Akash Systems deploys lab-grown diamond cooling for high-density AI servers
Akash Systems is pioneering the use of lab-grown diamonds for enhanced heat dissipation in AI data centers, claiming five times faster thermal conductivity than copper. This technology aims to improve GPU and server efficiency, addressing densification and energy consumption issues for neoclouds and enterprises. The company is already deploying diamond-cooled servers utilizing GPUs from Nvidia Corp. and Advanced Micro Devices Inc.
Key Takeaways
- Thermal conductivity of lab-grown diamonds exceeds copper by 5x, the industry's second most conductive element.
- Initial deployments target Nvidia and AMD hardware, including specific support for Blackwell, Vera Rubin, and Helios GPU architectures.
- Technology allows existing air-cooled data centers to leverage high-power chips without transitioning to full liquid cooling systems.
- Proprietary diamond layers reduce GPU operating temperatures by 10-20°C, helping prevent the thermal throttling that degrades token processing speeds.
Why It Matters
Immediate gains in GPU efficiency provide a critical bridge for data centers that cannot physically accommodate current liquid cooling infrastructure. This development allows existing enterprise facilities to host densified AI workloads that would otherwise exceed their thermal design power limits. By placing synthetic diamond between the chip and the heat sink, operators can increase revenue per watt and maximize token output without massive capital overhauls. As the industry faces a 2026 'cooling crisis' due to 300kW+ rack densities, watch for whether these substrate-level materials become standard OEM specifications for future Blackwell-class deployments.
Additional Context
The commercial scaling of diamond-based cooling follows significant federal backing. In November 2024, the U.S. Department of Commerce signed a non-binding agreement with Akash Systems to provide $18.2 million in direct funding alongside $50 million in tax credits via the CHIPS and Science Act, per Semiconductor Today. This capital supported the construction of a 40,000-square-foot manufacturing cleanroom in Oakland, California, designed to move diamond-on-semiconductor technology from space-based satellite applications into the terrestrial AI infrastructure market. Market demand has solidified rapidly in 2026. In March, an undisclosed U.S. buyer placed a $300 million launch order for diamond-cooled AI servers using AMD Instinct MI350X GPUs, according to PCMag reporting. Beyond reducing physical footprints by up to 50% in satellite payloads, the technology is now marketed as a way for cloud providers like India's NxtGen to reduce energy consumption by up to 60% while sustaining peak clock speeds. This shift coincides with a broader industry pivot toward total thermal management. According to 2026 data center trend reports from Airsys and MarketsandMarkets, hyperscale AI infrastructure spending is climbing 40% year-over-year, yet traditional air cooling has reached its physical limits for high-density racks. While liquid cooling adoption surged by 28% in early 2026, many older facilities remain ineligible for retrofits due to weight or plumbing constraints. Akash’s chip-level approach addresses this specific 'brownfield' bottleneck, positioning synthetic gemstones as a necessary high-performance interface for next-generation hardware.
Read full article at siliconangle.com
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