On November 13, the liquid cooling server sector in the A-share market experienced a strong surge, becoming the most eye-catching highlight in the capital market. Within the sector, Overclock3 led the rally with a 20% limit-up, while Tongfei Communications rose over 10%, and Envicool hit the limit-up. Other stocks like Jin Fu Technology and Shenling Environment also showed active performance, reflecting strong investor interest in the liquid cooling sector. Amid this sector-wide uptrend, Lenovo Group (00992), a global leader in liquid cooling servers, saw short-term stock price fluctuations, sparking market discussions. In reality, as a veteran with nearly two decades of experience in liquid cooling, Lenovo has established comprehensive competitive advantages in technology accumulation, large-scale applications, and ecosystem development. Its true value in the liquid cooling sector is gradually being recognized by the market, with clear and solid long-term growth prospects.
The surge in the liquid cooling server sector is no coincidence but a natural outcome of surging computing power demand and policy-driven trends. As generative AI and large-scale model training enter the mass adoption phase, server computing power density has grown exponentially, making traditional air cooling insufficient for high-density computing clusters. Data shows that an AI server's power consumption can be 10-20 times that of a standard server, with some high-end AI servers exceeding 50KW per unit. Air cooling systems not only struggle with heat dissipation efficiency but also lead to persistently high PUE (Power Usage Effectiveness) in data centers. In this context, liquid cooling technology, with its advantages of high cooling efficiency, low energy consumption, and minimal noise, has evolved from an "alternative technology" to a "must-have solution."
On the policy front, China's "dual carbon" goals and digital economy development strategy provide strong momentum for liquid cooling technology. The National Development and Reform Commission explicitly included "high-efficiency cooling technology" in the "National Key Promotion Directory for Low-Carbon Technologies," while the Ministry of Industry and Information Technology aims to increase liquid cooling penetration from 15% to 38% by 2025. The "East Data, West Computing" project mandates 100% liquid cooling adoption in its eight major hub nodes.
Unlike some sector players focused solely on liquid cooling components, Lenovo Group has built a "full-stack" liquid cooling capability spanning core R&D, system design, and full lifecycle services. As early as 2006, Lenovo initiated pre-research on liquid cooling technology, making it one of the earliest tech companies to enter this field in China. After nearly two decades of technological iteration, Lenovo has developed comprehensive liquid cooling solutions covering cold plate, immersion, and spray cooling methods. Its self-developed Neptune liquid cooling system has become an industry benchmark. By Q3 2025, Lenovo's Neptune system had been deployed in over 80,000 units globally, serving key sectors such as AI, supercomputing, government, finance, and automotive.
In terms of technological maturity, Lenovo's liquid cooling solutions have obtained multiple international certifications, including ISO and IEEE standards. Domestically, Lenovo has participated in drafting 12 industry standards, including the "Technical Requirements and Testing Methods for Data Center Liquid Cooling," solidifying its leadership in the field.
Lenovo's extensive implementation cases serve as strong proof of its technological prowess. Its solutions have withstood rigorous tests in major projects, demonstrating exceptional adaptability. For example, in the automotive sector, Lenovo customized a liquid cooling solution for Geely's Stellar Computing Center, optimizing heat dissipation for massive data processing in R&D. The solution achieved an annual average PUE of 1.1, reducing carbon emissions by approximately 3,179 tons per year. In education and research, Lenovo's technology helped South China University of Technology cut energy consumption by 30% while achieving 90% of Linpack efficiency—a leading metric among university supercomputing centers.
Notably, Lenovo's liquid cooling solutions have also expanded globally, serving projects like the Barcelona Supercomputing Center, the Korea Meteorological Administration, and the Canadian Meteorological Service.
Deep and broad ecosystem partnerships further amplify Lenovo's competitive edge. The company has established long-term collaborations with top chipmakers like NVIDIA and AMD. For instance, its jointly developed ThinkSystem SC777 V4 Neptune liquid-cooled AI server with NVIDIA brings cutting-edge accelerated computing and AI technology to enterprises, enabling trillion-parameter AI models in a compact design.
Strong financial performance and promising business prospects further support Lenovo's long-term growth in liquid cooling. The company's Q1 2025 earnings report showed a 68% YoY increase in liquid cooling-related revenue. With the explosive demand for generative AI computing power, the liquid cooling server market is poised for exponential growth. Goldman Sachs' latest research highlights a structural growth opportunity in the global server cooling market. As AI server shipments are revised upward and liquid cooling adoption accelerates, the total market size is expected to grow by 111%, 77%, and 26% YoY from 2025 to 2027, reaching $17.6 billion by 2027. In this market, Lenovo—with its triple advantages of technological leadership, extensive case studies, and a robust ecosystem—is well-positioned to expand its market share.