Liquid cooling is replacing air cooling as the preferred solution for data center cooling systems, driven by the rapid expansion of AI computing power and rising power density. Cold plate cooling solutions currently hold the largest market share, increasing the demand for high-value components such as liquid cold plates and quick connectors. This trend necessitates higher precision, efficiency, and stability from manufacturing equipment. Attention is advised on companies involved in subtractive and additive manufacturing processes. The core views are as follows:
Liquid cooling has become the primary heat dissipation solution for data centers, with its market size growing rapidly. Global data centers are entering a new infrastructure upgrade cycle centered on AI. The continuous increase in power density imposes stricter requirements on cooling solutions, making liquid cooling the standard choice for next-generation data centers. According to Omdia, global data center capital expenditure is expected to grow at a compound annual growth rate of 13% from 2024 to 2030, with supporting systems, including cooling, potentially growing at 18%. The liquid cooling system market for new global data centers is projected to exceed $50 billion by 2030, with a compound annual growth rate of 22% from 2026 to 2030, positioning liquid cooling as a high-growth market within data center infrastructure.
Cold plate solutions dominate applications, with liquid cold plates and quick connectors driving demand for machine tools and 3D printing. Cold plate liquid cooling technology is mature and cost-effective for retrofitting, making it the most widely used cooling solution in data centers. Cold plates and quick connectors are unique components in the secondary side of cold plate systems. In NVIDIA's GB300 rack cold plate system, they account for 34% and 15% of the value, respectively. High-power racks require cold plates and quick connectors with high mechanical strength, for which high-precision CNC machining is the mainstream method. Cold plate manufacturing primarily involves CNC milling machines, drilling machines, tapping machines, and skiving machines, while quick connectors mainly use Swiss-type lathes and combined drilling, boring, and reaming processes. Additionally, 3D printing can eliminate weld points and physical gaps in cold plates, and its adoption in liquid cold plate manufacturing is expected to increase.
Liquid cooling component manufacturers are increasing capital expenditure, boosting demand for related processing equipment. Revenue performance and capital expenditure trends from industry leaders indicate that the global liquid cooling sector is entering a high-investment development phase, driven by the essential need for high-density heat dissipation in AI computing. Capacity expansion and R&D investments are accelerating, with leading companies like Cooler Master, Vertiv, and others continuing to scale production. These firms are focusing on key component production lines for liquid cooling CDUs, cooling plates, manifolds, and busbars to address critical supply gaps. As core liquid cooling components demand extremely high processing precision and standards, concentrated capacity expansion by leading manufacturers will persistently generate bulk procurement needs for precision processing equipment.
Risks include slower-than-expected industry development, technological shifts, and intensified competition.