Founder: The value and redundancy of power in data center have greatly increased with the upgrade of liquid cooling solutions, bringing investment opportunities.

Founder released a research report stating that due to the special characteristics of electricity consumption in data centers, the value of power supply and redundant configuration has significantly increased. The future scale estimate of data center cabinets in China is around 15 billion in the next 27 years. There is a higher premium for customized and non-standard requirements outside the cabinets. In terms of liquid cooling, there is a gradual increase in plate-type cooling. From a technological evolution perspective, plate-type cooling is still mainstream, and immersion-type liquid cooling requires cost reduction in cooling liquid to drive down costs. In terms of supporting equipment, SiC-based APF and SVG products have a high compatibility with the data center industry. The acceptance of SiC-based low-voltage power quality products by data center industry users is increasing, and the market penetration rate of SiC-based low-voltage power quality products is rapidly increasing. Key points from Founder's perspective: Power supply in data centers: due to its special characteristics, the value of power supply and redundant configuration in data centers has significantly increased, with high value, continuous technological iteration, and low sensitivity. Outside the cabinets: 1) Comparison of HVDC and UPS: HVDC has been upgraded in efficiency and reliability. In terms of efficiency, the topological structure of HVDC is simpler than UPS, with lower costs and higher conversion efficiency. However, the efficiency gap between UPS and HVDC has narrowed with UPS upgrades. In terms of reliability, HVDC has lower downtime than UPS due to the different positions of the backup batteries. 2) Scale estimation: the price of domestic UPS power supply is approximately 0.6 yuan/W (excluding lead-acid batteries); The price of HVDC power supply is lower due to centralized procurement, at around 0.5 yuan/W (with reduced usage of rectifier devices and PSU). The future scale estimate of domestic data centers in the next 27 years is around 150 billion. Inside the cabinets: There is a higher demand for customized and non-standard requirements, leading to a higher premium. From 2024 to 2029, the average rack density of AI servers will increase from 40-100kW to 350-500kW. With the increase in rack power, there are technological iterations in server power supplies (the use of SiC and GaN will replace Si-based power devices), leading to further price increases. The future scale estimate of domestic data centers in the next 27 years is about 37.3 billion. Liquid cooling: Plate-type cooling is gradually increasing in volume, while immersion-type cooling is waiting for further development. In terms of value, the unit price of plate-type liquid cooling is approximately 5 yuan/W. The cost of a single GB200 NVL rack from NVIDIA is approximately 3 million USD, and based on a power rating of 125kW per cabinet, the value of a single cabinet is equivalent to 625,000 RMB, accounting for about 2.97% of the cabinet's value. From a technological evolution perspective, plate-type liquid cooling remains mainstream, while immersion-type liquid cooling requires cost reduction in cooling liquid to drive down costs. Plate-type liquid cooling technology requires minimal modifications to server structures, giving it strong advantages in maintainability, space utilization, and compatibility. In immersion-type solutions, the cooling liquid accounts for about 60% of the value. Fluoride cooling liquid is preferred for data center scenarios due to its good thermal performance, but cost reduction is needed to drive market growth. The current market size of liquid cooling is estimated to be 112.7 billion. Auxiliary power equipment: Transformers + busbars + power quality 1) Data center busbars, by eliminating strong electrical panel boards, can accommodate over 1000 amperes of high current, making them suitable for high-power AI cabinets and potentially opening up more space. 2) SiC-based APF and SVG products, due to their small footprint, high overall efficiency, higher switch frequencies, and other advantages, have a high compatibility with the data center industry. The acceptance of SiC-based low-voltage power quality products by data center industry users is increasing, and the market penetration rate of SiC-based low-voltage power quality products is rapidly increasing. Risk warning: Industry policy progress is slower than expected, industry competition may lead to lower profits than expected, and capital expenditures may fall short of expectations.