Santa Rosa Motor Maker Targets Data Center Cooling as AI Demand Surges
Orbis Electric, a Santa Rosa-based manufacturer that built its reputation in electric vehicles, is preparing to triple its workforce and expand its factory footprint as it pivots to supplying cooling systems for artificial-intelligence data centers.
The company released its HaloDrive Cooling Engine last year, adapting motor technology originally designed for e-bikes and electric vehicles. CEO Marcus Hays said the company expects revenue to exceed $500 million annually within 24 to 30 months and plans to grow its workforce to roughly 300 employees.
Orbis currently operates from about 14,000 square feet off Sebastopol Road in southwest Santa Rosa. Hays said the company could need 40,000 to 45,000 square feet within a year as production ramps up.
Why Data Center Cooling Matters Now
AI computing demands are driving a construction boom in data centers, but cooling capacity has become a bottleneck. Keeping processors from overheating consumes 7% to 40% of a data center's power consumption, according to the International Energy Agency.
Power demand from data centers is expected to grow by 100 gigawatts annually through 2030, with roughly $3 trillion earmarked for building and outfitting new facilities, according to real estate firm JLL. Last year saw 6 gigawatts of new or expanded capacity come online, a new record.
Construction delays are slowing deployment. About 26% of planned projects faced delays in completion last year, and 30% to 50% of the 11 gigawatts of projects expected to start this year don't yet have power plans in place, according to data center consulting firm Sightline Climate.
Local Expansion With Domestic Supply Focus
Hays said Orbis plans to stay in Santa Rosa rather than relocate manufacturing as demand grows. The decision reflects both workforce logistics and a broader national effort to rebuild domestic supply chains for electrical equipment.
Many employees already live in Marin and Sonoma counties. The company has discussed its expansion plans with city officials. Ethan Brown, executive director of the Sonoma County Economic Development Collaborative, said the region has advantages for this type of growth: lower costs than the greater Bay Area, strong STEM programs, and existing manufacturing expertise in electronics and medical devices.
Orbis plans to keep engineering in-house while shifting higher-volume assembly to contract manufacturers as production scales. That approach lets the company focus on system design and quality assurance while expanding capacity.
Reducing Dependence on Chinese Materials
Orbis is working with researchers at Ames National Laboratory, a U.S. Department of Energy facility, to develop rare-earth-free magnet designs. Current motor designs rely heavily on neodymium magnets sourced primarily from China.
The two organizations have negotiated a sponsored research agreement to explore scalable synthesis methods for alternative materials. Hays said the effort could make domestic manufacturing more resilient.
Electric motor manufacturers have invested more than $185 billion in domestic production capacity since 2018, with another $60 billion planned over the next five years, according to the National Electrical Manufacturers Association. Ten companies have achieved the association's Make It American certification based on the federal Build America, Buy America Act, with over 20 more planning certification this year.
From E-Bikes to Data Centers
Hays founded Orbis Electric in 2015 after his earlier company, PiMobility, shut down in 2014. PiMobility had developed hub-based motor designs for e-bikes starting in 2000, but regulatory challenges, battery costs, and market conditions limited its ability to scale.
Rather than abandon the core technology, Hays adapted the motor systems for larger applications in cars, trucks, and industrial equipment. The company has since worked on projects ranging from mobile refrigeration systems for semi-truck trailers to wheel hub motors for Volkswagen passenger vehicles.
Orbis is moving quickly to demonstrate the cooling technology. Hays said the first demonstration unit could roll out by the end of March. Funding for expansion will come from a mix of equity, debt, and purchase-order financing as the company closes a Series A round. He said Orbis expects to reach break-even within a couple of years through lean operations.
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