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Akash Systems, renowned for its revolutionary Diamond Cooling technology for AI, has entered into a $27 million (~INR 2.25 billion / Rs 225 crore) partnership with NxtGen Datacenter and Cloud Technologies, India’s largest sovereign cloud provider. Under this agreement, Akash will supply its Diamond Cooled servers to NxtGen’s data centers across the country.
The collaboration marks a significant milestone in sustainable AI infrastructure, positioning NxtGen as the world’s most energy-efficient AI compute solutions provider. Powered by NVIDIA and AMD GPUs enhanced with Akash’s Diamond Cooling technology, these servers will redefine energy efficiency and computational performance.
“We are collaborating with Akash to set an industry benchmark for sustainable AI. Through a combination of Akash’s Diamond Cooling, waterless liquid cooling, and advanced GPUs from NVIDIA and AMD, we are able to double the performance per watt. This allows us to reduce the cost to our customers and bring down the cost of AI compute services by more than 50% from prevailing market rates and enable us to deliver very high-value AI use-cases to our customers,” said A S Rajgopal, CEO & MD of NxtGen.
Akash’s Diamond Cooling technology integrates synthetic diamond, the most thermally conductive material at 2200 W/mK, into semiconductor chips. This innovation accelerates heat extraction from hot GPU chips, significantly reducing thermal throttling and increasing overclocking capabilities by 25%. The technology is complemented by liquid cooling systems, further enhancing thermal management for intensive AI workloads.
“Our Diamond Cooled GPU servers will empower NxtGen to deliver unparalleled performance and reliability to their customers, reinforcing their position as a leader in AI and other compute solutions,” said Felix Ejeckam, CEO and co-founder of Akash Systems.
Akash Systems pioneered Diamond Cooling in satellites for space applications, where air is unavailable for traditional cooling methods. This expertise now drives record energy efficiency in AI servers, reducing GPU hotspot temperatures by 10°–20°C and slashing GPU fan energy consumption by 90%.
“This partnership with NxtGen highlights the scalability of Akash’s technology and also showcases its ability to accelerate AI workloads by reducing thermal throttling and maximizing over-compute cycles. In short, the Diamond Cooled servers are the way to go,” says Vinod Khosla, founder of Khosla Ventures.
Beyond its energy efficiency benefits, the Diamond Cooling solution extends server lifespans and supports overclocking for demanding machine learning and deep learning tasks, enabling enterprises to achieve more with less energy consumption.
This collaboration aligns with NxtGen’s mission to provide cost-effective AI compute services to enterprises of all sizes. By integrating Akash’s innovative cooling technology, NxtGen can expand its data center capabilities while delivering exceptional computational power with reduced environmental impact.
The partnership follows Akash Systems’ approval for up to $68 million in funding under the U.S. Department of Commerce’s CHIPS and Science Act, reinforcing its leadership in sustainable technology.
Headquartered in Bengaluru, NxtGen operates multiple data centers across India and offers services ranging from AI compute to disaster recovery and managed security. With the demand for data center services surging, the company is scaling up its infrastructure to meet enterprise needs.
This partnership cements both companies’ positions as leaders in their respective fields, driving innovation in AI compute technology while prioritizing sustainability.
Akash Systems is an Oakland, CA-based, venture-backed company specializing in the development and manufacturing of diamond-based semiconductors and systems. Backed by Khosla Ventures, Founders Fund, Kearny Jackson, and other investors, Akash operates in California and Texas.
NxtGen is India’s largest sovereign cloud provider, serving more than 900 customers across the country. NxtGen operates two cloud platforms – SpeedCloud® built on Red Hat OpenStack and OpenShift application platforms and 3 Industry vertical clouds for Government, Financial Services and Healthcare sectors.
