AI Liquid Cooling Industry Report: Entering a New Era

The rapid development of computing power has significantly increased processor power consumption, making traditional air cooling insufficient. Liquid cooling technology, with higher heat exchange efficiency and lower PUE values (1.2 or below), has become essential. Since 2019, Chinese policies have mandated PUE values below 1.3 for new green data centers, boosting liquid cooling adoption. The AI server market is booming: global AI server market size is projected to grow from $19.5 billion in 2022 to $34.7 billion in 2026 (CAGR 17.3%), while China's liquid cooling server market is expected to reach $10.2 billion by 2028 (CAGR 47.6%). Cold plate solutions currently dominate due to minimal server structure changes and strong maintainability, though immersion cooling with fluorocarbon coolant requires cost reduction for widespread adoption. The AI server liquid cooling market demand is estimated to grow at a CAGR of 21.50% from 2022 to 2025, with market sizes of 66.87, 81.29, and 106.12 billion yuan respectively. Key investment recommendations include Huafeng Aluminum, with projected net profits of 1.192, 1.377, and 1.679 billion yuan for 2024-2026, maintaining a 'recommended' rating. Risks include project delays and lower-than-expected downstream demand.