Indian server maker Mega Networks planning AI servers and OSAT plant

Prasanth Aby Thomas, DIGITIMES, Bangalore 0


Mega Networks, an Indian server solutions provider with almost 28 years of experience, is planning to bring out AI servers and enter the semiconductor packaging segment.

"We are working very closely with relevant companies, and with their support, we'll be coming out with the AI server shortly," Amrish Pipada, Founder & CEO of Mega Networks told Digitimes Asia recently. "The growing demand for AI servers, particularly in India, where the entire ecosystem is prepared and supportive, is significantly boosting our momentum.

"We are collaborating with a range of OEMs and ODMs to introduce design capabilities, as developing a robust design ecosystem in India will take some time. Our strategy involves partnering with major OEMs from around the world for local design assistance, leading to a gradual 'Make in India' implementation."

The company also expects to enter the OSAT segment shortly, as demand for semiconductor companies increases and the government aims to boost the sector.

"It's a gradual growth," Pipada said. "But yes, we already have plans. First, we'll have a factory on our SMT lines and then we'll look at semiconductor packaging. The semiconductor industry requires huge investments, and large organizations are investing in it. There will be a lot of other industries around it, and definitely, we'll be a part of it. We have our semiconductor packaging coming up shortly. We are discussing internally how to take this opportunity."

Notably, Mega Networks is one of the very few server companies that have managed to secure the Indian government's Production Linked Incentive 2.0 (PLI 2.0).

Meeting the surging AI server demand

Mega Networks recently came into the spotlight for partnering with Intel to manufacture 4th Generation Intel Xeon Scalable Processors locally. The company works with others like AMD, NVIDIA, and Ampere as well.

"In line with the Make-in India directives, we are launching a state-of-the-art server, equipped with Intel's 4th Generation technology. This server uniquely combines High-Performance Computing (HPC), data center capabilities, and generative AI functionalities, further enhanced by dual GPU configurations," Pipada said. "It leverages the most advanced, highly configurable CPUs from Intel, providing us with a competitive edge."

The demand for AI servers is set to soar as data center storage capacity is anticipated to double from 10.1 zettabytes (ZB) in 2023 to 21.0 ZB by 2027, according to a recent JLL report. This expansion, marking a compound annual growth rate of 18.5 percent over five years, will fuel the need for additional data centers. Furthermore, the energy-intensive nature of generative AI, which requires between 300 to 500+ megawatts, is prompting a shift towards more energy-efficient designs and strategic location planning to accommodate these burgeoning demands.

"We are collaborating with various OEMs and ODMs to facilitate design innovations within India, despite the nascent stage of the local ecosystem in this domain," Pipada said. "This strategy involves partnering with leading global OEMs for design assistance, to transition to local production."

Focus on power-efficient designs

Pipada pointed out that India's situation is not any different from the rest of the world. Demand for data centers is buoyed by a ready ecosystem that supports such advancements. However, the need to balance power consumption and reduce carbon footprint necessitates relevant innovation.

"Given the increasing demand for our servers, we are focusing on optimizing the Total Cost of Ownership (TCO) and reducing power consumption," Pipada added. "Our servers are equipped with platinum and titanium grade power supplies, ensuring substantial energy savings. Additionally, we are exploring immersion technology to further reduce power consumption by up to 90 percent.

"This technology involves using mineral oil for cooling, a method already mandated for data centers in Singapore, and we anticipate similar regulations will be introduced in India."

Customer base worldwide

Mega Networks is seeing demand from various sectors, with 20 percent from government entities and 80 percent from the corporate sector. The latter encompasses hyperscalers, who have been longstanding customers, as well as startups that are beginning to make their mark.

Pipada mentioned that demand is also coming from R&D companies located in the southern parts of the country.

"We are now exporting to nearly 36 locations worldwide," Pipada stated. "This includes countries like the US, UK, Singapore, and others as distant as Chile and Japan."