Khosla-backed Aakash Systems signed a $27 million deal for Diamond Cooled AI servers with NxtGen Datacenter. News Today News

Akash Systems, known 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, Aakash will supply 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 solution provider. Powered by NVIDIA and AMD GPUs powered by Aakash’s Diamond Cooling technology, these servers will redefine energy efficiency and computational performance.

“We are collaborating with Aakash to set the industry benchmark for sustainable AI. Through a combination of Aakash’s diamond cooling, waterless liquid cooling, and advanced GPUs from NVIDIA and AMD, we are able to double the performance per watt. This enables us to reduce our customers’ costs and reduce the cost of AI compute services by more than 50% from prevailing market rates, and to deliver many high-value AI use-cases to our customers, ” said AS Rajagopal. CEO and MD of NxtGen.

Aakash’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 reduces thermal throttling and increases overclocking capabilities by 25%. The technology is complemented by a liquid cooling system, further enhancing thermal management for intensive AI workloads.

“Our Diamond Cooled GPU servers will empower NxtGen to deliver unmatched performance and reliability to its customers, strengthening its position as a leader in AI and other compute solutions,” said Felix Ezecom, CEO and co-founder of Aakash Systems.

Why Diamond Cooling is a Game-Changer

Aakash Systems has pioneered diamond cooling in satellites for space applications, where air is not available for conventional cooling methods. This expertise now drives record energy efficiency in AI servers, reducing GPU hotspot temperatures by 10°–20 °C and reducing GPU fan energy consumption by 90%.

“This partnership with NxtGen highlights the scalability of Aakash’s technology and also demonstrates its ability to accelerate AI workloads by reducing thermal throttling and maximizing over-compute cycles. In short, 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 life and supports overclocking for machine learning and deep learning tasks, enabling enterprises to achieve more with less energy consumption.

Commitment to sustainability and performance

This collaboration aligns with NxtGen’s mission to provide cost-effective AI compute services to enterprises of all sizes. By integrating Aakash’s innovative cooling technology, NxtGen can expand your data center capabilities and provide exceptional computational power with reduced environmental impact.

The partnership follows Akash Systems’ approval for up to $68 million in funding under the US 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 computing to disaster recovery and managed security. As demand for data center services grows, the company is scaling its infrastructure to meet enterprise needs.

The partnership cements both companies’ positions as leaders in their respective fields, driving innovation in AI computing technology while prioritizing sustainability.

Akash Systems is an Oakland, CA-based, venture-backed company specializing in the development and manufacture of diamond-based semiconductors and systems. Akash, backed by Khosla Ventures, Founders Fund, Kearney Jackson and other investors, operates in California and Texas.

NxtGen is India’s largest sovereign cloud provider, serving over 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 the government, financial services and healthcare sectors.

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