SINOLINK SECURITIES(SH:600109)2024-06-02 13:13Financial Data and Key Metrics Changes - The AI industry is driving high computing power demand, which is expected to accelerate the development of server liquid cooling technology [1][9] - NVIDIA reported Q1 FY2025 revenue of $26.044 billion, a 262% year-over-year increase, with a gross margin of 78.4% [10][9] - The liquid cooling server market in China is projected to grow at a CAGR of 54.7% from 2022 to 2027, reaching $8.9 billion by 2027 [34][28] Business Line Data and Key Metrics Changes - Liquid cooling technology can significantly reduce the Power Usage Effectiveness (PUE) of data centers, with cold plate liquid cooling accounting for 90% of the market in China [21][3] - The market for liquid cooling servers in China reached $6.6 billion in the first half of 2023, a 283.3% year-over-year increase [34][28] Market Data and Key Metrics Changes - The liquid cooling server market in China is expected to achieve a market size of $154 billion in 2023, with a projected growth rate of 53.2% [34][28] - By 2025, the single cabinet power density is expected to evolve towards 20kW, necessitating the adoption of liquid cooling solutions [19][28] Company Strategy and Development Direction - The industry is witnessing a dual drive from policy and demand, with stricter PUE requirements and the rapid development of AI driving the need for liquid cooling [2][15] - Major telecom operators in China are increasing the adoption of liquid cooling technology, with liquid cooling servers accounting for over 90% of certain procurement projects [12][19] Management Comments on Operating Environment and Future Outlook - The management emphasizes the urgent need for energy efficiency improvements in data centers due to rising electricity consumption, which is projected to exceed 5% of total national consumption by 2024 [15][17] - The rapid development of AI is expected to create significant demand for high-density computing solutions, further driving the adoption of liquid cooling technologies [19][28] Other Important Information - The liquid cooling technology is categorized into cold plate, immersion, and spray cooling, with cold plate being the most widely adopted due to its cost-effectiveness and compatibility [21][3] - The liquid cooling market is expected to reach $1.02 trillion by 2027, driven by the maturation of the AI ecosystem and increasing demand for high-performance computing [34][28] Q&A Session Summary Question: What is the expected growth rate of the liquid cooling market? - The liquid cooling market in China is projected to grow at a CAGR of 54.7% from 2022 to 2027, reaching $8.9 billion by 2027 [34][28] Question: How is the AI industry impacting server cooling technologies? - The rapid development of the AI industry is leading to increased power consumption and higher density in server cabinets, making liquid cooling solutions essential [19][28]