Quanta Computer secured a decade-long lease for manufacturing space in California, paying $36.8 million (NT$1.08 billion) to expand AI server production capacity as demand from major cloud providers continues to surge.
The Taiwanese contract manufacturer, through subsidiary Quanta Manufacturing Nashville LLC, will lease the facility for 120 months at $380,000 monthly rent. AI servers are on track to account for 70% of Quanta’s total server revenue this year, reflecting the dramatic shift in the technology hardware sector.
The California expansion follows Quanta’s factories being booked through the end of 2025 due to what executives describe as “insane demand” from artificial intelligence infrastructure buildouts. The company primarily serves Microsoft, Amazon, Google and Meta for AI server projects.
Quanta raised its annual capital expenditure target to NT$20 billion ($615 million) this year, planning flexible capacity adjustments across manufacturing bases in the US, Thailand and Europe. The company already operates facilities in Tennessee and California, part of a broader strategy to serve customers locally and reduce logistics costs.
The expansion reflects Taiwan’s manufacturing sector transformation, where companies like Quanta have seen revenue growth of 65.6% in the first seven months of 2025 driven by AI infrastructure demand. However, the premium nature of AI server manufacturing requires higher technical sophistication compared to traditional consumer electronics production.
Quanta will use the California facility primarily for AI server assembly, testing and verification work, the company said.
