An annular stator assembly includes a plurality of stator segments. Each stator segment includes a plurality of laminates having magnetic permeable properties; a plurality of thermally conductive laminates positioned between the permeable laminates; and a cooling pipe extending through the laminates for transferring heat from the laminates to coolant flowing through the cooling pipe. The stator segments are constructed independently. Coils are wound on each segment. The stator segments with the wound coils are subsequently arranged to form the annular stator assembly.