Assad in Syria and Lebanon: Quarter of a Century of Dictatorship and Destruction

People attend a rally to "thank Syria" for its role in Lebanon on March 8, 2005. (Getty Images)
People attend a rally to "thank Syria" for its role in Lebanon on March 8, 2005. (Getty Images)
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Assad in Syria and Lebanon: Quarter of a Century of Dictatorship and Destruction

People attend a rally to "thank Syria" for its role in Lebanon on March 8, 2005. (Getty Images)
People attend a rally to "thank Syria" for its role in Lebanon on March 8, 2005. (Getty Images)

Hazem Saghieh

The advent of the 21st Century brought with it historic developments. The most significant for Syria and Lebanon took place on June 10, 2000 with the death of Syrian President Hafez al-Assad. Many openly mourned his passing. Many having experienced firsthand the cruelty of the ruler. In secret however, they said: “This is the first time Assad does something useful.”

Hafez was in effect the president of two countries. Weeks before his death, he met with US President Bill Clinton in Geneva to discuss resuming negotiations between Syria and Israel. On May 25, 2000, Israel withdrew from southern Lebanon in line with an electoral pledge made by Ehud Barak.

The day was a calamity to Assad’s Lebanese and Syrian supporters, who saw in the withdrawal the end of their excuses to carry arms outside state control. So, they described the move as a “conspiracy” and suddenly, like a magician pulling a rabbit out of a hat, they cited Israel’s continued occupation of the long-forgotten Shebaa Farms. Israel had occupied the area from Syria in 1967. Calls for war mounted, demanding that Israel withdraw or suffer the consequences. Soon after, however, tensions eased, and Hezbollah declared the withdrawal a “liberation” achieved with the support of “Syria’s Assad”.

Training Bashar and Lebanese politicians

Syrians recalled the story of a peasant from Daraa who headed to Damascus to attend Hafez’s funeral. On his way, he saw a billboard that read: “The Assad (Arabic for lion) is immortal and does not die.” So the peasant turned back and returned home believing that the news of Hafez’s death were rumors spread by enemies.

The peasant wasn’t completely wrong or so it would seem when Hafez’s son, Bashar, came to power to follow in his father’s footsteps. Despite the changes the new young ruler introduced to the country and his marriage to a “modern” British-born woman, the apple did not fall far from the tree, and he maintained his father’s iron-fisted grip on power.

Bashar forged ahead along his father’s destructive path and where better to gain experience than in Syria’s favorite training ground: Lebanon.

Late Syrian President Hafez al-Assad and US President Bill Clinton meet in Geneva in 2000. (Getty Images)

In 1998, two years before he came to power and four years after his older brother Bassel’s death, Bashar was put in charge of the Syrian military presence in “brotherly” Lebanon, where 40,000 Syrian soldiers were deployed. As part of Bashar’s training, he documented his relations with Lebanese politicians, the majority of whom bowed their heads to the lowliest of Syrian officers.

Three Lebanese figures stood out for Bashar. Two had his unabashed admiration and one was an abhorred thorn in his side:

Hezbollah Secretary General Hassan Nasrallah was the leader of the resistance party and enjoyed Bashar’s full support. He was viewed as the man of the 2000 liberation. He represented to Bashar everything that he could not achieve because he inherited power, while Nasrallah earned his way to the top. However, Hafez had the upper hand over Nasrallah when negotiating with Iran; the young inexperienced Bashar did not.

Bashar’s admiration of Nasrallah stemmed from what he could never achieve, while his admiration for Emile Lahoud stemmed from what was possible. The Lebanese army and naval commander was chosen by Damascus to be president in 1998. Lahoud, the commander of the very modest Lebanese navy, was as much a military man as Bashar, the ophthalmologist, was a doctor.

With the very little time needed to run the navy, Lahoud spent his leisure hours oiling himself up to tan under the sun at the Bain Militaire resort in Beirut. In all likelihood, Bashar was drawn to Lahoud because of their shared weakness in articulating words and putting sentences together, following that up with weak laughter, leaving their statements utterly meaningless.

The thorn in Bashar’s side was wealthy businessman and former Prime Minister Rafik Hariri, who lavished gifts on Syrian officers hoping for political leniency in return. This was not the type of wealthy man who Bashar was drawn to. Bashar looked up to the wealthy man whose sole ambition was to keep his riches from being seized.

Articles spoke about how Hariri was the one who was building Syria’s relations with the world, and he was the one who proposed to Damascus that it follow the “Chinese model” whereby power remains in the hands of the rulers, while freedom is introduced to the markets. Bashar resented Hariri for this and his sentiment deepened because Hariri was a Sunni leader and Bashar was Alawite. The Sunnis make up the majority in Lebanon and Syria where Alawites are a minority.

Rumors abounded that Hariri not only wanted to be the leader of the Sunnis in Lebanon, but in Syria as well. No wonder Bashar was suspicious. Rumors also spread that Hariri sought regional peace whereby the Palestinians and Israeli would continue where they left off in Oslo in 1993. Perhaps what irked Bashar the most about Hariri was that he was a self-made man.

From left to right: Former Lebanese President Emile Lahoud, slain former PM Rafik al-Hariri and slain Hezbollah leader Hassan Nasrallah (AFP file)

Regional tumult and crimes in Lebanon

The Israeli withdrawal from southern Lebanon removed the Syrian regime’s excuse for keeping its forces deployed in Lebanon. Hafez’s death encouraged people to speak out. The man of the moment was late Maronite Patriarch Nasrallah Sfeir, who in September 2000 sponsored a Maronite call on Syria to pull out its troops. Sfeir forged ahead. In April 2001, he blessed the establishment of the Qornet Shewan gathering that marked the beginning of the emergence of an anti-Syria opposition.

The gathering brought together Christian politicians and helped extend bridges to Hariri and Druze leader Walid Jumblatt, both of whom were upset with Bashar and his employee in Lebanon, Lahoud. In the summer of 2001, Sfeir sponsored a major reconciliation between the Christians and the Druze. Both sects were seen as the backbone of Lebanon’s national identity.

On August 7, Christian society was rattled by student protests held by supporters of the Lebanese Forces and former army commander Michel Aoun, who was in exile at the time. The protesters were summarily rounded up and imprisoned in shocking scenes. Hundreds were detained without any legal justification and for simply demanding freedom and the withdrawal of Syrian troops.

The region was in store for more tumult. In 2003, the US invaded Iraq and a year later Syria’s Kurds in Qamishli were encouraged to revolt against the regime. Bashar responded to the unrest by shipping terrorists to Iraq where they caused so much death and destruction. Washington soon began to mount its pressure on Bashar to ease meddling in Lebanon.

Bashar responded with a bombshell in Beirut. He remained steadfast in extending Lahoud’s term in office in 2004 despite deep opposition in Lebanon. In September later that year, the UN Security Council issued resolution 1559 that calls for the withdrawal of all foreign forces from Lebanon and the dismantling of all militias. It was as clear as day that Bashar and Hezbollah were the main targets of the resolution.

Bashar and Nasrallah were determined to retaliate against the resolution and Jumblatt and Hariri were seen as the main targets. Jumblatt had joined the opposition, while Hariri, who openly opposed the extension of Lahoud’s term – in what was seen as a direct insult to Bashar – was suspected of having played a major role in the issuance of resolution 1559.

And so, Beirut would be struck with disaster on February 14, 2005. Hariri was assassinated in major car bombing that would also claim the life of minister Bassil Fleihan and 21 people. A slew of crimes and assassinations would ensue against politicians and journalists who were vocal in their opposition to Bashar and Nasrallah.

Lebanon would soon become divided into two camps: one known as “March 8”, named so after holding a large rally on that day in 2005 to “thank Syria’s Assad” for its role in Lebanon, and “March 14”, also named so after a rally on that day that dwarfed the first and that protested against Hariri’s killing and demanded the withdrawal of the Syrian forces.

The forces would eventually withdraw from Lebanon on April 30, 2005. Nasrallah eagerly gifted the head of the Syrian security apparatus in Lebanon, Rustom Ghazaleh, the “rifle of resistance” because he wanted the Syrian troops to quit Lebanon with their heads held high, not weak and humiliated. Hariri’s “curse” would haunt Ghazaleh and his predecessor Ghazi Kanaan. Their mysterious fate would be added to countless others who died under the Assad rule.

Syrian forces deployed in Lebanon. (AFP file)

Ghazaleh was named to his post in Lebanon in 2002. He followed in Kanaan’s bloody footsteps of killing and torture. They had set up base in the town of Anjar in the Bekaa and the Beau Rivage Hotel in Beirut, both of which became synonymous with the Syrian regime’s oppression. They also sponsored drug and weapons smuggling networks whose revenues they reaped, along with the regime and their allies in the “Axis of Resistance”.

Ghazaleh was known for his utmost loyalty to the regime. Perhaps it was because he was a Sunni and needed to prove himself to his Alawite masters. Kanaan, a Alawite, didn’t need to go that far and years later would go on record and speak proudly of his friendship with Hariri.

At any rate, with Syrian troops out of Lebanon, the regime feared that all of its plotting to kill Hariri would be revealed. So, Ghazaleh, the regime’s secret keeper and owner of the “rifle of the resistance” was killed in 2015. Kanaan was shot and killed in his office in 2005. He was shot with two or three bullets, but the regime famously preferred to call his death a suicide. A few years later, two of his brothers also committed “suicide” - also using two or three bullets.

Tying the brother to the sister

Throughout the hegemony of “sister” Syria over “brother” Lebanon, the latter was under the Baathist theory of “Lebanon’s Arabism”. Describing what the regime did to Arabism is an insult to the word. In reality, it required that Lebanon stand by Syria and non-Arab Iran, through thick and thin, against Egypt, Iraq and Arab Gulf and Maghreb. For the first time in Lebanon’s modern history, it had an official ideology that identified “friend” and “foe”, replacing freedom of expression that was a hallmark of Lebanon’s official stances.

Hafez had also tightened the bond between Damascus and Beirut with the 1991 treaty of “Brotherhood, Cooperation, and Coordination” that tied Lebanon’s foreign policy to Syria’s. Damascus was also granted the final say in administrative and public appointments, especially security and military ones. It was allowed to name judges and ministers and outline media policies of various outlets.

This form of “Arabism” continued under Bashar, who at first attempted to display some openness towards Syria and Lebanon. He gave some breathing room for civil society activists in Syria and Lebanese banks opened branches in Syria. Bashar also approached Christian Lebanese parties that are traditionally opposed to the Assads.

War with Israel

Bashar’s relative “openness” led to the establishment of the “Beirut-Damascus Declaration” in May 2006. It was signed by hundreds of Syrian and Lebanon intellectuals and activists and called on the Syrian government to “correct” relations with Lebanon and respect its sovereignty and independence and end its series of political assassinations. The declaration marked the end of the openness. The Syrian signatories soon found themselves in jail or fired from their jobs.

Syria’s withdrawal from Lebanon left Hezbollah and its allies isolated. They were also confronted with a national agenda championed by the March 14 movement. Syrian voices chimed in solidarity with the Lebanese people. Hezbollah and its allies therefore sensed the need to shift attention elsewhere. And as usual, what best way to do that than sparking a war with Israel? Hezbollah abducted two Israeli soldiers in July 2006, leading Israel to declare war on the party.

Hezbollah would declare “divine victory” some 33 days later. Soon after, Iran-backed Hezbollah would assume in Lebanon the role once played by Ghazaleh. Iran’s role in Lebanon would become more pronounced, while Syria still held sway, albeit in back alleys, instead of the rooftops.

Lebanese mourners hold up a sign during the funeral of former Lebanese Prime Minister Rafik Hariri in Beirut, Lebanon, February 16, 2005 (Reuters)

A deadly duality emerged: a popular and parliamentary majority represented by Fuad Siniora’s government on the one hand, and the “divine victory” camp whose weapons and alliances would prevent the establishment of any stable form of rule on the other. The camp obstructed the government functioning and crippled the entire capital with a sit-in in Downtown Beirut that extended for over a year.

In May 2007, members of the so-called Fatah al-Islam group killed 27 Lebanese soldiers in their sleep. Clashes soon ensued in the Nahr al-Bared Palestinian refugee camp between the group and the army. Later, it would be revealed that the leader of the group, Shaker al-Absi, was working for Syrian intelligence. He had been imprisoned in Damascus and later released. He was tasked with sending terrorists to Iraq. After the Nahr al-Bared battle, he fled to Damascus and was later unsurprisingly killed in mysterious circumstances.

With Hezbollah and its allies holding sway in Lebanon, meeting constitutional deadlines became impossible. It took six months to elect Michel Suleiman president and that was only after Hezbollah and its allies turned their weapons against the Lebanese people in May 2008. The Doha conference was held to restore calm and end the political impasse and Suleiman was elected president.

Even after the crisis was resolved, Hezbollah continued to obstruct political life when things did not go in its favor even though the 2009 parliamentary elections, just like the 2005 polls, handed the March 14 camp a majority.

Syrian revolution and Assad’s downfall

The Syrian revolution erupted in 2011 and people in Lebanon hoped that it would positively impact their country and sweep away the rot and corruption that had been eating away at it. Voices of solidarity rose with the Syrian people, this time calling for freedom and dignity, not Arabism and resistance. Thugs affiliated with Damascus loyalists and Hezbollah soon cracked down on people expressing solidarity.

The northern city of Tripoli suffered the brunt of the crackdown. Its close proximity to Syria had always made it a prime target for the regime’s oppressive practices. In 2013, two mosques in the city were bombed, leaving 49 people dead and over 800 wounded. Unsurprisingly, the terrorist group that had claimed responsibility for the attack was actually affiliated with Damascus.

In 2012, scandal shook Lebanon when former minister Michel Samaha was busted for smuggling explosives from Syria to Lebanon where he planned on carrying out bombings. Ali al-Mamlouk, Bashar’s security advisor, was the mastermind behind the plot.

Ousted Syrian President Bashar all-Assad. (SANA file)

In 2019, as the sanctions tightened around the regime, it turned to Lebanon to ease the strain. The regime’s financial ties to Hezbollah were deepened during that phase, especially when it came to smuggling captagon.

While Syria kept a low profile in Lebanon, Hezbollah’s role in Syria grew more prominent. It reached a glaring peak in 2013 when it intervened militarily in Syria to help the regime fight the opposition seeking its ouster.

On the official level, Lebanon had sought to distance itself from the conflict in Syria. The Baabda Declaration was issued in 2012, stressing that Lebanon would keep a distance from the unrest. All parties, including Hezbollah, had agreed to it. Iran, Hezbollah’s backer, had other plans and soon the party scrambled to the aid of its ally, sowing death and destruction in Syria.

On August 4, 2020, Beirut was in store for yet another tragedy. Ammonium nitrate unsafely stored at the Beirut port mysteriously detonated, destroying swathes of the capital and killing over 200 people. The explosion was the third largest non-nuclear explosion in history. A lot was written about how associates of the Assad regime, who were complicit in shady deals and smuggling operations, had been storing the nitrate at the port.

The claims gained ground when Hezbollah thwarted investigations into the explosion. The party had no problem dispatching its enforcer and security official Wafik Safa to threaten the judge in charge of the probe to shut it down. And so it was, and the investigations have been stalled for years.

Much can be said about the Syrian refugees who fled to Lebanon during their country’s conflict. Strong bonds were forged between them and the locals, but they also strained Lebanon’s already fragile economy, fueling resentment and racism against them.

The Syrian regime collapsed on December 8 and Bashar fled to Moscow. The Lebanese people shared the Syrian people’s delirium in seeing the downfall of their oppressor.

However, Lebanon is not out of the woods yet. Members of the regime fled Syria to Lebanon and local authorities are demanded to arrest them, otherwise risk jeopardizing relations with the new rulers in Damascus. But everyone can safely say, that at the moment, the past 25 years of oppression, death and ruin at the hands of the regime are truly over.



Nothing Left: Nepal Flood Survivors Face Loss and Uncertainty

An aerial view shows houses standing amid debris during a helicopter flight from Nuwakot to Rasuwa following the deadly flash floods and mudslides in Nepal, September 3, 2026. (Reuters)
An aerial view shows houses standing amid debris during a helicopter flight from Nuwakot to Rasuwa following the deadly flash floods and mudslides in Nepal, September 3, 2026. (Reuters)
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Nothing Left: Nepal Flood Survivors Face Loss and Uncertainty

An aerial view shows houses standing amid debris during a helicopter flight from Nuwakot to Rasuwa following the deadly flash floods and mudslides in Nepal, September 3, 2026. (Reuters)
An aerial view shows houses standing amid debris during a helicopter flight from Nuwakot to Rasuwa following the deadly flash floods and mudslides in Nepal, September 3, 2026. (Reuters)

In Nepal's flood-ravaged Rasuwa district, Yangee Tamang grapples with grief and uncertainty, days after deadly torrents swept away entire villages, leaving a landscape of mud, rock and debris.

From a helicopter flying up the valley of destruction, the ground below resembles a puzzle with missing pieces. Entire sections of settlements have vanished.

Picturesque villages of green paddy fields and houses sit beside vast chunks of land washed away.

Tamang's house sits on a hillside in Syabrubesi in Rasuwa district, but the flood swept away the settlement below, where her relatives lived and markets were.

"It is all gone, nothing is left. No one is left," Tamang told AFP, after tracing the route of the August 26 destruction by air on Thursday, with roads below washed out.

Rescue teams in Nepal have recovered more than 1,250 bodies, and more than 5,000 are missing, after the gigantic wave triggered by a rock and ice avalanche roared down the China-Nepal border.

What were once busy villages, markets, green hillsides and winding roads in Rasuwa have been transformed into vast stretches of mud, broken rock and debris.

"It wasn't really water, it was gas-like, all black and it moved like boiling water," she said.

"It was all so sudden, it was not possible for anyone to run away."

- 'Hope has died' -

About 100 people are feared trapped in hydropower tunnels.

Tamang's husband is safe, but his workplace, the nearby Chilime Hydropower Project, which was smashed by the flood.

"I don't know what we will do. Nothing is left here for us to live," she said.

The river, still flowing brown, traces a path of destruction, and the enormous amount of debris has changed the shape and course of the waterways.

The floodwaters, carrying huge quantities of mud and rocks, rushed through river valleys with tremendous force.

In narrow gorges between the lush green hills, soil lies exposed where the flood stripped away trees and grass.

Roads that once connected remote communities have been washed away, while bridges lie destroyed or have completely disappeared.

Vehicles remain stranded on washed-out roads along hillsides.

Along the route, many surviving buildings are buried beneath thick layers of mud.

Some remain standing but are left empty, the people gone.

Risang Tamang, another resident, said for those left, the future is bleak.

"It is difficult -- roads are is such a state, so many bridges have been swept away. Now, even if you have money, there is nowhere to buy anything," he told AFP.

"Any hope that we can live here has died."


Ali al-Taher Ridge Emerges as Flashpoint in Israel-Hezbollah War

A photograph taken from the southern Lebanese area of Nabatieh shows smoke as it rises from the site of Israeli strikes that targeted the hilltops of the mountainous area of the strategic Ali al-Taher Ridge on August 14, 2026.  (Photo by AFP) /
A photograph taken from the southern Lebanese area of Nabatieh shows smoke as it rises from the site of Israeli strikes that targeted the hilltops of the mountainous area of the strategic Ali al-Taher Ridge on August 14, 2026. (Photo by AFP) /
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Ali al-Taher Ridge Emerges as Flashpoint in Israel-Hezbollah War

A photograph taken from the southern Lebanese area of Nabatieh shows smoke as it rises from the site of Israeli strikes that targeted the hilltops of the mountainous area of the strategic Ali al-Taher Ridge on August 14, 2026.  (Photo by AFP) /
A photograph taken from the southern Lebanese area of Nabatieh shows smoke as it rises from the site of Israeli strikes that targeted the hilltops of the mountainous area of the strategic Ali al-Taher Ridge on August 14, 2026. (Photo by AFP) /

The Ali al-Taher ridge in southern Lebanon, which is named after a Shi'ite Muslim scholar whose shrine sits at its summit, has become one of the most contested pieces of ground in the Israel-Hezbollah war.

The cluster of hills is not especially large. But what it overlooks in southern Lebanon — and what Hezbollah is suspected to have built beneath it — thrust it to the center of the fight between Israel and the Iran-backed militant group.

WHERE IS IT?

Located about 15 km (10 miles) from the Israeli border, the Ali al-Taher ridge has a commanding view of a broad sweep of southeastern Lebanon. Israel held it during a 22-year occupation of south Lebanon that ended in 2000.

After the current war erupted on March 2, Israeli troops pushed deep into southern Lebanon and seized key hilltops, including the historic Beaufort Castle on the ‌route to Ali al-Taher.

In ‌June, Israel's military described the ridge as one of its "primary operational focuses," ‌and ⁠included it in ⁠a map of an expanded, self-declared buffer zone where its troops are operating.

The ridge has effectively become a dividing point between a swathe of Lebanese territory occupied by Israeli troops to the south, and towns to the north that Israel's air force has bombed heavily, including Nabatieh.

WHY IS IT STRATEGIC?

Hezbollah is believed to have built an underground command center and weapons stores within the ridge itself, Lebanese security sources told Reuters in July. At 600 meters above sea level, it granted Hezbollah an advantage in launching short-range missiles and drones towards northern Israel, according to analysts.

Ali al-Taher also connects border areas ⁠in southern Lebanon to the hilly Iqlim al-Tuffah region further north, which has long ‌served as a key logistical and operational base for Hezbollah, the ‌Lebanese security sources said.

The Israeli air force has struck the ridge heavily in recent months.

In June, an Israeli military official, ‌speaking on the condition of anonymity, told Reuters that Hezbollah fighters were stuck underground without food or water. The ‌Times of Israel, citing a military probe, said on June 20 that one Israeli soldier was killed and 13 wounded during operations to capture a major underground Hezbollah facility beneath the ridge.

Hezbollah has said that Israel has sought to advance but that its fighters still had "full control over the area and are at complete readiness to confront any attempt by the enemy forces to ‌advance or infiltrate."

In July, the Israeli military said it would "not allow Hezbollah terrorists to emerge from the underground terrorist infrastructure and operate in the area or pose ⁠a threat" to Israeli soldiers.

WHAT ⁠IS THE POLITICAL SIGNIFICANCE?

Ali al-Taher lies near Zawtar Al Gharbiyeh, a town from which Israeli troops withdrew in July as part of a US-brokered roadmap that would see Israeli troops gradually withdraw from southern Lebanon as Lebanese troops disarm Hezbollah.

But with Hezbollah refusing to give up its weapons — and Israel saying it won't withdraw until the group disarms — that plan has ground to a halt.

As Israeli elections planned for October draw closer, capturing Ali al-Taher could be an attractive prize for Israeli Prime Minister Benjamin Netanyahu's government.

"Before the elections, Israel needs a big win in an area that has always been seen as a Hezbollah stronghold," said Andrea Tenenti, a strategic communications expert and former spokesperson for the UN force in Lebanon, UNIFIL.

Still, it may prefer a slow siege to avoid Israeli troop casualties, said Hassan Jouni, a Lebanese analyst and retired army general.

"Israel is hesitant to storm Ali al-Taher for fear of casualties, especially at this sensitive moment before elections," Jouni told Reuters.

The deadlock in Lebanon mirrors the wider Middle East standoff — negotiations between the United States and Iran remain stalled, with no breakthrough in sight.


Not Just Nvidia: These Power and Cooling Firms Are Riding the Trillion-Dollar Data Center Boom

An aerial view of an Amazon Web Services IAD10 data center on August 26, 2026 in Sterling, Virginia. (Getty Images/AFP)
An aerial view of an Amazon Web Services IAD10 data center on August 26, 2026 in Sterling, Virginia. (Getty Images/AFP)
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Not Just Nvidia: These Power and Cooling Firms Are Riding the Trillion-Dollar Data Center Boom

An aerial view of an Amazon Web Services IAD10 data center on August 26, 2026 in Sterling, Virginia. (Getty Images/AFP)
An aerial view of an Amazon Web Services IAD10 data center on August 26, 2026 in Sterling, Virginia. (Getty Images/AFP)

While Nvidia is synonymous with the AI boom, a lesser-known group of power and cooling equipment suppliers is cashing in on a global data center construction spree as developers race to avoid infrastructure bottlenecks.

Energy-hungry data centers have triggered a surge in demand for equipment ranging from transformers to advanced cooling systems, creating winners across Asia's supply chain, though earlier stock-price gains have moderated.

McKinsey forecasts nearly $7 trillion in data-center investment globally by 2030; Nvidia last week said it expects AI spending to remain robust for years.

But building data centers fast enough to meet demand is becoming more difficult. Hyperscalers often want facilities delivered within six months, but grid connection delays can stretch as long as 24 months in some emerging markets and more than eight years in major developed markets, according to consultancy Pivotale AI.

"Outside the industry circle, people are talking about (graphics processing units), but within the circle, people most certainly question you about the lead time for generators and transformers," said Wing Kin Cheung, the CEO of digital infrastructure service provider BodaData.

Transformers convert high-voltage electricity from grids into levels suitable for servers, cooling systems and power distribution units.

AI SCRUTINY DEEPENS

Leading transformer suppliers including ‌South Korea's HD Hyundai Electric ‌and China's Hainan Jinpan Smart Technology reported surging demand in the first half of 2026 tied to AI ‌infrastructure projects, ⁠particularly in North America.

HD ⁠Hyundai Electric recently said demand in Europe was rising as US hyperscalers expanded investments in markets like Finland, Germany and Britain, while Middle Eastern demand remained strong.

Its order backlog rose 23% to $8.5 billion at the end of June from six months earlier, and it said it expects data center demand to remain robust.

"We currently have an order backlog covering more than three years, with a substantial portion of production capacity for major power equipment secured for the coming three years," the company told Reuters.

"We are also in order discussions with some key customers for volumes scheduled for delivery as far out as 2030."

For Jinpan, new data-center orders in the first half more than quadrupled from a year earlier, while its related backlog nearly tripled.

As AI chips consume more electricity, equipment makers are also betting on technologies aimed at improving efficiency and reducing ⁠environmental impacts, amid growing public scrutiny over data centers' consumption of water and electricity.

Bank of America estimates power ‌consumption per AI rack could climb to more than 1.5 megawatts by the end of 2030, nearly 100 ‌times that of a conventional rack, citing Nvidia's roadmap.

One technology attracting greater attention is the solid-state transformer (SST), a device that replaces bulky magnetic coils and copper windings with semiconductors ‌to transform and route electricity.

UBS estimates SSTs will increase power efficiency by around 4% and reduce costs. While commercial adoption remains in its early stages, the ‌bank expects their penetration to climb to 40% in 2030 and forecasts that Chinese companies will gain share thanks to technological expertise and cost advantages.

HD Hyundai Electric and Jinpan said they are deepening SST development, while Taiwan's Delta Electronics, a major supplier of power infrastructure, said a small data center is using its SSTs.

Delta told Reuters that demand for AI power, cooling and data center infrastructure solutions remains a growth engine and it is expanding its production footprint across Thailand, the US and China to meet increased demand.

COOLING RACE

Cooling ‌systems are emerging as another growth area as operators struggle to manage the heat generated by powerful AI chips.

"Power and cooling basically go hand in hand; so basically the more power you use, the more cooling you ⁠need to use because you generate heat," ⁠said Matty Zhao, Bank of America's Asia-Pacific head of research for basic materials, oil and gas.

The bank forecasts liquid cooling will account for 70% of new AI data-center installations versus air cooling by 2030, up from about 30% today. Liquid cooling can reduce energy consumption by over 27%, McKinsey says.

Developers are also exploring unconventional approaches, including floating facilities, underwater data centers and servers in caves or tunnels.

That is creating opportunities for a broader range of suppliers.

"With the expansion of data center self-generation and the floating data center market, opportunities are also opening up to enter new markets for marine medium-speed engines," HD Hyundai Electric said.

Strong demand for thermal-management products is lifting Delta and local peers Asia Vital Components and Auras Technology, as well as China's Shenzhen Envicool Technology. All are suppliers in Nvidia's ecosystem.

SUPPLY CHAIN CONSTRAINTS

Despite surging orders, the stock-price gains of suppliers have moderated as investors question elevated valuations amid intensifying competition.

Delta's shares are up more than 90% this year, while HD Hyundai Electric has stayed largely flat, cooling from gains of more than 100% last year. China's Jinpan and Envicool have fallen nearly 30% and 20%, respectively, after surging 118% and 244% in 2025.

"Even if revenue increases, I think gross margin will probably remain at roughly this level," Delta Chairman Ping Cheng said in July.

"There are many variables in the market, including new product platforms, deployment delays and component shortages. These issues may become somewhat more serious in the second half of this year."

Bank of America's Zhao said investors should be aware of potential risks.

"Not everyone can win," she said. "You have to be cherry-picked for the leaders who actually get the customers."