Nvidia(US:NVDA) Hua Er Jie Jian Wen·2025-12-08 05:24Core Insights - The transition to liquid cooling in data centers is becoming essential due to the rising power consumption of AI chips, marking a significant structural change in the industry [1][2][4] - The global market for direct liquid cooling (DLC) is projected to grow from $1.138 billion in 2024 to $31.599 billion by 2030, driven by the doubling of liquid cooling value per rack [12] Group 1: Market Dynamics - The shift to liquid cooling is not just a hardware upgrade but a strategic necessity driven by intense competition in AI chip development [1] - The liquid cooling market is expected to experience a super cycle worth $31.191 billion, reshaping the global supply chain and opening opportunities for domestic manufacturers [1][12] - The efficiency of traditional air cooling systems diminishes significantly when cabinet power density exceeds 30-40 kW, making liquid cooling a more viable option [5][4] Group 2: Technological Advancements - AI accelerators are pushing thermal design power (TDP) to unprecedented levels, with NVIDIA's GPUs projected to reach up to 7000W in the future [2][10] - Cold plate technology remains dominant for applications below 3500W, while micro-channel lid (MCL) technology is expected to become standard for higher power chips [9][10] - Liquid cooling technology can achieve a cooling capacity 4-9 times greater than air cooling, making it a more effective solution for modern data centers [7] Group 3: Supply Chain Evolution - NVIDIA is shifting its supply chain strategy from a closed model to an open ecosystem, allowing more manufacturers to enter its supply chain [14][16] - This change enables domestic suppliers to either enter as secondary suppliers or potentially become primary suppliers as their technologies mature [16] - The market for liquid cooling systems required for ASIC chips is projected to reach 35.3 billion RMB by 2026, with NVIDIA's platform requiring even more [16]