own proprietary racks, servers, and cooling systems entirely in-house.
People were quick to jump on the Nebius x Bloom partnership, even though it’s half the price of Traditional Colocation.
The path to profitability is clearer for a company like Nebius.
#ai #Datacenters