With the continuous advancement of AIGC (Artificial Intelligence Generated Content) technology and rapid iteration in the chip industry, data centers are facing unprecedented high-power chip server cooling demands and energy consumption challenges brought by computing power growth. Against this backdrop, efficient cooling and energy-saving liquid cooling technology has become an inevitable trend in data center cooling technology development.

Recently, the liquid cooling server concept has continued to heat up. On August 18, multiple companies including Sugon Data Infrastructure Innovation Technology (Beijing) Co., Ltd., Shanghai Guanlong Valve Energy Saving Equipment Co., Ltd., Guangzhou Goaland Energy Conservation Tech Co., Ltd., Shenzhen Qiangrui Precision Technology Co., Ltd., and Ruijie Networks Co., Ltd. hit their daily trading limits.

**Market Scale Continuously Expanding**

Currently, liquid cooling servers are in a rapid penetration phase, with internet companies and operators taking the lead in large-scale deployments, and market scale continuously expanding. According to calculations by Zheshang Securities, NVIDIA GPUs and major cloud vendors' self-developed ASIC chips are jointly driving rapid growth in the liquid cooling market. The liquid cooling market scale is projected to reach 35.4 billion yuan, 71.6 billion yuan, and 108.2 billion yuan in 2025, 2026, and 2027 respectively.

"The mainstream technical approaches for liquid cooling servers include cold plate and immersion types, with the former being more popular due to lower modification costs, while the latter is more suitable for ultra-large-scale clusters," said Guo Tao, Deputy Director of the China E-commerce Expert Service Center.

Staff from Chindata Group Holdings Ltd told reporters that immersion liquid cooling technology involves submerging servers in cooling liquid, which is a non-conductive fluorinated liquid with extremely high costs. The company currently primarily adopts cold plate liquid cooling technology solutions for liquid cooling.

According to the IDC "China Semi-annual Liquid Cooling Server Market (Second Half of 2024) Tracking" report, in 2024, China's liquid cooling server market continued to maintain rapid growth, with market scale reaching $2.37 billion, an increase of 67.0% compared to 2023. Among these, cold plate solution market share further increased.

From a long-term perspective, liquid cooling servers are expected to become the mainstream cooling solution for data centers, driving the industry toward higher technical levels and scaled development.

**Industry Chain Companies Actively Positioning**

Facing explosive growth in market demand, industry companies are intensively positioning in liquid cooling server-related businesses.

It is understood that in addition to cold plate liquid cooling, Chindata Group Holdings Ltd also possesses multiple air cooling and liquid cooling solutions including IDEC (Indirect Evaporative Cooling), waterless cooling, and immersion liquid cooling, capable of supporting high-density cabinets up to 140kW. The relevant person in charge of Chindata Group Holdings Ltd stated: "Facing the liquid cooling trend in data centers, the company has partnered with ecosystem partners to initiate the establishment of industry standards for cold plate liquid cooling system full lifecycle quality control specifications, accelerating the standardization and normalization process of data center cold plate liquid cooling systems."

Dawning Information Industry Co., Ltd. recently released China's first industry-standardized ultra-intelligent integrated computing platform, Nebula800. The platform encompasses various advanced liquid cooling technologies and dynamic energy optimization mechanisms, capable of improving deployment density and reducing high-load operation energy consumption.

Feilong Automotive Parts Co., Ltd. recently disclosed during investor research that the company currently has 80 major customers and established connections in the liquid cooling field, with over 120 projects underway, some of which have already entered mass production. Additionally, while solidifying the domestic market, the company is actively expanding overseas server liquid cooling markets, continuously enlarging its business territory. In response to the growing liquid cooling heat dissipation demands for robot joints and other components, the company is actively positioning in the robot field liquid cooling market, leveraging its technical advantages in electronic pumps, temperature control valves, and integrated modules and other new energy thermal management products.

Zhuhai Bojay Electronics Co., Ltd. recently stated during investor research that the company continues to provide AI server testing equipment for major overseas customers, has embedded self-developed liquid cooling heat dissipation solutions in testing equipment, and has accumulated related technical reserves and solutions.

Driven by market forces, multiple listed companies expect to achieve significant growth in their 2025 interim report performance.

In the first half of this year, Beijing Zhongshi Technology Co., Ltd. expects to achieve net profit attributable to listed company shareholders of 116 million to 129 million yuan, an increase of 85.01% to 105.75% compared to the same period last year. Beijing Zhongshi Technology stated that under AI empowerment, emerging consumer electronics, digital infrastructure (data centers, communication base stations, etc.) and other industries are rapidly iterating new products, with increased demand for new cooling solutions. The company's high-efficiency cooling modules, core cooling components, high-performance thermal conductive materials and other revenues have grown rapidly year-on-year.

Shenzhen Frd Science & Technology Co., Ltd. expects to achieve operating revenue of approximately 2.886 billion yuan in the first half of the year, with net profit of 155 million to 170 million yuan, an increase of 103.95% to 123.69% compared to the same period last year. Shenzhen Frd Science & Technology stated that in the first half of the year, the company's communication field-related business development went smoothly, with AI server cooling-related business cooperation with some important customers progressing orderly, resulting in significant operating revenue growth. Leveraging years of cooling technology accumulation and strategic positioning, the company continues to increase R&D and technical reserves while continuously iterating products to maintain sustainable development of communication field business.

"In the future, with breakthroughs in new technologies such as two-phase cooling and microchannel liquid cooling, as well as domestic cooling liquid R&D reducing costs, liquid cooling servers are expected to penetrate into small and medium-sized data centers," Guo Tao stated, predicting that liquid cooling penetration rates will significantly increase in the coming years, becoming key infrastructure for green computing.