Guosen: Server computing power increase catalyzes liquid cooling demand, suppliers welcome new opportunities for domestic alternatives.

Guosen issued a research report stating that it is focusing on component companies that are quickly laying out in the server liquid cooling field. The server liquid cooling industry is expected to experience rapid growth, with overseas companies holding the majority share in the liquid cooling field. In recent years, domestic companies have been gaining advantages in terms of product cost-effectiveness and response capabilities. Component companies in China that are quickly laying out are expected to have more opportunities for cooperation. The main points of Guosen are as follows: - Overseas internet companies are increasing their investment in computing power, driving demand for liquid cooling. - With the increase in computing power demand, traditional air cooling methods are unable to meet the needs, leading to a gradual shift towards full liquid cooling for data centers. Heat dissipation has become one of the core factors limiting the improvement of data center computing power. In the backdrop of overseas internet companies increasing their investments, liquid cooling for data centers has become an increasingly clear development trend, bringing great opportunities to the liquid cooling industry. Key components of server liquid cooling: Disassembled server liquid cooling components are divided into primary and secondary sides. The cooling liquid circulates in the primary and secondary sides, transferring the heat from the cooling cabinet to an outdoor cooling tower for dissipation. Key components of the secondary side include CDU, cold plate, quick couplings, and Manifold, while components of the primary side include cooling tower, dry cooler, and pipelines. CDU is the core component of the secondary side, responsible for circulating the cooling medium to form a closed-loop cooling system. Among various technological routes, the cold plate liquid cooling method is gradually becoming a mainstream technological solution. The liquid cooling industry has vast space for continuous growth. Server liquid cooling is gradually becoming a standard which drives the value increase of liquid cooling components. Technologies such as two-phase liquid cooling and microchannel heat dissipation are still under development. The overall value of liquid cooling in server cabinets is not high, but it demands high technology and quality for the related liquid cooling components. Once the compatibility is determined, it will create strong stickiness. CDU and cold plate occupy the core value, with cold plate value accounting for over 40% and CDU value accounting for 30-40% respectively. According to calculations, by 2030, the global market space for server liquid cooling will reach 53.5 billion US dollars, with a compound annual growth rate of 43.6% from 2026 to 2030. By 2030, the global market space for cold plate/Manifold/quick couplings/CDU is expected to reach 23.02/2.29/5.04/20.64 billion US dollars respectively. The overall market space for server liquid cooling is vast, showing strong growth potential, and CDU and cold plate could exceed a hundred billion RMB in space. Diverse participants, domestic suppliers accelerating substitution. The competitive barriers in the server liquid cooling industry are high, requiring high technological, coordination, and product certification standards for enterprises, testing enterprises' interdisciplinary application capabilities. As server liquid cooling is still in the early stages of development, there are many participants and no absolute monopoly has been formed yet. Some participants are continuously expanding their product boundaries, evolving from providing components to becoming integrated suppliers of components. For core components such as CDU, Manifold, quick couplings, and cold plates, overseas companies hold a leading share, while domestic companies, relying on cost advantages, fast response capabilities, and customized services, are seizing market share from overseas competitors and are expected to replace foreign brands. Risk warnings: Progress in the liquid cooling industry may fall short of expectations, technological iterations, industry price wars, fluctuations in tariffs and overseas policies, price fluctuations in raw materials and exchange rates, lower-than-expected main sales volume, dependence on major customers, etc.