Orient: AI server demand-driven immersive liquid cooling expansive space

Orient released a research report stating that the immersion liquid cooling core consumable coolant is divided into two mainstream routes: fluorine-based and silicon-based. Fluorinated liquids have excellent performance and currently dominate the immersion coolant market, while silicon-based cooling liquids have cost advantages and their application scenarios and market space are gradually expanding. The global liquid cooling market has vast potential. With the expansion of AI servers and the increasing demand for cooling performance, the penetration rate of immersion liquid cooling will continue to increase. Overseas suppliers like 3M are gradually exiting the market, creating opportunities for domestic companies to accelerate their replacement period. Companies with a layout of immersion cooling liquid related products are optimistic. Key points from Orient: - AI computing power is increasing, and with stricter Power Usage Effectiveness (PUE) constraints, liquid cooling is becoming a necessary option for high-density computing scenarios - As AI chips powered by GPUs continue to break through, the heat design power consumption of data center chips is also increasing significantly. In addition, there is a national limit on the power usage efficiency of large data centers to be below 1.3, making cooling and reducing energy consumption crucial. Liquid cooling technology, with its high thermal conductivity, high heat transfer properties, and excellent power usage efficiency, is economically viable and is rapidly replacing traditional air cooling to become the core technology choice for AI computing clusters. Liquid cooling technology has two main routes: cold plate and immersion, with cold plate currently being the mainstream. Immersion cooling, with its high heat dissipation efficiency, lack of hot spots, and adaptability to ultra-high density computing, has outstanding growth potential. - Demand side: Expansion of AI servers expected to drive growth in cooling liquid demand. Global liquid cooling market space is vast. According to Polaris Market Research, the global data center liquid cooling market is expected to reach $28.87 billion by 2025, with the market volume projected to increase to $365.89 billion by 2034, achieving a CAGR of 32.6% from 2025 to 2034. Immersion liquid cooling has significant potential, with ample space for growth in cooling liquids. According to Hengzhou Cheng Si, the global electronic fluorine liquid market is expected to reach approximately 10.56 billion yuan by 2025 and is expected to reach 15.92 billion yuan by 2032, with a compound annual growth rate of 6.1% from 2026 to 2032. According to QYResearch, the global silicone oil cooling liquid market is expected to reach approximately $0.63 billion by 2024 and is projected to reach $1.1 billion by 2031, with a compound annual growth rate of 6.8% from 2025 to 2031. - Supply side: International giants exiting the market create opportunities for domestic companies to accelerate their layout The global electronic fluorine liquid market has been mainly dominated by European and American companies such as 3M and Solvay. However, 3M has announced a comprehensive exit from the PFAS product line by the end of 2025, releasing significant market space and opening a window for domestic alternatives. With the expansion of AI servers driving the growth of cooling liquid demand and the core supplier 3M gradually exiting the cooling agent market, the domestic immersion liquid cooling market space is expected to open up, and domestic companies are accelerating their layout in the liquid cooling industry. Among them, companies representing fluorine-based cooling liquids such as Zhejiang Juhua, Shenzhen Capchem Technology, and Zhejiang Yonghe Refrigerant are accelerating their capacity deployment, forming a diversified layout to create ecosystems. Guangdong Hec Technology Holding has established a complete industry chain in liquid cooling computing power through investment and mergers in "materials-equipment-operations". China Kings Resources Group strategically invested in Zhejiang Noah and entered the fine fluorine chemical industry track. The domestic cooling liquid industry has entered a period of comprehensive acceleration. In the silicon-based cooling liquid sector, Ningbo Runhe High-Tech Materials has differentiated competition breakthroughs through modified silicone oil solutions, and Zhejiang Xinan Chemical Industrial Group has entered the silicon-based cooling liquid track relying on the entire silicone industry chain. Representatives of hydrocarbon cooling liquids such as Ningbo Bohui Chemical Technology are deeply cultivating hydrocarbon cooling liquids, establishing wholly-owned subsidiaries specializing in liquid cooling business. Risk Warning: - Liquid cooling penetration rate is lower than expected, global environmental policies are becoming stricter, industry overcapacity risks, fluctuating raw material costs, and cooling liquid production capacity is not releasing as expected.