AI is driving unprecedented demand for AI infrastructure, data center infrastructure, power infrastructure, cooling systems, server racks and switchgear. Manufacturers are und
AI and data center investment keeps climbing. Moody's expects hyperscaler capital expenditure to approach $1 trillion in 2027. For AI infrastructure manufacturers building server racks, switchgear, gensets, chillers, and other data center equipment, that means exploding demand and full order books for years to come.
But the bottleneck is rarely demand. It is capacity, and it sits on the shop floor: test and burn-in bays that are always full, operators who lose time every shift searching for carriers, assemblies, and parts, units that wait for days without anyone noticing, a wrong component in an expensive AI rack assembly that is only caught in the field, and delivery dates that are hard to hold when lead times stretch up to 22 months.
For AI infrastructure manufacturers, most of these problems share one root cause. Nobody knows in real time where each unit, carrier, and component is, what state it is in, and how long it has been waiting. Manual scans fill the gap, but only when operators remember to do them.
Location-based process automation closes that gap. KINEXON OS combines location and identification data from RTLS, RFID, and other tracking technologies into a real-time digital twin of your production, and turns every movement into an automated process step: a system record, an alert, or the trigger for the next task.
Real-time locating systems (RTLS) such as UWB track carriers, units, and fixtures continuously and precisely across the shop floor. That makes waiting time visible, and turns it into something you can manage.
Where RTLS is strongest
"Nobody knows where an order stands until someone scans it."
Printed work orders, manual scans, and system updates create delays, errors, and effort. KINEXON OS replaces them with digital workflows: it tracks WIP, components, and assemblies live and, based on their location, automatically triggers status updates, process steps, and alerts in your MES or ERP. Planners always see the real status of every order across production, test, and shipping, and operators can focus on building instead of on paperwork. At ASMPT, this approach cut manual SAP bookings by 95%.
How to size it: Manual entries and scans per day × minutes per entry × loaded labor rate × working days, plus errors avoided.
"Nobody knows where that assembly is."
KINEXON OS shows the live location of every tagged carrier, unit, and assembly on a digital map. Operators find what they need in seconds with mobile Search & Find instead of walking the floor, and production interruptions caused by missing parts drop.
How to size it: Searches per day × minutes saved × loaded labor rate × working days.
"Units sit for weeks and nobody notices."
Every carrier gets a clock. When WIP exceeds a defined age or skips its FIFO position, KINEXON OS alerts the responsible team automatically. That reduces inventory carrying costs, scrap, and obsolescence, a significant lever when a single rack can tie up components worth seven figures.
How to size it: Aged WIP value × carrying rate + scrap avoided.
"We don't know where the time actually goes."
Because every movement is recorded, KINEXON OS breaks lead time down by process step and zone. Teams see where units wait, in front of test bays, at rework, or in staging, and can remove the constraint. The result is more output from the same lines, without new capex.
How to size it: Additional units × contribution margin per unit.
Passive RFID identifies serialized components and materials in bulk at gates, workstations, and handhelds, without line of sight and without manual scanning.
Where RFID is strongest
KINEXON OS is validated to integrate Zebra passive RFID readers, turning every read into a process step or an alert. The high-performance platform processes large volumes of bulk reads from fixed gates and workstations in real time, and supports coworkers with mobile RFID readers as they locate items and record process steps on the go. Learn how KINEXON and Zebra work together
Not sure which technology fits which process? Our guide on RFID vs. RTLS compares both, and KINEXON OS lets you combine them on one platform.
"The wrong unit goes into the rack."
RFID readers at the workstation check every component against the order before it is installed. A mismatch triggers an immediate alert. In AI racks, where a wrong component caught downstream or in the field can cost seven figures, this is one of the highest-value use cases we see.
With this, KINEXON OS prevents assembly errors in cooling system and power infrastructure production.
How to size it: Mis-picks per year × cost per mis-pick (rework and field service).
"We cannot tell what is inside which carrier."
KINEXON OS links each serialized component to its carrier and to the unit it ends up in. This builds the digital genealogy that traceability, FIFO, and pick validation depend on, and makes recalls and audits far easier to contain.
How to size it: Enabler, as its value is realized through the use cases it supports.
"The bay stops because the kit is short."
Before a kit is released to an assembly bay, an RFID check confirms that every required part is there. In high-mix, engineer-to-order production, this prevents a bay from sitting idle for hours waiting for a missing part.
How to size it: Stoppages per year × hours lost × bay cost per hour.
These use cases build on solutions that run in production at manufacturers across the US and Europe today:
You don't have to rip and replace. KINEXON OS is technology-agnostic: it combines UWB, RFID, BLE, GPS, and barcode data into one operational data layer, integrates with your MES, ERP, and WMS, including out-of-the-box SAP integration, and scales from a single use case to a global network of plants.
Most manufacturers start with one high-value use case in one plant, prove the ROI, and scale from there. Let's find out which one fits your operation best.
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