Industry and Company Analysis Summary Industry Overview - The data center and AI server liquid cooling industry is experiencing rapid growth due to increasing energy consumption and stringent green requirements. Liquid cooling technology is becoming a necessity as traditional air cooling cannot meet current demands [1][2][3] - The main liquid cooling technologies include cold plate, silent, and spray cooling, with cold plate technology currently dominating the market. However, silent cooling has superior heat dissipation capabilities, making it suitable for high-power density AI data centers [1][4] Key Points and Arguments - Energy Consumption: In 2024, China's computing centers are projected to consume 11,601 GWh, accounting for 1.68% of total electricity consumption, surpassing the annual output of the Three Gorges Dam. The government has set strict PUE standards for data centers, which will drop from 1.4 in 2023 to 1.3 by 2025 [2][3] - Market Opportunity: 3M plans to exit PFAS production by 2025, creating significant domestic replacement opportunities for companies like Juhua Co., Dongyue Group, and Nantong Zhanding [3][9] - Liquid Cooling Demand: The penetration rate of liquid cooling in AI data centers is expected to reach 85% by 2028, with overall cooling demand projected to exceed 100,000 tons [3][11] Liquid Cooling Technologies - Cold Plate Cooling: Dominates the market with a 91% application rate in 2022. It is mature and does not require extensive modifications to existing data centers, suitable for single cabinet power scenarios of 50-100 kW [4] - Silent Cooling: Although only 8% of the market in 2022, it offers the highest heat dissipation capacity, reaching 150 watts per square centimeter, and is ideal for high-density AI data centers [4] Cooling Media Characteristics - Water-based: Cost-effective and suitable for cold plate systems but requires additives to prevent microbial growth [5] - Oil-based: Used in silent cooling, with various types like mineral oil and synthetic oil, each having its pros and cons [5] - Fluorinated: Includes products like perfluoropolyether and perfluoramine, known for excellent thermal performance but higher costs and environmental risks [6][8] Future Trends - Fluorinated coolants, especially light fluorinated ethers, are expected to become essential in high-performance scenarios due to their material compatibility and environmental properties. New microchannel water-cooling technologies are emerging but are costly and complex [7] - The global cooling liquid demand is projected to grow fivefold in the next four years, with AI data centers contributing significantly to this increase [11] Key Companies and Market Dynamics - Juhua Co.: A leader in fluorinated compounds, with plans for 5,000 tons of production capacity [12] - Dongyue Group: Offers a comprehensive product line suitable for various liquid cooling solutions [12] - China Petroleum: Excels in oil-based cooling liquids with stable production capacity and cost advantages [12] Conclusion The liquid cooling industry is poised for significant growth driven by energy efficiency demands and technological advancements. Companies positioned to capitalize on these trends, particularly in the domestic market, are likely to see substantial opportunities in the coming years [3][9][12]