AI Liquid Cooling Industry Report: Liquid Cooling Enters 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 green data centers with PUE below 1.3, benefiting liquid cooling. The AI server market is booming, with IDC forecasting global growth from $19.5 billion in 2022 to $34.7 billion in 2026, and China's liquid cooling server market growing at a 47.6% CAGR to $10.2 billion by 2028. Cold plate solutions are currently mainstream due to minimal server changes and strong maintainability, while immersion cooling with fluorocarbon coolant requires cost reduction for widespread adoption. The AI server liquid cooling market is estimated to grow at a 21.50% CAGR from 2022 to 2025, with market sizes of 66.87, 81.29, and 106.12 billion yuan respectively. Investment recommendation: Huafeng Aluminum, a leading domestic aluminum heat transmission company, benefits from new energy vehicle and bicycle heat transmission growth, with projected net profits of 1.192, 1.377, and 1.679 billion yuan for 2024-2026. Risks include project delays and lower-than-expected downstream demand.