Core Insights - Motivair by Schneider Electric has launched the MCDU-70, a 2.5MW Coolant Distribution Unit (CDU) designed for high-density data centers, addressing the cooling needs of next-generation GPUs and AI factories [1][2]. Product Features - The MCDU-70 is the highest-capacity CDU from Motivair, offering a flexible and scalable solution that can meet demands of up to 10MW for high-performance computing (HPC) and AI workloads [2][6]. - It is engineered with dual heat exchangers to maintain efficiency and performance, achieving the industry target of 1.5 liters per minute per kilowatt while minimizing system pressure drop [8]. - The CDU portfolio ranges from 105kW to 2.5MW, providing data center operators with greater scalability and flexibility [6][7]. Market Demand - The increasing heat generation from GPUs, which can produce 20 to 50 times more heat than traditional CPUs, necessitates advanced liquid cooling solutions in the AI era [4]. - Organizations deploying AI clusters are facing extreme rack power densities projected to exceed 1MW, highlighting the need for effective cooling solutions [4]. Strategic Positioning - Motivair's solutions are designed to keep pace with the rapid evolution of chip and silicon technology, ensuring that data centers can deliver scalable and reliable infrastructure for AI deployments [5]. - The MCDU-70 is positioned to support large-scale facilities, such as NVIDIA's Omniverse DSX Blueprint, which targets 10MW for gigawatt-scale operations [3][7]. Global Availability - The MCDU-70 is available globally through Schneider Electric's manufacturing hubs in North America, Europe, and Asia, ensuring widespread access to advanced cooling solutions [7][9].

Group 1 - The 2026 Shanghai International Liquid Cooling Industry Exhibition will take place from December 9-11, 2026, at the Shanghai New International Expo Center [3] - The 2026 China (Shenzhen) International Liquid Cooling Industry Technology Exhibition is scheduled for June 10-12, 2026, at the Shenzhen International Convention and Exhibition Center [3] - The 2026 Suzhou Exhibition will occur from September 16-18, 2026, at the Suzhou International Expo Center [5] Group 2 - The rapid growth of big data has increased the demands on data center servers, necessitating higher power density in server cabinets [14] - Liquid cooling technology is becoming essential for data center efficiency, especially with the rise of 5G, edge computing, and AI applications [14][18] - The exhibitions aim to showcase the latest products and technologies in the liquid cooling industry, attracting professional audiences from data centers, power, electronics, edge computing, AI, and renewable energy sectors [14] Group 3 - The 2026 IDC exhibition is expected to cover an area of 15,000 square meters and will feature participation from major organizations such as the National Supercomputing Center in Shenzhen and Tencent [18] - Various technical exchange activities will be held during the IDC 2026 exhibition, focusing on industry hot topics and promoting diversified marketing strategies [19] - The exhibition will include a wide range of products covering cooling liquids, refrigerants, and various cooling devices, showcasing over a thousand new products across the entire industry chain [56] Group 4 - Shenzhen Angpai Technology Co., Ltd. is currently in the A-share IPO guidance stage, with plans to expand production capacity and R&D investment to capture market growth in liquid cooling [66] - The company has a registered capital of 90 million RMB and aims to leverage its professional R&D team and partnerships with universities to enhance its technological capabilities [66][68] - Angpai Technology's product offerings include liquid cooling module design, thermal management system integration, and innovative compressor technologies, with a focus on high reliability and efficiency [71][72]

Core Insights - NVIDIA's CEO Jensen Huang highlighted the rapid advancements in AI technology, particularly with the introduction of Alpamayo, the world's first thinking and reasoning model for autonomous vehicles, which utilizes a 10 billion-parameter vision-language-action model [1][2] - The demand for AI computing is surging, with model sizes increasing by 10 times annually and reasoning generating 5 times more tokens per year, while the cost of tokens is decreasing by 10 times [3] - NVIDIA's new Vera Rubin GPU system features significant innovations, including a design stripped of cables, hoses, and fans, utilizing hot-water liquid cooling at 45°C, which could disrupt the data center cooling market [6][7] NVIDIA Innovations - The Vera Rubin system is expected to be a game-changer in the robotics industry, with a projected cost of approximately $5 million per supercomputer rack-scale system [5] - The system's design allows AI factories to eliminate mechanical water chillers, relying instead on simpler cooling solutions, which has raised concerns for companies like Modine Manufacturing that specialize in data center chillers [7][9] Market Reactions - Modine's stock experienced a significant drop of over 20% following the announcement of the Vera Rubin system, reflecting investor concerns about the future demand for traditional cooling solutions [8][9] - Credo Technology Group also faced stock volatility, with shares falling due to fears that the new systems would replace copper cabling with optical interconnects, although a subsequent recovery was noted as investors reassessed the situation [10][11] Credo Technology Developments - Credo is diversifying its product offerings, focusing on both copper-based Active Electrical Cables and optical interconnect solutions, with recent innovations including ZeroFlap optical transceivers and a strategic acquisition of Hyperlume, Inc. [14][15][16] - The company aims to expand its Total Addressable Market (TAM) by prioritizing optical solutions while maintaining its leadership in the AEC market [16]

Core Insights - The liquid cooling industry is entering a "second development stage" marked by performance realization as AI cluster scale construction progresses [1] Group 1: Rubin Platform and Cooling Solutions - NVIDIA's CEO announced the full-scale production of the Vera Rubin platform, which features a "six-core integrated" design aimed at breaking the computing power ceiling [2] - The Rubin platform will implement 100% liquid cooling coverage and a third-generation fully cable-free design, enhancing thermal management with a modular design [2] - The cooling components for the next-generation Vera Rubin NVL144 platform are expected to reach a total value of $55,700 per cabinet, a 17% increase from the previous GB300 platform [2] Group 2: Liquid Cooling Market Growth - The liquid cooling market is experiencing rapid growth, driven by the expansion of downstream industries such as computing power, energy storage, and electric vehicles [3] - The global liquid cooling market for NVIDIA GPUs is projected to reach $11.9 billion, while the ASIC liquid cooling market is expected to reach $4.6 billion, leading to an overall market size of $16.5 billion (approximately 116.2 billion RMB) by 2026, with a compound annual growth rate of about 59% from 2025 to 2026 [3] Group 3: Stock Performance and Investment Opportunities - 26 liquid cooling concept stocks have seen an average increase of 79.73% since 2025, significantly outperforming the Shanghai Composite Index [4] - Among these, several stocks have doubled in value, including Chunzong Technology, Siquan New Materials, and Yidong Electronics [4] - 19 liquid cooling concept stocks are expected to have a net profit growth rate exceeding 20% in 2026 and 2027, with five stocks having a rolling P/E ratio below 40 [7] - The stock with the highest predicted upside is Zhongke Shuguang, with a potential increase of 47.27% based on target prices [7][8]

Core Viewpoint - Shares of cooling system manufacturers for data centers experienced significant declines following comments from Nvidia CEO Jensen Huang regarding the potential reduced need for traditional water chillers due to the capabilities of Nvidia's next-generation Rubin chips [1][10]. Group 1: Stock Performance - Trane Technologies Plc's stock fell as much as 11%, marking its steepest intraday drop since 2020 [1][12]. - Modine Manufacturing Co's stock dropped by 21% [1][12]. - Johnson Controls International Plc and Carrier Global Corp also saw notable declines amid the selloff [1][12]. Group 2: Technological Implications - Huang indicated that Nvidia's Rubin chips can be cooled using water at higher temperatures, potentially eliminating the need for traditional water chillers [2][10]. - Bloomberg Intelligence highlighted that chillers are a "predominant" component of data-center cooling equipment [2]. Group 3: Market Reactions and Analyst Insights - Analyst Timothy Wojs from Robert W. Baird expressed concerns about the long-term positioning of chillers in data centers as liquid cooling becomes more prevalent [3][4]. - Wojs does not foresee major risks to near-term estimates for cooling-system makers but anticipates potential order concerns later in 2026 [6]. - Citi analyst Andrew Kaplowitz described the stock decline as "overdone," emphasizing the established relationships between cooling-system manufacturers and chipmakers [8][13]. - Barclays analyst Julian Mitchell noted that Vertiv, which has a strong position in liquid cooling, may benefit from the changes discussed by Huang, despite potential headwinds for its chiller business [9][13].

Economic Indicators - The Dec ADP employment change is expected to increase by +48,000, while the Dec ISM services index is projected to slip -0.3 to 52.3 [1] - Nov JOLTS job openings are anticipated to climb by +9,000 to 7.679 million, and Oct factory orders are expected to decline by -1.1% m/m [1] - Q3 nonfarm productivity is expected to rise by +4.7%, with unit labor costs increasing by +0.3% [1] - Initial weekly unemployment claims are projected to increase by 12,000 to 211,000 [1] - Dec nonfarm payrolls are expected to increase by +59,000, with the unemployment rate slipping by -0.1 to 4.5% [1] - Dec average hourly earnings are expected to rise by 0.3% m/m and 3.6% y/y [1] - Oct housing starts are expected to increase by 1.4% m/m to 1.325 million, and building permits are expected to rise by 1.1% m/m to 1.350 million [1] - The University of Michigan's Jan consumer sentiment index is expected to climb by 0.6 points to 53.5 [1] Stock Market Performance - The S&P 500 Index is up +0.32%, the Dow Jones Industrials Index is up +0.16%, and the Nasdaq 100 Index is up +0.63% [5] - March E-mini S&P futures are up +0.33%, and March E-mini Nasdaq futures are up +0.66% [5] - Chipmakers and data storage companies are leading the market, with Sandisk up more than +12% and Microchip Technology up more than +7% [10] - Mining stocks are also performing well, with copper prices reaching a new all-time high [4][11] Bond Market - The 10-year T-note yield is up by +2 bp to 4.18%, influenced by rising inflation expectations [3][7] - The 10-year breakeven inflation rate has risen to a 1-month high [3][7] - European government bond yields are moving lower, with the 10-year German bund yield down -2.7 bp to 2.843% [8] Company-Specific Developments - Aeva Technologies is up more than +32% after its 4D LiDAR technology was selected for Nvidia's autonomous vehicle platform [13] - OneStream is up more than +25% following news of advanced acquisition talks [13] - Zeta Global Holdings is up more than +6% after entering a strategic collaboration with OpenAI [14] - Vistra Corp. is up more than +3% after agreeing to acquire 10 natural gas-fired power plants for roughly $4 billion [14] - Core Scientific is up more than +2% after an upgrade to buy from neutral [15]

Core Insights - The fifth International AIDC Liquid Cooling Supply Chain Summit will be held on December 18-19, highlighting the growing demand for liquid cooling solutions driven by the performance needs of AI chips [1] - The increasing power density of AI chips necessitates efficient cooling solutions, with liquid cooling transitioning from an optional to a mandatory technology in the industry [1][2] - The U.S. energy crisis and the Department of Energy's initiatives underscore the importance of liquid cooling in reducing energy consumption and alleviating power shortages [1] Group 1 - The value of liquid cooling components for NVIDIA's GB300 NVL72 AI system is approximately $49,860, a 20% increase compared to the previous model [1] - The total cooling cost for the next-generation Vera Rubin NVL144 platform is projected to rise by 17%, reaching around $55,710 [1] - Google has fully adopted liquid cooling solutions for its TPU V7 and above models, setting a benchmark for the industry [1] Group 2 - The Chinese government aims to reduce the Power Usage Effectiveness (PUE) of data centers to below 1.5 by the end of 2025, with liquid cooling technology playing a crucial role in achieving this target [2] - The demand for liquid cooling is also surging in ultra-high voltage and energy storage sectors, contributing to the overall market growth [3] - The global liquid cooling market for data centers is expected to reach approximately 68.8 billion yuan by 2026, with the domestic market accounting for about 17.9 billion yuan [3] Group 3 - The liquid cooling industry encompasses various segments, including cold plates, immersion cooling, cooling fluids, pumps, valves, heat exchangers, and system integration [3] - Cold plate liquid cooling is expected to dominate the market in the short term due to lower retrofitting costs, while immersion cooling holds long-term potential [3] - There is an accelerated process of domestic material localization for cooling fluids, with a focus on leading domestic liquid cooling companies, especially those likely to enter the supply chains of tech giants like NVIDIA [3]

Group 1 - The company has been researching micro-channel liquid cooling technology for several years and has developed a certain level of technical reserves, but has not yet achieved industrial application [1] - The company currently offers various liquid cooling solutions for data centers, primarily based on cold plate and immersion methods [1]

Trane Technologies Plc (NYSE:TT) is one of the 10 Data Center Cooling Companies to Invest In. On December 4, Trane Technologies Plc’s (NYSE:TT) price target was raised by $11 to $506 by Barclays. The firm maintained the previous Overweight rating on the stock. This nudges Barclays’ price target closer to the $550 mark, which is the highest rating among 26 analysts the stock is covered by on Wall Street. It is well above the $470 median target price, which offers an 18.31% upside from here. Watsco, Inc. (W ...

Group 1 - Regal Rexnord Corporation (NYSE:RRX) is recognized as one of the top 10 Data Center Cooling Companies to invest in, with a Buy rating reaffirmed by Barclays analyst Julian Mitchell and a price target of $165, indicating a potential upside of 10.85% from current levels [1] - On November 21, Regal Rexnord Corporation signed a Third Amended and Restated Credit Agreement with a banking group led by JPMorgan Chase Bank, securing an unsecured delayed-draw term loan of $850 million maturing on February 21, 2029, and an unsecured revolving credit line of up to $1.5 billion maturing on November 21, 2030 [2] - The company has a strong current ratio of 2.05, indicating its ability to meet short-term obligations with liquid assets, and plans to use the new credit facilities for associated expenses, refinancing existing agreements, general corporate purposes, and financing capital expenditures and working capital [3] Group 2 - Regal Rexnord Corporation provides sustainable solutions through its offerings in motor, power transmission, and air handling solutions, operating in three segments: Power Efficiency Solutions, Industrial Powertrain Solutions, and Automation and Motion Control [4]