Core Insights - The report from Morgan Stanley reveals that the water consumption of AI data centers is expected to exceed 100 billion liters by 2028, highlighting a significant risk due to the inability to transport water across regions like electricity [1][9][10] - The focus on energy consumption overlooks the critical issue of water scarcity, which is becoming a local project killer for data centers [6][12] Water Consumption Projections - By 2028, the direct cooling and electricity production consumption of AI data centers is projected to reach 106.8 billion liters [9] - In an optimistic scenario, this figure could rise to 148.5 billion liters, while even in a pessimistic scenario, it would still be 63.7 billion liters [10][11] Localized Water Resource Risks - The real bottleneck is not the total water consumption but the localized availability of water resources, which cannot be easily transported [12][14] - Recent examples include Amazon's "Project Blue" being rejected in Tucson, Arizona, due to high water and electricity demands, and opposition to AI data center plans in North Lincolnshire, UK, due to existing water supply issues [14][15] Technological Adaptation - Tech giants are being forced to innovate to survive in a water-scarce environment, focusing on technologies that significantly reduce Water Usage Efficiency (WUE) [16] - Examples of emerging technologies include microchannel cooling plates and the use of natural cooling sources, such as Google's project in Finland utilizing seawater [17][18] Regulatory Landscape - Regulatory bodies are increasingly focused on water usage standards for data centers, with regions like Singapore and Malaysia setting strict WUE targets, and the EU planning mandatory minimum performance standards by 2026 [19][20][21] Beneficiaries of Water Solutions - Companies specializing in water treatment solutions, such as Ecolab, Toray Industries, Veolia, and DuPont, are expected to benefit from the rising demand for water resource management as data center operators strive for water sustainability [22]

Core Viewpoint - The company, Shenling Environment, is actively researching various cooling plate technologies, including water-cooled plates, microchannel plates, and heat pipe phase change plates, anticipating increased commercialization opportunities due to rising chip thermal density [1] Group 1 - The company has multiple types of cooling plate technologies under research [1] - There is an expectation for more gradual commercialization opportunities in the future [1] - The driving factor for these opportunities is the increasing thermal density of chips [1]

Group 1 - The company, Shenling Environment (301018.SZ), is engaged in research on various cooling plate technologies, including water-cooled plates, microchannel cold plates, and heat pipe phase change cold plates [1] - The company anticipates that as chip thermal density increases, there will be more opportunities for gradual commercialization in the future [1]