Why this Santa Rosa firm is betting big on AI data center cooling

Orbis Electric, a Santa Rosa-based technology company, is preparing for rapid expansion as it targets one of the fastest-growing infrastructure needs of the artificial-intelligence era: cooling the world's increasingly powerful data centers. The company late last year released its HaloDrive Cooling Engine, an adaptation of its electric motor technology for large-scale deployment in data-center cooling systems. Orbis co-founder and CEO Marcus Hays said the company expects its footprint to grow substantially as production ramps up, potentially needing 40,000 to 45,000 square feet within a year to support manufacturing. Orbis's growth plan is tied directly to the surge in computing demand driven by artificial intelligence. As data centers pack more processors into tighter spaces, cooling capacity has become a major challenge, consuming 7%-40% of a center's power. The company's motor-generator systems, originally developed for electric vehicles, are now being adapted for cooling applications. The opportunity is large enough that Orbis is forecasting dramatic growth, expecting to exceed $500 million in annual revenue and grow its workforce to around 300 employees within the next 24-30 months. The company plans to maintain its engineering expertise in-house while shifting higher-volume assembly to contract manufacturers as production grows. Orbis's decision to expand in Santa Rosa reflects both practical and strategic considerations, including the region's strong manufacturing base and STEM talent. The company is also working to reduce its reliance on imported rare-earth materials used in many motor designs, partnering with researchers to explore alternatives.