By Nicholas G. Miller

Shares of companies that provide cooling services to data centers fell after Nvidia Chief Executive Jensen Huang said at the CES trade show that the company's next-generation Rubin chips allow for warm water cooling.

Modine Manufacturing shares sank 15%. Johnson Controls dropped 7.4%. Trane Technologies fell 7.6%. Comfort Systems slid 5.4%.

Many of these companies have seen their revenues and backlogs surge on demand for their water chilling systems from data centers. But Huang said in his keynote address at the conference that the new Nvidia chips allow for 45 degree celsius warm water cooling, eliminating the need for water chillers.

That could diminish demand for water chilling architecture from the hyperscalers building data centers. Many companies that make chilling architecture have planned significant investments to ramp up their capacity.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

January 06, 2026 11:16 ET (16:16 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.