Group 1 - The core viewpoint is that the penetration rate of liquid cooling in data centers is expected to increase rapidly due to the accelerated shipment of next-generation high-performance computing chips, leading to significant growth in orders for liquid cooling infrastructure suppliers [1] - The trend towards liquid cooling in data centers is driven by the limitations of traditional air cooling in high power density environments, with liquid cooling offering advantages such as high specific heat capacity, high thermal conductivity, low noise, high stability, and smaller footprint [1][2] - The liquid cooling infrastructure market is projected to grow significantly, with estimates indicating that the domestic data center total power will increase from 35.5 GW in 2024 to 68.8 GW in 2027, and the global liquid cooling infrastructure market is expected to grow from approximately 11.08 billion yuan in 2024 to 26.34 billion yuan in 2027 [4] Group 2 - The liquid cooling penetration rate in the data center sector is currently low, with only about 5% of server shipments being liquid-cooled servers, but it is anticipated to rise to 30-40% within the next 3-5 years [3] - High R&D investment intensity has created competitive barriers in the liquid cooling infrastructure industry, with leading companies like Invec maintaining a compound annual growth rate (CAGR) of 32.6% in R&D expenses from 2021 to 2024 [2] - The industry faces challenges in customer certification and procurement inertia, making clients cautious about introducing new suppliers [2]

Core Viewpoint - The article discusses the advancements in liquid cooling technology for data centers, particularly highlighting Supermicro's new DLC-2 technology and its implications for energy efficiency and operational costs in the context of rising AI computing demands [2][5][9]. Group 1: Supermicro and DLC-2 Technology - Supermicro announced the launch of its next-generation DLC-2 technology, which has led to a fourfold revenue increase over the past three years, driven by the maturity of liquid cooling technology [2]. - The new data center construction modular solution (DCBBS) integrates the DLC-2 technology, achieving a 40% improvement in energy and water savings, a heat capture rate of 98%, and a noise level as low as 50db, while also reducing capital expenditures by up to 20% [2][9]. - Supermicro's stock has experienced significant volatility, with a 300% increase in 2023 due to AI demand, followed by an 80% decline in 2024 due to financial reporting delays and governance issues [7][12]. Group 2: AI Computing Power and Market Trends - NVIDIA's CEO Jensen Huang emphasized the critical role of computing power in AI development, noting that AI computing performance improves by a factor of one million every decade [4]. - The IDC report predicts that China's AI computing power market will reach $25.9 billion by 2025, growing 36.2% from 2024, while total energy consumption in Chinese data centers is expected to exceed 400 billion kWh, accounting for over 4% of total national consumption [4]. Group 3: Liquid Cooling Technology Overview - Liquid cooling technology is categorized into non-contact and contact types, with non-contact cooling being the most widely used due to its maturity [5]. - The average energy consumption for cooling systems in air-cooled data centers exceeds 50%, with higher ratios in AI computing centers [5]. - The emergence of high-density computing scenarios has led to the development of new immersion cooling solutions, which are expected to see widespread adoption as server power densities increase [5][6]. Group 4: Financial Performance and Future Outlook - MiaoSuan Technology, founded in 2023, aims for a revenue target of 300 million yuan in 2025, leveraging its immersion cooling technology [6][7]. - Supermicro's recent partnership with DataVolt in Saudi Arabia indicates ongoing interest in high-performance computing solutions despite past financial challenges [7]. - The operational efficiency of liquid cooling systems can lower Power Usage Effectiveness (PUE) to as low as 1.15, with potential for further reductions in specific areas [9].

Financial Data and Key Metrics Changes - The first quarter revenue was $200 million, primarily from management fees related to the InVentus ESG fund, aligning with expectations and consistent with prior communications that revenue growth would be weighted towards the second half of the year [35][36] - General and administrative expenses were approximately $20 million, with significant components including non-cash equity-based compensation and professional service fees [36][37] - A non-cash goodwill adjustment of $233 million was recorded due to a decrease in the company's share price and market capitalization [38] - Adjusted EBITDA for the quarter was a loss of $21.8 million, indicating a significant operational loss but reflecting the anticipated revenue growth in the future [38][39] Business Line Data and Key Metrics Changes - Excelsius is positioned to capitalize on the growing demand for two-phase direct-to-chip liquid cooling technology, with significant market opportunities identified [35][36] - The liquid cooling market is projected to grow from $1.3 billion to $5 billion by 2028, driven by advancements in AI and chip technology [14][15][34] Market Data and Key Metrics Changes - Worldwide data center spending was approximately $450 billion in 2024, expected to exceed $1 trillion by 2029, creating a favorable environment for Excelsius [10] - The current liquid cooling market is estimated at $1.3 billion, growing at an annual rate of about 30% [14][15] Company Strategy and Development Direction - The company aims to build enterprises with a minimum of $1 billion in enterprise value, focusing on Excelsius as a key growth driver [7] - Excelsius is leveraging partnerships with hyperscalers, OEMs, and global resellers to enhance market reach and capitalize on the growing demand for liquid cooling solutions [20][27] - The company is focused on developing a robust supply chain and manufacturing capacity to meet anticipated market needs, ensuring scalability and reliability [31][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that 2025 will be an inflection point for revenue growth, driven by increasing demand for liquid cooling solutions [34][35] - The management highlighted a significant uptick in lead generation and engagement with potential customers since the release of NVIDIA's roadmap, indicating a shift in market dynamics [66][69] Other Important Information - The company has seen a 200% increase in its strategic partner network since the beginning of 2025, indicating strong market interest and engagement [27] - The average proposal size has increased significantly, reflecting a shift towards larger scale production opportunities [28] Q&A Session Summary Question: What drove the white label agreement with the OEM? - The relationship was driven by overall market demand, not solely by hyperscaler engagement, allowing for a broader customer base [44][46] Question: Will the potential inflection point be served largely through the white label agreement? - Management indicated that while some volume is expected from the agreement, there is a much broader pool of customers engaged [51][52] Question: Can you comment on the pros and cons of flow versus pool-based cooling? - Flow-based cooling offers more reliability and headroom compared to pool boiling, which can lead to operational issues [57][59] Question: How is the company ensuring it can scale manufacturing to meet demand? - The company has established partnerships with contract manufacturers and has a strong internal team to support large volume orders [74][76]