Core Insights - The global server cooling market is experiencing structural growth opportunities, with a projected total scale of $17.6 billion by 2027, driven primarily by AI training servers with a compound annual growth rate (CAGR) of 101% [1][6][7] Market Growth Projections - The server cooling market is expected to grow by 111%, 77%, and 26% year-on-year from 2025 to 2027, reaching $17.6 billion by 2027 [6][8] - The liquid cooling market is anticipated to grow from $1.2 billion in 2024 to $15.2 billion in 2027, while the air cooling market remains relatively stable [7] Liquid Cooling Penetration - Liquid cooling penetration for AI training servers is projected to rise from 15% in 2024 to 80% by 2027, with significant differentiation in penetration rates across segments [3][9] - Full rack AI training servers have already achieved 100% liquid cooling penetration, becoming a key market driver [3] Segment Analysis - The AI training server cooling market is expected to expand from $4.5 billion in 2025 to $12.4 billion in 2027, showcasing strong growth momentum [2][9] - In contrast, the general/HPC and AI inference server cooling markets are projected to grow more modestly, from $3.4 billion in 2025 to $5.1 billion in 2027 [9] Component Innovations - Key components in the liquid cooling segment, such as cold plates, manifolds, and CDU/RPU, are expected to see significant growth, while traditional components like 3D VC and heat sinks will grow at a more stable rate [10] - Innovative cooling designs are being developed to meet the increasing thermal demands of AI servers, including 3D printed cold plates and microchannel solutions [11][12]

Core Insights - The global server cooling market is experiencing structural growth opportunities driven by increased AI server shipments and rapid penetration of liquid cooling technology, with projections indicating a market size of $17.6 billion by 2027 [1][3]. Market Growth Projections - The global server cooling market is expected to grow by 111% in 2025, 77% in 2026, and 26% in 2027, reaching $17.6 billion by 2027 [1][3]. - The AI training server cooling market is projected to expand from $1.5 billion in 2024 to $12.4 billion in 2027, with a compound annual growth rate (CAGR) of 101% [1][3]. Liquid Cooling Penetration - Liquid cooling penetration for AI training servers is forecasted to rise from 15% in 2024 to 80% by 2027, with significant differentiation in penetration rates across market segments [2][4]. - Full rack AI training servers have achieved 100% liquid cooling penetration, becoming a key market driver [2]. Market Dynamics - The liquid cooling segment is expected to grow from $1.2 billion in 2024 to $15.2 billion by 2027, while the air cooling market remains relatively stable [3][4]. - The market is anticipated to peak in growth rate in 2025 before gradually declining, yet still maintaining strong growth [3]. Segment Analysis - The AI training server cooling market is expected to dominate, with growth from $4.5 billion in 2025 to $12.4 billion in 2027, while the general/HPC and AI inference server cooling markets will see more moderate growth [4]. - Liquid cooling penetration in the AI training server market is projected to reach 80% by 2027, indicating a clear technological direction [4]. Innovation and Supplier Requirements - Innovative cooling designs are being developed to meet the increasing thermal demands of AI servers, with a focus on enhancing both the quantity and value of cooling components [5]. - Suppliers are required to enhance their customization capabilities, design responsiveness, and production capacity to support new product introductions [5]. Component Innovations - New cooling technologies include 3D printed cold plates and microchannel solutions, which improve heat exchange efficiency [6].

Summary of AITC Industry Conference Call Industry Overview - The AITC industry is currently in a phase of digesting existing capacity, leading to revenue growth but a decline in net profit and net profit margin [1] - The IDC industry experienced a cloud computing boom in 2020, resulting in overcapacity and a price war, but has shown signs of recovery since 2022 [3] Key Company Insights - **Runze Technology**: In 2024, four buildings totaling approximately 120 MW underwent upgrades from conventional 5-7 kW to high-power configurations [1] - **Office Data**: In 2020, revenue grew by 62% with EBITDA reaching approximately 830 million, a 39% increase. By the end of 2024, 190 MW was operational, with an expectation to reach 340 MW by year-end [2] - **Guanghuan Xinnet**: Experienced a revenue decline of 7.3% in 2014, primarily due to the impact of Amazon's cloud computing business [2] - **AIDC Sample Companies**: From 2018 to 2022, fixed asset total KGR was around 23%, increasing to 25% from 2022 to 2024, indicating a recovery from the industry's low point [3] Financial Performance - The AIT upstream industry saw a revenue increase of 12.6% in 2024, with operating profit rising by 30% [6] - AIDC's upstream ROE increased year-on-year, indicating improved capacity utilization [9] - In Q1 2025, inventory growth reached 47%, reflecting strong downstream demand [9] Market Dynamics - The industry is expected to see a construction boom that will continue until 2026, with significant new projects underway [4] - The pricing environment is anticipated to improve as high-quality resources in Beijing and surrounding areas are consumed [5] - The competitive landscape is expected to intensify due to the cancellation of domestic strong配政策, but market share may consolidate around leading players like Inwin and others [7] Future Projections - By the end of 2026, an estimated capacity of 550-560 MW is expected to be operational [2][10] - The valuation for companies in the IDC sector is projected to be attractive, with potential EBITDA multiples of 25-26 times for companies like Aofei Data [10] - The anticipated net profit for 2027 is projected at approximately 4.28 billion [12] Additional Insights - The cooling and power supply segment is expected to benefit from increased demand, with companies like Inwin and others poised for growth [13] - The trend towards higher power cabinets is evident, with companies upgrading their infrastructure to accommodate this shift [13] Conclusion - The AITC industry is navigating a complex landscape of capacity management and market recovery, with promising growth opportunities and evolving competitive dynamics. Investors are encouraged to monitor developments closely as the industry progresses towards 2026 and beyond [14]