Group 1 - The core viewpoint is that liquid cooling technology has become essential for data centers due to the exponential increase in computing density driven by the surging demand for AI computing power [1][2] - International investment banks predict that the total value of NVIDIA's next-generation AI server liquid cooling components will approach 400,000 yuan [1] - According to the China Academy of Information and Communications Technology, the liquid cooling market in China's intelligent computing centers is expected to reach 18.4 billion yuan in 2024, representing a year-on-year growth of 66%, and is projected to further grow to 130 billion yuan by 2029 [1] Group 2 - Dongwu Securities emphasizes that liquid cooling technology is a necessary solution to the heat dissipation pressure in data centers, offering advantages such as low energy consumption, high cooling efficiency, low noise, and low total cost of ownership (TCO) [2] - The current mainstream liquid cooling solution is the cold plate type, while immersion cooling is anticipated to be a future development direction [2] - The cold plate liquid cooling system consists of indoor and outdoor components, with the costs of the CDU and distribution liquid pipes accounting for the highest proportions at 25% and 20%, respectively [2] - It is estimated that by 2026, the scale of liquid cooling systems for ASICs will reach 12.5 billion yuan, while the scale for NVIDIA's liquid cooling systems will reach 26.8 billion yuan [2]

Group 1 - The core viewpoint is that 2025 will see a significant increase in the penetration of liquid cooling in NVIDIA's AI chips, driven by rising single-chip power consumption and the maturation of the liquid cooling supply chain [1][10] - The liquid cooling market is expected to grow significantly as ASIC cabinet solutions gradually adopt liquid cooling, alongside the introduction of domestic manufacturers' ultra-node solutions [1][10] - The report suggests focusing on the liquid cooling sector due to its potential for rapid market expansion [1][10] Group 2 - Diamond materials are highlighted as an ideal solution for efficient heat dissipation in semiconductor applications, with thermal conductivity reaching 2000 W/m·K, significantly outperforming traditional materials like copper and silicon [2][3][4] - The demand for high-efficiency cooling solutions is increasing due to the challenges posed by rising power densities in semiconductor devices, necessitating advanced materials like diamond [2][3][4] - The market for thermal interface materials (TIM) has seen substantial growth, with a compound annual growth rate of 13.97% from 2018 to 2023, indicating a strong demand for effective heat management solutions [5][6][8] Group 3 - North American capital expenditures from major internet companies reached $95.8 billion in Q2 2025, a 64% year-on-year increase, reflecting strong growth in the AI-driven computing sector [9] - Companies like Amazon and Meta have significantly increased their capital expenditure forecasts, indicating optimism for continued investment in AI and related technologies [9][11] - The liquid cooling server market in China is projected to reach 20.1 billion yuan in 2024, with a growth rate of 84.4%, further emphasizing the sector's expansion potential [15]

Core Viewpoint - The demand for cooling solutions is increasing due to the rising power density of AI chips and servers, with liquid cooling expected to replace air cooling as the mainstream solution by 2026, reaching a market size of $8.6 billion globally [2][3]. Group 1: Liquid Cooling Market Dynamics - The global AI liquid cooling market is projected to grow rapidly, with a forecasted market size of $8.6 billion by 2026, driven by the increasing power density of AI chips and servers [2][3]. - The power density of AI servers is expected to exceed 1MW per cabinet by 2029, highlighting the need for efficient cooling solutions [2][3]. - The liquid cooling market in China is anticipated to grow by 67% year-on-year in 2024, reaching $2.37 billion, with a CAGR of 46.8% from 2024 to 2029 [3][42]. Group 2: Advantages of Liquid Cooling - Liquid cooling systems offer higher cooling efficiency and reduced system power consumption compared to traditional air cooling, making them a preferred choice as power density increases [2][22]. - The cooling efficiency of liquid cooling is significantly higher than that of air cooling, with water's thermal conductivity being over 23 times greater than that of air [22]. - Liquid cooling allows for higher density deployment of computing units, reducing the physical space required and improving overall system performance [22][25]. Group 3: Industry Trends and Developments - Major cloud service providers are significantly increasing their capital expenditures, with the top four North American cloud companies expected to reach $366.1 billion in total capital expenditures by 2025, reflecting strong demand for AI infrastructure [7]. - Companies like Alibaba and ByteDance are ramping up investments in AI and cloud computing infrastructure, with Alibaba planning to invest over $50 billion in these areas over the next three years [8]. - The liquid cooling technology is being rapidly adopted by leading server manufacturers, with companies like Supermicro and HPE launching liquid-cooled server solutions [41][43]. Group 4: Liquid Cooling Technology Types - Liquid cooling can be categorized into indirect contact (cold plate cooling) and direct contact (immersion and spray cooling), with cold plate cooling being the most mature and widely adopted technology [3][30]. - Cold plate cooling systems are expected to lead the market due to their minimal impact on existing infrastructure and superior cooling performance compared to air cooling [3][30]. - Immersion cooling, while offering the best cooling performance, presents higher technical challenges and is still in the exploratory phase [3][30]. Group 5: Energy Efficiency and Cost Savings - Liquid cooling systems can significantly reduce energy costs in data centers, with potential savings in operational costs due to lower energy consumption compared to air cooling systems [25][29]. - The total cost of ownership (TCO) for liquid cooling solutions is expected to be lower than that of air cooling, as they can reduce the need for additional cooling equipment [25][29]. - As data center energy efficiency becomes a regulatory focus, liquid cooling solutions are positioned to meet stringent PUE requirements, enhancing overall energy utilization [17][20].

Market Overview - The liquid cooling server market is experiencing rapid growth, driven by the increasing demand for high-power chip server cooling and energy efficiency in data centers [1][2] - According to estimates from Zheshang Securities, the liquid cooling market is projected to reach 35.4 billion yuan, 71.6 billion yuan, and 108.2 billion yuan in 2025, 2026, and 2027 respectively [2] - IDC reports that the Chinese liquid cooling server market is expected to grow to 2.37 billion USD in 2024, representing a 67% increase compared to 2023 [2] Technology Trends - The mainstream liquid cooling technologies include cold plate and immersion cooling, with cold plate being more widely adopted due to lower retrofitting costs [2] - Immersion cooling involves submerging servers in a non-conductive cooling liquid, which is more expensive but suitable for large-scale clusters [2] Industry Developments - Companies are actively expanding their liquid cooling server-related businesses in response to market demand [3] - Qinhuai Data has developed multiple cooling solutions, including indirect evaporative cooling and immersion cooling, and is working on standardizing cold plate liquid cooling systems [3] - Dawn Information Industry Co., Ltd. has launched the Nebula800 platform, which integrates advanced liquid cooling technologies and energy optimization mechanisms [3] Company Performance - Beijing Zhongshi Weiye Technology Co., Ltd. expects a net profit of 116 million to 129 million yuan for the first half of the year, a growth of 85.01% to 105.75% year-on-year [5] - Shenzhen Feirongda Technology Co., Ltd. anticipates revenue of approximately 2.886 billion yuan and a net profit of 155 million to 170 million yuan, reflecting a year-on-year growth of 103.95% to 123.69% [6] Future Outlook - The liquid cooling server technology is expected to penetrate smaller data centers, becoming a key infrastructure for green computing [6] - The adoption of new technologies such as two-phase cooling and microchannel liquid cooling is anticipated to significantly increase the penetration rate of liquid cooling solutions in the coming years [6]

Core Viewpoint - HUT8's Q2 2025 report highlights the advancement of liquid cooling systems, bridging the gap between traditional air-cooled ASIC infrastructure and liquid-cooled GPU infrastructure, with increasing cabinet density and market potential for liquid cooling solutions [1] Group 1: Market Trends - The trend towards liquid cooling has been initiated by the increasing shipment of NVIDIA's GB200 cabinets, which feature cold plate liquid cooling design, marking the beginning of a new era in liquid cooling [2] - The growth of the liquid cooling market is driven by two main factors: the rising power consumption of GPU chip designs necessitating upgraded cooling solutions, and the increasing integration demands of data centers [2][3] Group 2: Industry Dynamics - The integration of data centers is pushing the need for advanced cooling solutions, as traditional air cooling cannot meet the economic and integration requirements of high-performance computing centers [3] - The future of the liquid cooling industry is clear, with a shift from traditional air cooling to liquid cooling solutions, including cold plate, spray, and immersion cooling systems [3] Group 3: Investment Opportunities - Companies to watch in the liquid cooling space include Invec (002837.SZ), Kehua Data (002335.SZ), Wangsu Science & Technology (300017.SZ), Yimikang (300249.SZ), Shenling Environment (301018.SZ), and Gaolan Co. (300499.SZ) [3]